Motley Fool Picks 4 AI Stocks as Nvidia Trades at 21.9 Times Forward Earnings
Updated
Updated · The Motley Fool · Jul 31
Motley Fool Picks 4 AI Stocks as Nvidia Trades at 21.9 Times Forward Earnings
3 articles · Updated · The Motley Fool · Jul 31
Summary
Four AI names — Nvidia, Taiwan Semiconductor, Nebius and Micron — were flagged as buys as sector skepticism leaves leading chip and infrastructure stocks cheaper than their growth outlooks suggest.
Nvidia anchors the list: the analyst says hyperscaler data-center spending could top $1 trillion next year, while the stock trades at 21.9 times forward earnings and about 15 times next year's earnings.
Taiwan Semiconductor was highlighted for demand visibility, with CEO C.C. Wei saying chip demand should stay elevated through at least 2029 or 2030; the shares trade at 23.8 times forward earnings.
Nebius offers the highest growth profile, with Wall Street projecting 540% revenue growth in 2026 and 238% in 2027, while Micron is down about 25% from its peak and could benefit from a memory shortage management sees lasting beyond 2027.