3 Little-Known AI Stocks With Mind-Blowing 1,000% Upside Potential

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The AI hype wave has plateaued over the past few months.

But the big AI companies have yet to see a significant correction and AI stocks remain hot in general. In my view, chasing potential upside with many of these hyped-up companies isn’t worth the downside risk. Most of the fascinating AI technologies are no longer surprising Wall Street as they did before. OpenAI’s Sora could bring a lot of excitement once it releases. Yet, it may not be as revolutionary as ChatGPT.

AI extends way beyond generative chatbots and video generation. The AI revolution is multifaceted, with numerous companies in different industries using this tech. Some of these AI stocks are sitting at bargain-basement levels, flying under the radar of Mr. Market. Buying up these overlooked gems could potentially help you realize multibagger returns in the coming years if they take off.

So, let’s explore three such little-known AI stocks.

Gorilla Technology (GRRR)

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Gorilla Technology (NASDAQ:GRRR) is a video intelligence and Internet of Things (IoT) technology company. Its revenues soared to $64.7 million (12-month trailing), growing 188.7% year-over-year (YOY). Sales are expected to expand even more.

Sadly, the stock itself has been trading sideways for quite some time and remains depressed. It has had many misses and beats in the past few quarters, and GRRR stock reached a $11.2 peak this year. However, I think it offers a pretty safe entry right now since its historical floor has been around $5.

Profits are what makes me bullish here. Its adjusted EBITDA stood at $29 million, up 587%. Management’s laser focus on optimizing efficiency and performance really paid off.

The outlook for $79 million in revenues in 2024 seems achievable, given the sales pipeline. However, cash reserves are at $34 million, so profits need to keep up.

Coda Octopus (CODA)

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Coda Octopus (NASDAQ:CODA) specializes in 3D sonar solutions and other sea-related hardware and software. Their seabed classification modules use AI. The company showed some mixed results this earnings season. However, I remain optimistic about the company’s long-term potential for growth.

While revenue fell 20% YOY, executives offered an explanation. They said this was partly due to delays securing funding and supply chain issues that temporarily impacted progress in the engineering division. At the same time, the marine technology side of the business is demonstrating signs of recovery. CODA has increased usage of tools available through their rental program, a key driver of future sales.

Encouragingly, profit margins continue to improve within this segment. And, management expresses confidence that demand will rise for projects supporting offshore renewable energy and construction taking place in the Middle East. Though product sales in China fell short of goals, I’m interested in positive customer feedback on Coda’s new DAVD untethered system and the progress being made to finalize the last $1.25 million payment of their funded project schedule next quarter.

Now that their major annual Oceanology conference has passed, I expect orders to start picking back up as clients gear up to modernize equipment. While near-term market complications linger, Coda’s designs target evolving marine industries and the large potential customer base. These could position this stock as an intriguing higher-risk opportunity for more tolerant investors who plan to stay committed through short-term fluctuations. The stock has been going through up-and-down cycles for the past four years. However, the cash build-up should allow for it to break out as the company expands.

Viant Technology (DSP)

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Viant Technology (NASDAQ:DSP) is an AI-powered advertising company. Their first quarter results highlighted some great successes, especially when it comes to reaching audiences across different connected platforms.

Revenue was up 28% YOY, largely thanks to an incredible 50% rise in revenue from connected TV or CTV advertising. This top-line performance beat estimates by nearly 5%. As more and more TV viewing and spending shifts away from traditional linear TV to streaming options on CTV devices, Viant Technology seems well-equipped to capture this ongoing transition.

DSP cleverly targets ads by using their patented Household ID technology. They understand audiences at a detailed household level, and brands are seeing ads perform better on basically all platforms.

Another growth driver has been Viant Technology’s…