Forget Nvidia: 2 tech stocks to buy instead

There is no doubt about it Nvidia is the stock that everyone is talking about right now. I’m not saying Nvidia doesn’t deserve flowers.However, investing can also involve moving against the crowdlooking for gems that others overlook.

So, instead of focusing on Nvidia like other companies, we’re focusing not only on its effective use of artificial intelligence (AI), but also on its fundamentals and potential for investors to earn superior long-term returns. Consider taking a look at some great growth stocks with overlooked valuations.

Here are two AI stocks to watch.

1. Trade Desk

It would be an exaggeration to say that ad tech is outstanding. trade desk (TTD -0.43%) It’s overlooked. After all, the stock price has risen more than 50% in the past year. But when was the last time Uncle Bob asked about a stock? The company has hardly received the hype it deserves. Founder Jeff Green is a pioneer in digital advertising and has built a growing and profitable business with a clear proposition for advertisers:

Industry leaders include: meta platform and alphabet It operates in a closed ecosystem. In other words, you pay for advertising.they use their data, please tell me how They are They just believe in the effectiveness of advertising, without being very transparent about how they arrived at these conclusions. Trade Desk provides complete insight to advertisers, so customers can spend their money on the platform with confidence. Approximately 95% of customers continue using The Trade Desk.

Trade Desk uses AI to match ads to your ideal audience. It’s an asset-light (and profitable) business model that continues to grow.

TTD Revenue (TTM) data by YCharts.

Long-term growth is likely to come from a combination of brands diversifying away from major advertising platforms and a broader shift in advertising budgets from print and broadcast media to online. Analysts expect the company’s profits to rise by an average of 23% annually over the next three to five years. That’s solid growth at today’s forward P/E of 56x.

The Trade Desk is viewed as a promising blue-chip technology stock.

2. Sentinel One

Cybersecurity is at the heart of the modern economy. It doesn’t take long to find news of major breaches.healthcare giant united health group For example, you just got hacked recently and are trying to control the effects. Incidents like this will likely keep security at the top of corporate budgets for years to come.why don’t you spend money sentinel one (S 1.42%)perhaps one of the most innovative stocks in this space?

SentinelOne started with endpoint security, protecting devices connected to your network. But since then, the company has expanded into other areas such as cloud and identity security.

SentinelOne’s technology works as follows: Artificial intelligence organizes everything your device does into trends and stories. When something looks out of the ordinary, we catch it and respond to the threat as necessary. It is autonomous and active protection.

The company’s products have received numerous awards from third-party technology evaluators, including: gartnerAnd SentinelOne is also rapidly growing its business.

S Revenue (TTM) data by YCharts.

SentinelOne is still in the early stages of business. The company has annual sales of only about $573 million and is not yet profitable. But that’s all changing rapidly. Analysts expect revenue to reach $1 billion within two years, and free cash flow is quickly heading into positive territory. The company has zero debt and his massive $800 million cash reserves to continue investing in growth.

If you evaluate the stock by sales, the company has a price-to-sales (P/S) ratio of 10, nearly half that of its largest rival. crowdstrike holdings. Some may argue that since CrowdStrike is profitable, Sentinel One could close the gap in stock valuation if it followed suit. There is a lot to like between this potential catalyst and healthy growth prospects.