Although UiPath (PATH +9.37%) didn't report any market-shaking news of its own these past few days, the enterprise software company was swept up in a rally by its peer group. As of late Friday evening, according to data compiled by S&P Global Market Intelligence, its stock was riding nearly 12% higher week to date.
Back in favor
Enterprise software has been a volatile segment of the tech sector so far this year. It wasn't very long ago that investors shunned companies in it, on fears that artificial intelligence (AI) would be disruptive enough to threaten their business models.
Image source: Getty Images.
Increasingly, though, it seems the better of these companies will do just fine, thank you very much. After market close on Wednesday, flagship enterprise software developer Salesforce posted blowout second-quarter results, featuring a double-digit revenue increase and a soaring net income line that crushed the consensus analyst estimate.
This was due less to the company's legacy business than its strategic investments. Crucially, this included a stake in leading AI developer Anthropic (the company behind the popular Claude model). It's not a passive investor; Salesforce also announced the launch of Claudeforce, which, as the name implies, places the company's data and workflows within Claude's chatbot.
This demonstrates, in no uncertain terms, that enterprise software companies are embracing opportunities with AI, rather than battening down the hatches and hoping the storm passes.
NYSE: PATH
Key Data Points
The path to success?
If anything, UiPath has embraced AI more fervently than Salesforce. In fact, it has realigned its products around the next-generation technology, which now infuses its entire product stack. It's looking more like AI will boost the company's fortunes rather than threaten them. I wouldn't be surprised to see this stock add to its gains in the coming days.
