AI’s general hype is beginning to wane as many GPT-wrapped “startups” grapple with rising operational costs and struggle to find a viable market. Investors are also becoming more discerning, recognizing that some companies are merely slapping “AI” labels on unrelated products to ride the trend — even as little-known AI stocks continue growing behind the scenes.
Investors with the foresight to recognize and invest in these emerging AI players and little-known AI stocks could reap substantial rewards. As technology continues to develop and these companies’ ambitious plans come to fruition, their market value is poised to grow significantly. Patience and strategic investment in these little-known AI stocks could yield impressive returns as the industry evolves.
There’s something of a cottage industry within AI today, making tons of money for the consultancies willing to step in and help companies adopt AI into their workflows — but even those industry experts have quite caught up to the long-term potential of these little-known AI stocks.
Riot Platforms (RIOT)
Riot Platforms (NASDAQ:RIOT) is a well-known name in the Bitcoin (BTC-USD) mining space, but its potential among little-known AI stocks often goes unnoticed. While Riot is primarily recognized for its crypto-centric operations, the rising costs of Bitcoin mining and the increasing power demands of AI companies present a unique opportunity for Riot to pivot.
Riot established a revenue stream by selling unused energy back to local municipalities and utility operators, generating $71.2 million last year. Although Riot has not yet ventured into providing energy specifically for AI, the growing power needs of AI firms suggest that such a move could be mutually beneficial shortly.
Additionally, the construction of new data centers is lagging behind the rapid growth in AI demand. This means that existing GPU facilities, like those owned by Riot, could soon be highly sought after. In the meantime, investors can appreciate Riot’s dual exposure to the crypto market, which saw a 40% surge in Bitcoin over the past six months, and its potential future in AI energy solutions.
Stem (STEM)
Stem (NYSE:STEM) is unique among little-known AI stocks because it seamlessly integrates two high-growth sectors: sustainable energy and artificial intelligence. Stem’s Athena software is an advanced control system that optimizes the interaction between generators, grid power, renewable energy sources like solar farms and battery storage. Driven by an AI framework, Athena autonomously adjusts energy distribution based on weather conditions and energy pricing, making it an essential tool for large-scale enterprise clients managing their sustainable energy resources.
Despite being classified as a penny stock, Stem has ambitious growth plans that position it among little-known AI stocks. The company’s strategic vision, outlined in its “AI and the Future of Energy” white paper, details how AI integration will enhance efficiency and drive progress across the sustainable energy market.
While Stem faces profitability challenges and experiences cyclical sales typical of speculative renewable energy stocks, it has advanced beyond its startup phase and boasts a growing portfolio of successful projects. Investing in Stem is a long-term play on the sustainable energy sector, leveraging the expanding role of AI in green technologies and infrastructure.
Parsons (PSN)
Parsons (NYSE:PSN), a defense tech company known for its diverse array of products in intelligence and security, might be one of today’s most little-known AI stocks, especially when compared to prominent names like Palantir (NYSE:PLTR). While companies like Palantir focus predominantly on software, Parsons distinguishes itself by integrating AI into tangible, hardware-centric tech developments.
Parsons’ notable achievements span ballistic missile site development, rocketry hardware, nuclear site management and infrastructure projects — a sector that could gain significant attention as political campaigns progress. These extensive operations require advanced technical data management and oversight, enabling Parsons to pioneer internally managed AI solutions and push the boundaries of AI-enabled hardware.
Beyond defense, Parsons is innovating with AI-driven drone solutions for infrastructure inspection. These tools are revolutionizing the evaluation of bridges, roadways and water treatment facilities, positioning Parsons as a crucial player in deploying AI to address challenging or hazardous environments needing thorough safety assessments — which is more salient than ever as the U.S.’s national infrastructure base faces increased challenges.
On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
