Buy into the AI Revolution with These Undervalued Stocks

Artificial intelligence (AI) is transforming technology, skyrocketing the value of tech leaders like Microsoft and Nvidia. But, not all companies with a stake in AI have reached their peak valuations, with some promising stocks still available at significant discounts. Investors who recognize the potential in these stocks could see substantial gains as the AI industry continues to evolve and dominate this century's technological advancements.

Palantir - A Potential AI Powerhouse

Despite a noteworthy recovery in the past year, Palantir, a data analytics firm with a strong footing in AI, trades 58.5% below its post-IPO high. Its reasonable current trading levels, coupled with increasing revenues and expanding customer base, offer an attractive opportunity for those looking to invest in AI. In Q3, Palantir reported a 17% year-over-year increase in revenue and a net income of about $72 million, shifting from a loss the previous year. With U.S. commercial revenue growing and new AI tools in demand, Palantir's business is rapidly evolving. This acceleration in growth sectors within the company suggests a bright future for investors.

The Trade Desk - Primed for Growth in Adtech

As digital advertising and streaming grow, companies like The Trade Desk, a leader in demand-side platforms in ad tech, are well-positioned to benefit from advances in AI and data-driven ad targeting. Their track record for high customer retention illustrates a robust business model. With declining stock prices—43% off its peak—now may be an advantageous time to invest. The company's development of UID2 and the new AI-powered Kokai platform underscores its commitment to innovation. Considering these factors and a post-pandemic recovery on the horizon, The Trade Desk's stock could potentially rebound strongly.

AI, Investing, Tech