Artificial intelligence has been a hot topic in technology investing, with companies like Nvidia, Alphabet, and Microsoft making headlines. However, there is one stock that often goes unnoticed by investors – Motorola Solutions. According to Trent Masters of Alphinity Investment Management, Motorola is a strong player in the public safety market, with about 70% of its business dedicated to Land Mobile Radio (LMR) – the devices that first responders use to communicate. The company also has units in video security and building command centers, all backed by government spending in public safety. Masters is bullish on the stock, noting that the LMR business is currently in an upgrade cycle and the video security and command center units are gaining traction in the market.
Motorola shares, listed on the New York Stock Exchange, have seen a significant increase in value over the past year, up more than 30%. Analysts covering the stock have mixed opinions, with nine giving it a Buy or Overweight rating, six giving it a Hold rating, and an average price target of $376.38.
While AI is not a primary driver for Motorola like it is for companies like Nvidia and Microsoft, Masters sees potential for the company to utilize AI in areas like video security solutions to enhance growth. With a strong track record and a focus on public safety, Motorola is seen as a high-quality, composite business by Masters. Overall, he believes that the company is a strong contender in the market and remains optimistic about its future performance.
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https://www.cnbc.com/2024/06/20/looking-beyond-ai-nvidia-bull-loves-this-under-the-radar-tech-stock.html