Top 15 AI Stocks Were Up 5% This Week; Two May Still Be Undervalued

munKNEE.com tracks the stock performances of 101 artificial intelligence and related (AI&R) companies on a daily basis highlighting such information in a number of exclusive articles each week for TalkMarkets. This article focuses on the performances of 15 AI&R stocks that are still very much in bubble mode (i.e. above 100% YTD) as compared to the performance of the Global X Artificial Intelligence and Technology ETF (AIQ) of 91 AI&R constituents which is only up 45% YTD.Image Source: PixabayThe 15 stocks are ranked below, in descending order, as to their stock performances this week and also YTD. In addition, to help ascertain which, if any, of these 15 stocks are possibly undervalued (or, at least, fairly valued, relatively speaking, to each other), each stock’s valuation metrics are provided, as follows:

price-to-earnings (P/E) ratio

forward-price-to-sales ratio (PSR),

enterprise value-to-earnings before interest, taxes, depreciation and amortization (EV/EBITDA) ratio

and price earnings-to expected 12-month growth (PEG) ratio.

In addition, each stock’s short interest percentage of shares that short-sellers have borrowed from the float and not yet covered is provided to determine the extent to which investors are impressed – or not – with the stock’s current price.A definition of each metric is provided at the end of the article.

Applied Optoelectronics (AAOI): UP 34.2% this week; UP 578.2% YTD

Market Capitalization: $456M
P/E ratio: No earnings
PSR: 2.0 (20.5% below sector mean of 2.6)
EV/EBITDA ratio: 408.6 (Extremely High – 2748% above sector mean of 14.40
PEG ratio: N/A
Short Interest: 22.0% (High)

Symbotic (SYM): UP 19.0% this week; UP 209.0% YTD

Market Capitalization: $20.7B
P/E ratio: NA
PSR: 2.8 (High – 107% above sector mean of 1.3)
EV/EBITDA ratio: NA
PEG ratio: NA
Short Interest: 19.7% (High)

BigBear.ai Holdings (BBAI): UP 17.7% this week; UP 146.5% YTD

Market Capitalization: $245M
P/E ratio: NA
PSR: 1.8 (30% below sector mean of 2.6)
EV/EBITDA ratio: NA
PEG ratio: NA
Short Interest: 13.8%

IonQ (IONQ): UP 16.8% this week; UP 267.1% YTD

Market Capitalization: $2.5B
P/E ratio: N/A
PSR: 119.9 (Extremely High – 4575% above sector mean of 2.6)
EV/EBITDA ratio: NA
PEG ratio: NA
Short Interest: 24.0% (High)

C3.ai (AI): UP 11.9% this week; UP 164.8% YTD

Market Capitalization: $3.4B
P/E ratio: NA
PSR: 11.3 (Very High – 339% above sector mean of 2.6)
EV/EBITDA ratio: NA
PEG ratio: NA
Short Interest: 35.5% (Extremely High)

Super Micro Computer (SMCI): UP 11.3% this week; UP 244.1% YTD

Market Capitalization: $15.1B
P/E ratio: 16.4 (27% below sector mean of 22.3)
PSR: 1.4 (45% below sector mean of 2.6)
EV/EBITDA ratio: 12.0 (16% below sector mean of 10.7)
PEG ratio: 0.6 (64% below sector mean of 1.8)
Short Interest: 9.4%

Tesla (TSLA): UP 10.3% this week; UP 116.7% YTD

Market Capitalization: $743B
P/E ratio: 73.0 (Extremely High – 394% above sector mean of 14.8)
PSR: 7.9 (Extremely High – 821% above sector mean of 0.8)
EV/EBITDA ratio: 43.9 (Extremely High – 362% above sector mean is 9.5)
PEG ratio: 3.9 (High – 157% above sector mean of 1.5)
Short Interest: 3.1%

Innodata (INOD): UP 9.4% this week; UP 192.8% YTD

Market Capitalization: $249M
P/E ratio: NA
PSR: 3.1 (High – 134% above sector mean of 1.3)
EV/EBITDA ratio: NA
PEG ratio: NA
Short Interest: 12.6%

Uber Technologies (UBER): UP 6.2% this week; UP 114.6% YTD

Market Capitalization: $112B
P/E ratio: 41.4 (High – 140% above sector mean of 17.3)
PSR: 3.0 (Very High – 122% above sector mean of 1.3)
EV/EBITDA ratio: 29.2 (Very High – 166% above sector mean of 11.0)
PEG ratio: NA
Short Interest: 2.3%

Palantir (PLTR): UP 5.4% this week; UP 220.7% YTD

Market Capitalization: $43.0B
P/E ratio: 82.8 (Extremely High – 271% above sector mean of 22.3)
PSR: 20.1 (Extremely High – 684% above sector mean of 2.6)
EV/EBITDA ratio: 62.7 (Extremely High – 337% above sector mean of 14.4)
PEG ratio: 1.2 (37% below sector mean of 1.8)
Short Interest: 8.0%

CrowdStrike (CRWD): UP 3.9% this week; UP 100.5% YTD

Market Capitalization: $48.8B
P/E ratio: 73.2 (Very High – 227% above sector mean of 22.3)
PSR: 16.3 (Extremely High – 535% above sector mean of 1.3)
EV/EBITDA ratio: 63.8 (Extremely High – 344% above sector mean of 14.4)
PEG ratio: 1.6 (11% below sector mean is 1.8)
Short Interest: 2.4%

Spotify Technology (SPOT): UP 3.5% this week; UP 115.0% YTD

Market Capitalization: $34.2B
P/E ratio: NA
PSR: 2.3 (High – 111% above sector mean of 1.1)
EV/EBITDA ratio: NA
PEG ratio: NA
Short Interest: 1.5%

Meta Platforms (META): UP 2.4% this week; UP 168.6% YTD

Market Capitalization: $859B
P/E ratio: 23.4 (High – 58% above the sector mean of 14.8)
PSR: 6.5 (Extremely High – 473% above sector mean of 1.1)
EV/EBITDA ratio: 12.0 (High – 45% above sector mean of 8.3)
PEG ratio: 1.2 (22% below sector mean of 1.5)
Short Interest: 1.5%

Nvidia Corporation (NVDA): UP 2.1% this week; UP 244.4% YTD

Market Capitalization: $1.2T
P/E ratio: 45.0 (High – 101% above sector mean of 22.3)
PSR: 22.1 (Extremely High – 773% above sector mean of 2.5)
EV/EBITDA ratio: 43.5 (Very High – 203% above sector mean of 14.4)
PEG ratio: 1.4 (26% below the sector mean of 1.8)
Short Interest: 1.1%

Applied Digital Corporation (APLD): DOWN 13.0% this week; UP 119.6% YTD

Market Capitalization: $455M
P/E ratio: 13.2 (51% below sector mean of 27.2)
PSR: 1.2 (52% below sector mean of 2.6)
EV/EBITDA ratio: NA
PEG ratio: NA
Short Interest: 23.7% (High)

Valuation AnalysisBased on the above metrics, Applied Digital Corporation (APLD) and Super Micro Computer (SMCI) have the valuation metrics that best suggest they are still relatively undervalued. This is not a recommendation, however, so please do your own research before taking any action is this regard.Stock Performance SummaryThe above 15 stocks went UP 5.0% last week, on average, and the average YTD price change is now 204.2%.Definitions

The price-to-earnings (P/E) ratio compares a company’s share price to its earnings per share, providing a measure of relative value. A high P/E ratio could mean that a company’s stock is overvalued, or that investors are expecting high growth rates in the future.

The price-to-sales ratio (PSR) describes how much someone must pay to buy one share of a company relative to how much that share generates in revenue for the company. and, as such, determines whether its stock is cheap or overpriced in comparison to its peers. The mean forward sector ratio is considered excellent when the value falls below two (2).

The Enterprise Value-to-Earnings Before Interest, Taxes, Depreciation, and Amortization ratio (EV/EBITDA) is one of the best metrics used by value investors to evaluate a company because it accounts for the value of all financing the company has received from both equity stakes and debt allowing investors to compare profitability between companies. A high means the company is overvalued, while a low ratio indicates it’s undervalued.

The price/earnings to growth ratio (PEG ratio) is considered to be an indicator of a stock’s true value. A PEG lower than 1.0 is best, suggesting that a company is relatively undervalued.

The short Interest is the percentage of shares that short-sellers have borrowed from the float and not yet covered. A short interest as a percentage of float above 20% is generally considered very high conveying that short-selling investors believe the stock’s price is too high and that they hope they will be able to purchase the stock in the market at a lower price than they sold the shares short.

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