Many AI stocks currently face extreme valuations, with even previously reasonable names becoming punitive. However, some have fast-growing underlying businesses that remain relatively undiscovered by the market, presenting higher upside potential than popular AI stocks. Palantir is considered an AI stock leader, but its high valuation may limit short-term returns. In contrast, ACM Research, which specializes in tools for the semiconductor industry, shows notable growth potential despite being lesser-known, with a significant revenue increase and expansion into new market segments.
ACM Research (NASDAQ:ACMR) is still quite under-the-radar. The stock is up 90% year-to-date, but it is still down over 34% from its 2021 high. ACM designs and sells tools to clean silicon wafers, and it has quietly become one of the fastest-growing suppliers to the global semiconductor supply chain.
For PLTR, though, the premium you're paying is massive, even if you value it based on cash flow and take the highest estimates. The business is solid, the moat is real, but the price already assumes most government agencies and Fortune 500 companies will stampede into its platform.
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