5 Undervalued AI Stocks and Why to Buy Them

Key Points

• The AI sector continues to attract significant investment, with companies like UiPath, MongoDB, and GitLab capitalizing on the increasing demand for AI-driven tools and solutions—and this trend is expected to drive sustained growth into 2025 and beyond.
• Stocks like UiPath, Oracle, MongoDB, and GitLab offer growth potential through profitability improvements, scaling business models, and aligning with the accelerating adoption of AI technology.
• Companies like Airship AI Holdings present high-risk, high-reward opportunities, leveraging niche markets such as real-time visual data monitoring and government contracts, with significant growth acceleration projected in the coming years.

Value is where you find it, and there is value among AI stocks. This is a look at five AI stocks with value for investors yet to be unlocked. Total tech spending may not increase much this year, but spending will be focused on AI, and AI is accelerating. NVIDIA NASDAQ: NVDA CEO Jenson Huang said it best when he said traditional computing is old and AI-accelerated computing is the new standard. 

Now that AI infrastructure is established, the AI revolution will quickly move to the edge and into our devices. The takeaway is that AI stocks are hot and can continue to rise in 2025 because that’s where the money flows. Here are five undervalued AI stocks to watch.

UiPath: Profitable Growth and AI Leadership

UiPath’s NYSE: PATH 2024 results show steady growth and outperformance, which are likely to continue in 2025. The shift to agentic AI is gaining traction and sustaining growth and cash flow, which are critical details. Unlike many tech growth companies, this one is profitable and uses its cash to benefit shareholders. Repurchases in 2024 reduced the share count by 2.8% on average for the quarter while maintaining a healthy balance sheet. 

The outlook for 2025 is revenue and earnings growth near 10%, with a bias to the upside. Adopting AI-empowered automation tools is expected to accelerate as the year progresses, and UiPath is a leader, with tools that cover business needs from end to end.   

MongoDB and GitLab Market Resets Are Buying Opportunities

MongoDB NASDAQ: MDB and GitLab NASDAQ: GTLB are in the same boat. Their stock prices have struggled the last two years because reality did not match the potential for AI-driven business growth inspired by the NVIDIA boom. However, that story is changing. 

The results from CQ4 2024 include surprise strength, accelerating growth, and improved guidance due to demand for their products. These businesses are closely aligned, not competitors, providing tools for AI and app development in increasingly high demand. Together, they provide a comprehensive, AI-centric solution for developers, allowing a secure interface at all levels of the development process compatible with all major hyperscalers. 

The takeaway is that these companies forecast growth to slow in 2025 but remain solid at more sustainable levels.

Profitability is also expected to improve and accelerate as their businesses scale, a fact that analysts take note of.

Analysts increased their price targets on these two stocks as 2024 progressed. They now give MongoDB and GitLab a consensus rating of Moderate Buy and see them advancing by high double-digit amounts in 2025. 

Oracle Breaks Out to Trend Higher in 2025

Oracle’s NYSE: ORCL share price broke out of a technical trading pattern and will trend higher in 2025 because of its position in the AI industry. 2024 established the company as the leading source of database services for business and industry globally, with new deals embedding it deeper into the networks of hyperscalers. Oracle also emerged as a budding hyperscaler, building its database-centric and AI-friendly data centers using acres of NVIDIA and Advanced Micro Devices GPUs. Analysts rate it at a consensus of Moderate Buy and see it rising above $200 this year. 

Airship AI Holdings Is a Speculative Value

Airship AI Holdings NASDAQ: AISP is an AI-powered video monitoring OS that tracks real-time visual data to provide actionable information. News from 2024 includes contracts with U.S. government agencies, including follow-on business under the FedRAMP program. Singapore also uses the company’s platform to assist with border control, a primary growth market in which it is gaining traction. The outlook for 2025 is for revenue to grow by 30% and then accelerate to over 60% in 2026. The company is also expected to produce adjusted profits this year.