The artificial intelligence (AI) market has significantly boosted tech stocks, with major players like Microsoft and Nvidia reaching trillion-dollar valuations. However, for investors seeking higher long-term gains, smaller AI companies such as Cloudflare (NYSE: NET), UiPath (NYSE: PATH), and SentinelOne (NYSE: S) are highlighted as potential opportunities.
Cloudflare
Cloudflare’s revenue increased by 33% in 2023, with a forecast of 27% growth in 2024. Despite a slowdown from previous years due to macroeconomic conditions, its number of large customers rose by 35%. Cloudflare has also ventured into AI with its “Workers AI” platform and partnership with Nvidia.
UiPath
UiPath reported a 19% revenue rise in fiscal 2023, down from 47% and 81% in prior years. Expectations for fiscal 2024 include a 21% revenue increase as companies resume digital transformation. Its total addressable market is projected to grow from $61.1 billion to $93.2 billion by 2025.
SentinelOne
SentinelOne aims to replace human analysts with AI on its platform, with revenue having more than doubled in each of the past three fiscal years. Its projected growth for fiscal 2024 is 46%, although it remains unprofitable. The company trades at 11 times next year’s sales and is identified as a potential takeover target.
