3 Under-the-Radar AI Stocks With Market-Beating Potential

Core Viewpoint - The article highlights three under-the-radar AI stocks—Innodata, Ambarella, and Symbotic—that may present investment opportunities despite the current market volatility caused by increased tariffs from the Trump administration [1][2]. Group 1: Innodata - Innodata transitioned from a slow-growth analytics software company to a provider of task-specific microservices for AI data preparation, significantly increasing its revenue and adjusted EBITDA by 96% and 249% respectively in 2024 [3][4]. - Analysts project a compound annual growth rate (CAGR) of 31% for revenue and 29% for adjusted EBITDA from 2024 to 2026, with an enterprise value of $938 million, indicating it is reasonably priced at 23 times this year's adjusted EBITDA [6]. - Despite potential slowdowns due to macroeconomic challenges, Innodata is expected to maintain its position in the high-growth AI market niche [5]. Group 2: Ambarella - Ambarella specializes in image processing system on chips (SoCs) and computer vision chips, which are essential for security cameras, drones, and connected vehicles [7]. - The company experienced a 26$1.6 billion, making it reasonably valued at four times this year's sales [10]. Group 3: Symbotic - Symbotic develops fully autonomous warehouse robots and claims that a $50 million investment in its modules can yield$250 million in savings over 25 years [12]. - The company has a long-term contract with Walmart to automate its distribution centers, which accounted for 87% of its revenue in fiscal 2024, leading to a 55% revenue increase and positive adjusted EBITDA [13]. - Analysts expect revenue and adjusted EBITDA to grow at a CAGR of 25% and 76% respectively from fiscal 2024 to fiscal 2027, with an enterprise value of $891 million, indicating it is undervalued at 0.4 times this year's sales [15].