Cognizant Technology Solutions (CTSH) is in the early stages of its AI Builder strategy, with an opportunity to address the growing gap between AI spending and AI value in a market expected to reach $4.5 trillion, Wedbush said in a Thursday note.
The company is seeing its AI Builder strategy gain traction with around 8,000 AI engagements, the firm noted. This shows that customers are relying on Cognizant to improve their return on investment from AI spending, as two-thirds of global 2000 firms are not realizing AI productivity gains, Wedbush analysts said.
Cognizant has expanded its partnerships with key AI players such as Anthropic and introduced new AI capabilities and platforms to boost its position within the sector, Wedbush said. The company also aims to become a major player in physical AI with its new sovereign physical AI platform, according to the note.
This AI strategy is beginning to resonate with new and existing customers, and financial services clients are seen as the leading indicator of how the company's deployment of AI offerings will play out across the wider market, the note said.
Wedbush maintained the company's stock rating at outperform and price target at $70.
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