Nasdaq Recovery: 3 Artificial Intelligence (AI) Stocks That Are Still Undervalued
It's not too late to buy into these beaten-down tech giants. In case you missed it, tech stocks are rallying again. After hitting an all-time high in December, the Nasdaq Composite index fell in January as DeepSeek upended the artificial intelligence (AI) universe with breakthroughs in training and inference efficiency.
Amazon (AMZN)
Amazon operates the leading cloud computing platform in the world. Its Amazon Web Services (AWS) segment generated $29.3 billion last quarter, up 17% year over year. Management expects to bring more AWS capacity online in the second half of the year and is investing in custom silicon solutions for AI. Amazon also continues to spend on improving its logistics network, driving higher efficiency and fantastic results.
Lam Research (LRCX)
Lam Research is one of the top manufacturers of semiconductor fabrication equipment. Lam has a particular edge in equipment for memory chips and is benefiting from high demand for its equipment for general silicon chip production. Management expects growth to accelerate despite uncertainty caused by tariffs. With the stock trading for just 19 times forward earnings estimates, investors should consider the potential for double-digit percentage earnings growth.
Meta Platforms (META)
Meta Platforms is the company behind Facebook and Instagram, making significant bets on artificial intelligence. Meta is seeing strong engagement growth and revenue growth, while also investing in AI-powered marketing tools and metaverse development. Despite its recovering share price, Meta stock still trades for just 23 times forward earnings estimates, presenting a compelling opportunity for investors.
Investors can find great opportunities in the market with these AI stocks that are still undervalued.
