Zoom's (ZM) artificial intelligence strategy will likely boost the company's wallet share across its customer base, Wedbush said in a note Tuesday.

The investment firm said that based on its checks, it is starting to see "stronger spending trends" from Zoom's AI products like the company's AI Companion 3.0 versus Companion 2.0 and Zoom Phone, which is seeing "solid double-digit growth on an ARR basis."

"The company's AI strategy is helping out in both direct and indirect ways with multiple verticals seeing incremental demand after years of staggering," the note said.

Wedbush also noted that Zoom made a roughly $51 million investment in Anthropic in 2023, which has increased 85 times in two and a half years.

The investment firm said that at Anthropic's reported valuation of more than $350 billion, it expects Zoom's stake in the company to be about $1.6 billion to about $4.4 billion, depending on "dilution/timing that we expect to further grow as the company gets closer to IPO."

Wedbush lifted Zoom's price target to $110 from $95 and has an outperform rating on the company.

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