What is AI-powered enterprise software?

AI-powered enterprise software refers to business applications that integrate artificial intelligence to enhance functionality and deliver better value to customers. These tools can automate tasks, provide intelligent insights, and improve user experiences across areas like customer management, data analytics, and collaboration.

Why are companies raising their forecasts for AI tools?

Companies like Zoom are raising forecasts because there's strong customer demand for AI-enhanced features. Businesses are willing to pay premium prices for software that uses AI to solve problems more effectively, leading to higher subscription revenues and improved profit margins for software providers.

What does 'market cap' mean?

Market capitalisation (market cap) is the total value of a company's shares in the stock market. It's calculated by multiplying the current share price by the number of shares outstanding. It gives you an idea of how much the market thinks the entire company is worth.

How do analyst ratings work?

Analyst ratings are professional opinions from financial experts who study companies and make recommendations about whether to buy, hold, or sell their shares. Common ratings include 'Buy', 'Hold', and 'Sell', based on the analyst's research into the company's financial health and growth prospects.

What is potential profit percentage?

Potential profit percentage represents an estimate of how much a stock's price might increase over a specific period, usually based on analyst predictions or market models. It's important to remember this is just an estimate - actual returns can be higher, lower, or even negative.

18 handpicked stocks

Enterprise AI Software: Which Stocks May Benefit?

Zoom raised its annual financial forecasts, citing strong demand for its new artificial intelligence tools. This highlights a broader investment opportunity in enterprise software companies that are successfully integrating AI to drive growth and enhance their product offerings.

Han Tan | Market Analyst

Updated 1 day ago | Published at August 22