3 Undervalued AI Tech Stocks Poised for Sizable Gains in 2025

• The AI revolution continues to reshape industries, creating lucrative opportunities for investors.
• Several tech stocks are strategically positioned to outperform in 2025.
• Despite remarkable advancements, these three stocks remain undervalued.
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As AI reshapes industries and revolutionizes technology, Qualcomm (NASDAQ:), Autodesk (NASDAQ:), and Hewlett Packard Enterprise (NYSE:) stand as innovators harnessing AI’s potential. For investors seeking to capitalize on the current AI boom without overpaying, these three companies provide a compelling combination of undervaluation, innovation, and long-term growth prospects.

Additionally, their above-average Financial Health scores underscore solid fundamentals and sound strategies.

1. Qualcomm

• Current Price: $150.40
• Fair Value Estimate: $181.41 (+22.1% Upside)
• Market Cap: $167.1 Billion

A global leader in wireless technology, Qualcomm dominates the smartphone processor market and has pioneered advancements in 5G, IoT, and connectivity solutions. The company’s AI-powered Snapdragon processors bring advanced capabilities and drive performance in smart devices, wearable tech, autonomous vehicles, and AR/VR applications.

Source: Investing.com

By optimizing device efficiency and processing power, Qualcomm drives innovation across industries reliant on connectivity and AI integration. Its cutting-edge AI advancements and expansion into new markets position it for future growth.

With a Fair Value price of $181.41, QCOM offers a 22.1% upside from its current price of $150.40. The stock is up 4% in 2024 and remains a bargain considering its AI-driven growth trajectory.

Source: InvestingPro

In a sign of how well its business has performed over the years, San Diego-based chipmaker has raised its annual dividend payout in each of the past 22 years.

2. Autodesk

• Current Price: $293.63
• Fair Value Estimate: $329.10 (+12.9% Upside)
• Market Cap: $63.1 Billion

Autodesk is a leader in software for architecture, engineering, and construction (AEC), as well as 3D design and animation used in manufacturing and entertainment. Its flagship tools like AutoCAD, Revit, and Fusion 360 are essential for professionals shaping the physical and digital worlds.

Source: Investing.com

The San Francisco-based company incorporates AI in its design software, automating repetitive tasks and enhancing generative design. These technologies enable architects, engineers, and designers to create faster, reduce costs, and develop sustainable solutions across industries.

The present valuation of Autodesk suggests it is a bargain, as assessed by the AI-backed quantitative models in InvestingPro. Autodesk’s Fair Value estimate of $329.10 implies a 12.9% upside from its current price of $293.63. With shares up 20.6% in 2024, the company’s AI initiatives position it for sustained growth in diverse industries.

Source: InvestingPro

As per InvestingPro research, Autodesk’s healthy profitability outlook, growing net income, impressive gross profit margins and robust balance sheet metrics earn it a noteworthy Financial Health score of 2.9 out of 5.0.

3. Hewlett Packard Enterprise

• Current Price: $20.89
• Fair Value Estimate: $22.75 (+11.1% Upside)
• Market Cap: $1.9 Billion

Hewlett Packard Enterprise provides IT solutions, including cloud computing, data storage, and networking infrastructure for enterprises. Its leadership in edge computing positions it at the forefront of digital transformation.

Source: Investing.com

HPE’s GreenLake edge-to-cloud platform uses AI to simplify enterprise data management, and its high-performance computing systems support complex AI models for industries like healthcare and finance. The company’s AI-driven tools help businesses unlock new capabilities, streamline operations and enhance operational efficiencies.

As such, the Texas-based company, which was founded in 2015 as part of the splitting of the Hewlett-Packard company, is well positioned to thrive in the evolving tech landscape. HPE has a Fair Value price of $22.75, reflecting an 11.1% upside from its current price of $20.89. The stock is up 23% in 2024, underscoring strong investor confidence in its AI-led innovations.

Source: InvestingPro

In addition, Hewlett Packard Enterprise boasts a solid InvestingPro Financial Health score of 2.7/5.0, supported by its attractive valuation, strategic pivot and strong cash flow.

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Disclosure: At the time of writing, I am long on the S&P 500, and the via the SPDR® S&P 500 ETF (SPY), and the Invesco QQQ Trust ETF (QQQ). I am also long on the Invesco Top QQQ ETF (QBIG), and VanEck Vectors Semiconductor ETF (SMH).

I regularly rebalance my portfolio of individual stocks and ETFs based on ongoing risk assessment of both the macroeconomic environment and companies’ financials.

The views discussed in this article are solely the opinion of the author and should not be taken as investment advice.

Follow Jesse Cohen on X/Twitter @JesseCohenInv for more stock market analysis and insight.