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Artificial intelligence was a hot topic in 2023, leading to a surge in inventory costs for big tech names like Nvidia (thanks to its complex chips) and Microsoft (thanks to its partnership with ChatGPT author OpenAI). Investors who didn’t buy those inventories before the AI frenzy drove up inventory costs may have felt like they’d missed out.
Fortunately, many emerging tech corporations are providing new opportunities to take advantage of the advent of AI, and 2024 is the time to earn shares in some of those rising stars. Here’s a trio of tech startups well-positioned to generate physically powerful energy. Come back in the new year.
The transformative power of AI is particularly evident in Symbotic (SYM -1.23%). The company specializes in providing warehouses with robotic workers managed by AI. These robots can process freight quickly, accurately, and safely alongside humans. And Symbotic’s AI can continuously analyze and refine the work performed by the robots, routinely improving their efficiency.
The company’s consumers come from Walmart, which owns a stake in Symbotic, and Southern Glazer’s Wine and Spirits, the largest distributor of alcoholic beverages in the United States.
But Symbotic has only just begun. In its 2023 fiscal year, which ended Sept. 30, Symbotic installed 12 systems for its customers, a truly extensive backlog of seven in 2022. This expansion resulted in a 2023 fiscal profit of $1. 2 billion, nearly double the sales generated last year. .
Further profit expansion awaits the company. Symbolic in the process of installing 35 robotic systems by the end of fiscal year 2023, more than double the 17 systems in place last year. As a result, the company expects profit of at least $350 million for the first quarter, up from $206. 3 million last year. previous year.
UiPath (PATH -1. 77%) provides consumers with an AI platform that can analyze their business workflows, identify areas for improvement, and then automate those responsibilities. Organizations are flocking to UiPath’s AI solution, especially in industries like finance, healthcare, and government, as those industries involve a lot of administrative responsibilities that AI can handle.
UiPath’s good fortune is reflected in its strong sales expansion. The company’s profit of $325. 9 million in its fiscal third quarter ended Oct. 31 represents a 24% year-over-year increase. The company expects further earnings expansion in the fourth quarter. forecasting at least between $381 million and $308. 5 million a year earlier.
Despite strong sales, UiPath is profitable, like the other high-growth tech corporations on this list. But UiPath has made a concerted effort over the past year to keep prices in check. As a result, its net loss of $31. 5 million in the third-year quarter represents a very large reduction from the prior year’s loss of $57. 7 million. This is a positive sign that the company’s financial capacity is improving.
Another positive is its improvement in free cash flow (FCF). UiPath’s Q3 adjusted FCF was $44 million, up from negative FCF of $24.1 million in the prior year.
IonQ (IONQ -1. 38%) operates in the emerging sector of quantum computing. Quantum computers offer the potential for AI to grow exponentially, because once the quantum generation advances far enough, those machines will be able to perform complex calculations beyond the functions of the world’s most powerful supercomputers.
Quantum machines are potent since they use quantum physics to perform multiple computing tasks simultaneously, rather than processing them sequentially like today’s computers. IonQ developed quantum computers in 2023 that achieved 29 algorithmic qubits.
This milestone indicates that IonQ could succeed in 35 algorithmic qubits by 2024. Algorithmic qubits are a benchmark that measures a system’s ability to run quantum workloads. The higher the number, the greater the success the quantum device will be able to perform in computational work.
At 35 algorithmic qubits, IonQ’s system will be on the verge of exceeding the abilities of today’s conventional computers, and the emergence of quantum-powered AI can begin.
IonQ generates profits by charging for access to its quantum technology, and those profits are developing rapidly. The company’s third-quarter sales rose 122% year-over-year to $6. 1 million. For 3 quarters, IonQ’s 2023 earnings were $15. 9 million, more than double the $7. 3 million in 2022.
As evidenced by its advertising success, the IonQ generation attracts customers. In September, the company signed an agreement with the U. S. Air Force. A U. S. company has raised $25. 5 million to supply it with a quantum system.
Since IonQ, UiPath, and Symbotic are fledgling corporations that are successful in capturing consumers in their respective fields, they possess prospects for sales expansion in the coming years, making them profitable buys by 2024, or at least worthy of being on your list. watchlist. And given how temporary their earnings are growing, those are wonderful stocks for expanding investors.
Robert Izquierdo holds positions at Microsoft, Nvidia, and UiPath. The Motley Fool holds positions and recommends Microsoft, Nvidia, UiPath, and Walmart. The Motley Fool has a disclosure policy.
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