While Nvidia<\/strong> and Microsoft<\/strong> dominate artificial intelligence (AI)<\/a> headlines, the smartest opportunities might lurk in smaller companies solving specific problems with the tech. These 10 hidden gems don’t build foundation models or design AI chips; instead, they apply existing AI technology to transform inefficient industries and outdated processes.<\/p>\n From insurance underwriting<\/a> to drug discovery<\/a>, each company uses AI as a competitive weapon rather than a marketing buzzword. Here’s why these 10 under-the-radar names deserve attention from growth investors seeking the next wave of AI winners.<\/p>\n Image source: Getty Images.<\/p>\n<\/p><\/div>\n Freshworks<\/strong> (FRSH<\/a> 0.28%<\/span>)<\/span> is a software-as-a-service (SaaS) platform<\/a> for customer support, IT service management, and customer relationship management (CRM) with over 68,000 global customers. Its Freddy AI features make enterprise-style automation accessible to small and midsize businesses, a segment often overlooked by giants like Salesforce<\/strong> and ServiceNow<\/strong>. The company’s mid-teens revenue growth and improving margins suggest the AI strategy is gaining traction, though profitability remains elusive.<\/p>\n Oscar Health<\/strong> (OSCR<\/a> 1.82%<\/span>)<\/span> is a tech-enabled health insurer focused on simplifying member and provider interactions. Its new Superagent AI assistant promises to cut service costs and improve speed, giving it a disruptive edge in a notoriously inefficient industry. With healthcare<\/a> costs spiraling and administrative burdens crushing providers, Oscar’s AI-first approach could capture significant market share if execution delivers on the promise.<\/p>\n Nerdy<\/strong> (NRDY<\/a> -1.51%<\/span>)<\/span> runs Varsity Tutors and an AI-powered Live + AI platform that scales tutoring and education services. With school districts piloting AI tutors, the stock taps into the edtech wave of personalized, automated learning. The company’s ability to blend human expertise with AI scalability creates a differentiated model in the $100 billion tutoring market.<\/p>\n Lemonade<\/strong> (LMND<\/a> -1.94%<\/span>)<\/span> is a digital insurance company using AI bots to underwrite policies, answer claims, and handle customer onboarding. Its automation could expand margins if loss ratios stabilize, making it an intriguing bet on AI in financial services. The challenge remains proving that AI can actually improve underwriting accuracy while maintaining the rapid growth that justifies its valuation.<\/p>\n Recursion Pharmaceuticals<\/strong> (RXRX<\/a> 1.84%<\/span>)<\/span> is a biotech that uses AI and massive proprietary datasets to accelerate drug discovery. Its supercomputer-scale partnership with Nvidia positions it as a potential leader in AI-driven therapeutics. While the market cap of around $2 billion reflects significant speculation, successful clinical trials could validate the AI approach and trigger explosive gains.<\/p>\n BigBear.ai<\/strong> (BBAI<\/a> -5.81%<\/span>)<\/span> provides decision intelligence platforms and analytics for the U.S. Department of Defense and industrial clients. As defense digitization accelerates, its AI-based mission planning and predictive systems give it a clear growth angle. Government contract volatility and execution risks make this suitable only for investors comfortable with lumpy revenue patterns.<\/p>\n Amplitude<\/strong> (AMPL<\/a> -1.81%<\/span>)<\/span> delivers product analytics software that helps companies optimize user engagement and conversion. Its new AI agents generate insights and suggest experiments automatically, appealing to investors betting on AI-enhanced analytics. Competition from Adobe<\/strong> and free alternatives creates pricing pressure, but the product-focused approach maintains differentiation.<\/p>\n PagerDuty<\/strong> (PD<\/a> -0.46%<\/span>)<\/span> is a DevOps and IT incident management platform used by thousands of enterprises. Its AI assistant and automation tools shorten incident response times, creating a measurable return on investment (ROI<\/a>) that resonates with enterprise buyers. The company’s shift toward AI-driven operations positions it well as businesses demand faster resolution of increasingly complex technical issues.<\/p>\n Sprinklr<\/strong> (CXM<\/a> 0.64%<\/span>)<\/span> operates a unified customer experience management platform used by global brands. Its AI tools for listening, insights, and engagement put it at the center of how companies interact with customers in the AI era. Customers include global brands such as McDonald’s<\/strong> and Nike<\/strong>, giving Sprinklr the scale to benefit from AI adoption across marketing departments.<\/p>\n Innodata<\/strong> (INOD<\/a> 2.86%<\/span>)<\/span> provides data engineering, content services, and AI training data sets for large enterprises and AI developers. As demand for high-quality training data soars, its niche infrastructure role makes it a hidden beneficiary of AI adoption.<\/p>\n These 10 stocks won’t compete with Nvidia for AI supremacy, but they don’t need to. Each applies AI to solve specific business problems, creating defensible niches in massive markets. The risks vary widely\u2014Lemonade and Oscar face insurance industry headwinds, Recursion depends on clinical trial success, and BigBear relies on government contracts. Spreading capital across multiple hidden gems reduces single-stock blow-up risk while maintaining exposure to AI’s practical applications.<\/p>\n<\/div>\n George Budwell<\/a> has positions in Lemonade, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Adobe, Lemonade, Microsoft, Nike, Nvidia, Salesforce, and ServiceNow. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy<\/a>.<\/em><\/p>\n <\/span>\n<\/div>\n","protected":false},"excerpt":{"rendered":" From AI-powered insurance bots to drug discovery platforms, these overlooked stocks offer pure-play exposure to artificial intelligence without trillion-dollar valuations. While Nvidia and Microsoft dominate artificial intelligence (AI) headlines, the smartest opportunities might lurk in smaller companies solving specific problems with the tech. These 10 hidden gems don’t build foundation models or design AI chips; […]<\/p>\n","protected":false},"author":1,"featured_media":1622,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[59],"tags":[],"class_list":["post-1621","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stocks"],"_links":{"self":[{"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/posts\/1621","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/comments?post=1621"}],"version-history":[{"count":0,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/posts\/1621\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/media\/1622"}],"wp:attachment":[{"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/media?parent=1621"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/categories?post=1621"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/tags?post=1621"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"A](\"https:\/\/g.foolcdn.com\/image\/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F835236%2Fgettyimages-2150878112.jpg&op=resize&w=700\")
<\/p>\nThe enterprise automation enabler<\/h2>\n
The healthcare disruptor<\/h2>\n
The education transformer<\/h2>\n
The insurance innovator<\/h2>\n
The biotech revolutionary<\/h2>\n
The defense intelligence provider<\/h2>\n
The product optimization platform<\/h2>\n
The incident response accelerator<\/h2>\n
The customer experience orchestrator<\/h2>\n
The data infrastructure play<\/h2>\n
The hidden gem portfolio<\/h2>\n