Sleeper AI Stocks: 3 Startups Primed for a 2024 Breakout


  • The market is overlooking these AI stocks.
  • (AI): The company is shifting from traditional subscription-based to consumption-based models.
  • Lemonade (LMND): Lemonade utilizes AI-driven chatbots to enhance customer engagement.
  • UiPath (PATH): UiPath has demonstrated sustained revenue growth and expanding customer base.
AI Stocks - Sleeper AI Stocks: 3 Startups Primed for a 2024 Breakout

Source: Banpot

In the rapidly advancing field of artificial intelligence (AI), the spotlight often shines on mega-cap companies. However, beneath the dazzling headlines lie sleeper AI stocks poised to disrupt the industry and deliver significant returns to investors. As we navigate deeper into 2024, these emerging companies are not just riding the AI wave—they are creating it.

As per PWC, the global AI market is projected to reach a staggering $15.7 trillion by 2030. This rapid expansion would create many companies in the industry that would provide robust returns to investors.

While giants like Google and Nvidia continue to push boundaries, the innovative approaches of smaller, agile firms often go unnoticed. These startups are developing niche solutions that address specific market needs. And their potential for growth becomes even more compelling as AI integration becomes a necessity rather than a luxury.

As interest rates stabilize, savvy investors are scouting for the next big wonder. AI companies, with their lean operations and cutting-edge technologies, are perfectly positioned to leap from obscurity to market leaders. Growth of AI applications is exploding, and the demand for automation and data-driven decision-making is increasing. So, these three AI stocks are worth a closer look for anyone looking to get in on the ground floor of tomorrow’s tech giants. (AI) (AI) logo on a smartphone with computer screen showing graph in background, symbolizing AI stock
Source: the Sky (NYSE:AI) often flies under the radar when discussing mainstream AI technology stocks. However, recent developments and financial data suggest that it might be time to pay closer attention to this enterprise AI platform-as-a-service provider. has been transitioning from a traditional subscription-based model to a consumption-based model. This change is significant as it aligns more closely with the dynamic needs of enterprises embracing digital transformations.

The consumption model allows clients to start small and scale as needed, reducing initial barriers and fostering long-term customer relationships. This flexibility is increasingly critical as businesses demand more adaptable solutions in the fast-evolving tech landscape. has demonstrated a healthy expansion in its customer base. The company is not just adding new clients but is also diversifying its reach across various industries. From healthcare to financial services,’s ability to cater to a broad spectrum of sectors with its AI solutions indicates a robust growth trajectory and a potential increase in market share.

Lemonade (LMND)

Lemonade stock logo displayed on smartphone laying on top of computer keyboard.
Source: Stephanie L Sanchez /

Lemonade (NYSE:LMND) enhances customer engagement through its AI-driven chatbots and optimizes claims processing and underwriting practices.

The company is disrupting traditional insurance by eliminating much of the human interaction in favor of automated processes. LMND’s digital-first approach, powered by AI and behavioral economics, significantly lowers overhead costs and speeds up the claims process, offering a seamless experience for customers.

Lemonade’s expansion into European markets underscores its ambition to scale globally. With operations in Germany, the Netherlands, France and the UK, Lemonade is capitalizing on more favorable regulatory environments and the opportunity to diversify its revenue streams.

While Lemonade has made significant strides in transforming insurance through technology, the path to consistent profitability remains its most significant challenge. The company’s forward-looking strategy involves a careful balance between growth spending and operational efficiencies. With plans to become cash flow positive by the first half of 2025, Lemonade is focusing on achieving sustainable growth while continuing to innovate in customer service and claims processing.

UiPath (PATH)

The UiPath (PATH) app is displayed on a smartphone screen.
Source: dennizn /

UiPath (NYSE:PATH) stands out with its innovative approach and strong market presence, which is further buoyed by its integration of generative AI products.

The company operates at the cutting edge of the Robotic Process Automation (RPA) industry, providing tools that automate repetitive and time-consuming tasks. This capability is crucial for businesses looking to optimize operational efficiencies and reduce labor costs. With its user-friendly interface and robust functionality, UiPath not only simplifies the adoption of RPA solutions but also enhances the scalability and effectiveness of these technologies in complex enterprise environments.

While UiPath has experienced fluctuations in its stock price and growth metrics, the underlying strength of its business model is evident in its sustained revenue growth and expanding customer base. The company has demonstrated a remarkable ability to exceed financial guidance, reflecting the high demand for its automation solutions.

The competitive landscape for RPA is intensifying, with major tech players and startups alike vying for market share. UiPath’s strategic focus on continuous innovation and customer-centric solutions positions it well to maintain its leadership position.

On the date of publication, Mohammed Saqib did not hold (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 Publishing Guidelines.

Mohammed Saqib is a research analyst with experience in equity research and financial modeling. He has extensively covered stocks listed in the tech sector using fundamental analysis as the cornerstone of his approach. Currently pursuing a master’s degree in finance, Saqib is dedicated to obtaining the CFA charter to augment his expertise in the field further.

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