Artificial Intelligence (AI) Stocks Are Surging. But This AI Stock Is Down 24.27%.

It's hard to score a deal if you're sticking with artificial intelligence (AI) stocks . Nvidia (NASDAQ: NVDA) , for example, has a massive $5.2 trillion market cap, yet trades at an astounding 33 times earnings. A decade ago, it was difficult to even imagine a company growing this big, let alone trading at a premium valuation.

But what if I told you one of my favorite artificial intelligence stocks still has a market cap under $20 billion with several major growth catalysts on the way, both in the short and long terms? To secure a bargain hunting for AI stocks, you'll have to think outside the box. If you do, you'll likely see the allure of this promising company.

Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »

Most investors believe that Rivian Automotive (NASDAQ: RIVN) is an electric vehicle (EV) stock . And in many ways that's true. Rivian does manufacture EVs. But that should be considered its legacy business. Moving forward, Rivian is very much an AI stock.

What makes Rivian an AI stock and not an EV stock? There is one important factor to understand.

Take a look at Tesla (NASDAQ: TSLA) . Tesla is trading near a record-high valuation of $1.3 trillion despite declining sales in its core auto business. Electric vehicle sales are struggling mightily across the industry, all while competition in the EV space is heating up.

Why, then, is Tesla trading near record highs? Because the market no longer sees it as a legacy automotive manufacturing business. Instead, Tesla is now viewed as a bona fide AI stock. The company is injecting AI more aggressively into its design and manufacturing processes, as well as its in-vehicle experiences, particularly when it comes to self-driving features.

According to the World Economic Forum, AI is quickly becoming a key enabler of autonomous driving capacities. And it's not hard to see why. "AI-driven simulation platforms can generate synthetic datasets, providing scalable, diverse and targeted training scenarios," a WEF report concludes. "Such data enables developers to simulate millions of miles of driving while covering both routine and rare scenarios."