The Nasdaq Is on Fire. Here Are the 2 Best Artificial Intelligence (AI) Growth Stocks That Still Look Cheap.

Artificial intelligence (AI) stocks have rallied in recent sessions. As investors became more aware of the value that these companies generate, their fast-rising revenues have excited investors about the future.

Under such conditions, it may surprise investors that some of these tech stocks remain cheap, and these two stocks in particular appear increasingly well-positioned to offer value for one's investment dollar.

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1. Nvidia

It may surprise investors to see Nvidia (NASDAQ: NVDA) listed as a "cheap AI stock." It is up more than 1,600% from its low in 2022, and as the dominant player in the AI accelerator space, it has become one of the most sought-after AI stocks.

Nonetheless, it sells at a P/E ratio of just 41. That is above the S&P 500 average of 31, but it is quite cheap when comparing that earnings multiple to its growth.

In fiscal 2026 (ended Jan. 25), its $216 billion in revenue rose by 65% from year-ago levels. Also, even though keeping up with high demand comes at a cost, it still earned $120 billion in net income, a 65% increase over the same period.

The reason why it sells at a low valuation compared to its income growth likely has to do with its size. The company's unprecedented growth lifted its market value to $4.9 trillion, larger than every other publicly traded company.

This means that if the stock doubles in value, its market capitalization rises to $9.8 trillion, which may create some psychological barrier since no company has even yet reached the $6 trillion mark. It also makes it unlikely that another 1,600% increase in the stock price will occur anytime soon.

At the same time, sustaining 65% income growth will probably mean that Nvidia should continue to outperform the market by a wide margin. That could mean that Nvidia will become more popular with risk-averse investors as more growth investors attempt to seek higher returns elsewhere.

Ultimately, if you're looking for market-beating returns at a relatively low valuation in the industry, Nvidia should remain an incredible AI bargain.

2. CoreWeave

As a stock with a $61 billion market cap, CoreWeave's (NASDAQ: CRWV) is but a small fraction of Nvidia's size. However, after suffering through a huge pullback soon after its IPO, the stock has risen by more than 60% this year.

CoreWeave is different from a cloud provider like Amazon's AWS or Microsoft's Azure in that it designed its cloud infrastructure specifically to handle AI workloads, which gives it and its neocloud peers a competitive advantage over the larger, more established players.

Its stock is also comparatively inexpensive. As an unprofitable company, it has no P/E ratio. Still, its price-to-sales (P/S) ratio is just under 10, far cheaper than its neocloud competitor Nebius, which sells at 73 times sales.

To be sure, CoreWeave is cheap for a reason. At the end of 2025, its $3.3 billion book value was well below the $21.4 billion in debt it had run up to address the massive demand for its AI-specific cloud infrastructure.

Customer demand is so high that CoreWeave has a backlog of $66.8 billion as of the end of last year. Also, it will take time to meet those obligations, as it generated $5.1 billion in revenue in 2025, 168% more than in 2024. Still, the cost of meeting demand led to a $1.22 billion loss that year, well above the $937 million loss in 2024.

Admittedly, that financial condition makes CoreWeave much riskier than Nvidia. If it fails to meet the expectations of its customers and those of the market, CoreWeave stock could suffer.

On the other hand, the aforementioned 10 P/S ratio positions CoreWeave for massive growth should it improve its finances and eventually turn profitable, which could make buying this stock worth the risk.

Will Healy has positions in CoreWeave. The Motley Fool has positions in and recommends Amazon, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.