We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Welcome to Episode #440 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
The AI Revolution stock rally is in full swing, with the major indexes hitting new all-time highs daily. This has left many value investors with the feeling that it’s too late for them to buy any of these stocks. They reason that valuations are too high now.
But is that true?
Can You Screen for Cheap AI Stocks?
Tracey set out to find the cheapest AI Revolution stocks you could buy right now on a fundamental value basis. That is using metrics like the price-to-earnings (P/E) ratio, the price-to-sales (P/S) ratio, or the PEG ratio.
After the big run of the last 2 years, the P/S ratios of these stocks are stretched. But thanks to rising earnings, the P/E ratios of several companies look attractive.
There’s no screen you can run to find the cheapest AI Revolution stocks. You just have to check out some of your favorites and hope you find some attractively priced stocks.
Never fear value investors, there are cheap AI stocks out there. But you aren’t going to get your dream of low classic valuations and no one on the Street talking about it. That doesn’t exist anymore.
Remember, buy the business. And get those earnings as cheap as possible.
I know what you’re thinking. NVIDIA is cheap? Shares of NVIDIA are hitting new all-time highs, gaining 26.4% year-to-date. But it has fantastic fundamentals.
Earnings are expected to jump 70.4% in fiscal 2027 on sales growth of 65.7%. That’s coming on top of earnings growth of 59.5% last fiscal year.
Yet NVIDIA still trades with an attractive P/E ratio. It is trading at 27.8x forward earnings. That’s under Mag 7 peers and under its historic average which has been closer to 40x.
NVIDIA also has a low PEG ratio of just 0.7. A PEG ratio under 1.0 usually indicates a company has both growth and value.
Should value investors be buying NVIDIA right now?
Micron has been one of the best AI Revolution stock performers of the last year. Shares are up 714% in that time, while adding 66.7% over the last month.
Yet Micron is cheap on a forward P/E basis. It trades at just 13.8x, which makes it a true value stock as a P/E ratio under 15 is considered a value.
How can Micron be so cheap when shares are soaring? Earnings are soaring too, with earnings expected to jump 605% in 2026 after surging 538% in 2025.
You’ll pay up for those sales, however, but they’re expected to grow 194.3% this year.
Should value investors consider buying shares of Micron right now?
Sandisk is a technology company delivering Flash solutions and advanced memory technologies. In the last year, shares of Sandisk have soared 3,197%. How can it be cheap?
Sandisk trades with a forward P/E of just 22. While that’s not as cheap as Micron, it’s certainly cheaper than many other AI Revolution stocks, including those on the infrastructure side.
Earnings are expected to soar 2,077% this year and another 172.9% in 2027. Revenue is also catapulting higher. It’s expected to rise 153% in 2026.
Should value investors consider buying shares of Sandisk right now?
What Else Should You Know About Cheap AI Stocks?
Tune into this week’s podcast to find out.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
The Cheapest AI Stocks Right Now
Key Takeaways
Welcome to Episode #440 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
The AI Revolution stock rally is in full swing, with the major indexes hitting new all-time highs daily. This has left many value investors with the feeling that it’s too late for them to buy any of these stocks. They reason that valuations are too high now.
But is that true?
Can You Screen for Cheap AI Stocks?
Tracey set out to find the cheapest AI Revolution stocks you could buy right now on a fundamental value basis. That is using metrics like the price-to-earnings (P/E) ratio, the price-to-sales (P/S) ratio, or the PEG ratio.
After the big run of the last 2 years, the P/S ratios of these stocks are stretched. But thanks to rising earnings, the P/E ratios of several companies look attractive.
There’s no screen you can run to find the cheapest AI Revolution stocks. You just have to check out some of your favorites and hope you find some attractively priced stocks.
Never fear value investors, there are cheap AI stocks out there. But you aren’t going to get your dream of low classic valuations and no one on the Street talking about it. That doesn’t exist anymore.
Remember, buy the business. And get those earnings as cheap as possible.
The Cheapest AI Stocks Right Now
1. NVIDIA Corp. (NVDA - Free Report)
I know what you’re thinking. NVIDIA is cheap? Shares of NVIDIA are hitting new all-time highs, gaining 26.4% year-to-date. But it has fantastic fundamentals.
Earnings are expected to jump 70.4% in fiscal 2027 on sales growth of 65.7%. That’s coming on top of earnings growth of 59.5% last fiscal year.
Yet NVIDIA still trades with an attractive P/E ratio. It is trading at 27.8x forward earnings. That’s under Mag 7 peers and under its historic average which has been closer to 40x.
NVIDIA also has a low PEG ratio of just 0.7. A PEG ratio under 1.0 usually indicates a company has both growth and value.
Should value investors be buying NVIDIA right now?
2. Micron Technology, Inc. (MU - Free Report)
Micron has been one of the best AI Revolution stock performers of the last year. Shares are up 714% in that time, while adding 66.7% over the last month.
Yet Micron is cheap on a forward P/E basis. It trades at just 13.8x, which makes it a true value stock as a P/E ratio under 15 is considered a value.
How can Micron be so cheap when shares are soaring? Earnings are soaring too, with earnings expected to jump 605% in 2026 after surging 538% in 2025.
You’ll pay up for those sales, however, but they’re expected to grow 194.3% this year.
Should value investors consider buying shares of Micron right now?
3. Sandisk Corp. (SNDK - Free Report)
Sandisk is a technology company delivering Flash solutions and advanced memory technologies. In the last year, shares of Sandisk have soared 3,197%. How can it be cheap?
Sandisk trades with a forward P/E of just 22. While that’s not as cheap as Micron, it’s certainly cheaper than many other AI Revolution stocks, including those on the infrastructure side.
Earnings are expected to soar 2,077% this year and another 172.9% in 2027. Revenue is also catapulting higher. It’s expected to rise 153% in 2026.
Should value investors consider buying shares of Sandisk right now?
What Else Should You Know About Cheap AI Stocks?
Tune into this week’s podcast to find out.