Four Undervalued Gems in AI, Retail, Infrastructure, and Data: Buy Now Before the Surge

The market’s current volatility has created a rare opportunity to identify undervalued stocks with transformative catalysts. Among the standouts: Navitas Semiconductor (NVTS), Urban Outfitters (URBN), Lumen Technologies (LUMN), and LiveRamp (RAMP). Each is positioned to capitalize on sector-specific tailwinds—AI-driven infrastructure, retail resilience, fiber asset monetization, and data-driven growth. Let’s dissect why these stocks are primed for explosive upside.

Navitas Semiconductor (NVTS): The AI Infrastructure Play

Navitas’ partnership with NVIDIA is its crown jewel. Their GaNFast and GeneSiC SiC technologies are embedded in NVIDIA’s next-gen 800V HVDC data centers, which aim to support 1 MW IT racks and beyond. This architecture cuts infrastructure costs by 70% and slashes cooling expenses while enabling exascale AI workloads.

While Q1 2025 revenue dipped to $14M (sequential decline due to inventory corrections), the 2026 growth runway is staggering: automotive wins with Changan Auto (EV chargers), commercial EVs, and NVIDIA’s Rubin Ultra GPU platforms (doubling data center power to 500kW) will drive $450M in lifetime design wins.

The stock trades at just 5x 2026E revenue estimates, far below peers like Qorvo (QRVO). The Q2 2025 guidance (flat revenue but 38.5% gross margin) hints at margin recovery. This is a buy-the-dip opportunity in a $20B+ power semiconductor market.

Urban Outfitters (URBN): Retail Resilience Meets Strategic Execution

Urban Outfitters’ Q1 2025 results were a masterclass in execution: $1.33B in record sales (+10.7% Y/Y), with 97% of stores profitable and $152M in share buybacks. The subscription segment (think Stitch Fix-style services) surged 59.5%, while Anthropologie’s 6.9% comp sales growth proves its premium positioning.

Critically, operational efficiency is unlocking margins: lower markdowns at Urban Outfitters, reduced delivery costs, and a $489M gross profit (up 19.8%) signal scalability. With $75M in net cash, URBN is primed to capitalize on rising discretionary spending and its 237-store Free People footprint (now including 68 FP Movement outlets).

The stock trades at 9.5x forward EV/EBITDA, a discount to peers like Tapestry (TPR). This is a buy for the consumer comeback narrative, with URBN’s multibrand strategy offering exposure to Gen Z and affluent millennials alike.

Lumen Technologies (LUMN): Fiber Sale Unlocks Enterprise Potential

The $5.75B sale of its Mass Markets fiber business to AT&T (closing in 2026) is a capital reallocation home run. Proceeds will slash debt by $4.8B, dropping net leverage to 3.9x, while freeing up $1B annually in capex for enterprise services.

Post-sale, Lumen will focus on its $14B addressable market in enterprise fiber and cloud infrastructure, retaining its 24,000-mile national backbone. Q1 2025 Mass Markets fiber revenue grew 22.9%, proving the asset’s value—and the sale’s proceeds will fund R&D for AI/data center solutions.

Shares trade at 5.3x 2026E EBITDA, a fraction of AT&T’s (T) 6.5x multiple. This is a contrarian bet on network infrastructure, with Lumen’s enterprise pivot making it a pole position player in the $300B global data center market.

LiveRamp (RAMP): The Data Collaboration Leader

LiveRamp’s Q1 2025 results were a clinic in data-driven outperformance: $189M in revenue (+10% Y/Y), with Marketplace sales up 14% as clients leverage its identity solutions. Partnerships with Nielsen and Yahoo (unlocking cookieless ad targeting) and a 104% net retention rate underscore its moat in privacy-compliant data collaboration.

The 2026 outlook is jaw-dropping: $787–817M in revenue (+6–10%) and $85–89M in GAAP operating income (vs. $5M in 2025). With $256M remaining in buybacks, RAMP is aggressively returning capital to shareholders.

At $45/share, it’s trading at 15x 2026E EBITDA, a steal given its 21% annual Marketplace growth and dominance in the $50B marketing tech stack. This is a buy for the data economy’s future.

Final Takeaway: Buy These Four Now—Catalysts Are Imminent

• Navitas (NVTS): NVIDIA’s AI expansion and 2026 automotive ramps.
• Urban Outfitters (URBN): Strong cash flow, share buybacks, and multibrand dominance.
• Lumen (LUMN): Fiber sale proceeds unlocking enterprise growth.
• LiveRamp (RAMP): Data partnerships and margin expansion.

These stocks are undervalued darlings in their sectors, with catalysts priced out. With $75M in cash (NVTS), $1.2B in net debt reduction (LUMN), and $256M in buybacks (RAMP), these companies are primed to surprise to the upside. Act now—these are buys for the next 12–18 months.

The time to position for the next tech cycle, retail renaissance, and data economy is now. These four stocks are the ticket.