Little-known workplace experience platform CXApp (NASDAQ:CXAI) is nearly doubling in value on Tuesday amid broader sector enthusiasm for artificial intelligence (AI). In recent months, the company has pivoted its messaging firmly to AI, helping CXAI stock ride the market segment’s coattails. Still, CXApp remains a highly risky investment that only experienced speculators should consider.
Not much explains the dramatic rise in CXAI stock other than speculation around Nvidia (NASDAQ:NVDA) helping to usher in a new era of digital intelligence. Last week, the technology juggernaut — which is best-known for its GPUs that undergird AI applications — delivered blowout earnings. Subsequently, as NVDA slips in and out of the $2 trillion market capitalization milestone, other AI-related enterprises are soaring as well.
The rising tide includes risky ventures like SoundHound AI (NASDAQ:SOUN) and CXAI stock. According to CXApp’s Form 10-K disclosure, the company offers technologies that “help enterprise customers deliver a comprehensive business journey in a work ‘from-anywhere’ world for employees, partners, customers and visitors.” The company also says that its “enterprise app platform is the intersection of technology, intelligence, automation and experience for today’s hybrid workplace and the workplace of the future.”
More recently, CXApp has been emphasizing AI messaging when talking about the “return to office,” or RTO.
CXAI Stock Grabs a Piece of the AI Pie
In a September press release, CXApp announced a significant breakthrough with its AI-based augmented reality (AR) solution to help solve the “RTO problem.” According to Bloomberg, the transition back to the office — and the solutions forwarded to facilitate it — represents a $1.3 trillion market. To that end, CXApp offers an AI-based AR solution that integrates digital experiences with the real world.
Per the press release:
“Imagine a world where an onsite employee can effortlessly locate a conference room, a hybrid worker can access their remote office space, a visitor can safely find a point of interest and a remote team member can join an interactive session-all with the same seamless, immersive experience.”
While intriguing, the dramatic enthusiasm around CXAI stock today still raises questions about the potential “irrational exuberance” of AI. One of the hallmarks of unsustainable bubbles is that most people don’t realize it until it’s too late.
Nevertheless, Fintel points out that, despite CXAI stock running a relatively low short interest of float of 3.3%, it scores an 80.66 for Fintel’s proprietary “Short Squeeze Score.” This figure indicates a higher-than-average risk of a short squeeze materializing.
With a market cap of less than $50 million, it doesn’t take much for shares to move.
Why It Matters
No analyst currently covers CXAI stock on TipRanks. However, Maxim Group analyst Jack Vander Aarde did rate shares a “buy” on Nov. 17, 2023. In addition, the analyst offered a $6 price target, implying over 100% upside potential.
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On the date of publication, Josh Enomoto did not hold (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.
