3 Undervalued AI Stocks Flying Under the Radar.

The AI boom continues to dominate headlines, with giants like Nvidia and Microsoft soaking up the spotlight. But for savvy investors, the real opportunities often lie beneath the surface—stocks that are undervalued, overlooked, and poised for significant growth. In this edition, we’re shining a light on three AI stocks flying under the radar in 2025. These companies may not be household names yet, but their fundamentals, innovation, and market positioning suggest they’re worth a closer look. Let’s dive in!

1. Nebius Group (NBIS)

Why It’s Undervalued: Nebius Group might be the biggest AI player you’ve never heard of—at least under its current name. Formerly part of Yandex, the Russian search engine giant, Nebius restructured and relaunched on Nasdaq in October 2024, focusing on AI infrastructure. Despite a cash pile of $2.45 billion (as of December 31, 2024) and negligible debt, its stock has slipped from earlier highs, trading at a forward enterprise-value-to-revenue multiple below 5 for 2025—a bargain for its growth potential.

AI Edge: Nebius is a key player in AI infrastructure, bolstered by a strategic partnership with Nvidia, which owns over 1 million shares and participated in a $700 million funding round in December 2024. The company is expanding its GPU clusters in the U.S. and Europe and recently launched AI Studio, a tool to streamline AI model deployment. With projected revenue of at least $55 million this quarter (up 45% sequentially), Nebius is quietly building momentum.

Why It’s Flying Under the Radar: The Yandex breakup and its new identity haven’t fully registered with mainstream investors, leaving it overshadowed by flashier AI names.

2. UiPath (PATH)

Why It’s Undervalued: UiPath, a leader in Robotic Process Automation (RPA), has seen its stock slide 52% in 2024, despite solid revenue growth of 16% year-over-year in its latest quarter. Trading near its 52-week low, it’s priced at a fraction of its potential, with analysts projecting a consensus price target implying a 236% upside. This disconnect between performance and perception screams opportunity.

AI Edge: UiPath’s RPA platform uses AI to automate repetitive tasks, making it a cost-effective solution for businesses worldwide. Since launching its tools in 2021, it’s held a first-mover advantage in a growing niche. With AI increasingly integrated into workflows, UiPath’s technology is a quiet enabler of efficiency—a less glamorous but critical piece of the AI puzzle.

Why It’s Flying Under the Radar: RPA lacks the sex appeal of generative AI or chipmaking, and a broader market sell-off has unfairly dragged UiPath down. Patient investors could see this as a chance to buy low.

3. BlackLine (BL)

Why It’s Undervalued: BlackLine, a cloud software provider for financial automation, trades at 5.78 times trailing-year sales—well below its historical average of 7.1X and a peak of 7.89X in Q1 2025. Down 3% year-to-date, it’s been overlooked amid the hype of flashier AI subsectors. Yet, analysts forecast 9.5% sales growth to $646 million in 2025, with earnings per share rising 11.22% to $2.18.

AI Edge: BlackLine leverages AI to streamline accounting and financial close processes—think of it as the unsung hero tackling the “grunt work” of corporate finance. Its consistent performance (beating EPS estimates by 32% over the past four quarters) shows it’s quietly delivering value in a practical AI application.

Why It’s Flying Under the Radar: Financial automation doesn’t grab headlines like autonomous vehicles or chatbots, but its steady demand and profitability make it a sleeper hit for long-term growth.

Why These Matter Now

The AI sector is still in its early innings, with infrastructure buildouts and practical applications just starting to scale. While the spotlight shines on trillion-dollar titans, companies like Nebius, UiPath, and BlackLine are carving out niches with strong fundamentals and room to run. Their current valuations don’t fully reflect their potential, making them compelling picks for 2025 and beyond.

Action Step: Dig into these stocks—check their latest earnings, analyst sentiment, and how they fit your portfolio. The AI revolution rewards those who look beyond the obvious.

Stay sharp,