Piper Sandler Sees Autodesk's Generative AI Strategy "Close to Bearing Fruit"

Autodesk, Inc. (NASDAQ:ADSK) is one of the AI Stocks on the Market’s Radar. On October 8, Piper Sandler analyst Clarke Jeffries reiterated an Overweight rating on the stock with a $373.00 price target.

Analysts at the firm highlighted Vertical AI progress and new monetization model as key drivers for the stock. The firm further noted that the investments made in operationizing generative AI is “very close to bearing fruit”.

“Neural CAD (& more) Shows the Promise of Autodesk’s Investment in Vertical AI; Announcements & upcoming features previewed at Autodesk University this year demonstrate the substantive progress Autodesk is making in developing Vertical AI for AEC, Manufacturing & Media. The investment made in operationalizing generative AI is very close to bearing fruit & we believe there is line of sight to material product change in an industry that has been largely “land locked” as seat-based, desktop tools for 40 years."

"AutoConstrain in Manufacturing & Neural CAD (AI foundation models focused on CAD objects) look to be prime examples of how the company is pushing step-function improvements to customer’s workflows. Additionally, the business model is evolving with forthcoming pricing changes to Autodesk Platform Services (APS, formerly Forge) to carve out new monetization opportunities based on consumption & cloud compute as generative technologies start to expand. While profitability & efficiency have dominated the ADSK narrative, we believe the product evolution here should not be overlooked.”

Autodesk, Inc. (NASDAQ:ADSK), a multinational software corporation, leverages generative AI technology to drive innovation across the design, construction, manufacturing, and entertainment industries.

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