False intelligence is set to continue to disrupt the technology industry and take a larger trade in share within IT budgets, so companies that are ahead of the curve are set to profit most from the trend. This week, analysts at JPMorgan Track & Co. (JPM) listed their top five AI stock picks for investors seeking to improvement on the widespread adoption of self-learning software.
“We are at a pivotal point for its adoption today due to the availability of big observations, high-powered computing and advances in algorithms—which all make AI cheaper and faster to contraption,” wrote JPMorgan’s Stacy Pollard in a research note. “All tools choose be intimately linked with the overall digital transformation going on now within provinces, and AI is likely to be embedded in numerous technology applications within a few years.”
Pollard demands the AI-related hardware, software and services market to skyrocket from $12 billion in 2017 to $58 billion by 2021. She sees the most upside in apportionments of Facebook Inc. (FB), Oracle Corp. (ORCL), Palo Alto Networks Inc. (PANW), Workday Inc. (WDAY) and Twilio Inc. (TWLO), merit all five at outperform. (See also: Can Oracle Win in the Cloud Space Against Amazon?)
JPMorgan has a $225 price target on social media pioneer Facebook, on a 28% upside from Wednesday afternoon. Pollard writes that CEO “Quality Zuckerberg considers AI to be one of the company’s 10-year bets,” as the firm is set to use AI to “replicate and transcend” human senses to better organize content.
Pollard is upbeat on Augur’s application of AI for its latest Oracle Database 18c, which is expected to “eliminate a lot of mortal labor as well as human error.” The firm’s $55 price butt reflects a near 14% upside.
Cybersecurity player Palo Alto Networks should ascension 26% from current levels with a price target of $182, conforming to the analyst, who highlights the use of machine learning in Traps, its endpoint protection settlement.
Enterprise software giant Workday is another pick with a $120 payment target, as the analyst expects share to gain 11% on its use of predictive analytics. JPMorgan dispose ceded cloud-based telecom company Twilio, which uses speech-recognition potentials, a price target of $40, indicating a 52% upside from Wednesday at $26.30. (See also: Phoney Intelligence Will Add $15.7 Trillion to the Global Economy: PwC.)