It’s no secret that artificial intelligence dominates both the tech ecosystem along with the broader investing arena. However, it might be risky to heavily bet on the usual suspects – you know what I’m talking about. Instead, it might be prudent to consider so-called contrarian AI stocks: securities that aren’t quite getting the attention they deserve for the digital intelligence role but should.

Why should you zig while others are zagging? I’m reminded about the dot-com boom and bust. Back then, seemingly everyone was piling into internet-related stocks under the thesis that the innovation would change the world. They were right but guess what? Companies like Amazon (NASDAQ:AMZN) still struggled for years before reaching their prior highs. The same could happen with AI.

Granted, history doesn’t always repeat but it tends to rhyme. Further, the hottest trends feature an ebb and flow. And it seems like it never fails: greed and the fear of missing out (FOMO) combine and the inevitable disappointment materializes. Therefore, it may make sense to consider contrarian AI stocks.

Qualcomm (QCOM)

Based in San Diego, California, Qualcomm (NASDAQ:QCOM) is one of the top semiconductors in the world. Primarily, it focuses on the development and commercialization of foundational technologies for the wireless industry. That may have significant implications for AI, especially as digital intelligence moves into the broader connectivity space. In addition, Qualcomm is working on energy-efficient AI chips.

In my opinion, that’s a huge and overlooked attribute, making QCOM one of the top contrarian AI stocks to consider. While everyone appears to love the innovations undergirding digital intelligence, we tend to forget that such protocols consume a boatload of power. Several publications have sounded the alarm bell regarding this consumption. So, Qualcomm could let us have our cake and eat it too.

Now, it must be said that has already gained over 45% of equity value since the start of the year. As such, QCOM stock trades at 6.31X trailing-year sales. That’s high, especially compared to the prior year’s average metric of 3.94X. Further, there’s not much growth projected for fiscal 2024.

However, in fiscal 2025, sales could rise to $39.44 billion, with a high-side estimate of $41.47 billion. That compares favorably to last year’s print of $35.83 billion.  Thus, it’s one of the contrarian AI stocks to consider.

Kroger (KR)

If you want to talk about contrarian AI stocks, Kroger (NYSE:KR) is certainly one of the oddball ideas. Of course, natively, the core business of Kroger has nothing to do with technology. Instead, it’s a grocer, doing business in certain markets as Ralphs. However, Kroger has been one of the non-AI companies that have been incorporating digital intelligence into its business.

Earlier this year, Kroger stated that it was adding new capabilities for sellers to its online marketplace. Through the use of advanced technologies, Kroger customers will have a superior experience through clearer and more informative product listings. Of course, what really makes KR stock appealing is the underlying need: we all need to eat.

Financially, Kroger isn’t spectacular but it gets the job done. Its average EPS over the past four quarters landed at $1.17. That’s better than the expectation calling for $1.08 (yielding an earnings surprise of 8.6%).

With a forward earnings multiple of 11.43X and a sales multiple of 0.25X, KR stock seems reasonably priced. It also offers a forward dividend yield of 2.52%, making it a sensible idea for contrarian AI stocks.

Innodata (INOD)

Headquartered in Ridgefield Park, New Jersey, Innodata (NASDAQ:INOD) falls under the information technology services space. Per its public profile, Innodata operates as a global data engineering firm. In particular, one of its business units – Digital Data Solutions – specializes in the provision of AI data preparation services. This in part involves collecting or creating training data for AI algorithms.

What makes Innodata enticing as a candidate for contrarian AI stocks is that we’re moving beyond the low-hanging fruit of public chatbots. Yes, it’s good to get answers to silly questions that you’re too afraid to ask anyone else. However, in order for AI to truly blossom, it needs to be put to genuinely productive use. Innodata could potentially help in this department.

It’s undoubtedly a high-risk, high-reward idea, with the focus on the top line. In the trailing 12 months, Innodata posted sales of $94.44 million. By the end of fiscal 2024, analysts anticipate revenue of $121.66 million. Further, by fiscal 2025, sales could swing up to $156.05 million.

It’s also possible that Innodata could generate net income this year as well. With that in mind, it’s one of the enticing contrarian AI stocks to consider.

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.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.