Prediction: This artificial intelligence (AI) stock will make big leaps in 2025. Here's why.

Artificial technology (AI) is here to stay. Large language models (LLM) like ChatGPT are already disrupting many industries with AI-generated text, images, and even videos. The next generation of LLMs will be even more powerful, and I probably haven't even imagined the impending wave of killer apps.

But nobody knows who will take the next big step in AI. The big winners of this stock market boom are largely generalists – manufacturers of the computer chips and systems that power today's AI software. And even the stock market's most dazzling darlings have recently faced investor skepticism. AI chip designers NVIDIA(NASDAQ: NVDA) Shares have fallen 16% from recent highs, and the server system builder Super-microcomputer(NASDAQ:SMCI) have suffered a 63% crash in about five months. They could recover and soar again, or they may be in for more price drops.

So how do you invest in the exciting AI space without hitting a potentially overvalued landmine? In my view, the trick is to start with a fairly valued or even undervalued AI stock. Step two: make sure it's a high-quality company with the potential to revolutionize your chosen industry in the long term. This is a short checklist, but it also leads to a short list of results.

Today I would recommend looking at the AI ​​field from a completely different perspective. Have you already looked at Fiverr International(NYSE: FVRR) lately? This stock looks poised to make a splash in 2025.

Fiverr's business model and revenue streams

Fiverr operates an online marketplace for freelance services. The company makes it easy for freelancers to offer their services and for buyers of services to get the help they need. In return, Fiverr receives a small fee for each service transaction. Some of the most popular activities include programming, writing, graphic design, and film editing.

It's a little more complicated than that, but here's your snapshot of Fiverr's core business plan.

The company has been around since 2010, but it's still a small fish in a big pond. The overall goal is to change the way people do business, and that's a pretty ambitious goal. Management estimates that the domestic market for the types of services you'll find on Fiverr was worth $247 billion in 2021. But most of those freelance services are sought and found offline, usually through old-fashioned methods like personal acquaintances, newspaper ads, or social media posts.

The opportunity to remove friction from this connection process is huge, and Fiverr is just getting started. The company only generated $298 million in revenue in 2021, which is about 1.2% of the freelance services market. Revenue has grown 26% since then, and is now at an annual rate of $376 million. At the same time, the target market also continues to grow; Fiverr's growth potential is still huge.

Will generative AI help or hurt Fiverr?

Up until now, Fiverr may not sound like an AI stock. In fact, many investors have sworn off buying Fiverr stock because they see generative AI tools like ChatGPT's text generation and Midjourney's digital imagery as a direct threat to this company. Who needs a freelancer when you can get the help you need from a low-cost generative AI tool, right?

As it turns out, however, these generative AI tools aren't very useful without human guidance. Finding the right inputs to generate usable AI-powered content is an interest-bearing skill, as is sifting through and editing the generated outputs. And Fiverr will happily connect you with a freelancer who can help.

Generative AI may therefore seem like a threat at first glance, but Fiverr sees it as another potential channel for distributing services.

“We are just beginning to unleash the full potential of AI in our market, and we believe this will provide us with multi-year tailwinds to drive product innovation and growth,” Fiverr CEO Micha Kaufman said on a second-quarter conference call with analysts in July.

The potential of Fiverr

Fiverr stock soared in 2020 as millions of people were stuck at home and had plenty of time to sell their services digitally. Share prices began to fall once effective COVID-19 vaccines became widely available, and the skeptics have not looked back. At this point, Fiverr stock is trading 92% below its early 2021 highs.

However, the business never stopped making sense. I've already mentioned Fiverr's increasing revenues, and the growth story continues further down in the financial reports. Free cash flows have more than tripled in two years, and earnings recently turned positive.

The stock probably deserved a price correction in 2021, but bearish market makers have overdone it. Fiverr is a successful and profitable company trying to disrupt a huge target market. Yet the stock trades at just 11 times free cash flow, 2.6 times revenue, and 9.1 times forward earnings.

So if you're looking for a strong AI stock on the bargain bins of Wall Street, I highly recommend you take a closer look at Fiverr. This stock is expected to soar as revenues grow and earnings soar. The uptrend is already underway and I'm just waiting for pessimistic investors to notice. I expect the stock to make big jumps in the next year and I'll be there for it.

Should you invest $1,000 in Fiverr International now?

Before you buy shares in Fiverr International, consider the following:

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