Various investment trends appear and disappear, leading to a few victors and a lot of potential losers. However, other trends establish themselves firmly, offering considerable gains to many investors. An example of a trend that has remained significant and highly profitable is the transition to cloud computing. Amazon‘s Amazon Web Services (AWS), Microsoft‘s Azure, and Alphabet‘s Google Cloud collectively generated a revenue of $64 billion for these three corporations in the most recent reported quarter.
Prior to the emergence of the cloud, the internet was the enduring trend. Another lasting trend that largely characterized the 20th century was the automobile industry. The common thread among all of these trends is the focus on efficiency and functionality. Automobiles have become more effective and practical than most other means of transportation. Making data and communication readily available online from anywhere at any time surpassed activities like consulting encyclopedias, sending letters, using telephone operators, purchasing newspapers, etc. Enabling remote office connections, phasing out local servers, and analyzing large volumes of data continue to drive the unending pursuit of efficiency and functionality.
Artificial intelligence (AI) mirrors these traits and represents the latest example of a consistent trend that has piqued investors’ interest. However, not all AI shares are equally promising investments. Many may not deliver the success necessary to transform investors’ lives. Engaging in diversified investing that prioritizes reputable companies is crucial for enhancing the likelihood of success. Renowned investor Peter Lynch perfectly captured this sentiment: “Understand what you hold and the reasons behind your investments.”
1. UiPath
I possess shares of UiPath (NYSE: PATH) because it exemplifies the efficiency trend highlighted previously. For instance, a sizable firm handling hundreds of incoming invoices daily via email might have employees spending extensive hours downloading the invoices and manually inputting data into their accounts payable software. Alternatively, the firm could opt for UiPath’s robotic process automation (RPA) to undertake these tasks, enabling the staff to concentrate on other more valuable activities.
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Recent financial reports suggest that UiPath is the more favored option among the two for …
