An increase of 30% in the past month. Is Now the Time to Buy UiPath Stock?

• UiPath’s software helps companies automate processes and manage artificial intelligence (AI) agents.

• The AI ​​market for business agents is expected to grow rapidly and this could be a huge opportunity for UiPath.

• However, the company continues to struggle with profitability and the growth rate has not been that high.

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UiPath‘S (NYSE: PAD) business centers around automating and leveraging artificial intelligence (AI) to save users time. It’s the type of stock you’d expect to do well during an AI revolution.

However, last year it lost almost half of its value. And this year didn’t look like it would be a strong year for the tech company either, until a recent rally changed that. What’s behind UiPath’s sudden rise? And could this be a sign that the company is finally winning over growth investors?

In the early days of AI, the hype and excitement was all about chatbots and using them to help with calculations, writing emails, and taking photos. But as AI has evolved, it has been able to take on more complexity. Take AI agents, which can perform multiple tasks, such as booking a trip taking into account all your wishes and your budget, and then finding and booking flights and hotels.

It is in these multi-step agentic processes where UiPath has risen in popularity. The software can enable companies to manage agents and put in place the necessary guardrails to protect the company, its customers and its data. AI for enterprises is a major growth opportunity. Analysts at Grand View Research predict it will be worth $24.5 billion by 2030, implying a compound annual growth rate of more than 46% until then. With that kind of massive growth, UiPath stock could have incredible upside if it can perform successfully.

There is a lot of promise for UiPath and bullish investors in the opportunities ahead. UiPath recently announced partnerships with several top AI companies, including Nvidia and Open AI. But the big question is whether this will lead to significant growth for the company, and more importantly, whether it can help UiPath get out of the red.

For the six-month period ending July 31, the company’s revenue rose a fairly modest 10%, totaling $718.4 million. And while its net loss fell to just under $21 million over the past two quarters (versus a $115 million loss in the first half of last year), operating income doesn’t look very strong despite the company posting a gross profit margin of more than 80%.