Barcode-scanning and data management expert Zebra Technologies (NASDAQ: ZBRA) recently reported its fourth-quarter results, exceeding Wall Street’s expectations. While the bar was set low, the company’s performance was still impressive. As a result, Zebra’s stock price soared 12% higher, reaching levels not seen since last summer.
However, there is more to Zebra’s success than just a strong quarterly report. The company is actively embracing the artificial intelligence (AI) boom, which could have significant implications for shareholders in 2024 and beyond.
Zebra has always been an AI expert at heart, using machine learning algorithms to interpret barcodes in challenging situations. In recent years, the company has expanded its AI expertise through strategic acquisitions. For example, it acquired AI-based retail forecasting specialist Antuit.ai in 2021 and machine vision veteran Matrox in 2022.
One of Zebra’s recent innovations involves collaborating with semiconductor giant Qualcomm (NASDAQ: QCOM) to run a large language model (LLM) on Zebra’s handheld tablets and computers. Unlike most LLMs that require an internet connection, Zebra’s Qualcomm-powered LLM runs entirely on the mobile device. This breakthrough allows Zebra’s AI technology to be accessible in network-impaired locations, such as stores or warehouses with limited connectivity.
The benefits of this technology are immense. For example, a tablet computer equipped with Zebra’s LLM can provide real-time insights and suggestions to a supermarket manager. This AI chatbot can analyze data patterns and offer solutions, such as rearranging product displays to minimize shortages or improve overall customer experience. By leveraging AI technology, even the newest worker can perform at the same level as the most experienced employee.
This is just one example of the many AI projects that Zebra is working on. The company is involved in various AI applications, including machine vision inspection, optical character recognition, navigation for autonomous vehicles, product recognition, workforce planning, and demand planning. By integrating advanced AI capabilities into its products and services, Zebra is redefining how businesses interact with data and automation.
For investors, Zebra represents an opportunity to be part of a company that is leading the way in AI innovation. With a reasonable valuation of 2.8 times sales or 20 times forward earnings estimates, Zebra offers an attractive investment in the high-tech future of retail, distribution networks, and data management. By investing in Zebra, shareholders can benefit from the company’s AI-driven growth and potential for long-term success.
In conclusion, Zebra Technologies is earning its AI stripes by leveraging advanced technologies to drive business innovation and efficiency. The company’s recent quarterly performance, coupled with its AI ambitions, has attracted attention from Wall Street and investors alike. As Zebra continues to develop and expand its AI capabilities, shareholders can look forward to exciting opportunities and potential returns in the coming years.
