3 Artificial Intelligence Stocks No One Is Talking About but They Should Be

AI Industry Overview - Artificial intelligence (AI) is transforming industries and creating massive economic opportunities, with AI spending projected to have a $19.9 trillion global economic impact by 2030 [1] - The AI boom is accelerating, leading investors to seek hidden gems in the AI space beyond the usual suspects [1] Navitas Semiconductor (NVTS) - Navitas Semiconductor is at the forefront of next-generation power solutions critical for energy-efficient AI data centers, utilizing GaN (gallium nitride) and SiC (silicon carbide) power semiconductors [2] - The company's "IntelliWeave" digital control technique enables AI data center power supplies to achieve over 99% efficiency, potentially revolutionizing power consumption in AI applications [2] - Navitas reported Q2 2024 revenue of $20.5 million, a 13% year-over-year increase, with a growing pipeline of over 60 data center customer projects and new products tailored for AI applications [3] Applied Digital (APLD) - Applied Digital is expanding its high-performance computing infrastructure to meet the booming demand for AI processing power, focusing on next-generation data centers optimized for AI and machine learning [4] - The company's cloud services business generated $25.9 million in revenue in the most recent quarter, with two new GPU clusters added [5] - Applied Digital is developing a 100 MW high-performance computing facility in North Dakota, with plans to expand total capacity to 400 MW, and is in the design phase for two additional buildings at the site [5] - The company raised $160 million in a private placement, including investments from Nvidia and Related Companies, and reported a 67% year-over-year revenue increase to $60.7 million in fiscal Q1 2025 [6] Iris Energy (IREN) - Iris Energy is leveraging its Bitcoin mining infrastructure expertise to capitalize on the growing demand for AI computing power, generating $3.1 million in revenue from AI cloud services in fiscal year 2024 [7] - The company is evaluating AI data center opportunities for its 1.4 GW West Texas site, managed by Morgan Stanley [7] - Iris Energy reported improved financial results for fiscal year 2024, with EBITDA of $19.6 million compared to a loss of $123.2 million in the previous year, and Bitcoin mining revenue reaching a record $184.1 million, up from $75.5 million in fiscal year 2023 [8] Summary of AI Companies - Navitas Semiconductor, Applied Digital, and Iris Energy offer unique angles on the AI revolution, with potential to benefit from the ongoing technological transformation [9] - These companies are currently unprofitable and face intense competition, but their success depends on the continued growth and adoption of AI technologies [9]