Reddit, Inc. (NYSE:RDDT) is highlighted as an AI stock to watch, with Piper Sandler reaffirming an “Overweight” rating and $290.00 price target. Data Licensing agreements with Google and OpenAI are projected to generate $400 million in revenue by 2027. Reddit’s strategic position in the AI landscape and strong ad revenue growth are key factors driving interest in the stock.

The firm emphasizes Reddit’s potential as a strategic asset in the AI sector, with expectations for significant growth in advertising revenue. Reddit’s unique positioning in the AI landscape and projected growth in ad revenue sets it apart from its peers. The company is expected to see stabilization in user growth and potential upside in 2026 forecasts.

Reddit utilizes AI to enhance user experience and search capabilities. While Reddit is recognized as an attractive investment opportunity, some AI stocks are considered to offer greater potential returns with lower risk. Investors seeking undervalued AI stocks may find interest in the best short-term AI stock highlighted in a free report.

Read more at Yahoo Finance: Reddit (RDDT) Seen as a Key Strategic AI Asset as Demand for Training Data Grows