We recently published a list of 12 Best Artificial Intelligence Stocks to Invest in Under $10. In this article, we will look at where TTEC Holdings Inc. (NASDAQ:TTEC) is compared to the other best artificial intelligence stocks to invest in under $10.
The technology market is poised for an explosive growth phase as the AI revolution accelerates. Dan Ives, Global Head of Technology Research at Wedbush Securities, recently appeared on CNBC on November 25 to discuss the current state of the technology market, predicting that it will be “on fire” as the AI revolution enters its next phase marks the beginning of what he considers a fourth industrial revolution. Ives emphasized that the AI software segment is now critical, with AI software companies expected to lead this growth. Ives believes that the consumption model in enterprise AI, driven by the advances of major chip makers, will lead to underestimated growth rates of 15% to 20% for these software companies.
Ives also addressed the impact of bond yields and currency strength on technology trading, noting that while these factors could create headwinds, they are already factored into market guidance. He expressed confidence in a strong demand outlook that could push the NASDAQ to 20,000 points in the next two years, with ambitions to reach 25,000 points thereafter. Additionally, he sees potential benefits from deregulation in the tech industry, suggesting it could facilitate significant mergers and acquisitions. Ives remains optimistic about the technology sector as it adapts to changing market conditions driven by advances in AI.
Earlier, on November 22, Jeff Richards, managing partner of Notable Capital, joined CNBC’s ‘Closing Bell’ to also discuss technology trading and the tailwinds for the software sector. He noted that while growth rates for software companies have slowed compared to two or three years ago, when many publicly traded companies were growing at more than 50%, growth is now rebounding. Richards pointed out that peak multiples for software stocks were significantly higher at the end of 2021, but current valuations are more attractive, especially as AI begins to play a critical role in driving growth.
Richards emphasized that AI is not just a future prospect, but is now actively influencing the market, with private companies reporting that 60% to 70% of their recent bookings are AI or AI-related. He said the build-out of infrastructure for AI is comparable to historic investments in physical infrastructure, with major tech companies collectively spending about $300 billion annually. This investment is expected to lead to significant advancements in both the enterprise and consumer software sectors.
He also emphasized the global nature of this evolution, noting that MAG7’s major technology players are not only serving US customers but are also expanding their reach into international markets. This global perspective is critical as these companies use their cash flow to invest in AI infrastructure, which Richards believes will shape the future of the technology.
Richards remains optimistic about the trajectory of the technology sector, as does Ives, especially as it adapts to the growing influence of AI and its applications across industries.
A business manager looking at customer analytics on his laptop in a modern office.
We scoured Finviz and the Internet lists to compile a list of the best AI stocks trading under $10. We then selected the twelve stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of the third quarter of 2024. The hedge fund data comes from Insider Monkey’s database, which tracks the moves of more than 900 elite money managers.
Why are we interested in the stocks that hedge funds invest in? The reason is simple: our research shows that we can outperform the market by imitating the best stock picks from the best hedge funds. Our quarterly newsletter strategy selects 14 small- and large-cap stocks each quarter and has returned 275% since May 2014, beating the benchmark by 150 percentage points (Ssee more details here).
Share price as of November 27: $5.16
Number of hedge fund holders: 24
TTEC Holdings Inc. (NASDAQ:TTEC) provides technology-enabled solutions for digital and live interactions. It offers a range of services including contact center as a service, AI-powered analytics and omnichannel customer service. The solutions serve various sectors, such as healthcare, finance and technology. It remains committed to its strategy to enhance its portfolio of AI-enabled CX solutions. These solutions are technologies that use AI to improve the customer experience by automating tasks, personalizing interactions and providing data-driven insights.
A key area of focus is helping customers navigate the complexities of AI implementation. While AI offers significant potential benefits, customers are concerned about the necessary investments in infrastructure, data and organizational readiness. TTEC Holdings Inc. (NASDAQ:TTEC) addresses these concerns by providing advice on AI adoption, testing AI solutions and demonstrating tangible results. It is expected to close more than 60 new strategic customers by 2024.
Additionally, it works closely with customers to integrate AI into their existing CX technology packages. By combining AI with contact centers, CRM and analytics platforms, customers can achieve greater efficiency, improve customer satisfaction and strengthen their brand differentiation. ~45% of the company’s top 100 customers will have deployed well-defined AI projects by 2024.
To facilitate AI adoption, TTEC Holdings Inc. (NASDAQ:TTEC) created a technology innovation environment called SandcastleCX. This platform allows customers to test, learn, and implement AI solutions in a low-risk environment. The company also leverages its technology management approach, SurroundCX, to provide ongoing technology optimization and support. Overall, it is well positioned to take advantage of emerging opportunities and help customers realize the full potential of AI.
Overall TTEC is in 3rd place on our list of the best artificial intelligence stocks to invest in under $10. While we recognize TTEC’s growth potential, our belief lies in the belief that AI stocks hold promise for delivering high returns in a shorter time frame. If you’re looking for an AI stock that’s more promising than TTEC, but trades at less than five times earnings, check out our report on the cheapest AI stocks.
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Disclosure: None. This article was originally published on Insider monkey.
