The headline alone tells you this isn’t an article about Nvidia (NASDAQ:NVDA). I won’t discourage you from buying and owning NVDA stock, it’s got plenty of run left in it. But this is an article about undervalued AI stocks. And it might surprise you that there are plenty to choose from.
One reason is that AI (artificial intelligence) is still in the early stages. Many companies are still building the infrastructure that will be used to train the large language models (LLMs). That gives risk-tolerant investors with some speculative dollars to invest an opportunity to find undervalued stocks that could be important as AI progresses.
To help narrow it down, I was looking closely at AI stocks that are trading near their 52-week low as of this writing. This can present investors with an opportunity, particularly if the price is backed by positive analyst sentiment.
Here are three undervalued AI stocks to consider.
Undervalued AI Stocks: UiPath (PATH)
When many investors think about AI, they may think about robotics. That’s the ballpark that UiPath (NASDAQ;PATH) plays in. The company’s products and services are geared to Robotic Process Automation (RPA). Essentially, this means using automation to handle repetitive tasks in a cost-effective manner.
UiPath will face competition in this sector. But it enjoys a significant first mover advantage since launching its tools in 2021. That advantage may be one reason PATH stock is a favorite of Cathie Wood.
However, the bullish case for PATH stock may be as simple as looking at its chart. After a 52% selloff through June 4, 2024, the stock is down 52% for the year. That doesn’t line up with the company’s solid revenue growth, which came in at 16% year-over-year (YOY) in its most recent quarter. That growth includes steady current and projected growth in annual recurring revenue (ARR).
Another factor to consider is earnings. The company has posted profitable EPS in two of its last three quarters and is projecting positive EPS over the next 12 months.
GitLab (GTLB)
Another one of the undervalued AI stocks to consider is GitLab (NASDAQ:GTLB). The company is a leader in providing “AI-assisted workflows for everyone in the software development lifecycle.” The company’s flagship program is its single open source DevSecOps platform which enables its customers “to deliver better and safer software faster.”
In its earnings report for the first quarter of 2025, GitLab posted a double beat and raised its guidance. However, the guidance was not as bullish as some analysts may have hoped for. That’s one reason GTLB stock, which is down 28.4% year-to-date, continues to trend lower.
But this is one of those times when a sell-off, as painful as it may be if you’re a shareholder, is leaving room for GTLB stock to move higher. That’s the perspective of the analysts who cover the stock. Price targets are being revised lower. However, many of the revised targets are well above the consensus target of $68.09, which is already 50% higher than the stock’s closing price on June 4, 2024.
Airship AI (AISP)
If you have a higher appetite for risk, Airship AI Holdings (NASDAQ:AISP) may be a stock to watch. The company provides an AI-powered video monitoring operating system (OS) that tracks data in real time and provides its customers with actionable information. In simple terms, the company is in the business of predictive analysis.
The proof of Airship AI’s business model comes from its contracts, primarily with U.S. government agencies, which are likely to grow over time. The company competes in the public safety market, which was a $433 billion market in 2022 but which the company expects to grow to over $1.1 trillion by 2032. That presumes a compound annual growth rate (CAGR) of 10%.
However, keep in mind this is a tiny company with a market cap of just $85.4 million as of this writing. It’s also forecasting positive EBITDA in the next 12 months. Nevertheless, it’s a speculative stock, but one that analysts assign a consensus price target of $12, a 236% gain. That’s in addition to the 108% gain made already in 2024.
On the date of publication, Chris Markoch 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.
