Want to invest in the AI revolution without breaking the bank? While some AI stocks are trading at astronomical prices, there are hidden gems offering both value and growth potential. Here are three tech stocks poised to benefit from the AI boom, all while trading at attractive valuations.
## PTC: AI-Enhanced Industrial Software
PTC (NASDAQ: PTC) is at the forefront of the digital transformation in the industrial sector. Their software helps manufacturers integrate the digital and physical worlds, enabling continuous analysis and actionable insights throughout a product’s lifecycle. Imagine being able to monitor a product from design to disposal, constantly improving processes through digital feedback.
And it’s only getting better. As AI-powered deep learning and machine learning become more integrated, PTC’s software will deliver even more valuable insights. With recurring revenue growing at a healthy pace and free cash flow surging, PTC, trading at an attractive multiple, is a compelling pick for growth investors seeking AI exposure.
## Trimble: Connecting the Physical and Digital with AI
Trimble (NASDAQ: TRMB) is another company bridging the gap between the physical and digital realms, but focusing on construction, geospatial, and transportation. Their solutions enable precise positioning, modeling, and data analysis. Think real-time tracking of structural elements on a construction site or monitoring logistics fleets in real-time.
Trimble is leveraging AI to unlock even greater value from its data. With a vast network of instruments and machines feeding data into its platform, the opportunities for AI-driven analytics are immense. Although still early in its AI journey, Trimble’s commitment to innovation suggests significant growth potential. With strong recurring revenue growth and ambitious free cash flow targets, Trimble’s valuation makes it a standout choice for AI investors.
## ON Semiconductor: A Cyclical Rebound Powered by AI
ON Semiconductor (NASDAQ: ON), a specialist in intelligent power and sensing chips, has faced headwinds recently due to slowing growth in key markets like EVs and industrial automation. However, these are largely cyclical challenges, and the long-term growth prospects for these markets remain robust.
As these markets rebound, ON Semiconductor is well-positioned to capitalize on the increasing demand for its chips. Moreover, the company is actively incorporating AI into its products, enhancing their performance and functionality. This strategic focus, coupled with its attractive valuation, makes ON Semiconductor an intriguing investment opportunity. Keep an eye on this company as it navigates the cyclical landscape and leverages AI to drive future growth.
