Skip to content

Two AI stocks to consider in these volatile markets

Two AI stocks to consider in these volatile markets
Dino Kurbegovic

Despite Artificial Intelligence (AI) being around since the 1950s with the advent of more powerful computers, AI stocks came under the limelight fairly recently. With the evolution of cloud computing, more powerful GPUs, and an explosion of data AI became more commercially viable, thus sparking investments into the sector. 

Moreover, AI is important for business since it uses algorithms to detect patterns, make predictions, lower costs, and streamline business processes all while scaling the capacity and ability of the models it uses.    

Accordingly, Finbold has found two AI stocks investors should consider in these volatile markets. 

Sumo Logic (NASDAQ: SUMO)

Sumo provides a machine data analytics platform, helping companies make sense of the data generated by their internal systems. In its latest earnings report, the company surprised to the upside by posting revenue of $67.05 million, beating estimates by $2.73 million, an increase of 23.8% year-on-year (YoY).  

Similarly, earnings per share (EPS) was -$0.13, beating estimates by $0.04. Further, the company raised its full-year guidance expecting a 21% to 23% growth YoY and offering growth guidance of 19% to 21% for 2023. Finally, Sumo has roughly $350 million of cash on hand and has only penetrated 0.5% of its $55 billion total addressable markets (TAM).   

Yet, the shares are down over 40% year-to-date (YTD) despite the earnings beat, trading below all daily Simple Moving Averages (SMA). However, a double bottom pattern has been noted on the daily chart, possibly signaling that a change in sentiment might be coming.

SUMO 20-50-200 SMA lines chart. Source. data. See more stocks here.

Analysts rate the shares as a moderate buy, predicting that in the next 12 months, the stock may reach an average price of $12.58, 64.02% higher than the current trading price of $7.67.

Wall Street SUMO analysts’ price targets for SUMO. Source: TipRanks

UiPath Inc. (NYSE: PATH)

UiPath is the leader in robotic process automation, an industry expected to grow in leaps and bounds over the next decade. UiPath’s platform is built to span the entire automation lifecycle, providing customers with a comprehensive set of capabilities to manage its automation across their entire organization.  

The firm posted a revenue of $245.07 million, an increase of 31.6% YoY, beating estimates by $19.7 million. Similarly, EPS beat by $0.03, making it a total EPS of -$0.03, increasing its full-year guidance.  

The stock of the company is down over 57% YTD, with a recent spike in the share price that helped PATH close slightly above the 50-day SMA. Slight trading volume has also been noted while the shares seemingly created a new trading range between $15 and $22.

PATH 20-50-200 SMA lines chart. Source. data. See more stocks here.

Even so, analysts rate the shares a moderate buy, with the next 12-month average price prediction at $28.84, 54.14% higher than the current trading price of $18.71.

Wall Street PATH analysts’ price targets for PATH. Source: TipRanks

With the recent market volatility, AI and tech stocks, in general, have been discarded by investors looking to sell their more risky assets. 

Unfortunately, for AI stocks, a large percentage of them lost over 50% of their market value, on the other hand, this could represent a potential buying opportunity for investors looking to go long on industry leaders; the above two likely tick these boxes.  

Buy stocks now with Interactive Broker – the most advanced investment platform

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Read Next:

Weekly Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Disclaimer: The information on this website is for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. This site does not make any financial promotions, and all content is strictly informational. By using this site, you agree to our full disclaimer and terms of use. For more information, please read our complete Global Disclaimer.