10 Hidden-Gem AI Stocks to Buy Right Now

Core Insights - The article highlights ten lesser-known companies that leverage artificial intelligence (AI) to address specific industry challenges, providing investment opportunities without the high valuations seen in major players like Nvidia and Microsoft [1][2][3] Company Summaries - Freshworks: A SaaS platform offering customer support and CRM solutions, with over 68,000 global customers. Its Freddy AI features enable automation for small and midsize businesses, showing mid-teens revenue growth and improving margins [5]. - Oscar Health: A tech-enabled health insurer aiming to simplify interactions in the healthcare sector. Its Superagent AI assistant is designed to reduce service costs and improve efficiency, potentially capturing significant market share [6]. - Nerdy: Operates Varsity Tutors and an AI-powered platform for education services, tapping into the $100 billion tutoring market. The company combines human expertise with AI to offer personalized learning experiences [8]. - Lemonade: A digital insurance company utilizing AI bots for underwriting and claims processing. Its automation could enhance margins if loss ratios stabilize, although it faces challenges in proving AI's effectiveness in underwriting [9]. - Recursion Pharmaceuticals: A biotech firm using AI and large datasets for drug discovery. Its partnership with Nvidia positions it as a potential leader in AI-driven therapeutics, with a market cap around $2 billion [10]. - BigBear.ai: Provides decision intelligence platforms for the U.S. Department of Defense. Its AI-based systems are well-suited for the growing demand in defense digitization, though it faces revenue volatility [11]. - Amplitude: Offers product analytics software that enhances user engagement through AI-generated insights. Despite competition, its focus on product optimization helps maintain differentiation [12]. - PagerDuty: A platform for IT incident management that uses AI to improve response times, delivering measurable ROI for enterprises. Its shift towards AI-driven operations aligns with the demand for faster issue resolution [13]. - Sprinklr: Operates a customer experience management platform with AI tools for engagement and insights, serving major brands like McDonald's and Nike, positioning it well for AI adoption in marketing [14]. - Innodata: Provides data engineering and AI training datasets, benefiting from the increasing demand for high-quality training data as AI adoption grows [15]. Investment Perspective - These ten companies apply AI to solve specific business problems, creating defensible niches in large markets. While they do not compete directly with Nvidia, they represent practical applications of AI across various industries [16].