3 Underrated AI Stocks Worth Investing In Right Now
Podcast Overview: In Episode #464 of the Zacks Market Edge Podcast, host Tracey Ryniec discusses how investors can leverage the Zacks Rank system to identify lesser-known AI stocks amidst the broader AI Revolution, which extends beyond major players like NVIDIA and Palantir.
Hidden Gem Stocks: Ryniec highlights three companies—Everus Construction Group, Comfort Systems USA, and Allient Inc.—as potential hidden gems in the AI infrastructure space, each showing significant year-to-date stock performance and promising earnings growth.
Market Demand: The increasing demand for data is driving a surge in data center construction and upgrades, suggesting that companies providing essential hardware for these facilities could emerge as the next big players in the market.
Investment Recommendations: The podcast encourages listeners to consider these lesser-known stocks for their portfolios, emphasizing the importance of identifying companies that are integral to the AI infrastructure but may not be on the average investor's radar.
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- S&P 500 Milestone: The S&P 500 index reached 7000 for the first time on Wednesday.
- Driving Factors: The surge is attributed to increased demand for hard drives, memory chips, and components related to artificial intelligence.
- Surging Power Demand: The IEA projects that global energy consumption for data centers will double by 2030, highlighting the urgent need for infrastructure investment and creating significant opportunities for energy investments.
- Accelerated Construction: Despite concerns about 'overbuilding,' data shows that existing data centers are insufficient to meet the demands of AI and other intensive computing applications, indicating continued market growth potential.
- Diverse Investment Opportunities: Analysts suggest that investors can gain exposure to the data center buildout by focusing on related companies like Hewlett Packard Enterprise, especially in the context of rapid AI data center development.
- Energy Self-Sufficiency: Major tech firms like Microsoft and Amazon are taking control of energy costs by building or acquiring nuclear facilities, a trend that could reshape the energy supply landscape for data centers and reduce long-term operational costs.
- Surging Power Demand: The IEA projects that global energy consumption for data centers will double by 2030, highlighting the urgent need for infrastructure investment, making energy sector opportunities attractive for investors.
- Accelerated Buildout: Despite fears of overbuilding, data shows that demand for data centers continues to outstrip supply, with many large clients pre-leasing capacity into 2027, indicating robust market demand.
- Diverse Investment Opportunities: Analysts suggest that investors can engage in data center buildouts through various avenues, including companies like Hewlett Packard Enterprise that specialize in high-performance computing systems, which are expected to benefit from AI and data center demand.
- Energy Self-Sufficiency: Major tech firms like Microsoft and Amazon are investing in self-built energy facilities to meet rising power demands, which not only reduces operational costs but may also enhance their competitive edge in the future.
- Market Volatility Impact: Kevin Mahn highlighted that in 2025, markets initially fell nearly 15% due to tariff fears, but those who remained invested saw a 39% rebound by year-end, underscoring the risks of reacting to short-term headlines.
- Identifying Investment Opportunities: Mahn advised investors to focus on long-term growth, particularly the AI boom, with trillions expected in infrastructure investments by 2030, emphasizing the potential of companies supporting this growth, such as data center cooling and power providers.
- Stability and Yield: He mentioned Comfort Systems USA Inc., recently added to the S&P 500, and Duke Energy Corp., trading at 17X forward earnings with a 3.7% dividend yield, as solid choices for stability in turbulent markets.
- Sector Outlook: Mahn also pointed out promising sectors like aerospace and defense, driven by rising global military budgets, and small-cap biotech, benefiting from patent cliffs and M&A activity, recommending companies like L3 Harris and Indivior as investment targets.











