Image Source: Pixabay

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 12 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 40% YTD.

The 12 stocks are ranked below, in descending order, as to their stock performances YTD and market capitalizations. In addition, to help ascertain which, if any, of these 12 stocks are possibly undervalued (or, at least, fairly valued, relatively speaking) to each other, each stock's

• 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 is provided.

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 the stock's current price.

A definition of each metric is provided at the end of the article.

1. Applied Optoelectronics (AAOI): UP 425.8% YTD
   • Market Capitalization: $333M
   • PSR: 1.5 (sector mean is 2.5) 
   • EV/EBITDA ratio: Negative
   • PEG ratio: No earnings
   • Short Interest: 22.0% (High)
2. Nvidia Corporation (NVDA): UP 237.7% YTD
   • Market Capitalization: $1.19T
   • PSR: 22.1 (High - sector mean is 2.5)
   • EV/EBITDA ratio: 42.5 (High - sector mean is 13.3)
   • PEG ratio: 1.3 (sector mean is 1.7)
   • Short Interest: 1.1%
3. IonQ (IONQ): UP 208.9% YTD
   • Market Capitalization: $2.2B
   • PSR: 100.6 (Extremely High - sector mean is 2.5)
   • EV/EBITDA ratio: Negative
   • PEG ratio: No earnings
   • Short Interest: 24.0% (High)
4. Palantir (PLTR): UP 207.8% YTD
   • Market Capitalization: $42.8B
   • PSR: 19.3 (High - sector mean is 2.5)
   • EV/EBITDA ratio: 62.4 (Extremely High - sector mean is 13.3)
   • PEG ratio: 1.1 (sector mean is 1.7)
   • Short Interest: 8.0%
5. Innodata (INOD): UP 167.0% YTD
   • Market Capitalization: $240M 
   • PSR: 2.9 (High - sector mean is 1.3)
   • EV/EBITDA ratio: Negative
   • PEG ratio: No earnings
   • Short Interest: 12.6%
6. Meta Platforms (META): UP 163.6% YTD
   • Market Capitalization: $845B
   • PSR: 6.3 (High - sector mean is 1.1)
   • EV/EBITDA ratio: 11.8 (High - sector mean of 8.1)
   • PEG ratio: 1.2 (sector mean of 1.5)
   • Short Interest: 1.5%
7. Symbotic (SYM): UP 160.6% YTD
   • Market Capitalization: $18.0B
   • PSR: 2.3 (High - sector mean is 1.3)
   • EV/EBITDA ratio: Negative
   • PEG ratio: No earnings
   • Short Interest: 19.7% (High)
8. C3.ai (AI): UP 141.4% YTD
   • Market Capitalization: $3.2B
   • PSR: 10.3 (Higher - sector mean is 2.5)
   • EV/EBITDA ratio: Negative
   • PEG ratio: No earnings
   • Short Interest: 36.4% (Extremely High)
9. Applied Digital Corporation (APLD): UP 130.2% YTD
   • Market Capitalization: $499M
   • PSR: 1.4 (sector mean is 2.5) 
   • EV/EBITDA ratio: Negative
   • PEG ratio: No earnings
   • Short Interest: 23.7% (High)
10. BigBear.ai Holdings (BBAI): UP 124.6% YTD
    • Market Capitalization: $245M
    • PSR: 1.6 (sector mean is 2.5) 
    • EV/EBITDA ratio: Negative
    • PEG ratio: No earnings
    • Short Interest: 13.8%
11. Spotify Technology (SPOT): UP 108.8% YTD
    • Market Capitalization: $33.4B
    • PSR: 2.3 (High - sector mean is 1.1) 
    • EV/EBITDA ratio: Negative
    • PEG ratio: No earnings
    • Short Interest: 1.5%
12. Uber Technologies (UBER): UP 103.4% YTD
    • Market Capitalization: $106.1B
    • PSR: 2.9 (High - sector mean is 1.3) 
    • EV/EBITDA ratio: 27.8 (Very High - sector mean is 10.7)
    • PEG ratio: 0.6 ( sector mean is 1.6)
    • Short Interest: 2.3%
       

Stock Performance Summary

The average YTD price change of the above 12 stocks is 184.0%. Another 3 stocks have appreciated by between 90% and 99.9% - Tesla (TSLA), Super Micro Computer (SMCI) and CrowdStrike (CRWD) - and when they are included the average YTD price change of all 15 is still an impressive 155.3%

Definitions

• 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 3.45 but 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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