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Unnoticed Giants: 3 Stealth AI Stocks Stealthily Soaring

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Amidst the AI frenzy of 2024, companies are racing to stake their claim in the formidable AI landscape. While the spotlight shines on industry stalwarts like Nvidia (NASDAQ: NVDA), there are clandestine contenders poised to ascend to new heights. A recent study by Bloomberg forecasts Generative AI to burgeon into a $1.3 trillion market by 2032, underlining the untapped potential in the AI realm. Here we present three obscure AI stocks that are stealthily flourishing in the shadows.

Fervent Growth: Advanced Micro Devices (AMD)

Advanced Micro Devices, Inc. (AMD) logo in the building at CNE in Toronto. AMD is an American semiconductor company.

Source: JHVEPhoto / Shutterstock.com

The phoenix of Nvidia’s contention, Advanced Micro Devices (NASDAQ: AMD), has been on a tear in 2024. With a staggering 147% surge in the past year and a robust 46% jump in the current year, AMD is riding the wave of escalating chip demand. Tech giants are clamoring to secure AMD chips, propelling the company as a premier AI stock.

Currently priced at $202, nearing the apex of its 52-week high at $227, AMD shows no signs of slowing down. The recent unveiling of the MI300 graphics processing units to manage augmented AI workloads signals a promising trajectory. Anticipated revenue of $3.5 billion from chip sales this year further fortifies AMD’s bullish stance.

Reinvigorated fundamentals culminated in a robust 6% year-over-year revenue upswing in the fourth quarter, reporting an EPS of $0.41 and revenue totaling $6.2 billion. Positioned in the colossal global data center market, AMD stands as a seasoned player primed for substantial growth in a cutthroat environment.

As chip demand skyrockets, AMD emerges as a pivotal alternative to Nvidia’s supply constraints. Mizuho Securities’ optimistic buy rating with a price target of $235 underscores the burgeoning momentum. For investors eyeing Nvidia’s lofty valuation warily, AMD presents a shrewd investment before it ignites into an unstoppable force.

Innovative Advancements: Palantir Technologies (PLTR)

Palantir (PLTR) company logo on the screen of smartphone

Source: Mamun sheikh K / Shutterstock.com

Once shrouded in secrecy as a government-centric enterprise, Palantir (NYSE: PLTR) has undergone a metamorphosis in the past decade, culminating in profitability. The groundbreaking achievement of positive net income in the fourth quarter highlights a remarkable growth trajectory, propelled by 103 new deals and a burgeoning clientele.

Anchoring Palantir’s ascent is its Artificial Intelligence Platform (AIP), driving data analysis and strategic business recommendations. Client-centric boot camps have proved instrumental in conversion rates, reflected in a stellar 32% year-over-year surge in commercial business and an 11% rise in government revenue. Notching $608 million in revenue, Palantir’s projection of $612 to $616 billion for the current quarter heralds lucrative prospects on the horizon.

The resounding success of AIP with clients bodes well for Palantir’s revenue streams moving forward, hinting at robust profitability in successive quarters. Priced at $24 presently, Palantir remains a hidden gem poised to amplify investors’ returns, having escalated by 48% year to date.

Following the AIPCon event’s culmination, Wedbush analysts raised the price target of the stock from $30 to $35, endorsing an Outperform rating and heralding Palantir’s foray into commercial sectors alongside its governmental triumph.

Formidable Diversification: Amazon (AMZN)

An image of an Amazon logo on a building

Source: Jonathan Weiss / Shutterstock.com

Anchored as a global e-commerce behemoth, Amazon (NASDAQ: AMZN) isn’t merely a titan of retail but an unsung hero in the realm of AI stocks. Unbeknownst to many, Amazon’s diversified business ventures span across multiple industries, with Amazon Web Services (AWS) emerging as a stalwart revenue generator. Boasting a 13% year-over-year revenue surge in the fourth quarter alone, AWS’s robust $24.2 billion revenue in the quarter and $91 billion yearly revenue attest to its formidable market presence.

Spearheaded by longstanding AI implementations, Amazon’s cloud platform fortification stands testament to its AI acumen. Priced conservatively at $175 currently, Amazon’s overlooked status belies its substantial growth potential, up by 16% year to date and a staggering 89% over the past year, yet lagging behind AMD stock valuations.

Endorsed by Wall Street pundits with a plethora of Buy ratings, Amazon’s lucrative prospects are on a bullish trajectory. With an appealing valuation and an enduring long-term outlook, AMZN serves as a well-rounded investment opportunity, whether viewed as an e-commerce marvel or an AI powerhouse.

On the date of publication, Vandita Jadeja did not hold (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 InvestorPlace.com Publishing Guidelines.

Vandita Jadeja, a CPA and a freelance financial copywriter, is an avid reader and writer, particularly enthused about stocks. She champions the strategy of long-term investing for reaping substantial gains, using her proficiency in words and numbers to craft lucid stock analyses.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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