We recently compiled a list of the Top 10 Hot AI Stocks Dominating Headlines. In this article, we are going to take a look at where Zoom Communications Inc. (NASDAQ:ZM) stands against the other AI stocks.
While AI is transforming industries worldwide and is expected to elevate our society to new heights, Caleb Maresca at New York University shared a contrarian view in his latest study. The economist believes that transformative AI could upend economies, decimating wages and lifting interest rates to extremely high levels.
“My findings reveal that expectations of [transformative AI] can substantially affect current economic conditions even before any technological breakthrough occurs. When AI automates a job — whether a truck driver, lawyer, or researcher — the wages previously earned by the human worker don’t vanish or automatically transform into broader economic gains. Instead, they flow to whoever controls the AI system performing that job.”
-said Maresca
He highlighted that expectations of AI gutting the price businesses pay for work could massively drive interest rates by up to 16% in some scenarios. In such a situation, the cost of launching a new business or purchasing a house could increase to unaffordable levels, which could compel people to save more and spend less, creating a “form of prisoner’s dilemma in saving behavior.”
He urged people to collectively push politicians to enact policies, which ensure that the wealth created by transformative AI is shared broadly, especially if AI leads to persistently high unemployment.
We selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of over 1000 hedge funds.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A close-up of a hand using a laptop to control an immersive video meeting.
Zoom Communications Inc. (NASDAQ:ZM)
Number of Hedge Fund Followers: 48
Zoom Communications Inc. (NASDAQ:ZM) is a leading provider of communication services such as chat and video conferencing, as well as sales and marketing products through Zoom’s Business Services segment.
On February 27th, Zoom Communications Inc. (NASDAQ:ZM) and business communications leader Mitel announced the launch of a hybrid cloud solution that integrates Zoom Workplace and Zoom AI Companion with Mitel’s platforms, including telephony solutions, expanding on the partnership first announced in September 2024. The hybrid solution will meet the surging demand for hybrid unified communications deployments, delivering critical communications capabilities and collaboration functions to boost business productivity.
“As businesses navigate the connectivity requirements to support hybrid work, they need solutions that unite the benefits of on-prem or single-instance cloud communications infrastructure with Zoom’s industry-leading collaboration experiences, giving them the best of both while future-proofing their organizations. The AI-first solution provided by Zoom and Mitel makes connecting and collaborating seamless and efficient while giving customers the flexibility to migrate to the cloud on their own terms and with their existing Mitel devices.”
-said Graeme Geddes, chief sales and growth officer at Zoom Communications Inc.
Overall ZM ranks 3rd on our list of the AI stocks that are dominating headlines. While we acknowledge the potential of ZM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ZM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stock To Buy Now and Complete List of All AI Companies Under $2 Billion Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.
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