AI is the stock market’s golden goose, but UBS analyst Timothy Arcuri recommends less hyped stocks like Teradyne in the wider AI boom. Finding overlooked stocks in the hottest market can be challenging, but some names may still be flying under the radar.

Despite concerns about Big Tech’s capex and stock market rally, UBS’s Tim Arcuri doesn’t see the AI trade as a bubble. He also sees potential in smaller AI stocks that have quietly rallied. Companies like Nvidia are expected to fuel growth in niche tech stocks.

Micron, known for memory storage devices, is a top pick for Arcuri despite a weak chip demand forecast in December 2024. He believes the market’s view will shift as Micron becomes more stable. Lam Research, a semiconductor equipment producer, is also poised for growth in the AI boom.

Lam Research is Arcuri’s favorite stock in the semi equipment space and is expected to benefit from increased demand for computing power among AI hyperscalers. Teradyne, a small company on Arcuri’s list, builds automated test equipment for semiconductors, crucial in the next phase of the AI boom as infrastructure buildout accelerates.

Read more at Yahoo Finance: These 3 stocks are appealing under-the-radar AI plays, UBS says