Artificial intelligence companies have become a huge investment trend in today’s stock market.

Arguably, AI has already overshadowed some other recent cycles such as SPACs and blockchains. It seems possible that AI enthusiasm could even exceed the software and growth stock boom of 2021 by the time it reaches its peak. Investors and understandably rushing to find the next undiscovered AI stock set to take off.

However, as with any compelling emerging growth industry, not all the new entrants will be winners. A lot of lesser companies with more challenged business models will latch onto the latest popular trend to try to benefit by association.

As the adage goes, a rising tide lifts all boats. Right now, a ton of companies are trying to ride the AI wave. Success is far from guaranteed. In fact, these are three AI stocks to sell before their fortunes fade.

Nano Dimension (NNDM)

Nano Dimension (NASDAQ:NNDM) is a company involved in the 3D printing space. The company was founded back in 2012 and continues to try to commercialize 3D printing for a variety of different industrial and commercial uses.

3D printing has, at times, been a popular theme. In fact, noted investor Cathie Wood launched a whole ETF devoted to 3D printing back in 2016, thinking that it was going to become mainstream. But so far companies have struggled to find many popular use cases for 3D printing and the related stocks have underperformed. And 3D printing remains a decidedly niche technology today.

Nano Dimension is now pitching itself as an AI play. On its website, Nano Dimension says it is the first company to apply AI to additive manufacturing. It claims that a production machine can become more than just a printer, but rather a self-coordinating self-teaching fabrication network. The company has filed some patents related to AI and has talked about an industrial large language model.

The company continues to lose money, burn cash, and generated only $56 million in revenues last year. They’ll have to show a lot more to demonstrate that there’s any real heft behind these AI claims. Don’t let the low share price fool you, Nano Dimension still has a bloated market capitalization of $600 million. That leaves NNDM stock at a huge price-to-sales multiple given the questionable state of the company’s underlying business.

Adobe (ADBE)

Graphics software giant Adobe (NASDAQ:ADBE) finds itself in an interesting place when it comes to AI. Some analysts pointed to Adobe as a potential winner from AI. Others are worried that AI could disrupt the firm. A recent earnings report showed that competition is hurting the software company, while the hoped AI boost to its own operations failed to materialize.

AI tools are a wild card for creative designers. The positive is that Adobe can create AI tools of its own to make its clients lives easier and boost productivity. But if AI workflows really take off many clients may not need Adobe services at all. Furthermore, some creative jobs could see AI entirely replace humans. The total number of people signing up for Adobe licenses and subscriptions could fall considerably.

If Adobe stock were cheap, the valuation might incorporate this AI downside risk. However, even after Adobe’s recent stumble, the stock is still at 28 times forward earnings. That’s no bargain in the context of the uncertainty around AI and its disruptive impact on the creative tools space.

Fiverr (FVRR)

Fiverr (NYSE:FVRR) is a digital marketplace for freelance workers. It serves as a place where potential customers can buy services from independent contractors. Fiverr services include things such as private educational classes, proofreading, coding, editing, graphic design, and transcription services.

Fiverr enjoyed the stay-at-home boom a couple of years ago, as more work went remote. Companies became more comfortable with hiring help from freelancers from all over the world.

However, Fiverr now faces serious challenges. Growth has declined from more than 50% annually a few years ago to the single digits now. And AI threatens the company’s core business, particularly for the entry level five-dollar jobs. Many of those more rudimentary tasks can reasonably be expected to be done by AI systems and tools in coming years.

Fiverr has pointed to AI as a potential benefit to their business through new intelligent tools and services that augment human tasks. The company has also launched a dedicated AI services vertical. However, investors should be skeptical given that the core Fiverr business model is under significant disruption risk from generative AI tools.

On the date of publication, Ian Bezek 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.