The late 90s dot-com boom serves as a cautionary tale of tech hype, but the rise of AI today signals a transformative shift across industries. Analysts from UBS project AI could generate up to $1.5 trillion in annual revenues, justifying significant capital expenditures of $780 billion since 2022. UBS emphasizes the importance of long-term investments in AI, with two standout stocks: Datadog (DDOG) and Cognex (CGNX).
Datadog excels in real-time data analytics, offering AI-powered tools for robust data management, appealing to major clients like Samsung and PayPal. With a market cap of $46 billion and a strong growth trajectory, it boasts a Buy rating and a $165 price target, indicating a 25% upside.
Cognex, a leader in machine vision systems, recently launched its AI software platform aimed at enhancing industrial automation. Its optimistic outlook supports a Buy rating and a $58 price target, suggesting a 31% potential upside. Investing in these AI-focused companies can be beneficial for long-term growth.
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