Artificial intelligence stocks continue to capture investor interest, but two lesser-known names are emerging as compelling opportunities. Aehr Test Systems (AEHR) has surged 379% year-to-date and 961% over the past year, driven by its innovative wafer-level testing technology for AI chips. The company reported a significant backlog of contracts, with $37 million in future business booked in its latest earnings report, and analysts project a 71% revenue increase for fiscal 2027.
On the other hand, ServiceNow (NOW) has faced challenges, down 42% year-to-date and 56% over the past year, largely due to concerns over delayed contracts in the Middle East. Despite this, the company reported a 22% year-over-year revenue gain and raised its subscription guidance for 2026. Analysts remain bullish, with 90% rating it a buy and a median price target suggesting 57% upside.
Investors should consider these stocks as potential rebound plays in the AI sector, especially given Aehr’s strong growth trajectory and ServiceNow’s undervalued position amidst temporary setbacks.
Source: fool.com