![](https://emeatribune.com/wp-content/uploads/2024/05/these-ai-plays-are-still-cheap-even-after-this-years-incredible-nvidia-driven-bull-run-980x646.jpg)
![](https://emeatribune.com/wp-content/uploads/2024/05/these-ai-plays-are-still-cheap-even-after-this-years-incredible-nvidia-driven-bull-run-980x646.jpg)
![](https://image.cnbcfm.com/api/v1/image/107414260-1715632126853-gettyimages-2152266618-RAFAPRESS_13052024-2916.jpeg?v=1715632180&w=1920&h=1080)
Nvidia ‘s robust earnings results have only intensified Wall Street’s already-bullish sentiment on demand for artificial intelligence. That said, there are still some opportunities to buy AI stocks on the cheap. Nvidia has had a monster run this year, gaining more than 113% and surpassing $2 trillion in value — making it one of the world’s most valuable tech companies while also lifting the broader market. The company’s fiscal first-quarter beat briefly drove the S & P 500 to record highs Thursday before pulling back. Year to date, the S & P 500 has added 10.4% while the Nasdaq Composite has jumped nearly 11.5%, as Nvidia popped more than 100%. The 30-stock Dow Jones Industrial Average has advanced about 3.7%. The rally may give some investors pause that the AI trade is expensive. However, some stocks are trading at relatively low valuations. CNBC Pro screened for AI plays that are considered “cheap,” using these criteria: Market cap of $5 billion or more Buy ratings from 55% or more of analysts covering the stock Upside to average price target of 10% or more Trading at a forward price-to-earnings multiple below its five-year average Member of the Invesco AI and Next Gen Software ETF Take a look at the list of companies below: Of the list, Meta Platforms has the highest consensus buy rating from analysts, roughly 73.8% of which rate the stock a buy. The Facebook and Instagram parent has rallied more than 31% this year, as analysts have expressed optimism over the company’s cost-cutting efforts and growing market share in digital advertising. Morgan Stanley on Tuesday reiterated its overweight rating on Meta, saying further user adoption of the company’s Reels product remains a “positive signal for monetization opportunity.” About 33% and 37% of Instagram and Facebook users, respectively, use Reels daily, supporting Meta’s revenue growth durability as engagement continues to modestly grow, the bank said. The stock’s current forward price-to-earnings multiple at 20.1 is only slightly below its five-year average of 21.20. Analysts are extremely bullish on data software company Snowflake , expecting about 30% potential upside, making it the highest of the list. And it’s cheap—the stock’s current forward price-to-earnings multiple at 150.08 is significantly below its five-year average of 761.17. Snowflake slipped about 5.5% on Thursday despite posting better-than-expected first-quarter revenue numbers and a higher annual product revenue the day prior. Citi Research reiterated its buy rating on Snowflake after the results, but cited lower near-term profitability as the reason behind lowering its price target by $4 to $236, which suggests 52.6% upside from Thursday’s close. “Bigger picture, we think SNOW is demonstrating it is garnering a greater share of wallets, even amidst the “great re-prioritization to GenAI,” analyst Tyler Radke wrote in a Thursday note. “With a numbers set-up that looks very achievable, newer products ramping, we see a good path for the stock to work throughout the year.” Micron Technology , another cheap AI play, is up a whopping 47.1% this year. More than 71% of analysts covering the computer memory stock have a buy rating. On Monday, Morgan Stanley analyst Joseph Moore upgraded Micron to equal weight from under weight, saying he overestimated how much the company’s losses last year would weigh on its valuation and underestimated the AI memory tailwind for the stock. He lifted his price target on the stock to $130 per share from $98, suggesting 2.9% potential upside. Analysts surveyed by FactSet believe the stock could gain more than 10%, however. The stock is also trading at a discount to its five-year average, with a forward price-to-earnings ratio of 16. Other favored AI plays that meet the aforementioned criteria include Equinix , Adobe and Western Digital Corp .
EMEA Tribune is not involved in this news article, it is taken from our partners and or from the News Agencies. Copyright and Credit go to the News Agencies, email news@emeatribune.com Follow our WhatsApp verified Channel