Qualcomm (NASDAQ: QCOM) is one of the underappreciated AI stocks that investors should keep an eye on. With its involvement in wireless communications and the 5G rollout, Qualcomm offers a solid opportunity in the AI space. The company is making strides in edge computing, a function that processes data locally on devices, leading to a year-to-date stock increase of over 18%. Analysts are optimistic about Qualcomm’s future, forecasting an earnings per share of $9.78 and revenue of $38.18 billion for the current year, along with a forward annual dividend yield of 2.05%.
Despite facing challenges, Baidu (NASDAQ: BIDU) is another contender worth considering among underappreciated AI stocks. The company has not seen significant stock performance this year, down almost 13% since the beginning of the year. However, management has highlighted the benefits of AI in its operations. Trading at 9.95X forward earnings, Baidu is undervalued compared to the sector median of 17.21X. Analysts project potential upside with a high-side target EPS of $12.30.
For investors seeking high-risk, high-reward opportunities, Aeva Technologies (NYSE: AEVA) presents a game-changing potential in the AI sector. Specializing in 4D lidar technology for autonomous driving, Aeva’s proactive accident avoidance system has the potential for significant growth. Analysts forecast a revenue increase of 103.8% for fiscal 2024 and further growth in fiscal 2025. Despite market recognition challenges, AEVA could be a promising choice for those willing to navigate volatility in pursuit of underappreciated AI stocks.
