3 Top AI Bargain Stocks to Buy Today
The tech bull market over the past few years has largely been driven by artificial intelligence (AI) growth stocks, particularly in the infrastructure space. Despite the strong gains in this sector, there are several AI growth stocks trading at bargain valuations.
Let’s look at three cheap AI stocks to buy today.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
1. Nvidia
As the poster child of the AI infrastructure boom and one of the stock market’s biggest drivers over the past five years, it’s hard to imagine that Nvidia (NASDAQ: NVDA) would be in the bargain bin, but that certainly appears to be the case. The stock carries a forward P/E ratio of just 16 times the analyst earnings consensus for fiscal 2028 (ending January 2028), while continuing to grow rapidly.
While the AI infrastructure market is admittedly shifting, Nvidia’s place in it and its prospects look bright. The company is the dominant semiconductor stock when it comes to AI model training, and with most foundational AI code written on its CUDA software platform for its graphics processing units (GPUs), that position looks secure. Meanwhile, it is also well positioned as inference and agentic AI become more important.
Nvidia made a smart move “acquiring” Groq for $20 billion earlier this year. Groq’s language processing units (LPUs) are ideal for the decode phase of inference to speed up response times when answering queries. Nvidia incorporated them into its CUDA ecosystem, so it can now offer complete systems that combine its GPUs, LPUs, central processing units (CPUs), and networking gear into servers designed specifically for inference. At the same time, it also offers systems for training, agentic AI, and AI storage. This should position the company for continued strong growth in the years ahead.
2. Micron
Micron Technology (NASDAQ: MU) has been one of the best growth stories over the past year, but its stock trades at a forward P/E of just above 6 times analyst estimates for fiscal 2027 (which ends August 2027). This is for a company that saw its revenue more than quadruple and its gross margin explode higher from 37.7% to 84.6%.
The reason for Micron’s low P/E is that the memory market has historically been very cyclical. However, there are good reasons to believe the current DRAM supercycle has legs.
The volume growth in the DRAM (dynamic random access memory) market is largely being powered by a special form called high-bandwidth memory (HBM), which gets packaged with GPUs and other AI chips. With demand soaring, the big three DRAM makers are scrambling to increase capacity, but there are limitations. The biggest reason is that HBM, GPUs, and other advanced chips are all manufactured using EUV (extreme ultraviolet lithography) machines, and there is only one company in the world, ASML, that has this technology, so supply is limited. On top of that, HBM requires upward of 3 times the wafer capacity of regular DRAM. As HBM demand continues to surge and supply remains constrained, this should keep DRAM prices high.
With Micron also locking in long-term agreements, adding more predictability to its business, the stock should have plenty of room to continue to run given its low valuation and growth potential.
3. Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing (NYSE: TSM) is at the heart of the AI infrastructure boom, as it has proven to be the only foundry capable of manufacturing advanced logic chips, like GPUs, with few defects at scale.
As competitors have struggled with yields, TSMC has been an integral part of the semiconductor ecosystem and established a virtual monopoly on advanced chip manufacturing. This also made it a close partner with its customers and given it strong pricing power.
TSMC is benefiting from the surge in demand for all kinds of logic chips, including GPUs, AI ASICs (application-specific integrated circuits), and CPUs. Meanwhile, the company is also aggressively increasing its own capex to boost capacity to meet the future demand coming from both its own customers and its customers’ customers.
Despite its strong position within the semiconductor industry and growth prospects, TSMC trades at a forward P/E of below 20 times 2027 analyst estimates. That makes it another great bargain buy in the space.
Should you buy stock in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $377,990!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,269,518!*
That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul.
*Stock Advisor returns as of July 25, 2026.
Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML, Micron Technology, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
3 Top AI Bargain Stocks to Buy Today was originally published by The Motley Fool