Artificial intelligence is one of the hottest tech trends right now, and most investors who have considered riding the AI wave have probably gotten their fill of suggestions to buy Alphabet, Microsoft, NVIDIA, and a host of other major tech players. There’s no doubt these companies will benefit from AI, but they won’t be the only ones.
If you’re looking for a few companies that are using AI to boost their businesses — but are off the well-worn AI path — you may want to consider what Splunk (NASDAQ:SPLK), Nutanix(NASDAQ:NTNX), and Zillow (NASDAQ:Z)(NASDAQ:ZG) are doing with AI.
Splunk’s machine-learning angle
Splunk is a hybrid cloud-computing platform company that helps businesses collect and categorize their data so they can better understand how to use it. Think of it this way: Companies are generating so much data from their customers that they’re having a hard time making sense of it all. And Splunk’s AI-powered platform helps address that.
Splunk has used machine-learning data — a type of AI — to make sense of businesses’s big data for several years. The company’s CEO said back in 2016:
Digital transformation has changed the way organizations work. The big secret is that all of the change is underpinned by machine data. Machine learning enables organizations to get deeper insights from their machine data and ultimately increases the opportunity our customers can gain from digital transformation.
To stay ahead of its competition, Splunk has frequently snatched up smaller companies, including machine-learning company SignalSense late in 2017 and VictorOps last year. So far, the company’s moves have paid off: In the most recent quarter, its software sales were up 42% from the year-ago quarter, and total revenue jumped 35%.
Splunk’s shares are up about 24% over the past 12 months — with the most recent jump coming when the company’s management raised its full-year revenue guidance — but investors know there’s likely some volatility ahead for the company as it continues to carve out its niche in the hybrid AI/cloud-computing space.
Nutanix’s AI hybridization
Like Splunk, Nutanix offers its customer a hybridization of cloud-computing service that can be controlled by a company’s own hardware. This mix allows Nutanix to provide a unique way to tap into artificial intelligence that sifts through data at its source (a business’s private cloud) and in the public cloud at the same time.
This type of approach to processing data is likely to become…
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