3 Overlooked AI Stocks With Plenty of Room for Growth in 2024
The surge in AI stocks gained momentum with the introduction of ChatGPT, intensifying the competition among companies to integrate AI into their products and platforms.
Despite the overall surge in AI, there are specific stocks that Morningstar identifies as undervalued, holding substantial potential in the medium- to long-term.
In this piece, we will delve into the details of the three undervalued artificial intelligence stocks, as highlighted by Morningstar.
Snowflake (NYSE:SNOW) has great medium to long-term upside potential, as future growth can turn it into a data leader in the coming years.
In addition, the company expects the effects of artificial intelligence to unfold gradually, with incremental workload utilization and consumption growth.
Snowflake has demonstrated significant revenue growth of +40.87% over the last twelve months with a gross profit margin of +67.09%. This growth is a testament to the company's ability to scale effectively and maintain profitability.
The company has more cash than debt on its balance sheet and expects sales growth. This financial stability, coupled with expected sales growth, can provide a solid foundation for future expansion and innovation.
It presents its quarterly results on February 29 (in 2024 the month of February is 29, not 28 days). The previous earnings presented in November were very good, adding 35 $1 million+ customers in the quarter.
It also introduced new technologies such as Snowflake Cortex for artificial intelligence and forecasts that product revenues may originate in the fourth quarter between $716 million and $721 million.
By 2024, EPS is expected to grow by +216% and actual revenue by +35%.
The company is focusing on enabling artificial intelligence and
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