These AI Stocks Don’t Get Enough Attention

There’s more to the AI boom than just some of the more obvious plays, like the big names in the Magnificent Seven that seem to say “AI” dozens of times in any post-earnings conference call or Investor Day presentation. Undoubtedly, AI has been quite the buzzword.

And while the technology is the real deal, there’s quite a bit of uncertainty when it comes to which companies will really benefit (in terms of profitability) from the boom, which ones might take a while to see significant returns on hefty investment and which ones might not be able to achieve a return that’s even close to satisfactory. Of course, there are also companies that fail to deliver on promises and end up forgotten, as investors pull their money out with the fear that shares will crumble further.

At this point, it’s tough to tell which companies are timely winners, the longer-term winners that are currently being discounted today, the mild winners, and the many firms that will miss out as the AI revolution continues to play out. Undoubtedly, even the pundits have differing opinions on just how bullish AI will be on productivity and the broad stock market.

While I continue to be a big fan of the mega-cap tech innovators, I also think some lesser-covered AI firms — at least relative to the likes of Nvidia (NASDAQ:NVDA | NVDA Price Prediction) and the rest of the titans worth more than $1 trillion — are worth watching and even betting on, even if their narratives require more patience from investors.

It’s not just about the hyperscalers!

Consider shares of Applied Materials (NASDAQ:AMAT) and Dell Technologies (NASDAQ:DELL), two AI-focused companies that stand out as great values going into December. As the AI trade moves ahead after a concerning start to November, following a solid earnings season, I think the following pair is more than buyable and worthy of your attention if you seek AI growth for cheap.

Applied Materials

Applied Materials is a semiconductor equipment maker that’s fresh off an impressive 40% surge in the past six months. Though the stock has been making up for lost time, the $187 billion innovator still might not have the full respect it deserves, given its role to play in the AI revolution.

Also, the stock is still well below its all-time highs, now down 8% from the heights of summer 2024. Like the mega-cap tech titans, Applied Materials has been trimming its workforce, with around 1,400 people to lose their jobs amid automation and digitization “shifts” that have “redefined” the workforce.

Undoubtedly, such automation-related cuts might be just the start, as the firm looks to optimize further. As another AI company that’s cutting despite doing extraordinarily well, I’d not discount the name, especially as AI and demand for semiconductor equipment stay hot going into 2026. With a range of necessary equipment needed for the foundry giants to ramp up capacity, Applied Materials seems like a breakout play in the making.

Add easing tensions between the U.S. and China into the equation, and I think Applied Materials is a name that’s looking better by the day. At 22.9 times forward price-to-earnings (P/E), the semiconductor equipment maker stands out as a great relative value bet.

Dell Technologies

Dell Technologies is another underrated AI company that could prove quite timely as shares look to break out again. Year to date, the stock has gained just over 22%, pretty much in line with the broad Nasdaq 100. Still, I think the firm is poised to make up for lost time as AI tailwinds and a PC upgrade cycle look to kick off.

Recently, Piper Sandler started Dell Technologies stock with an overweight recommendation, citing the data center refresh and the potential for strength in PCs. As the AI infrastructure boom continues playing out, I don’t think investors should forget about Dell, even though it doesn’t have the hyperscaler exposure, as Piper noted.

Indeed, when it comes to AI data centers, it’s not just about the Mag Seven hyperscalers. There are a plethora of other up-and-coming AI companies poised to spend heavily in AI infrastructure to keep powering ahead. Arguably, it’s Dell Technologies’ exposure to a broader range of AI firms that makes the name such a great complement to the firms with more business from the widely followed hyperscalers. At 13.1 times forward P/E, the stock strikes me as a bargain hiding in plain sight at less than $145 per share.