Despite the stock market's rally over the last year, there are still promising companies that trade at massive discounts compared to previous highs. With the artificial intelligence (AI) revolution just starting to unfold and expectations that the Federal Reserve might cut interest rates this year, investors who back the right beaten-down stocks in 2024 could score fantastic returns.

If you're on the hunt for AI-focused growth stocks trading at a discount, read on to see why building long-term investment positions in Palantir Technologies (PLTR 6.88%) and Array Technologies (ARRY -5.09%) looks like a smart move right now.

Palantir's massive run could still be heating up

Palantir made its name providing counter-terrorism analytics for the U.S. government, and it continues to provide services in the space, but it's also branched out to provide services to businesses. Last May, the company launched its Artificial Intelligence Platform (AIP) -- a new software suite designed to help companies and institutions run their organizations with the benefit of real-time AI insights. The new platform is catching on at an impressive rate.

AIP's customer count nearly tripled from one quarter to the next, rising from roughly 100 in 2023's second quarter to nearly 300 in Q3. Despite the recent launch of AIP and sales and marketing initiatives surrounding the new service, Palantir's non-GAAP (adjusted) operating expense actually declined 1% year over year to $395 million in the period.

With the business efficiently managing costs and growing revenue 17% year over year to $558 million, Palantir delivered encouraging earnings and free-cash-flow generation. With net income of $72 million in the quarter, the business posted a 13% net profit margin.

Strong sales and earnings growth and excitement about the company's long-term opportunities in AI have powered Palantir stock to impressive gains over the last year. But the company's share price is still down roughly 58% from its high. For long-term investors looking to back leading players in the AI revolution, the stock could go on to be a big winner.

This beaten-down solar stock could soar

Array Technologies is a solar energy specialist who could be poised for a stellar long-term stock performance.

The company's DuraTrack solar panels are relatively easy to install compared to many competing alternatives, and their superior maneuverability allows the panels to move in conjunction with the sun to maximize energy production. In addition to its solar panels, Array Technologies also provides software to boost energy production and sales from large-scale energy production sites.

Its SmarTrack software uses machine learning (ML) and AI to adjust the position of tracker blocks according to the surrounding terrain, weather, and other conditions. With continued application and advancement of its ML and AI technologies, the company should have opportunities to make solar energy production viable in a much wider range of geographic locations.

While Array's revenue fell 32% year over year to $350.4 million in the third quarter, the company's gross profit actually increased 14% to $87.4 million thanks to improvements in unit pricing and cost savings in freight and material purchases. The solar company and its stock could also have major performance catalysts on the near horizon.

The Federal Reserve is broadly expected to begin lowering interest rates this year. In turn, this will make it cheaper to borrow money -- a development that could accelerate renewable energy projects and overall spending. With the benefit of the significant margin improvements the business has been recording lately, Array could see earnings skyrocket if it returns to sales growth.

ARRY PE Ratio (Forward) Chart

ARRY PE Ratio (Forward) data by YCharts

Trading at under 12 times expected earnings and just 1.25 times expected sales, Array shares look cheaply valued. Down roughly 69% from its high, the renewable energy stock has explosive potential at current prices.