There are numerous ways to join the artificial intelligence (AI) craze. Many investors flock to AI hardware designer Nvidia, elevating it to one of the most valuable companies globally. While Nvidia is an impressive firm, its stock may have surged too rapidly. More appealing AI opportunities are available, such as IBM (IBM 0. 26%), Micron Technology (MU -0. 12%), and Fiverr International (FVRR 0. 88%), which seem like better AI investments in fall 2024. An Unconventional Trio of AI Experts This group might not be the most obvious AI investments, but they have strong ties to the expanding generative AI market from unique perspectives: IBM opts to focus on enterprise-grade AI solutions, allowing others to develop consumer-friendly tools. It emphasizes auditable data flows and business intelligence integration, important for forming long-term service agreements with large corporations. Consequently, within two years of its launch, IBM’s generative AI platform has secured $3 billion in service contracts. Micron doesn't produce AI accelerators; instead, it designs high-speed memory chips crucial for training and running generative AI platforms, as well as for AI-equipped smartphones. Micron's chips are in high demand due to these AI connections. Fiverr, although not involved in AI infrastructure, leverages generative AI in two ways. Its platform for connecting freelancers with clients utilizes various AI technologies. Additionally, it offers AI-related services to diverse clients, integrating a human element for deriving value from AI tools.

AI-related services are a significant growth driver for Fiverr. Attractive Valuations Nvidia has outperformed the market since OpenAI introduced ChatGPT nearly two years ago. While this benefits Nvidia's long-term investors, the stock now trades at high valuation ratios, posing the risk of price corrections if it fails to maintain its AI accelerator leadership. In contrast, IBM's AI momentum is just beginning. Fiverr's stock has declined during the ChatGPT era, as some investors view AI as a threat to its freelancers. Eventually, Wall Street may recognize these undervalued stocks. Both Fiverr and IBM are establishing substantial AI revenue streams, suggesting their stocks will eventually benefit. Micron's Unique Profit Trajectory Micron appears out of place with high valuation ratios—900 times free cash flow and 146 times trailing earnings. However, these figures reflect profits just above breakeven, poised to improve. As the memory chip market recovers from a downturn, Micron's sales and cash profits are rebounding: CEO Sanjay Mehrotra stated during October's fourth-quarter earnings call, "We are entering fiscal 2025 with the strongest competitive positioning in Micron's history. We look forward to delivering substantial revenue records with significantly enhanced profitability in fiscal 2025. "