Three Affordable Artificial Intelligence Stocks to Consider for Your Portfolio

While the artificial intelligence (AI) sector is often associated with high valuations, there are still opportunities in the space where companies offer compelling investment value. According to Keithen Drury from The Motley Fool, Microsoft (MSFT), Meta Platforms (META), and Nvidia (NVDA) are three AI businesses that appear undervalued at current prices.

  1. Microsoft (MSFT)

Microsoft has seen a notable decline in its stock price this year, with a more than 20% drop. However, the company’s fundamentals remain strong. Its AI business now boasts an annual revenue run rate of $37 billion and experienced a 123% growth rate during the last quarter. The company’s cloud computing segment, Azure, grew by 40%, indicating robust demand for its AI computing power.

Using forward earnings projections for fiscal year 2027, Microsoft trades at a PE ratio of 20.4. This valuation puts it below the S&P 500’s average forward PE of 21.5. Despite facing some challenges, Microsoft’s track record and growth potential make it an attractive buy.

  1. Meta Platforms (META)

Meta Platforms’ stock presents an even better value proposition based on its current earnings multiples. The company is heavily investing in AI capabilities, but its core business remains its vast network of social media platforms Facebook, Instagram, Threads, and WhatsApp which generated a 33% revenue growth during the latest quarter.

The market’s skepticism regarding Meta’s AI spending has caused the stock to trade at a significant discount to the broader market. With strong fundamentals in place, it could see a substantial rebound if successful AI products emerge from its investments. At this discounted valuation, Meta Platforms stands out as an excellent entry point for investors looking to capitalize on its potential upside.

  1. Nvidia (NVDA)

Nvidia is often considered overvalued by many investors, but the reality may be different. The company’s fiscal year ends in January, allowing us to use current forward earnings estimates meaningfully. At a PE ratio of 23 times estimated earnings for this fiscal year, Nvidia appears marginally more expensive than the S&P 500.

However, Wall Street forecasts that Nvidia will see growth as high as 41% next year. Given the company’s strong market position and ongoing AI initiatives, its undervalued status could offer substantial returns. Investors who believe in Nvidia’s future can buy now with confidence, expecting significant gains if these projections hold true.

Conclusion

Keithen Drury from The Motley Fool believes that Microsoft, Meta Platforms, and Nvidia present compelling investment opportunities due to their current undervaluation relative to their growth prospects. These companies offer strong fundamentals, robust AI initiatives, and attractive valuations, making them worthy considerations for investors looking to add value to their portfolios.

Source: https://www.fool.com/investing/2026/06/22/3-cheap-artificial-intelligence-ai-stocks-to-buy-r/

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