The 5 best undervalued AI stocks to invest in now

Value is where you find it and there is value among AI stocks. This is a look at five AI stocks with value for investors in one form or another. The bottom line is that AI stocks are hot and can continue to grow into 2024 because that’s where the money flows. Total technology spending may not increase much on a year-over-year basis, but spending will be focused on AI, and AI is accelerating. By NVIDIA NASDAQ:NVDA The GTC Developer Conference made it clear that traditional computing is old and that AI-accelerated computing is the new standard; The data center AI revolution will quickly move to the edge and into our devices. These are the tech stocks to watch.

UiPath is the underrated AI stock

of UiPath NYSE: PATH Recent results have led analysts to revise their outlooks, and the revisions are higher. Enough analysts have upgraded or raised a price target to put the company in the #1 position. 29 on Marketbeat’s list of most up-to-date stocks, highlighting its profound value. The stock is trading slightly below analysts’ lowest price target, setting it up for a rebound that could lead to a full reversal in the stock price. The $27 consensus target implies a 20% upside; the high target is another $3 above that. A move to $27 aligns with recent highs and puts the market on the brink of completing its reversal. A possible move above $27.87 could be a trigger.

Reasons to buy the stock include accelerating demand for AI-driven business automation. Double-digit revenue growth is compounded by double-digit ARR growth and deepening penetration, suggesting strength will continue this year. Margin is another strong point, with net results including 3750 basis points of profit outperformance. Guidance may also be cautious due to new product launches, a DOD contract and expanded partnerships.

MongoDB and GitLab market resets are buying opportunities

MongoDB NASDAQ:MDB AND GitLab NASDAQ:GTLB I’m in the same boat. Their stock prices imploded because their solid results were far from analysts’ expectations. That doesn’t alter the outlook, but it has altered the timeline, which has put valuations in play: Trading above 100X and 200X this year’s earnings, the results had to be spectacular.

The bottom line is that these companies expect growth to slow but remain solid at more sustainable levels, around 20% to 25% annually. Profitability is also expected to continue and improve. The guidelines may also be cautious, given the expected growth of all things AI over the next decade. While not related, the two operate in the same sphere and integrate each other’s services into their respective platforms; where one goes, the other is likely to follow. The rankings are promising; both show action in alignment with the Head & Shoulders lows which could easily lead to reversals in price action, provided we deliver solid results in the next earnings cycle.

Oracle is technically undervalued and ready to break out

That of the Oracle NYSE: ORCL The stock price is trading near the upper limit of a trading range and is about to break out because it is undervalued. The stock trades at about 23 times its earnings outlook, deep relative to blue-chip tech peers that trade anywhere between 28 and 35 times. Furthermore, analysts are driving the market higher with revisions and see the stock moving towards a new high. A move towards the consensus of $129.33 would be a technical trigger that could take the market up to $155, a move equal to the width of the pre-breakout range. Coincidentally, that target is in line with the lofty target recently set by HSBC.

Airship AI holdings are speculative value

Airship AI holdings NASDAQ: AISP is an AI-powered video monitoring operating system that tracks data in real time to provide actionable insights. Recent news includes new contracts with US government agencies that are expected to lead to additional activity under the FedRAMP program. Singapore also uses the company’s platform to assist with border control, a primary growth market. The news means the share price has risen more than 500% in the past three weeks, suggesting it could climb much higher. The move is accompanied by high volume and a new high, indicating a rise of $9 as much as 600%.

Before you consider NVIDIA, you’ll want to hear this.

MarketBeat tracks Wall Street’s highest-rated and best-performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market takes hold… and NVIDIA wasn’t on the list.

While NVIDIA currently has a “Moderate Buy” rating among analysts, top-rated analysts believe these five stocks are better buys.

View the five stocks here