Key Points

Nvidia trades at a discount to two chip companies it is often compared to.
Meta Platforms is one of the cheapest big tech stocks.
Sandisk is still trading at bargain levels, even after its huge gains of the past year.
10 stocks we like better than Nvidia ›

Finding affordable artificial intelligence stocks proves challenging. Numerous firms in the field carry somewhat elevated valuations, and a few command steep premiums. Yet three that appear undervalued include Nvidia (NASDAQ: NVDA), Meta Platforms (NASDAQ: META), and Sandisk (NASDAQ: SNDK). All three strike me as outstanding values in the broader context.

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Nvidia

Labeling Nvidia a bargain when it ranks as the world's largest company may sound strange, yet its valuation supports the view upon closer review.

NVDA PE Ratio (Forward) data by YCharts.

Nvidia trades at 25 times forward earnings, which is not especially low. Still, relative to certain peers it appears attractive. Fellow AI chipmakers Broadcom (NASDAQ: AVGO) and AMD (NASDAQ: AMD) trade at 40 and 69 times forward earnings. Moreover, neither grows as rapidly as Nvidia, which posted 85 percent revenue growth in the first quarter while AMD and Broadcom rose 38 percent and 29 percent.

The difference widens when examining 2027 earnings forecasts. Nvidia trades at just 17.7 times next year's estimates, indicating meaningful long-term upside. AMD and Broadcom trade at 39 and 25 times those same estimates. Thus investors gain Nvidia's growth trajectory at a lower multiple than peers command for earnings further out. Nvidia remains the leader in its sector despite the modest pricing.

Meta Platforms

Unlike most large technology peers, Meta Platforms has not earned a premium valuation recently.

META PE Ratio (Forward) data by YCharts.

Meta trades at 18.6 times forward earnings, well below Nvidia. Aside from Nvidia it is the fastest-growing name in this megacap group.

META Revenue (Quarterly YoY Growth) data by YCharts.

The market focuses more on Meta's AI investments than on its dominant advertising operations tied to social platforms. Meta has embedded AI tools in its ad platform, boosting revenue growth. Analysts expect 26 percent growth this year and 19 percent next year. Solid expansion paired with an attractive valuation makes the shares compelling.

Sandisk

Sandisk has surged this year with shares climbing nearly 650 percent, which might seem odd on a bargain list. Yet the advance tracks strong business momentum.

AI data centers require vast memory capacity, and Sandisk supplies NAND memory for solid-state drives essential to long-term storage. With supply tight relative to demand, Sandisk and peers have raised prices sharply. The result is robust revenue and earnings growth that should persist given ongoing shortages.

Wall Street agrees: analysts forecast 332 percent year-over-year revenue growth for Sandisk's fiscal 2026 fourth quarter and 116 percent growth for fiscal 2027. The stock trades at just 10 times fiscal 2027 earnings estimates, marking it a compelling value.

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Keithen Drury has positions in Alphabet, Amazon, Broadcom, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Broadcom, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.