Stocks in 2024 have shown strong bullish momentum, with the S&P 500 up approximately 18% year to date. While high-profile artificial intelligence (AI) players such as Nvidia, Microsoft, and Apple have seen valuation highs, there are still undervalued AI stocks worth considering. Two Motley Fool contributors recommend Palantir Technologies and Trimble as potential winners. Palantir, despite a dip in its stock price last year, has rebounded and is currently trading at 90 times this year's expected earnings. The company has consistently posted profits and experienced acceleration in sales growth. Its commercial segment, driven by demand for its Artificial Intelligence Platform (AIP) software suite, is expected to become the largest revenue contributor. Palantir's private and public sector sales have shown impressive growth, with U. S.

commercial customers and government customers contributing to its overall performance. With strong margins and rapid expansion, Palantir has the potential to outperform. Trimble, a workflow technology company, has faced challenges in certain markets but has demonstrated growth in its core architects, engineers, construction, and owners (AECO) segment. Its solutions help optimize operations and reduce waste in construction projects, leading to an 18% year-over-year growth in annualized recurring revenue (ARR). With a focus on selling software and subscription services on a recurring basis, Trimble's profit margins and cash flow conversion continue to increase. The company's incorporation of AI capabilities into its products enhances its value for customers and strengthens its position in their daily workflows. With projected ARR growth and potential economic improvements in the future, Trimble appears to be an attractive investment opportunity, currently trading at a significant discount. In summary, both Palantir and Trimble offer compelling growth prospects as undervalued AI stocks, making them enticing investment options.