When you think about artificial intelligence (AI), New York-based enterprise automation software maker UiPath (NYSE: PATH) probably isn’t the first company that comes to mind. Yet, UiPath is actually immersed in AI, and the company has a notable partnership with the almighty Amazon (NASDAQ:AMZN). So, while it won’t always be a smooth ride, expect PATH stock to gain value over the next couple of years.
UiPath specializes in robotic process automation (RPA). This technology, according to UiPath, “makes it easy to build, deploy, and manage software robots that emulate humans actions interacting with digital systems and software.”
There’s no denying that UiPath is among the most respected publicly listed RPA specialists. In fact, an independent research firm recently identified UiPath as a leader in the RPA field. Clearly, there’s something special about this company, so let’s consider how a share position in UiPath could benefit investors over the coming years.
What’s Happening With PATH Stock?
PATH stock recently traded near $14, though it’s been as high as $85. Without a doubt, the tech rout of 2022 shook some of UiPath’s investors out of the trade.
Former shareholders who bailed on UiPath might end up regretting their decision, though. Now that machine learning is a red-hot market, Wall Street might favor UiPath and reward the company’s loyal shareholders with substantial returns.
Don’t get the wrong idea here. PATH stock is going to be volatile, as the market won’t immediately recognize the full value of RPA. In time, however, the investing community will connect the dots between AI and RPA.
UiPath insists that it has “built AI into every part of the UiPath Platform.” While UiPath’s bot-based software helps businesses streamline their workflows, AI can help UiPath’s software robots to “perform cognitive tasks, navigate uncertainty, and resolve inconsistencies.” In other words, RPA and AI aren’t just adjacent technologies; they’re a perfect fit for each other.
UiPath Has a Tech-Focused Arrangement With Amazon
Another growth driver for PATH stock will be UiPath’s arrangement with Amazon. Remember, Amazon isn’t just an e-commerce giant. It’s also a technology business with strong interests in cloud computing, machine learning and more.
Just recently, UiPath announced new cross-functionality between the company’s RPA platform and end-to-end machine learning service Amazon SageMaker. Data science teams using SageMaker will now be able to “connect to UiPath to quickly and seamlessly connect new [machine learning] models into business processes without the need for complex coding and manual effort.”
Thus, UiPath and Amazon will make it easier for data scientists to develop and deploy cutting-edge machine-learning technology. This, according to UiPath Chief Product Officer Graham Sheldon, “opens avenues for faster deployment, lower costs, and more opportunities for innovation through machine learning.”
So, Here’s My PATH Stock Price Prediction for 2025
UiPath’s arrangement with Amazon certainly looks like a win-win scenario for both companies, and for data scientists as well. Meanwhile, UiPath’s commitment to effectively combining RPA and AI is evident.
Still, it might take a while for financial traders to appreciate UiPath’s innovations in RPA and machine learning. Therefore, be ready for near-term volatility if you’re planning to invest in UiPath.
That said, UiPath’s reward-to-risk profile looks favorable for the long term. When the market finally recognizes the company’s true value, the UiPath share price should surge quickly. Hence, I feel it’s reasonable to target $30 by 2025 for PATH stock. It’s a confident wager on the future of RPA and AI, two emerging technologies with tremendous growth potential.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.