We recently compiled a list of the 15 AI Stocks That are Making Headlines. In this article, we are going to take a look at where SPX Technologies, Inc. (NYSE:SPXC) stands against the other AI stocks.
Perplexity, the California-based AI startup that is challenging the dominance of Google in the Internet Search market, is considering the development of a $50 device that brings the conversational search abilities of the platforms it offers on the consumer market. Aravind Srinivas, the CEO of the firm, recently posted on social networking platform X and said the company would definitely sell such a device if the post got more than 5,000 likes. Other AI startups have also tried making AI-only devices, the latest example being Humane and their AI Pin, but these devices have not caught mass attention because of buggy performance.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
Perplexity could succeed where others have failed as the firm has much more cash in the bank to hire the right teams for the purpose. News publication The Wall Street Journal recently reported that the startup is planning to raise more than $500 million at an upcoming funding round that would value the firm at more than $8 billion. The report claims that the platform the startup markets currently receives about 15 million queries a day and brings in around $50 million in annualized revenue. Perplexity uses AI to help people search the web in a chatbot-style interface.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we selected AI stocks by combing through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
An engineer adjusting a robotic arm in a factory line to control engineered air movement solutions.
SPX Technologies, Inc. (NYSE:SPXC)
Number of Hedge Fund Holders: 22
SPX Technologies, Inc. (NYSE:SPXC) supplies infrastructure equipment serving the heating, ventilation, cooling, detection and measurement markets worldwide. The cooling products and engineered air movement solutions for the HVAC industrial and power generation marketed by the firm are directly linked to the construction and powering of AI data centers across the United States. On November 25, Wolfe Research initiated coverage of the stock with an Outperform rating and $199 price target. The advisory views SPX as an early-stage compounder, operating in the niche HVAC and detection and measurement markets, with attractive growth opportunities both organically and inorganically. The company is positioned towards the high end of the value chain in engineered niches with plenty of runway for continued bolt-on acquisitions to its existing platforms, Wolfe told investors in a research note.
Overall SPXC ranks 15th on our list of the AI stocks that are making headlines. While we acknowledge the potential of SPXC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SPXC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.