ANET - When Will The AI Revolution Recognize Your Favorite AI Software Stock?
2024-05-28 09:00:00 ET
Summary
- Many investors may be confused or concerned their favorite software stock is not seeing the AI benefits through revenue growth.
- There are three tiers to the AI software revenue funnel, and while the first tier may be obvious, the others are less so.
- Companies like Adobe and MongoDB are either starting to see the funnel reach them or are still waiting for AI's software transformation to shine its light on them.
Many companies are adopting AI (artificial intelligence) to improve their products and, subsequently, sales. These are primarily the AI "retail-tier" players in the industry. Their mission is to either create a pure-play AI product or adopt AI to enhance their product or business workflows to make it more efficient, less costly to produce, and grow revenue. This is where companies like Meta Platforms ( META ), for example, find themselves. Meanwhile, others have AI software capabilities or services ready for prime time, but their usefulness hasn't come into focus due to the natural progression transformation of this magnitude takes. This is where stocks like MongoDB ( MDB ) and others currently find themselves. So, the question is, which stocks are ready to benefit from AI's upstream capabilities today and which are much further down the AI software funnel?
I'll provide an overview in this article. This is meant to serve as a primer detailing how software undergoes shifts during major transitions like we're seeing with AI....
When Will The AI Revolution Recognize Your Favorite AI Software Stock?