What Happened?
Shares of automation software company UiPath (NYSE: PATH) jumped 12.3% in the afternoon session after the stock extended its positive momentum as the company announced a major push into advanced artificial intelligence through an expanded platform and several key partnerships.
UiPath revealed a shift from traditional Robotic Process Automation to what it called "agentic" automation, which uses AI agents to handle more complex tasks. To support this, the company announced a collaboration with OpenAI to build a ChatGPT connector, integrating the popular AI into business workflows.
Further strengthening its AI ecosystem, UiPath also detailed partnerships with Snowflake to improve automated data processing and with Google to use its Gemini models for voice-enabled agents. These moves aimed to help businesses deploy AI more quickly and effectively.
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What Is The Market Telling Us
UiPath’s shares are very volatile and have had 21 moves greater than 5% over the last year. But moves this big are rare even for UiPath and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was about 22 hours ago when the stock gained 4.3% as confidence in the artificial intelligence market was renewed, pushing both the S&P 500 and Nasdaq to new all-time intraday highs.
The rebound was led by chipmaker Nvidia, whose shares rose nearly 2% after its CEO confirmed that demand for computing has "gone up substantially" in recent months. These comments helped reassure the market that the AI boom is supported by genuine demand, calming fears that were sparked a day earlier by a report questioning the profitability of Oracle's cloud business. The rally was strong enough to put the information technology sector on pace for a fresh closing high. This upward momentum occurred despite potential headwinds from an ongoing U.S. government shutdown, which entered its second week.
UiPath is up 38% since the beginning of the year, and at $17.83 per share, has set a new 52-week high. Investors who bought $1,000 worth of UiPath’s shares at the IPO in April 2021 would now be looking at an investment worth $258.55.
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