7 Hidden-Gem AI Stocks That Deserve the Spotlight

Core Viewpoint - The article emphasizes the growing interest in "hidden AI stocks," which are companies involved in artificial intelligence but not as prominently recognized as major players like Nvidia. These stocks may offer significant investment opportunities as the AI sector expands [1][2]. Group 1: Hidden AI Stocks Overview - Hidden AI stocks are seen as having the potential for growth, akin to a slow-cooking meal that may take time to yield results [2]. - The article highlights several companies as compelling investment ideas within the hidden AI space, including UiPath, Lemonade, Cisco, Cerence, BigCommerce, Aspen Technology, and LivePerson [2]. Group 2: Company-Specific Insights UiPath (PATH) - UiPath specializes in robotic process automation (RPA) and has shown strong financial metrics, with an average earnings per share of 14 cents and an earnings surprise of 79.3% for the fiscal second quarter of 2024 [3][4]. - The company reported a net loss of $86.72 million over the trailing 12 months, but sales reached $1.35 billion, with a year-over-year sales growth rate of 15.7% [4]. Lemonade (LMND) - Lemonade leverages AI to provide insurance services and has a positive earnings surprise of 12.8% over the last four quarters [6][7]. - The company generated revenue of $453.7 million during the trailing 12 months, with a year-over-year sales growth rate of 25.1% [7]. Cisco (CSCO) - Cisco recently acquired Splunk for $28 billion to enhance its cybersecurity and observability capabilities, aiming to develop an AI-powered data platform [8][9]. - The company reported a net income of $12.12 billion and revenue of $55.36 billion during the trailing 12 months, with an average earnings surprise of 6.45% [9]. Cerence (CRNC) - Cerence provides AI-powered virtual assistants for the mobility and transportation markets, with revenue of $348.58 million in the trailing 12 months [10][11]. - Analysts anticipate earnings of 87 cents per share for fiscal 2024, with sales projected to reach $329.5 million, an increase of 11.9% from the previous year [11]. BigCommerce (BIGC) - BigCommerce offers a SaaS platform for enterprises and has an average EPS of 3.5 cents, translating to an earnings surprise of 85.28% [12][13]. - The company incurred a net loss of $48.94 million during the trailing 12 months, with revenue of $318 million [13]. Aspen Technology (AZPN) - Aspen Technology provides industrial software that utilizes machine learning algorithms, with revenue of $1.11 billion during the trailing 12 months [15][16]. - Analysts expect EPS to rise to $6.31 for fiscal 2024, with revenue projected to expand by 6.1% [16]. LivePerson (LPSN) - LivePerson focuses on conversational AI, generating sales of $379.47 million during the trailing 12 months [17][18]. - Analysts predict a decline in sales to $308.95 million for fiscal 2024, down from just under $402 million the previous year [18].