Artificial intelligence (AI) stocks have been in huge demand from investors since last year. The primary catalyst for the AI stock frenzy was OpenAI's release of its ChatGPT chatbot in late 2022, which showcased the amazing capabilities of generative AI.

This big boost in demand for AI stocks has significantly driven up the prices and valuations of many of them. The high valuations of some AI stocks make them quite vulnerable to major pullbacks or worse. But there are still some relatively little-known stocks of quality and profitable companies involved in AI that have reasonable valuations.

This article highlights one of them: Parsons (NYSE: PSN). To be clear, my favorite AI stock remains Nvidia. But Parsons is worth considering buying by investors who are interested in an AI stock with lower risk and volatility profiles than Nvidia and other AI chip makers.

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Source Fool.com