We recently compiled a list of the 20 Under The Radar AI Stocks. In this article, we are going to take a look at where Rubrik, Inc. (NYSE:RBRK) stands against the other AI stocks that are under the radar.
Artificial Intelligence has become increasingly vital across various industries, including some under the radar sectors like utilities, mining, and media. AI tools are driving efficiency, safety, and innovation in these domains. In the utilities industry, AI is playing a critical role in enhancing the efficiency and reliability of power generation, distribution, and consumption. One significant application is in predictive maintenance, where AI algorithms analyze data from sensors embedded in infrastructure such as power grids and pipelines. This allows for early detection of potential failures, reducing downtime and maintenance costs. For example, a report by McKinsey & Company estimates that AI-driven predictive maintenance can reduce maintenance costs by up to 40%, extend the life of assets by 20%, and decrease unplanned outages by 50%.
Read more about these developments by accessing 33 Most Important AI Companies You Should Pay Attention To and 20 Industrial Stocks Already Riding the AI Wave.
The mining industry, traditionally labor-intensive and hazardous, is also seeing significant benefits from AI. One of the most impactful applications is in automation and autonomous operations. AI-powered autonomous vehicles and machinery are now commonplace in large mining operations, reducing the need for human presence in dangerous environments. According to a report by PwC, the use of autonomous haulage systems (AHS) in mining can lower operational costs by up to 15% while increasing productivity by 20%. AI is also enhancing mineral exploration and resource estimation. Machine learning algorithms can analyze geological data to identify potential mining sites with higher accuracy and less time than traditional methods. This not only reduces exploration costs but also minimizes environmental impact by focusing efforts on the most promising areas.
In the media industry, AI is revolutionizing content creation, distribution, and consumption. AI-driven algorithms are increasingly used to personalize content recommendations, which is vital for streaming platforms. These algorithms analyze vast amounts of user data to predict preferences, keeping users engaged and boosting subscription rates. According to Netflix, its recommendation engine, powered by AI, saves the company over $1 billion annually by reducing churn and increasing viewing hours. Moreover, AI is crucial in combating digital piracy and protecting intellectual property. Machine learning algorithms can scan the web for unauthorized distribution of content, allowing companies to take down pirated material swiftly. The global AI in media and entertainment market is expected to reach $100 billion by 2030, growing at a CAGR of 27% from 2023 onwards, underscoring the importance of AI in this rapidly evolving industry.
Read more about these developments by accessing Billionaire Stan Druckenmiller Is Betting On AI Infrastructure, Tobacco and Industrial Stocks and 10 Tech Stocks to Monitor Amid Market Volatility According to Bernstein Analyst.
Our Methodology
For this article, we selected AI stocks that have been in the news this week. A recent investment note from investment bank Goldman Sachs regarding under the radar AI stocks was also used for this article. These stocks are popular among hedge funds as well. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A cybersecurity expert monitoring the security of the company’s assets, emphasizing the importance of data protection.
Rubrik, Inc. (NYSE:RBRK)
Number of Hedge Fund Holders: 28
Rubrik, Inc. (NYSE:RBRK) provides data security solutions to individuals and businesses worldwide. The company offers enterprise data protection, unstructured data protection, cloud data protection, and SaaS data protection solutions. The cybersecurity market is worth hundreds of billions in the modern world, with the potential to expand further as even more data comes online in the wake of the AI revolution. Rubrik has developed a focus on data resilience within this domain, and this sets it apart from competitors in the market. The data resilience market has a total addressable value of close to $56 billion. The firm has rapid growth and high-margin recurring revenue stream, suggesting a faster than normal path towards profitability.
Rubrik, Inc. (NYSE:RBRK) has enormous growth potential and analysts on Wall Street have recognized this. Piper Sandler recently initiated coverage of the stock with an Overweight rating and $42 price target, terming the stock one of the top investment ideas. In an investor note, the advisory noted that next-generation vendors were replacing legacy vendors, and tailwinds like ransomware, artificial intelligence and backup-as-a-service were driving shifts to vendors like Rubrik. The advisory sees the company growing 20% per year sustainably.
Overall RBRK ranks 15th on our list of the under the radar AI stocks. While we acknowledge the potential of RBRK as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than RBRK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
