We recently released a list of 10 Companies Set to Thrive Due to Artificial Intelligence In this piece, we'll examine how BlackSky Technology Inc. (NYSE:BKSY) measures up against other companies poised to benefit from artificial intelligence advancements.
Artificial Intelligence (AI) has evolved from being a futuristic idea into an actual economic powerhouse affecting various market sectors. Through reshaping business operations and boosting production capabilities, AI is paving the path toward greater efficiency, creativity, and financial gains. Those pioneering companies that are either creating, facilitating, or embracing these AI innovations stand poised to benefit significantly as the economy expands rapidly.
Artificial intelligence has rapidly taken hold of various sectors and transformed them. As per McKinsey’s 2024 Global AI Survey, the utilization of generative AI has seen an unprecedented rise. Currently, half of all businesses are utilizing this technology—an increase from only a third in 2023. Additionally, there has been significant growth in integrating AI into different aspects of company operations; today, 72% of firms employ AI in at least one department. While part of this uptick can be attributed to increased automation, much of it stems from overhauling processes, boosting efficiency, and reshaping industry norms. Findings from the most recent McKinsey Global Survey indicate that corporations are adopting plans aimed at improving profitability, restructuring workflows specifically for generative AI implementation, and assigning high-ranking executives to manage AI oversight. Large-scale enterprises—those earning more than $500 million annually—are spearheading these advancements, outpacing smaller competitors as they swiftly adapt to the advantages brought about by AI technologies.
Industry projections indicate that the generative AI sector is expected to grow from $40 billion in 2022 to approximately $1.3 trillion by 2032. According to Thomson Reuters, AI has the potential to boost productivity significantly; they forecast that professionals might gain back as much as 12 hours each week starting from 2029 through the use of AI-driven automation tools. With ongoing advancements, AI's reach is extending into various sectors including finance and healthcare, solidifying its role as a key component in shaping future investment approaches.
Major technology companies are increasing their financial commitments to artificial intelligence projects. One leading tech giant plans to allocate $80 billion towards AI ventures during this fiscal period, whereas another intends to invest as much as $65 billion, highlighting their confidence in the future earnings potential of AI technologies. Additionally, an important player in online commerce and cloud services is taking significant action by investing $53 billion into cloud computing and AI infrastructure over the coming three years—a sum that exceeds all previous AI spending accumulated throughout the last ten years combined. According to Gartner’s forecast for 2024, AI continues to expand across various sectors; specifically within finance departments where usage has surged significantly. The data shows that currently, 58% of these operations incorporate some form of AI—an increase of 21 percentage points compared to what was observed back in 2023.
As artificial intelligence keeps catalyzing significant changes in corporate processes and commercial approaches, investors ought to respond with flexible financial tactics. The realm of AI is no longer solely within the domain of major technology corporations; instead, an extensive range of sectors and businesses are progressively integrating AI into their primary plans. In the following segment, we will explore the top ten AI-focused stocks poised to benefit from this technological upheaval.
Our Methodology
To compile this list, we categorize stocks poised to benefit from artificial intelligence into two groups: AI Enablers (firms involved in creating AI technologies such as models, chips, and cloud infrastructures), and AI Adopters (businesses utilizing AI for operational improvements and new innovations). These selections undergo screening based on specific AI-related criteria within various industries including semiconductor manufacturing, cloud technology, medical care, and banking services. Following these filters, they are ordered by projected expansion rates through 2025 alongside assessments derived from hedge fund opinions. Our ranking process leverages the specialized data set provided exclusively by Insider Monkey’s fourth-quarter 2024 private repository of hedge fund insights.
Why do we focus on the stocks that hedge funds heavily invest in? It’s straightforward: our analysis indicates that mimicking the top stock choices from leading hedge funds allows us to surpass market performance. Each quarter, our monthly publication recommends 14 small-cap and large-cap stocks, delivering a return of 373.4% since May 2014, which significantly outperforms its benchmark by 218 percentage points. see more details here ).
A satellite soaring through space as its solar arrays harness the sunlight.
BlackSky Technology Inc. (NYSE: BKSY )
EPS next year: 36.75%
Number of Hedge Fund Owners: 10
BlackSky Technology Inc. (NYSE:BKSY), a company focused on space-derived intelligence, offers current geospatial data through its exclusive satellite network along with the BlackSky Spectra analysis system. These tools cater to multiple industries such as national defense, supply chain tracking, emergency response coordination, and surveillance of essential facilities. As a result, this makes it an excellent choice among artificial intelligence companies for potential investors to look into.
For the fourth quarter of 2024, BlackSky Technology Inc. (NYSE:BKSY) announced revenues totaling $30.4 million. The company’s imagery and software analytics division generated $17.5 million, fueled by an increase in the need for current geospatial data. Professional and engineering services brought in $12.9 million, which represents a decrease compared to the prior year as significant projects reached their conclusions.
Even though BlackSky Technology Inc. (NYSE:BKSY) reported a net loss of $19.2 million in the fourth quarter of 2024, the company saw an adjusted EBITDA of $7.4 million, which reflects enhanced operational performance. Financial analysts remain positive about the stock’s prospects, with their average predicted 12-month price target set at $17.50, implying a possible increase of approximately 88.58% from its current market value as of March 25th.
BlackSky Technology Inc. (NYSE:BKSY) has rolled out AI-driven analytics leveraging ultra-high-resolution images captured by its inaugural Gen-3 satellite, launched on February 18. This achievement highlights BlackSky’s sophisticated AI capabilities, enabling swift transformation of intricate satellite information into practical insights.
Overall, BKSY ranks 10th On our roster of equities poised to benefit from artificial intelligence advancements, we recognize the prospects of BKSY. However, we maintain stronger confidence in AI-centric stocks as they offer superior potential for substantial gains over a brief period. Notably, one such AI equity has surged since the start of 2025, contrasting with major players in the sector which have seen declines nearing 25%. Should you seek an AI-focused stock offering better growth opportunities compared to BKSY yet trading below five times its earnings value, explore our detailed analysis on this opportunity. cheapest AI stock.
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Disclosure: There are no conflicts of interest. This article was initially published here. Insider Monkey .