The AI sector has been on fire to start the new year. Tech stocks led by heavyweights like Nvidia have powered the market rallies we've seen. But there are still opportunities to be had in AI for investors willing to look beyond the biggest names. Here are 2 AI stocks that have significant upside potential.
While better known as an e-commerce juggernaut, Amazon is also a major player in AI and cloud computing. Its Amazon Web Services division is pioneering generative AI models with products like AWS AI and Lex. AMZN stock hasn't participated much in the tech rally but remains very attractively valued.
Analysts see the company continuing to churn out solid results led by AWS growth. With a massive user and customer base, Amazon is well positioned to incorporate advanced AI into many of its offerings. At just 67 times forward earnings, the stock still has double-digit upside according to Wall Street. As AI spending ramps up across industries, AMZN stands to benefit substantially.
This controversial data analytics company doesn't get as much attention nowadays but remains deeply invested in AI. Palantir's platforms like Foundry use machine learning and natural language processing to glean insights from huge troves of data. Its systems also help organizations deploy AI models securely.
PLTR stock got pummeled in the tech wreck but new buying from heavyweight Cathie Wood indicates promise. The company continues growing its customer base which includes global giants like JP Morgan. With the data analytics field booming, Palantir's focus on helping clients adopt AI position it well for big future gains. Down over 60% from highs, risk-tolerant investors should take a closer look.
While Nvidia gets lots of hype, these under-the-radar AI stocks present compelling risk-reward profiles for buying ahead of massive potential catalysts in 2024. Performing your own research into these company's strategies and growth opportunities could uncover multibaggers over the next year.
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