10 Best Mid Cap AI Stocks to Buy Now

1. EPAM Systems, Inc. (NYSE:EPAM)

Market Cap as of March 27: $9.95 billion

Number of Hedge Fund Holders: 56

EPAM Systems, Inc. (NYSE:EPAM) has been using its software engineering expertise to become a leading global provider of digital engineering, cloud, and AI-enabled transformation services. With the demand for AI and machine learning solutions growing throughout several industries, the company remains well-placed to capitalize on this trend. EPAM Systems, Inc. (NYSE:EPAM)’s expertise in digital platform engineering and software development offers a healthy foundation for developing and implementing AI-driven solutions for clients.

Through investments in AI capabilities and integrating such technologies into the service offerings, the company can unlock new revenue opportunities and differentiate itself. EPAM Systems, Inc. (NYSE:EPAM)’s global presence and diverse client base offer significant opportunities to scale AI solutions throughout industries and geographies. The company’s partnerships with leading cloud and AI platforms offer access to cutting-edge technologies. EPAM Systems, Inc. (NYSE:EPAM) announced that it has expanded its strategic partnership with Google Cloud in a bid to deliver innovative industry solutions for clients throughout the media and entertainment, energy, and retail verticals. Its enhanced collaboration is expected to leverage Google Cloud’s Vertex AI platform to fuel measurable business outcomes for clients via generative AI, legacy modernization, and data analytics capabilities.

White Falcon Capital Management, an investment fund manager, released its Q4 2024 investor letter. Here is what the fund said:

“Our IT services holdings, Endava and EPAM Systems, Inc. (NYSE:EPAM), are showing positive inflections in key metrics. We believe these companies are entering a strong growth cycle, driven by the increasing need for businesses to modernize their core technology stacks in order to effectively implement AI solutions. Both holdings have significantly strengthened their operations through counter-cyclical acquisitions. In fact, EPAM made four acquisitions over the past 18 months, which, as the market cycle shifts, will substantially enhance their earnings potential.”

While we acknowledge the potential of EPAM as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued AI stock that is more promising than EPAM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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