If You Think Artificial Intelligence (AI) Stocks are Hot, You Might Be Shocked to Find Out That These Underestimated Stocks Are Beating the Market

Generative artificial intelligence (AI) has been a game-changer for businesses everywhere, and many AI-related stocks have been crushing the market. The most well-known one is probably Nvidia, which is up 233% over the past year alone. But investors shouldn't fill their portfolios solely with AI stocks.

Over time, a diversified portfolio typically leads to the best results -- and you don't need to give up on high performance in doing so. For example, you might not realize it, but many apparel shares have been doing amazingly well lately. This industry faced a host of challenges over the past few years, including changing trends and inflation. But it is now on the upswing.

Companies like The Gap (NYSE: GPS), American Eagle Outfitters (NYSE: AEO), Abercrombie Fitch (NYSE: ANF), and Urban Outfitters (NASDAQ: URBN) have handsomely outperformed the market over the past year. Let's see why -- and whether this could continue.

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Source Fool.com