Pega Systems Soaring: Investors Are Banking on AI-Based Workflow Solutions

The rise of companies in the field of Artificial Intelligence (AI) has been shaping the financial markets for several months now, diverting investors' attention from other topics. The reason for this is the multi-million dollar investments in AI systems, which not only enable environmental monitoring but also spark ethical discussions in the healthcare sector and revolutionize language models. Tech giant Microsoft recently developed an AI system that can predict air pollution worldwide, which could have significant implications for public health, especially in densely populated regions. In light of these developments, the global AI market, estimated at around 208 billion dollars in 2023, is experiencing impressive growth and could reach 2 trillion dollars by 2030. These forecasts highlight the momentum of AI-based process automation, customer data analysis, and data management. While some professions are being displaced by automation, the World Economic Forum predicts that a total of 97 million new jobs, particularly in AI development and governance, will be created by 2025. Pegasystems, known for its innovative AI platform Pega GenAI Blueprint, optimizes decision-making processes and automates workflows. The company's revenue could grow to around 1.5 billion dollars by 2024 with the increasing sales of this platform. It is also expected to become more profitable, with a planned increase in free cash flow to 350 million dollars. After Citi raised its price target to 92 dollars, the market is optimistic about Pegasystems. Nonetheless, our analysis also sees potential in other AI stocks that may offer even greater and faster returns. Our strategy of so-called "Playing the Big" achieves above-average results by mimicking the best hedge funds and has outperformed the benchmark by 150 percentage points since May 2014.