Top 2 AI Stocks Ahead of Bull Run

Most AI stocks have ran wild in 2024, many of which may be "overvalued." Some of these companies are still reasonably priced and ready for bull runs that could bring their values up to their peers. I recommend investors buy two AI stocks before the market catches on.

Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) has been a pioneer in AI technology. Trouble is, it trips over itself. The tech giant's stock has lost respect due to its repeated mistakes in this area.

Alphabet trades at 20.8 times forward earnings, whereas the S&P 500 and Nasdaq-100 trade at 21.4 and 28.7. The Nasdaq-100 is the best valuation reference for Alphabet, which is tech-focused. The S&P 500 is broader and includes many financial, materials, and industrial stocks, which trade at lower prices.

Alphabet is turning two corners. Advertising comes first. Alphabet is mostly an advertising corporation, despite media reports of its AI ability. In Q4, 76% of its revenue came from advertising, and its total revenue climbed 11% year over year. Management is optimistic about the ad industry and expecting higher returns on AI-model commercials.

This contradicts Alphabet's AI product reputation. Alphabet may be succeeding in developing business-facing AI systems for advertising and other models, but it's challenging to create a consumer-facing generative AI model that won't earn revenue.

Thus, Alphabet should maintain excellent revenue and profitability growth until 2024, making the inexpensive stock even lower. Since its value is much lower than its "Magnificent Seven" counterparts, I think this makes the company a great investment.

UiPath Though smaller than Alphabet, UiPath (NYSE: PATH) is making waves in its business. Its robotic process automation software lets clients automate tedious processes, freeing up personnel to work on more creative tasks.

Robotic process automation software can handle numerous tasks, but AI is increasing that list. UiPath's products improve by scraping emails, reports, and data flows with AI. Software like UiPath is in high demand. Annual recurring revenue grew 22% to $1.46 billion in fiscal 2024's fourth quarter, which ended Jan. 31. The company's Q4 operating profit was $15.1 million, indicating its progress toward profitability.

UiPath lacks these market-respected features. Its price-to-sales ratio is 10.5, while many AI counterparts are valued at 20 times sales. The UiPath is as successful as its competitors, often more so. It doesn't have the same market recognition because it's not AI-focused. UiPath may be destined for a bull run, thus I recommend buying it.

stay turned for development