Teladoc Health Inc. (TDOC) saw its stock surge 5.02% in intraday trading on Thursday, fueled by speculation that the telemedicine company could be a hidden artificial intelligence (AI) opportunity.

The bullish sentiment was sparked by a report from Citron Research, which identified Teladoc as a potential AI play that is being undervalued by the market. While Teladoc's revenue growth has plateaued following the COVID-19 pandemic, the firm highlighted the company's improving profitability and cash flow generation as signs of its ability to leverage technology efficiently.

Citron further suggested that Teladoc's depressed valuation could make it an attractive acquisition target for tech giants like Amazon or healthcare companies like CVS Health. The firm argued that Teladoc's high-margin, cash-flow-positive business could be a desirable asset for these companies as they expand their presence in the healthcare sector.

However, the article also acknowledged the skepticism surrounding Teladoc's AI capabilities and its uncertain future. Despite Citron's claims, Teladoc's management has not explicitly mentioned AI as a key focus area, casting doubts on the firm's AI-driven narrative. Additionally, the article noted that the stock still has a lot to prove, and its future remains an enigma.