3 Under-the-Radar Value AI Stocks With Market-Beating Potential

These three stocks aren't conventionally seen as artificial intelligence (AI) stocks, yet AI is a critical part of the growth story of HVAC and building controls/software company Johnson Controls (JCI 2.57%), and electrical solutions company nVent Electric (NVT 4.90%). Meanwhile, integrating AI-enabled solutions is the key to long-term growth at GE HealthCare (GEHC 2.25%).

Best of all, the fact that these stocks go under the radar means you don't have to pay nosebleed valuations to buy into them. They represent three great value stock options for investors looking for AI exposure. Here's why.

Johnson Controls

A Bank of America analyst forecasts that Johnson Controls generated around $4 billion of its revenue from data centers in 2024. Given that Wall Street estimates 2025 revenue will be about $23.4 billion, a conservative estimate of 10% growth from data center revenue would mean that data centers represent about 19% of Johnson Controls revenue in 2025.

Heating, ventilation, and air conditioning (HVAC) systems provide a critical part of thermal control at data centers, particularly large-scale data centers needed to power the growth of AI applications. The growth in data center orders is contributing to the company's growing backlog.

Data source: Johnson Controls presentations. Chart by author.

However, the robust growth prospects of its data center/AI-related business shouldn't detract from the strength of its underlying growth driver coming from the retrofit opportunity in commercial buildings as it seeks to improve efficiency and meet its net zero emissions aims.

Alongside the other two featured stocks, Johnson Controls trades on an undemanding ratio of enterprise value to earnings before interest, taxes, depreciation, and amortization (EBITDA) and is worth picking up on a dip.

nVent Electric

This electrical protection (enclosures) and connections (electrical and fastening) company is a picks-and-shovels way to play the electrification-of-everything megatrend in the economy. As the economy moves toward ever more increasing levels of electrical infrastructure implicit in smart buildings/infrastructure, connected devices, renewable electric vehicle (EV) charging networks, and of course data center spending to power AI, it will need nVent's solutions.

The company's sales from continuing operations (nVent sold its thermal management solutions for $1.7 billion in January) was about $3 billion in 2024, with data solutions responsible for 20% of it at $600 million. In addition, management disclosed that data solutions sales grew 30% in 2024, implying an increase of $139 million from data solutions in 2024.

It's an interesting number because nVent's total sales (ongoing operations) improved by $337 million, implying that 41% of its growth last year came from data solutions.

Moreover, management expects its infrastructure end markets (including data centers) to lead its growth with a low double-digit increase in 2025. Whichever way you look at it, the key driver of its near- to mid-term growth is data center capital spending.

Turning to valuation matters, as you can see below nVent looks to be a particularly good value, and the dip in the share price has moved it into value territory again.

Data source: marketscreener.com, author's analysis. Est. = estimated.

GE HealthCare

Last but not least, GE HealthCare is a company whose value-add to customers is increasing due to the growth of its AI-enabled solutions. The company is a leading player in imaging equipment, including magnetic resonance imaging (MRI), computed tomography (CT), ultrasound, and X-ray equipment. Its principal competitors are Siemens Healthineers and Philips.

However, it differs from the latter two in that it also offers pharmaceutical diagnostics (contrast media and radiopharmaceuticals) that complement the imaging equipment used with them. It also provides monitoring and patient care equipment.

Its range of complementary offerings helps make it a leader in AI-enabled solutions -- the company moved from 58 to 85 AI-enabled authorizations in 2024 -- and GE HealthCare's aim is to drive the growth of precision care solutions. Using AI, GE HealthCare can develop precision care solutions using a mass of data captured through its imaging and patient monitoring equipment.

Integrating AI will help clinicians with diagnosis and treatment (including precisely treating diseases using imaging equipment and pharmaceutical diagnostics together to deliver drugs to affected areas, such as cancer cells) while tailoring precision care solutions.

All told, the growth of AI adoption and its integration into GE HealthCare's solutions will ultimately add value to its equipment and lead to better patient outcomes.