BMR - The 3 Most Undervalued AI Stocks to Buy in April 2024
2024-04-02 11:32:19 ET
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The artificial intelligence ( AI ) boom has taken the stock market to unprecedented highs in the past year. Moreover, in butting heads over AI stocks , Wall Street is concerned that the sector’s sky-high valuations signal a potential bubble. Hence, in this scenario, it’d be tough to wrap your head around the notion of ‘the most undervalued AI stocks to buy in April.’
Furthermore, Big Tech’s surge has essentially created a rising tide lifts all boats scenario, elevating prices of other AI stocks in its wake. Hence, with the AI field becoming more expensive and crowded, finding undervalued picks in the niche is challenging. Nevertheless, there are a few AI stocks with potential that investors haven’t caught on to yet. Here are three that should pique your interest.
UiPath (PATH)
UiPath (NYSE: PATH ) is a Robotics Process Automation (RPA) specialist, a field that leverages software robots and AI to handle routine tasks. RPA itself is burgeoning, but adding AI takes things to a whole new level. The synergy between the two technologies leads to greater efficiencies, opening up new areas for innovation. Thus, it transforms how businesses operate and scales their potential for robust returns in the tech sphere.
The company has made incredible progress in developing its recurring revenue base in recent quarters. In the fourth quarter (Q4), its annual recurring revenue ( ARR ) reached a whopping $1.46 billion, a 22% bump year over year (YOY). $86 million in net new ARR was added during Q4, a testament to the platform’s enduring demand and the efficiency of its subscription-based strategy. Additionally, the 70% jump in cloud ARR points to the rapid expansion of cloud-based automation solutions.
Consequently, Tipranks’ analysts assign a healthy 22% upside in PATH stock from current prices.
SoundHound AI (SOUN)
SoundHound AI (NASDAQ: SOUN ) is one of the top AI penny stocks , specializing in developing AI-voice-powered products and services. It has attracted an impressive clientele quickly and is posting solid top-line growth numbers. Moreover, its customer base spans hospitals to data centers while making recent inroads into automotive for long-term growth. Some of its clients include Mercedes Benz (OTCMKTS: MBGAF ), Netflix (NASDAQ: NFLX ), and Mastercard (NYSE: MA ).
SOUN stock has built an impressive head of steam of late, gaining over 200% in the past six months alone. Many of these gains can be linked to a recent filing showing Nvidia’s (NASDAQ: NVDA ) sizeable business investment. It owns more than 1.7 million shares in Soundhound , and it’s easy to see why the AI juggernaut feels SoundHound is on the right track.
Beamr Imaging (BMR)
Beamr Imaging (NASDAQ: BMR ) provides an AI-powered solution that significantly enhances the quality and efficiency of digital imagery. It leverages the power of AI to optimize high-resolution content for smooth distribution, streaming, and storage across different platforms. BMR stock has been ticking in the green, with year-to-date (YTD) gains at an eye-popping 345%.
A long journey is ahead for the company as it looks to rise in the hotly competitive AI niche. Its collaboration with Nvidia, though, could be a major catalyst for the firm. The partnership aims to address the sluggish progress in upgrading video libraries for AI and streaming through AV1 encoding. The transition to AV1 offers superior compression while reducing bandwidth without impacting video quality. Leveraging NVIDIA’s NVENC, the solution looks to automate conversions to AV1, ensuring seamless, cost-effective transitions with virtually zero quality loss.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines .
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
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