The artificial intelligence (AI) revolution is reshaping our world at an unprecedented pace. As AI technology evolves, it’s set to fundamentally transform countless industries through enhanced automation, operational efficiency, and dramatic improvements in workforce productivity.
Since ChatGPT’s breakthrough debut in January 2023, investors have flocked to companies pioneering this space, driving significant valuation increases across the diverse AI landscape. However, amid this enthusiasm, several promising AI companies remain surprisingly undervalued compared to their long-term potential.
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Two companies stand out with their strategic positioning within the AI value chain. Both are uniquely positioned to capitalize on AI’s expanding adoption across enterprise and consumer markets, yet their current valuations fail to reflect their competitive advantages and growth trajectories. For investors seeking exposure to the AI revolution without paying premium prices, these two stocks are worth considering right now.
The nuclear energy disruptor
Oklo (NYSE: OKLO) represents a powerful convergence of AI and next-generation nuclear technology. The company harnesses sophisticated AI algorithms to revolutionize the design and operational efficiency of its compact fast reactors — cutting-edge micro reactors engineered specifically to deliver clean, reliable power directly to energy-hungry data centers.
This unique capability directly addresses one of the most overlooked challenges of the AI revolution: its massive energy consumption. According to the Center on Global Energy Policy, U.S. data centers alone could require more than 14 gigawatts of new capacity by 2030, equivalent to powering roughly 10.5 million homes. Internationally, the trend is even more pronounced in countries like Ireland, where data centers are projected to consume up to 32% of the nation’s total electricity generation.
Oklo’s edge lies in both speed and precision. Its AI-driven design process shortens development cycles and cuts costs in an industry plagued by delays and regulatory drag. Meanwhile, its micro reactors can be deployed on-site, eliminating transmission losses and delivering localized, carbon-free power to energy-intensive AI infrastructure.
Despite rising 32% year to date as of May 9, 2025, Oklo’s market capitalization remains remarkably modest at just $3.9 billion. This valuation appears significantly underpriced when considering the looming energy bottleneck that threatens to constrain AI’s growth trajectory.
As computing requirements for advanced AI systems continue to multiply, Oklo’s technology represents not merely an alternative energy play but potentially a mission-critical enabler for the next phase of AI development. For investors seeking exposure to the AI revolution through an unconventional yet fundamentally essential component, Oklo offers a compelling proposition at current price levels.
The drug discovery pioneer
Recursion Pharmaceuticals (NASDAQ: RXRX) is redefining drug development by applying AI at an industrial scale. At the core of its strategy is the Recursion OS, a proprietary platform that unites massive biological and chemical data sets with one of the world’s most powerful supercomputers. This system conducts millions of automated wet-lab experiments weekly, using machine learning to map trillions of relationships across human biology and chemistry.
In May 2025, Recursion announced a sharpened focus on high-impact clinical programs in oncology and rare diseases while strategically trimming its pipeline following a data-driven review. Its lead candidates — including REC-4881 for familial adenomatous polyposis and REC-7735 for breast cancer — have demonstrated promising early results.
Meanwhile, its partnership ecosystem continues to strengthen. Recursion recently secured a $7 million milestone payment from Sanofi while advancing its other key collaborations with Roche and Merck KGaA.
The company’s AI-first approach enables faster, more precise therapeutic discovery while significantly reducing development costs — a critical advantage in this capital-intensive, high-risk industry. With $509 million in cash and a runway extending into mid-2027, Recursion possesses ample resources to navigate market volatility while advancing its novel platform and high-value pipeline.
Despite these compelling tailwinds, shares have declined 35% year to date, bringing Recursion’s market cap to just $1.76 billion, a valuation disconnect that presents a unique opportunity for investors. As AI continues to disrupt traditional drug discovery strategies, Recursion stands out as a significantly undervalued leader at the intersection of machine learning and medicine, positioned to unlock the next generation of precision therapeutics.
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George Budwell has no position in any of the stocks mentioned. The Motley Fool recommends Roche Holding AG. The Motley Fool has a disclosure policy.
