Exploring Overlooked Gems in the AI Market
The impact of artificial intelligence (AI) on the market has been nothing short of a juggernaut in recent years. Driving significant market gains and poised to continue its ascent, the AI megatrend is making waves across various industries. Projections indicate that the AI market could swell to a staggering $2.58 trillion by 2032, attracting substantial investor interest in AI stocks.
Diving into Analysts’ Top Picks
While tech giants like Nvidia, Microsoft, and Amazon bask in the spotlight of AI fervor, there are lesser-known AI stocks that might hold untapped potential. Touted as high-conviction picks by Morgan Stanley, these companies offer opportunities for enhanced productivity and efficiency gains through AI integration.
1. Recursion Pharmaceuticals
At the forefront is Recursion Pharmaceuticals, a Utah-based biotech company leveraging automation, AI, and machine learning to revolutionize drug discovery. With a market cap at $2.1 billion, Recursion Pharma has shown promise in developing new treatments for various diseases. Analysts foresee a 43% upside potential for RXRX stock, indicating a “Moderate Buy” consensus among experts.
2. Schrodinger
Schrodinger, founded in 2002 and headquartered in NYC, specializes in providing chemical simulation software solutions to the pharmaceutical sector. Despite a YTD dip of 23.5%, analysts project a 43.2% upside for SDGR stock, with a majority rating of “Strong Buy” among 10 analysts.
3. Definitive Healthcare
Founded in 2011, Definitive Healthcare offers valuable data analytics services to the healthcare industry. With a market cap of $925 million, DH stock carries a “Moderate Buy” rating, suggesting a 32.9% potential upside from current levels based on analysts’ predictions.
4. Roblox
Roblox, based in Redwood City, CA, operates a user-generated online entertainment platform, boasting a market cap of $22 billion. Despite a slight YTD decline, analysts foresee a 24.2% increase in RBLX stock, with a predominantly positive outlook from experts.
5. Sportradar Group
Sportradar Group, a Swiss tech company, focuses on transforming sports engagement globally. With a market cap of $12.9 billion and a 5% YTD increase in SRAD stock, analysts predict a 27.6% upswing, underlining a favorable sentiment towards the stock.
6. S&P Global
An institution since 1860, S&P Global, headquartered in NYC, offers financial information and analytics services. With its market cap at $139.3 billion, SPGI stock presents a “Strong Buy” consensus among analysts, with an expected 11.6% upside from current levels. Additionally, the stock features a reliable dividend yield and a history of growth.
