The post 2 AI stocks with ‘strong buy’ ratings for August 2024 appeared on BitcoinEthereumNews.com.

The excitement surrounding artificial intelligence (AI) has been a major driver of the stock market rally this year, with the market value of generative AI estimated to be around $1 trillion.  AI’s potential to enhance productivity and transform industries such as marketing, healthcare, and manufacturing has fueled a surge in demand for leading tech companies. This surge has significantly boosted the stock prices of firms specializing in semiconductors and servers. In this context, Finbold analyzed the ongoing trends and tracked down the two best investments in the AI sector for the upcoming month. ServiceNow (NYSE: NOW) As companies increasingly digitize their operations to enhance efficiency, ServiceNow’s (NYSE: NOW) AI and machine learning-driven workflow solutions have positioned it as a market leader. The company’s financial performance in Q2 was impressive, with subscription revenues rising by 23% on a currency-adjusted basis to $2.54 billion. ServiceNow secured 88 high-value deals, each worth over $1 million in annual contract value, marking a 26% year-over-year increase, demonstrating strong demand among large enterprises. Investors are particularly excited about ServiceNow’s integration of generative AI (GenAI), as the company aims to revolutionize workflows across industries with GenAI at its core.  Looking ahead, ServiceNow’s forward guidance is equally promising. The company expects Q3 sales to range between $2.66 billion and $2.665 billion, indicating a robust 20.25% annual growth at the midpoint.  Additionally, ServiceNow anticipates an operating income margin of 29.5%, reflecting strong operational efficiency. Valuation metrics also show the company’s potential, with a market cap of $169.66 billion and an enterprise value of $166.50 billion. Despite high trailing and forward PE ratios of 149.93 and 55.85 respectively, the company’s PEG ratio of 2.89 suggests reasonable valuation given its growth prospects. Wall Street’s NOW  stock 12-month price target. Source: TipRanks Analyst sentiment further supports the bullish outlook, with an average…

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Filed under: News - @ July 28, 2024 2:18 pm