A Nvidia HGX H100 server on the Yotta Information Companies Pvt. knowledge middle in Navi Mumbai, India, on Thursday, Mar. 14, 2024.
Bloomberg | Bloomberg | Getty Photographs
Notable know-how business analyst Dan Ives says Huge Tech corporations and personal fairness corporations are gearing as much as make a flurry of acquisitions to remain forward within the AI arms race. The analyst shared his picks for shares which are prime acquisition targets because the dealmaking increase will get underway.
“With the regulatory panorama changing into extra lenient to acquisitions with the brand new administrations stepping in and not representing steep hurdles, we imagine that the tech M&A floodgates are able to be opened as extra alternatives come up so as to add accretive property with a neater path ahead,” Ives mentioned late Wednesday word to Wedbush Securities shoppers.
Over the previous few months, a number of know-how corporations have entered into offers to promote their companies to AI and AI-adjacent corporations. Core Scientific agreed in July to promote its knowledge middle enterprise to CoreWeave in a $9 billion all-stock deal. Across the similar time, Palo Alto Networks introduced it could purchase CyberArk, an Israeli safety agency valued at $25 billion, whereas NiCE unveiled plans to buy consumer-focused generative AI firm Cognigy for almost $1 billion.
Ives pointed to C3.ai and Sandisk as being among the many prime M&A targets, whereas Apple and IBM are almost certainly to be extremely acquisitive throughout this AI merger wave as a result of the 2 Huge Tech corporations want to play catch up within the AI race.
“Whereas loads of funding is anticipated to construct AI use circumstances, we anticipate vital consolidation throughout the area over the subsequent 5-10 years as extra area of interest use circumstances for AI might be picked up and added to rising AI product portfolios from large-scale tech gamers and different monetary consumers to capitalize on the exploding demand for AI throughout each enterprise and federal landscapes,” Ives wrote.
Listed below are the analyst’s high publicly traded takeover candidates.
Ives inventory picks for AI-related M&A
| Tickers | Corporations | Inventory Efficiency (YTD) |
| TENB | Tenable Holdings | -25.66% |
| QLYS | Qualys | -6.33% |
| AI | C3.AI | -48.85% |
| LYFT | Lyft | 68.33% |
| TRIP | TripAdvisor | 4.47% |
| SNDK | Sandisk | — |
Supply: Wedbush Securities
Sandisk shares have surged greater than 200% because the inventory started buying and selling below the ticker SNDK in February. Lyft and Tripadvisor are up 68% and 5% because the starting of this 12 months, respectively.
Nevertheless, Tenable Holdings inventory fell 26% this 12 months, whereas C3.ai shares plunged 49% over the identical interval. Qualys shares slid roughly 6% within the 12 months thus far.
