Look, AI stocks have been everywhere for the past few years—it’s basically impossible to avoid them. But here’s the thing: while everyone’s obsessing over the usual suspects like Nvidia and Palantir, there are a couple of genuinely interesting plays that most investors haven’t even heard of yet. Let me break down two stocks worth paying attention to this month.
Aehr Test Systems: The Unsung Hero of the Chip Testing World
Aehr Test Systems (NASDAQ: AEHR) is up a bonkers 379% year-to-date and 961% over the past year. Yeah, you read that right. But somehow, it’s still flying under most people’s radar compared to the mega-cap AI darlings.
Here’s what they do: they make the equipment that tests AI chips before they ship out to data centers, electric vehicles, and industrial applications. The real magic? They test entire wafers of chips at once instead of one-by-one. It’s like the difference between grading a stack of papers versus reading them individually—way more efficient.
The stock’s recent surge isn’t hype. In Q1, they booked $37 million in future business on just $10 million in revenue. Then in April, they landed a $41 million contract from a major hyperscaler, bringing their pipeline to about $92 million. Analysts expect revenue to jump 71% in fiscal 2027, with earnings swinging from a loss to actual profit.
Best part? It’s trading at just 14x earnings. That’s cheap for a company with this kind of momentum.
ServiceNow: The Beaten-Down Bargain
ServiceNow (NYSE: NOW) is the opposite story. Down 42% year-to-date and 56% over the past year, it’s getting absolutely hammered. But here’s where it gets interesting: the selloff looks overdone.
The company sells AI-powered software that helps organizations manage IT, operations, HR, and customer service. It had a brutal year partly because of valuation concerns and partly because people worried AI would make it obsolete. Spoiler alert: it won’t.
In Q1, they posted 22% revenue growth and beat earnings. Sure, there was a 75-basis-point hit from delayed Middle East contracts due to the Iran situation, but those deals are expected to close later this year. They even raised their subscription guidance for 2026.
The real kicker? They’ve got $27.7 billion in remaining performance obligations—basically contracts already in the pipeline—representing 25% year-over-year growth. Now trading at 21x forward earnings with a PEG ratio of 0.88, it looks genuinely undervalued. Analysts are 90% bullish with a median price target of $137.50, implying 57% upside.
The Bottom Line
These aren’t flashy picks, but they’re two stocks worth keeping on your radar this month. One’s got explosive growth and a cheap valuation. The other’s a quality company that got unfairly punished. Both could surprise you.
