3 AI Stocks to Buy Now While They Are Still Cheap

Despite AI stocks being a huge driver of the market, that doesn't mean that their valuations are also through the roof. In fact, valuations for AI stocks generally remain reasonable, while there are certainly bargains to be found.

Let's look at three leading AI stocks that you can buy today while they are in the bargain bin.

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Nvidia

With a forward price-to-earnings P/E ratio of just 16 times fiscal 2028 (ending January 2028) analyst estimates, Nvidia's (NASDAQ: NVDA) stock is cheap. It has been one of the best growth stories in the market over the past few years, and with AI infrastructure spending set to continue to soar, its rapid growth should continue.

Over the past three years, Nvidia has seen its revenue climb more than tenfold, which is remarkable for a company of its size. The growth is led by its graphics processing units (GPUs), which have become the primary chip used in training AI models. Nvidia's biggest strength, though, is that it has been able to see where the market is going before others.

The company smartly seeded its CUDA software platform into places doing early AI research, making it the platform on which nearly all early AI code was written, creating a wide moat for itself in the process. It later acquired next-generation networking company Mellanox. Mellanox was a company ahead of its time, and today Nvidia's networking portfolio is one of its fastest-growing and most important businesses. Meanwhile, earlier this year, it "acquired" Groq, which looks like it could be a big differentiator for it in the inference market. This type of forward thinking is one very good reason for buying the stock while it's cheap.

Micron Technology

Trading at a forward P/E of 6 times fiscal 2027 (ending August 2027) analyst estimates, Micron Technology's (NASDAQ: MU) valuation is minuscule. The reason for this is that the memory market has historically been very cyclical, with large boom-and-bust cycles. However, the AI infrastructure build-out has created a memory supercycle, with the big players starting to lock in long-term contracts for the first time.

Micron is one of the big three DRAM (dynamic random access memory) makers, and it derives around 75% of its revenue from DRAM and the rest from NAND (flash). The DRAM market is being driven by surging demand for high-bandwidth memory (HBM), a type of DRAM that gets packaged with GPUs and other AI chips to optimize their performance. With the big three players in the space all focused on HBM and trying to meet surging demand, all DRAM prices have surged, leading to skyrocketing revenue and huge margin gains for Micron.

Importantly, the supply-demand dynamics driving the market look like they will be here for quite some time. Memory makers need to compete with foundries for the same EUV (extreme ultraviolet lithography) machines, which are needed to manufacture both advanced logic chips, like GPUs, and HBM. And there is only one company that makes these machines, ASML, which limits the ability to rapidly increase capacity. Meanwhile, HBM also requires three times the wafer capacity of ordinary DRAM, further hampering supply. And that's why Micron looks like a bargain buy at these levels.

Amazon

E-commerce giant Amazon (NASDAQ: AMZN) is a pioneer in cloud computing, which is helping drive much of today's AI infrastructure spending. However, investors have become wary of the companies doing the spending, which has left Amazon trading at one of its lowest historical valuations (forward P/E of 23 times 2027 analyst estimates) and well below some of its brick-and-mortar peers.

However, this is a company seeing accelerating cloud computing growth and having a history of making big investments that pay off. Meanwhile, its custom chip business helps give it a cost advantage. Plus, it has formed major partnerships with leading frontier model companies Anthropic and OpenAI.

On top of that, its e-commerce business has been hitting on all cylinders, with strong operating leverage from its internal investments in robotics and AI. A market leader in two huge segments, this is a stock you want to own for the long term and scoop up while it is still cheap.

Geoffrey Seiler has positions in Amazon. The Motley Fool has positions in and recommends ASML, Amazon, Micron Technology, and Nvidia. The Motley Fool has a disclosure policy.