NVIDIA, Adobe, and Alphabet Top Undervalued AI Stocks Amid Tech Sector Surge

The AI trend has picked up momentum in recent times, fueled by advancements in consumer agents like Meta's Muse. As a result, tech stocks have seen an uptick, with companies behind the chips, cloud plumbing, and software driving this growth.

Simply Wall St has identified three undervalued AI stocks that are tightly linked to this trend: NVIDIA (NVDA), Adobe (ADBE), and Alphabet (GOOGL). These companies play a crucial role in powering large language models, generative tools, and enterprise-grade AI services.

NVIDIA is a key player in the hardware space, generating US$275.4b from its Compute & Networking segment. However, its long-term edge depends on whether developers continue to build on its software and hardware stack.

Adobe leans into the AI theme through Firefly and other generative tools woven into Creative Cloud and Document Cloud, turning creative and PDF software into AI-assisted workflows for designers, marketers, and enterprises.

Alphabet gives this AI screener direct exposure to enterprise-grade tools like Gemini and Vertex AI through Google Cloud, while most money still comes from search, YouTube, and other Google Services rather than pure AI infrastructure.