There’s no question that artificial intelligence dominates current headlines but the escalating valuations of this ecosystem also raise curiosity for underappreciated AI stocks. You might be wondering, are there still hidden gems in this heavily hyped space?

The answer in my opinion is yes (not a surprise there because this article would be pointless otherwise). Not only that, you don’t necessarily have to speculate with wildly risky ideas (although you can choose to do so). Instead, many options exist depending on your comfort level.

Below are three underappreciated AI stocks to put on your radar.

Qualcomm (QCOM)

When discussions about digital intelligence sprout up, the usual suspects like Nvidia (NASDAQ:NVDA) come to mind. However, investors may want to consider Qualcomm (NASDAQ:QCOM). As a major player in the wireless communications segment – and by logical deduction the 5G rollout – QCOM offers a solid idea for underappreciated AI stocks to consider.

Fundamentally, one of biggest AI-related catalysts for Qualcomm centers on edge computing. This functionality involves processing data locally on devices instead of strictly depending on cloud-based servers. Subsequently, QCOM stock is up over 18% year-to-date. No, it’s not the most brilliant performance among tech players but those who know, know.

Investors for the most part enjoy Qualcomm’s consistency of performance. Last fiscal year, its average positive earnings surprise came out to 6.28%. For the current year, experts are anticipating earnings per share of $9.78, a big improvement over last year’s $8.43. On the revenue front, they’re looking for $38.18 billion, up 6.6% from last year’s haul of $35.83 billion.

Combined with a forward annual dividend yield of 2.05%, it’s worth a look.

Baidu (BIDU)

Although the tech segment seems to be all about digital intelligence, not every player has benefited from the surge. Just take a look at Baidu (NASDAQ:BIDU). In other circumstances, I believe that BIDU would be seen as a solid contender. However, its home market of China has encountered significant economic challenges during the post-pandemic cycle. So, skepticism reigns.

In addition, BIDU just hasn’t been delivering the goods. Since the start of the year, BIDU stock slipped almost 13%. Over the past 52 weeks, it’s down 17%. However, for contrarians, the red ink could present an opportunity for underappreciated AI stocks to buy. Notably, management stated during its fourth-quarter earnings disclosure that it’s been benefiting from AI.

Now, here’s the thing. BIDU stock is already undervalued, trading at 9.95X forward earnings. Compare that to the sector median of 17.21X. Granted, in fiscal 2024, analysts see a slowdown in the bottom line. However, the high-side target calls for EPS of $12.30, above last year’s print of $11.41. It could be a gamble worth taking.

Aeva Technologies (AEVA)

It’s super risky but if you want to target underappreciated AI stocks with supreme upside potential, take a look at Aeva Technologies (NYSE:AEVA). Per its corporate profile, Aeva is involved in the development of lidar sensing systems and related perception technologies. These initiatives focus on building an autonomous future for our roadways. In particular, Aeva specializes in what it terms 4D lidar.

With its 4D tech, Aeva goes beyond software that merely recognizes surrounding objects. Rather, the system can calculate anticipated trajectories, thus leading to proactive accident avoidance rather than merely reactive. It may seem like a subtle difference but it’s actually a massive one. Therefore, Aeve commands game-changing potential.

Now, getting the market to recognize this dynamic has been a challenge. However, analysts see big things ahead. For fiscal 2024, they’re targeting revenue of $8.79 million, up 103.8% from last year’s tally of $4.31 million. And fiscal 2025 could see sales shoot up to over $37 million.

If you have the patience for volatility, AEVA could be one of the underappreciated AI stocks to buy.

On the date of publication, Josh Enomoto 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.