After an epic run, some AI stocks are taking a breather, representing a compelling opportunity for savvy investors.

One of the biggest drivers of the market rebound over the past year or so has been the rapid and ongoing adoption of artificial intelligence (AI). Recent developments have marked a giant leap forward in the technology, promising to automate a great number of mundane tasks, thereby increasing productivity and saving money.

In recent weeks, however, the AI rally has been taking a breather, with some of the most high-profile names in the space losing ground. That isn’t surprising, given the relentless run that started early last year. The news isn’t all bad. Most experts agree that we’re still in the early stages of AI adoption, so the rally likely still has much further to climb, despite the recent retrenchment. This gives savvy investors the opportunity to invest in companies that still have room to run.

Here are two AI-related stocks that with up to 111% additional upside, according to select Wall Street analysts.

Palantir Technologies: Implied upside of 854%

One of the bottlenecks in generative AI adoption is the fact that many enterprises lack the expertise to implement the technology while still getting the most bang for their buck. Given the complexity of the systems at issue, that’s not surprising. However, Palantir Technologies (PLTR -6.48%) has bridged the gap between knowledge and execution.

The company has a long history of developing AI tools for the U.S. government and its allies and expanded its mandate to help businesses discover actionable intelligence from reams of corporate data. This expertise allowed Palantir to pivot quickly to develop generative AI tools that businesses could actually use. The fruit of these efforts is the company’s Artificial Intelligence Platform (AIP), which helps provide common sense solutions to everyday business problems.

Furthermore, to address the resulting knowledge gap, management developed hands-on sessions, which it calls boot camps, that pair users with Palantir engineers to create solutions to company-specific problems. This unmet need has attracted companies in droves, with 1,300 bootcamps held since Palantir began hosting them late last year, with 500 over the past three months alone.

This is fueling robust results. In the first quarter, Palantir’s U.S. commercial revenue jumped 40% year over year, even as the segment’s customer count soared 69%. More importantly, the remaining deal value — which provides insight into its future trajectory — grew 74%, which suggests its growth will continue.

Wedbush analyst Dan Ives is the most bullish among his Wall Street peers, suggesting Palantir stock will soar to $50 by 2025, representing upside potential of 85% compared to Monday’s closing price. Ives believes these bootcamps will continue to attract converts, increasing Palantir’s fortunes.

At 227 times earnings and 27 times sales, Palantir seems frightfully expensive. However, its forward price/earnings-to-growth (PEG) ratio, which takes into account its accelerating growth, comes in at 0.3, when any number less than 1 suggests an undervalued stock.

Super Micro Computer: Implied upside of 115%

While Palantir helps companies harness the potential of AI, Super Micro Computer (SMCI -8.61%), also known as Supermicro, creates high-end servers packed with the computational horsepower needed to bring AI to life.

As AI adoption has accelerated, many users are now looking to curb the massive energy consumption that is the result of AI processing, and Supermicro’s focus on energy-efficient solutions is well-documented. Furthermore, the company boasts a building block architecture, which helps users create a system that best suits their needs. Supermicro offers a broad cross-section of free-air, liquid-cooling, and traditional air-cooling technology, ensuring there’s a system that fits every budget.

During Supermicro’s fiscal 2024 third quarter, revenue surged 200% year over year to roughly $3.8 billion, while its diluted earnings per share soared 329% to $6.56. The company is scrambling to expand its production capabilities to meet the accelerating demand.

Supermicro stock has soared a massive 750% since the dawn of 2023, but some believe there’s much more upside ahead. Loop Capital analyst Ananda Baruah has a Street high price target of $1,500 and a buy rating on the shares. That represents potential upside of 115% compared to Monday’s closing price.

The analyst is bullish on Supermicro’s “posture” in the AI server industry and cites the company as a leader in terms of both complexity and scale. Perhaps more importantly, Baruah believes Supermicro can generate a revenue run rate of $40 billion to close out its fiscal 2026. For context, Supermicro delivered revenue of $7.1 billion in fiscal 2023 (ended June 30, 2023) and is on track to generate revenue of $14.5 billion for fiscal 2024. This suggests there’s still plenty of upside ahead.

The analyst isn’t alone in his bullish take. Of the 17 analysts who offered an opinion in June, 12 rated the stock a buy or strong buy, and none recommended selling.

Finally, Supermicro stock is a bargain given the opportunity, currently selling for 1.4 times forward sales.