Can Sea Ltd.'s (SE) AI Push Make It a Trillion-Dollar Company?

Sea Ltd. (NYSE:SE) is one of the best stocks to buy according to Citadel LLC. On October 20, Venugopal Garre, an analyst from Bernstein, lowered his price target on the stock to $185 from $210. However, he maintained his Outperform rating as his long-term outlook remains positive.

This update from Garre came shortly after the company’s founder, Forrest Li, sent a memo to all employees on Monday outlining his view of Sea’s potential to become a trillion-dollar company by capitalizing on AI. While the analyst called the memo a “compelling long-term vision anchored by a strong dose of AI optimism”, he, however, raised concerns over near-term pressure on growth and profitability while the company pursues such goals.

Garre noted that consensus forecasts for Sea Ltd. (NYSE:SE) have risen amid robust execution of its strategy in the first half of the year. However, as the company is investing heavily in expanding capabilities in its e-commerce and fintech businesses, the analyst is sceptical whether “flawless first half will be repeated”.

That said, Garre appeared to take a cue from past cycles, arguing that strategic investments to gain market share and maintain a competitive edge are critical for long-term business sustainability and should be prioritized over tackling near-term headwinds. He therefore maintained his bullish stance.

Sea Limited (NYSE:SE) is a Singapore-based global consumer internet company that operates businesses across digital entertainment, e-commerce, as well as digital financial services. It primarily operates in Southeast Asia, Taiwan, Latin America, and other global markets.

While we acknowledge the potential of SE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.