2 Dirt Cheap Stocks to Buy With $1,000 Right Now

The market is trading near its all-time highs, but there are still some very inexpensive stocks out there for consideration by long-term investors. Here are two that investors can dip their toes into with a $1,000 investment.

Nvidia

Nvidia (NASDAQ: NVDA) has gone from a stock often talked about as being overvalued to one of the cheapest megacap artificial intelligence (AI) names. It trades at a forward price-to-earnings ratio (P/E) of around 24.5, based on analyst estimates for fiscal 2027 (ending in January), but if you go another year out, that multiple falls to just 19 times.

Image source: Getty Images

Given the company's incredible revenue growth (62% last quarter) and the opportunity still in front of it, that valuation is dirt cheap.

Nvidia is very closely tied to the artificial intelligence (AI) infrastructure building boom, since its graphics processing units (GPUs) are the main chips used to power AI workloads. If there were any inclinations that AI spending was set to slow, those notions were put to rest when the big cloud computing companies and other big AI players announced their capital expenditure (capex) plans for the year. Spending is going to be through the roof, which will greatly benefit Nvidia.

Even more importantly, chip manufacturer Taiwan Semiconductor Manufacturing announced after careful due diligence that it would expand its own capex to increase capacity to meet long-term AI chip demand. TSMC, as it's also known, talked not just to its chip customers but also to its customers' customers to make sure the long-term demand was there and felt comfortable ramping up the building of new chip manufacturing facilities. That's great news for Nvidia and makes its stock look like a real bargain at current levels.

Micron Technology

Sticking with semiconductor stocks, Micron Technology (NASDAQ: MU) is the definition of "dirt cheap" despite the stock's strong performance. It trades at a forward P/E of 11 times fiscal year 2026 analyst estimates (ending August 2026) and just above 8.5 times the fiscal 2027 consensus. Micron's low valuation can be attributed to the cyclical nature of the memory market, but with AI infrastructure needing a boatload of memory, the market appears to have shifted toward a structural growth story.

Micron is one of the big three DRAM memory makers, and to optimize the performance of GPUs, the chips need to be packaged with a special form of DRAM called high-bandwidth memory (HBM). With AI infrastructure spending booming, so is the demand for HBM. However, it takes upward of three times the wafer capacity of ordinary DRAM, which has created a huge supply shortfall and soaring DRAM prices.

While Micron and others are increasing capacity, demand is expected to continue to outstrip supply in the coming years, making Micron's stock look very attractive. The company should see continued strong growth and robust gross margins over the next several years.

Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.