Do not worry if you have not invested in other prominent AI stocks this year, such as Palantir (NYSE: PLTR). Many smaller AI companies are flying under the radar, so there is still an opportunity to explore. Despite being pioneers in AI development for decades, some businesses have yet to realize their full potential.
The most promising artificial intelligence investments often lie in sectors that are not traditionally associated with cutting-edge technology. Whether it’s generating unique artwork or discovering innovative recipes, relationalAI is sparking excitement in unconventional industries. However, in the long run, AI companies focusing on fundamental business applications are likely to yield the most significant returns.
Symbotic (SYM)
Symbotic (NASDAQ: SYM) is revolutionizing warehouse management, an industry that may not be the most glamorous but is crucial. While it may not captivate investors like flashy AI-generated videos, blue-chip companies like Walmart (NYSE: WMT) and Target (NASDAQ: TGT) have already embraced Symbotic’s AI-powered warehouse robotics. The expansion of its commercial reach indicates growing investor confidence.
In the coming months, Symbotic plans to introduce a similar solution tailored for smaller businesses. This new AI-driven inventory management system is designed for shared-use facilities or environments where multiple small businesses operate. By tapping into this market segment, Symbotic is poised to significantly expand its market presence. With the rapid growth of warehouse and storage facilities, the company is well-positioned to capitalize on this untapped opportunity.
UiPath (PATH)
UiPath (NYSE: PATH) is another player bringing AI to industries that may not initially seem exciting. Globally, UiPath offers robotics and AI solutions for operational and human resource sectors. Despite not being in a high-growth sector, UiPath is favored by prominent investor Cathie Wood for its role in streamlining routine administrative tasks within organizations. Moreover, UiPath’s technology is versatile, catering to businesses across various industries, making it a comprehensive solution for operational AI management. The company’s platform is already integrated with web services like Salesforce (NYSE: CRM), OpenAI, and Amazon (NASDAQ: AMZN).
UiPath also distinguishes itself in terms of financial performance among AI companies. With a 25% increase in recurring revenue in a recent report and a 19% overall year-over-year growth, UiPath’s stock has surged nearly 50% this year. Despite this growth, PATH remains a compelling AI investment poised for further market expansion.
Chegg (CHGG)
Chegg (NYSE: CHGG) is disrupting the EdTech sector by leveraging AI, an area previously unexplored. Through a partnership with Scale AI, Chegg aims to personalize learning experiences and outcomes to improve student performance. In an educational landscape where the student-teacher ratio is imbalanced, Chegg’s AI tools bridge the gap by providing tailored support to intellectually challenged students while keeping them engaged.
In addition to its AI initiatives, Chegg demonstrates a shareholder-friendly approach. The company recently announced a $200 million share buyback program, a rare move in the AI industry where growth often overshadows shareholder value. Chegg’s strategic focus on AI advancement while maintaining strong financial stability across its business segments sets it apart in the realm of AI investments.
Jeremy Flint, a seasoned financial writer and MBA graduate, shares insights in this article that reflect his views on the discussed stocks. His expertise lies in simplifying complex market concepts, with a focus on industries such as oil, gas, utilities, fixed-income investing, and other financial instruments. For more of Jeremy’s work, visit his website.
