Today’s artificial intelligence (AI) stock gold rush is reminiscent of the blockchain stock craze. Just as companies like Long Blockchain Corp rebranded to embrace blockchain mania, firms today see massive stock spikes on just a hint of AI integration. It can be difficult to separate the underrated AI companies from the rest. Many investors find themselves stuck with two hard-to-satisfy needs. A fine balance between finding quality companies effectively developing AI technology, and those already well-known and flooded with trader interest.
The market has overlooked some underrated AI companies with solid fundamentals and burgeoning AI applications. Here are three AI stocks to buy that investors should have on their radar.
Parsons (PSN)
Parsons (NYSE:PSN) is an often overlooked but significant player in the defense technology sector. Its diversified products vary across the intelligence and security fields. Parsons’ major accomplishments include ballistic missile site development, rocketry hardware and nuclear site management. The company also has a significant stake in infrastructure development, with multiple bridge projects spanning the country. This aspect of its business also makes it a viable play for ongoing national revitalization projects.
Projects as diversified and large as those Parsons owns demand massive technical data management and oversight, something AI is primed to help with. While Parsons is at the vanguard of internally managed AI data solutions, its AI-enabled drone applications are even more exciting.
Parsons is at the forefront of developing small unmanned air systems (sUAS, better known as drones) detection and classification systems. These tools are critical as off-the-shelf drones are increasingly used in warfare worldwide, particularly evident in the ongoing Ukraine conflict. Not resting on defense opportunities, Parsons is expanding its AI-driven drone solutions to offer infrastructure inspection tools. These solutions help evaluate existing and in-progress projects like bridges, roadways and water treatment facilities. Basically, Parsons is bringing AI anywhere that’s dangerous or difficult to navigate but critical to assess with safety in mind.
AeroVironment (AVAV)
Like Parsons, AeroVironment (NASDAQ:AVAV) is an overlooked defense sector player with significant AI upside potential. AeroVironment primarily focuses on drone development tools. Analysts usually recognize AeroVironment for its flagship Raven UAS used throughout the US military and in global partners’ arsenal. Still, its peripheral products hide AI potential adopted well before the current trend explosion.
In 2021, AeroVironment acquired Progeny Systems Corporation’s Intelligent Systems Group. The buyout gave the company an entirely new wing of business dedicated to AI-powered visual detection tools for its systems. These tools are critical to the future of warfare and expand AeroVironment’s capability to “detect specific objects, perform change detection assessment or discern ‘pattern of life’ activity.”
Already a defensive mainstay, AeroVironment’s acquisition and push into AI-driven intelligent robotics push it to the front of underrated AI companies. Furthermore, its core federal US government and ally customer base ensure the company’s longevity as they help countries adapt to warfare’s changing nature.
Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) isn’t an overlooked AI stock, per se, but investors often focus on its robust hardware innovation without seeing its comprehensive, holistic approach to AI. Nvidia’s i am ai concept that embraces nearly every facet of AI innovation investors demand.
Their i am ai encompasses most of the market’s favorite AI-powered solutions like art, including music and poetry. Its overlooked potential comes from its wide-ranging solutions that will likely become prevalent across many sectors. Ultimately, it’s wide reach make it a critical AI stock for those seeking a diversified portfolio.
The i am ai network also boasts many practical uses. Such as, firefighting management and wildfire response, fish farming and aquaculture and trucking and supply chain management. These are just three of the many AI innovations Nvidia is developing beyond its essential hardware approach. The company’s big-picture perspective makes Nvidia the best bet for AI enthusiasts interested in a strong company with multiple integrations.
On the date of publication, Jeremy Flint 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 InvestorPlace.com Publishing Guidelines.
