AI Stock Bargains: Nvidia, Micron, and Alphabet Trade at a Discount
Nvidia's stock has reached its lowest mark in years, making it a potential bargain for investors. Despite delivering excellent results, the market hasn't fully recognized the company's value yet.
The AI arms race has been driving Nvidia's growth since 2023, and the trend is expected to continue. Last quarter, the company reported an 85% year-over-year revenue growth rate, with Wall Street predicting a 100% increase for its second quarter. This kind of performance would normally warrant a premium stock price, but Nvidia now trades at less than 30 times earnings.
Micron's stock has also been impacted by market sentiment, selling off since June despite delivering strong results. The company makes memory chips, which have been in short supply due to data center demand exceeding industry supply. This has caused prices to skyrocket, boosting Micron's revenue and profits. While the memory chip market is historically cyclical, this cycle may last a few years due to the sheer magnitude of the demand wave.
Alphabet's stock has also sold off in recent weeks, despite strong 2026 results. The company reported a 24% year-over-year revenue increase and profits skyrocketed thanks to a gain on its investment in Space Exploration Technologies' IPO. Google Cloud saw revenue rise by 82%, indicating major demand for its computing capabilities.