When it comes to generative artificial intelligence (AI) stocks, most people immediately think of the red-hot chip plays that have more than doubled over the past year or so. Others may view America’s mega-cap tech titans (the so-called Magnificent Seven or Super Six, as they’re often now referred to) as the AI plays to hang onto for the long run.
As the AI revolution takes hold, more than just the chip and mega-cap tech companies will stand to benefit.
I believe that such under-the-radar AI beneficiaries may be overlooked by many investors and analysts in the market right now. And though stock market valuations may be slightly on the higher side, I believe that these underrated, under-the-radar AI plays could have a chance to offer a great bang for one’s investment buck. Without further ado, let’s get into the names already!
AI stock #1: IBM
First up, we have the one American AI pick in IBM (NYSE: IBM), a tech titan that seems to have been left behind in recent years. Indeed, the growth just hasn’t been there of late, but as a company that’s been investing in AI for many years, I believe IBM stock may be worth a second look, as it looks to be relevant again through the eyes of everyday investors and consumers.
In terms of IBM’s most recent innovations, the Watson AI may come to mind. It’s an intriguing AI product that I think could help IBM break out of its multi-year funk. Following its latest pop, IBM suddenly finds itself at highs not seen in more than a decade. AI is a huge reason why IBM stock is back in the spotlight again. In 2024, I’d look for IBM to really excite us on the front of AI innovation.
AI stock #2: Docebo
Up next, we have Docebo (TSX: DCBO), a mid-cap Canadian firm that’s been in rally mode for well over a year now. The stock’s up a nice 21% or so in the past year. Despite the recent 14% correction off 52-week highs, I view Docebo as a potentially stealthy way to bet on generative AI. Various AI initiatives are likely at work behind the scenes, with more possibly on the way over the coming months and quarters.
Indeed, AI is a great way to bolster its learning management system (LMS) platform, as hybrid work continues to be the new normal for many firms out there. As an underestimated, less-appreciated AI play, DCBO stock ought to be atop any list of less-obvious stocks to benefit from the fourth industrial revolution.
AI stock #3: Shopify
Finally, we have Shopify (TSX: SHOP), the Canadian growth king that’s been warming up our portfolios for well over a year now. Though the company’s primary business is e-commerce, I view AI as playing a massive role in the firm’s future over the next 10-15 years. Indeed, there are many aspects of DIY e-commerce that I believe can be automated (think customer support).
Such AI-assisted support can result in big savings not just for Shopify but also for its customers. Not to mention enriching the customer experience, as Shopify looks to help its merchants even the playing field with digital retailers that have the resources for top-of-the-line customer service. All considered, SHOP stock is an AI play that will become more obvious in a few years.
