2 Dormant AI Giants Could Surprise Investors

While investors focus on high-profile AI stocks like Nvidia, Microsoft, Alphabet, and Meta, two enterprise tech giants have been quietly building earnings and backlogs that few retail investors are discussing. According to a report from 24/7 Wall St., these stocks may offer an asymmetric setup for the second half of the year, especially with the S&P 500 up 8% year-to-date.

Who Are These Giants?

The report does not explicitly name the companies, but context suggests enterprise tech firms like Oracle (ORCL) and IBM, or possibly Microsoft (MSFT) and Alphabet (GOOGL) despite their popularity. The focus is on companies that have not received the same media attention as Nvidia and Meta.

Why They Might Surprise Investors

• Earnings Accumulation: Both companies have continued to generate strong earnings quietly.
• Backlog Growth: They have substantial orders from enterprises adopting AI solutions.
• Lower Valuation: Compared to peers, their stock prices may be less inflated.
• Resilience: If high-flying AI stocks correct, these could offer more stability.

What This Means for Investors

Investors seeking AI exposure beyond the hype may find opportunities in enterprise tech giants with strong customer bases and steady cash flows. These stocks could provide solid returns with lower risk. However, investors should conduct their own research before making any investment decisions.