2022 was not characterized by being a good year for equities and much less for the listed technology companies. In fact, the Nasdaq 100 ended the year as one of the most punished indices in the world, with losses not reached since 2008.
In this environment, companies that exclusively develop and offer artificial intelligence services suffered a debacle on the stock market with setbacks above 60% in most cases. However, this scenario opened the door to investment opportunities within this industry that presents a average potential of 34% in six companies in the sector: Alteryx, UpStart, C3.ai, Cerence, Veritone y Renalytix.
British Renalityx and the North American company Alteryx have certain advantages. The English company offers artificial intelligence programs for the in vitro diagnosis of kidney disease. “Our objective is to reduce health costs and improve the quality of life of patients,” they indicate from the company itself. Last year the collapse of this firm came close to 90%, although in the first steps of this 2023 it already accumulates a revaluation of almost 38%. And with it, the market still expects it to continue to grow on the stock market by an additional 138%, until it reaches 249 pounds per share that analysts set as the average target price.
Alteryx, for its part, uses AI for data science and analytics. For her, 2022 was not as dramatic as for the rest of the firms in the sector, despite the fact that 16% of its value was left on the parquet. In 2023, however, it is the one that advances the least, remaining practically flat on the stock market. For her, the consensus of analysts collected by FactSet estimates an upside potential of 35%.
Also, the market recommends holding positions in Veritone and Cerence, both American companies. The first of them, Veritone is the creator of the world’s first artificial intelligence operating system.. Faced with the 77% drop that it registered in 2022, this year it already accumulates gains of 17% and can rise 23% more, as expected by the market. For his part, Cerence, whose business resides in AI software for connected and autonomous vehicles, will be able to go public with an additional 15%, with nearly 17% gains so far this year.
C3.ai and UpStart Holdings are, however, the recommendations with the least growth prospects in the sector. The American C3.ai offers artificial intelligence applications to meet business needs. Companies as prominent as Shell, Engie or even the US Air Force have chosen the programs of this company that has a potential of 13% on the stock market. UpStart, for its part, has run out of steam on the market following rising just over 30% so far in 2023. This firm is dedicated to providing AI loan platforms.
