Let’s face it: artificial intelligence is not losing steam. As AI stocks continue to soar, I asked myself if there are still others worth buying with some growth left. Well, we are in luck. With the help of screening, we can find some undervalued AI stocks worth investing in just before the market starts to realize their actual worth. 

How do we know they’re undervalued? I determined the company’s value using its upside potential and shortlisted those with healthy balance sheets.

To come up with the list, I screened for the following criteria:

• The company is in IT and involved in AI,
• A current ratio of 2 and above,
• It should have at least a buy rating from analysts,
• The stock should have an upside of more than 50%. 

A current ratio tells us a company’s ability to pay its bills. A reading of 1 or less means a company would be insolvent should its short-term debt be called. Similarly, a current ratio of 2 means a company has two times the cash or cash-like assets to pay its debts.

This screen allows me to focus only on companies with solid balance sheets that justify their high upside potential. 

Most Undervalued AI Stocks: UiPath (PATH)

With Artificial Intelligence continuously carving its way into the facets of our workflows, companies like UiPath (NYSE:PATH) provide artificial intelligence and enterprise automation at the center of attention. UiPath gives its clients the ability to scale their processes through the processing and managing of untapped opportunities by using automation. 

The launch of its UiPath Autopilot now provides further automation via the included AI assistant to ensure an efficient day-to-day workflow for its clients. 

Now, if we look at UiPath’s numbers, we can see why analysts see this as a buy-rated opportunity. FY’24 revenue increased by 24% from the same quarter last year, while net loss improved from $328.3 million to $89.9 million for FY’24.

Besides its improving top and bottom line, it boasts a strong balance sheet with its current ratio of 3.63 and a debt-to-equity ratio of 3.33%. These strong numbers highlight its healthy balance of growth and stability. If we add its potential upside of 54%, we have a superb addition to our undervalued AI stocks list.

Opera (OPRA)

Opera (NASDAQ:OPRA) is a web browser-based tech firm in Norway, best known for its Opera mobile browser. Its principal operations focus on AI-driven content discovery, browser technology, and recommendation platforms. Opera’s revenues are from technology licensing, advertising, and the search business. With the release of new AI-focused browser features, it’s ready to take on the challenge of establishing itself as the go-to browser.

Opera’s Q1’24 financials paint a good picture for the company. Revenue grew 17%, while margins improved to 17.8%. Adjusted EBITDA also grew 24%. All these numbers exceeded their guidance, so the company raised its full-year top-line guidance by 16%.

Balance sheet-wise, the company has a debt-to-equity ratio of 0.019 and a current ratio of 2.1. Its strong focus on innovation and continued investment in AI show why analysts consider Opera a strong buy option for value investors, with a potential 92% upside. 

ThoughtWorks Holdings (TWKS)

A global technology disruptor, ThoughtWorks Holdings (NASDAQ:TWKS) is a technology consulting firm offering various services, including digital transformation, artificial intelligence, enterprise modernization, and design. 

ThoughtWorks has provided clients with services that help streamline their processes and transition into modernization. Its recent success with clients like Total Wine & More’s product thinking approach and Aiven achieving its carbon emission goals through the help of ThoughtWorks.

While the company may have missed its revenue guidance by a slight margin due to supply constraints, ThoughtWorks was still able to gain 46 new clients in the last quarter and maintain its resilient financials. 

With a current ratio of 2.69, the company can ensure that it can pay any of its short-term obligations without heavy reliance on debt to finance its operations and growth. Not only that, TWKS stock has a potential upside of 109%, making it one of the more attractive undervalued AI stocks.

On the date of publication, Rick Orford 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.