Artificial intelligence has been the topic of much recent talk about tech investing, with Nvidia, Alphabet and Microsoft dominating the headlines. Trent Masters, portfolio manager at Alphinity Investment Management, said one stock has been “(flying) under the radar” for investors looking to diversify their holdings. Masters named the telecommunications company Motorola Solutions, which he called “a very beautiful, reliable, public safety-focused enterprise.” “This is a low-profile company, but we like this business very much and we’ve had it for a while,” said Masters, who is bullish on Nvidia and artificial intelligence in general. MSI YTD mountain YTD Motorola Stock “When people think of Motorola, they do think of mobile phones, but it’s a fundamentally different business,” Masters recently told CNBC’s “Street Signs Asia.” “The telephone business, which is now gone, was essentially an enabler of public safety,” he added. According to Masters, “approximately 70 percent of the business” was dedicated to Land Mobile Radio (LMR), or “emergency radio.” Walkie-talkies used by personnel for communication”. The remainder of the business includes video security and building command center divisions. Masters is optimistic about the stock. He said that Motorola’s LMR business is currently in an upgrade cycle and the price of new equipment will be higher. The company’s video security and command center businesses are also gaining more traction in the market, he added. “Those three elements are supported by public safety (and) government spending. It’s an area of the market where even if you do think the environment might look a little sketchy, the clamps don’t really come into play.” On the spending side, ” he added. Put it all together, Masters said, and you have a “very, very strong, high-quality composite business.” “Performance continues to be strong. Just a compounding winner,” he added in a note to CNBC. Masters noted that artificial intelligence is not a “key driver” for the company, nor is it purely a focus like Nvidia and Microsoft. company, though he said there were some “potential gaps” in using artificial intelligence to “enable growth.” One possible use is Motorola’s video security solution, Masters said, saying that artificial intelligence would help identify if someone enters a school with a gun and “control access” to the school. Motorola shares, which trade on the New York Stock Exchange, are up more than 18% so far this year and more than 30% in the past 12 months. Of the 15 analysts covering the stock, nine have buy or overweight ratings and six have hold ratings, according to FactSet data. The stock has an average price target of $376.38, with slight downside potential.
