My Top 2 AI Stocks Flying Under the Radar for May 2026

Artificial intelligence (AI) stocks have not exactly flown under the radar over the past three or four years. There have been major blips across the screen that have garnered massive investor attention -- mostly positive, although they did receive some negative attention earlier this year.

But there are some AI stocks that have been mostly overlooked that investors should get to know. Here are two top, under-the-radar AI stocks to consider this month.

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1. Aehr Test Systems

Aehr Test Systems (NASDAQ: AEHR) stock has been discovered by many investors in recent months, but it is still not that well-known compared to stocks like Nvidia, Sandisk, and Palantir. But the stock has generated ridiculously high returns like those of AI juggernauts in recent years, up 379% year to date (YTD) and a whopping 961% over the past year.

Aehr Test Systems makes the equipment and machines that test AI chips for data centers, electric vehicles, industrial, and other applications. Aehr specializes in wafer-level testing, meaning it can test an entire wafer of multiple chips instead of testing them one at a time.

The recent spike in the stock price stems from a significant backlog of contracts in the pipeline, as reported in its third fiscal quarter 2026 earnings report on April 7. The firm only had $10 million in revenue in Q1, but booked $37 million in future business in the quarter.

Later in April, Aehr announced that it had received a $41 million contract from a major hyperscaler client, boosting its total bookings in the pipeline to about $92 million. In fiscal 2027, analysts anticipate a 71% increase in revenue and earnings to rise from a net loss of $0.09 per share in fiscal 2026 to net income of $0.15 in fiscal 2027.

Aehr is also attractive from a valuation standpoint, trading at just 14 times earnings. That means it still should have more room to run.

2. ServiceNow

ServiceNow (NYSE: NOW) is on the other end of the spectrum from Aehr Test Systems, as it has had a brutal year, down 42% YTD and 56% over the past 12 months. It is now trading near a 52-week low, but it looks ready to move higher.

The company sells AI-enabled software that helps organizations manage their IT, operations, human resources, and customer service functions. The stock's high valuation and overblown concerns about AI usurping its usefulness caused it to tank earlier this year. But it dropped again after its first-quarter earnings in April, despite a 22% year-over-year revenue gain and earnings beat.

The Q1 concern was over a 75-basis-point hit to ServiceNow's subscription revenue due to delayed closing on several large contracts in the Middle East related to the war in Iran. While it created a near-term headwind, ServiceNow expects them to close later in the year, and it actually raised its subscription guidance for 2026 to a range of 22% to 22.5%, up from 20.5% to 21%.

It also has remaining performance obligations (RPO), or contracts in the pipeline, of $27.7 billion, representing 25% year-over-year growth. In addition, ServiceNow anticipates long-term revenue acceleration from its April acquisition of cybersecurity firm Armis, despite near-term profitability headwinds.

The April sell-off may have been a knee-jerk reaction to delayed Middle East contracts or earnings headwinds, but it did bring down the high valuation even more. The stock is now trading at 21 times forward earnings and has a five-year PEG ratio of 0.88, which suggests it is undervalued based on its long-term earnings expectations.

At the time of this writing, some 90% of analysts rate ServiceNow stock a buy, with a median price target of $137.50 per share, suggesting 57% upside.

These aren't the two best AI stocks on the market, but they are two somewhat overlooked stocks that investors should keep an eye on this month.

Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia, Palantir Technologies, and ServiceNow. The Motley Fool has a disclosure policy.