AI stocks are still in the spotlight in the constantly changing financial landscape. They present investors with bright future possibilities through 2024 and beyond. Companies utilizing AI’s revolutionary capacity are attractive options for astute investors. The technology is reshaping sectors around the world. Three of these undervalued AI stocks stand out as leaders, using AI to revolutionize their industries and propel significant expansion. These businesses lead with their ground-breaking GenAI blueprint, simplifying application development and raising customer satisfaction.
Meanwhile, one establishes itself as a leader in precision surgery and broadens its worldwide reach with the da Vinci surgical system. The last company on the list, well-known for its AI-driven solutions in the customer service and automotive industries, demonstrates quick acceptance and strategic alliances, solidifying its position as the industry leader in speech AI technology. Here, the emphasis is on the financial indicators, technical advancements, and strategic efforts that make AI stocks attractive investments in 2024. Examining these businesses may provide anyone curious about the revolutionary potential of AI with insightful information about future developments in AI research and investment.
Pegasystems (PEGA)
Pegasystems (NASDAQ:PEGA) provides customer engagement and operational excellence software. In Q1 2024, the company experienced an annual contract value (ACV) increase of around $100 million from Q1 2023. This growth is directly linked to increased subscriber billings and cash flow. Operating leverage has increased due to efficient cost control measures. This includes a 15% decrease in yearly sales and marketing expenditures. More concluded and renewed transactions were in the prior quarter, which increased Q1 cash receipts.
Moreover, Pega GenAI Blueprint, which debuted in Q1 2024, streamlines and expedites Pega platform application development. Hundreds of clients have produced thousands of plans due to its positive reception. This technology speeds up innovation cycles and product uptake and improves customer engagement. Even though it is still in its infancy, Pega anticipates that GenAI will be a major factor in customer purchasing choices and could boost revenue starting in 2025 by shortening sales cycles.
Overall, Pega’s innovative AI solutions drive efficiency and customer satisfaction, making it a strong contender for the top undervalued AI stocks.
Intuitive Surgical (ISRG)
Intuitive Surgical (NASDAQ:ISRG) designs and manufactures robotic surgical systems. Intuitive’s increased da Vinci system deployments is one of the main drivers of the company’s expansion. Intuitive installed 313 da Vinci systems in Q1 2024, up somewhat from 312 in Q1 2023. This steady placement rate reflects the company’s capacity to fulfill demand and grow its installed base. Intuitive’s strong performance in the US, Germany, and other markets compensated for these localized concerns despite obstacles in some regions, including China and the UK, where tender delays and funding limits harmed placements.
The increase of system installations fits with Intuitive’s plan to expand market share and take advantage of economies of scale. Launching more recent platforms like the da Vinci 5 and SP systems has further strengthened this tactic. For example, Intuitive installed eight da Vinci 5 systems in Q1 2024 and made progress in obtaining regulatory permissions and customer input regarding their deployment.
Intuitive Surgical has a strong track record in robotic surgery. The company continues to make ongoing advancements in AI technology, putting it on the undervalued AI stocks list.
SoundHound AI (SOUN)
SoundHound AI (NASDAQ:SOUN) leads in voice AI and conversational intelligence solutions applied across various industries, including automotive and customer service. The business debuted as a drive-thru AI service for the future generation. It is now live with a leading worldwide QSR brand. This is a remarkable success and client uptake. SoundHound’s AI solutions are currently being used in over 10,000 sites, and another 100,000 locations are planned. Hence, SoundHound’s Smart Answering solution is now available in more places than QSRs, including well-known chains like Planet Fitness.
Additionally, the company is reaching new markets in Latin America and Japan. Strategic advances include Nvidia (NASDAQ:NVDA) partnerships for in-vehicle generative AI replies and a top US-based electric vehicle (EV) manufacturer to voice-enable its whole fleet. Indeed, an agreement with a well-known Asian electric vehicle manufacturer will strengthen SoundHound’s market position. Hence, these collaborations and integrations reflect SoundHound’s automotive speech and AI technology leadership.
In short, SoundHound’s leadership in automotive voice AI and expanding market presence through strategic partnerships position it as a top mark among undervalued AI stocks.
On the date of publication, Yiannis Zourmpanos did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.