Qualcomm (NASDAQ:QCOM) is a semiconductor company based in San Diego, California, that is making waves in the field of artificial intelligence (AI). While many investors are flocking to well-known AI stocks, Qualcomm stands out as a contrarian choice worth considering. The company is focused on developing technologies for the wireless industry, with a particular emphasis on energy-efficient AI chips.
One of the key advantages of Qualcomm is its innovative approach to digital intelligence. As AI continues to advance, the need for more power-efficient solutions becomes increasingly important. Qualcomm’s commitment to developing energy-efficient AI chips could give it a competitive edge in the market.
Although Qualcomm has already seen a significant increase in equity value this year, there is still room for growth. Analysts project that sales could rise to $39.44 billion by fiscal 2025, compared to $35.83 billion in the previous year. This makes Qualcomm one of the top contrarian AI stocks to watch.
Moving to the retail sector, Kroger (NYSE:KR) is another unconventional choice for AI investors. While Kroger is primarily a grocery store chain, the company has been incorporating AI technologies into its operations. By enhancing its online marketplace with advanced technologies, Kroger is improving the customer experience through better product listings.
Financially, Kroger is showing promise with an average EPS of $1.17 over the past four quarters, surpassing expectations. With a forward earnings multiple of 11.43X and a sales multiple of 0.25X, KR stock is considered reasonably priced. Additionally, Kroger offers a forward dividend yield of 2.52%, making it an attractive option for contrarian AI investors.
Innodata (NASDAQ:INOD) is a data engineering firm based in New Jersey that offers AI data preparation services. As AI technology advances, the need for high-quality training data becomes crucial for AI algorithms to thrive. Innodata’s focus on providing data preparation services for AI applications positions it as a high-risk, high-reward investment opportunity.
With analysts anticipating revenue growth to $121.66 million by the end of fiscal 2024 and $156.05 million by fiscal 2025, Innodata is one of the compelling contrarian AI stocks to consider. The company could also achieve net income this year, further solidifying its potential in the AI market.
Overall, while the tech industry is abuzz with popular AI stocks, these three contrarian choices – Qualcomm, Kroger, and Innodata – offer unique opportunities for investors looking to diversify their AI portfolio. By exploring off-the-beaten-path AI stocks, investors may uncover hidden gems with significant growth potential.
