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While the AI hype train focuses on established tech giants, investors are on the hunt for the most overlooked AI stocks to buy in 2024. These under-the-radar companies possess the potential to soar, fueled by their strategic positioning in the burgeoning AI market.
As AI continues to permeate diverse sectors, from healthcare to finance, the demand for cutting-edge solutions will continue to rise. Some unique players are the backbone of AI applications, while others focus on niche technologies, positioning them for substantial growth in the coming years ahead. Investors attuned to the nuances of the AI landscape recognize the untapped potential and are poised to capitalize on emerging trends in their market.
Let’s unpack the top overlooked AI stocks to snap up in 2024!
Arista Networks (ANET)
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Arista Networks (NYSE:ANET) might now immediately come to mind when discussing AI stocks. However, it plays a pivotal role in the AI infrastructure market as a leading provider of cloud networking solutions.
AI’s immense datasets and computational power require a robust, high-speed network infrastructure. Arista excels in this arena, offering scalable solutions crucial for developing and deploying AI applications. The company provides high-performance network switches for data centers, the backbone of the AI infrastructure market. Moreover, their CloudVision platform, leveraged through their EOS cloud operating system, is used by hyperscalers such as Palo Alto Networks and Microsoft. In FY23, Arista’s revenue and EPS skyrocketed, driven by increased service demand from enterprise, cloud, and AI customers. As the company expands on its AI product portfolio and gains network switching share, Arista remains one of the top overlooked AI stocks for 2024.
Palantir (PLTR)
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Palantir (NYSE:PLTR) is synonymous with machine learning and big data analytics. Initially known for its work in defense and intelligence, Palantir has steadily been expanding its commercial business.
Palantir’s powerful platforms, such as Foundry and Gotham, enable organizations to make sense of and use their vast amounts of data. They continue to gain traction in various industries, from healthcare to manufacturing, through their artificial intelligence platform (AIP). The company’s 2023 fiscal year was pivotal, achieving its first year of GAAP profitability. Management is not slowing down anytime soon, as CEO Alex Karp has reiterated that 2024 will be another profitable year. Moreover, the company is now eligible to join the S&P 500, which could be another huge catalyst for growth. Though Palantir stock has experienced volatility, the fundamental growth drivers remain solid. This makes Palantir one of the best overlooked AI stocks to buy now.
UiPath (PATH)
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UiPath (NYSE:PATH) is a pioneer in robotics process automation (RPA). This market is ripe for growth over the next decade as companies look to automate tasks and increase productivity.
UiPath’s platform seamlessly integrates AI and robots to automate mundane and repetitive tasks, freeing employees for more meaningful work. The company is a market leader, providing services to a wide range of businesses across many industries. More recently, UiPath announced a strategic partnership with Google Cloud to accelerate generative AI and cloud-based automation. This synergy will allow Google Cloud customers to leverage UiPath’s platform to achieve AI-powered automation across their business. Additionally, UiPath recently hit a key milestone, achieving its first quarterly profit as a public company in Q4 2024. The RPA market is still in its early stages, offering immense growth potential for UiPath. CEO Rob Enslin remains bullish on their AI and automation-driven initiatives and drives operating leverage in FY 2025.
On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the biedexmarkets.com.com Publishing Guidelines.