2 Artificial Intelligence (AI) Stocks Trading Below Their True Value Right Now

By Harsh Chauhan – Mar 12, 2026 at 3:15PM ESTKey PointsThe extremely strong demand for AI chips remains a significant tailwind for these two companies.Importantly, both trade at really attractive valuations despite the market-beating earnings growth they will likely deliver.Artificial intelligence (AI) stocks have been among the best performers in the stock market over the past three years, which isn't surprising, as the proliferation of this technology has driven solid growth for several companies. The Global X Artificial Intelligence & Technology ETF, which invests in companies that are on track to benefit from the deployment of AI in their products and services, along with companies developing hardware needed to run AI workloads, has jumped by 118% in the past three years. That's well above the 76% gains clocked by the S&P 500 index over the same period. The good part is that investors can still buy some top AI stocks trading at incredibly attractive valuations right now. Nvidia (NVDA 1.53%) and Micron Technology (MU 3.19%) are two such companies. Let's look at the reasons these two AI names are trading below their true value. Image source: Nvidia. Nvidia Nvidia has been the stalwart in AI hardware. Its graphics processing units (GPUs) have been used to train popular AI models and are now used for running inference applications as well. The good news for investors is that Nvidia stock can still be bought at just 22 times forward earnings, even after rallying a whopping 654% in the past three years. That's because the company continues to clock impressive growth quarter after quarter. For instance, its earnings shot up by 60% in the recently concluded fiscal 2026 (ended Jan. 25, 2026). The forecast for fiscal 2027 is rosier, with analysts expecting its earnings to surge by 73%. That's well above the 15% average earnings growth of the S&P 500 index this year. Now, the S&P 500 index has a forward earnings multiple of 22, almost in line with Nvidia's multiple. However, as Nvidia's earnings are poised to grow at almost 5 times the S&P 500's average, it should ideally trade at a significant premium. ExpandNASDAQ: NVDANvidiaToday's Change(-1.53%) $-2.85Current Price$183.18Key Data PointsMarket Cap$4.5TDay's Range$181.75 - $184.9452wk Range$86.62 - $212.19Volume5.6MAvg Vol176MGross Margin71.07%Dividend Yield0.03% More importantly, Nvidia has the potential to sustain its healthy growth for a long time. That's because investments in data center infrastructure are expected to increase at an annual rate of 40% through 2030, reaching between $3 trillion and $4 trillion by the end of the decade. With Nvidia controlling a robust 81% of the AI chip market, it is well placed to capitalize on this lucrative opportunity. That's why it would be a good idea to buy Nvidia while it is still cheap.

Micron Technology Similar to Nvidia, Micron is trading at an extremely attractive 11.5 times forward earnings right now. That's about half the S&P 500 index's forward earnings multiple, even though analysts estimate the company's earnings will jump by more than 4 times in the current fiscal year. What's more, Micron's estimated earnings growth of 34% for the next fiscal year is more than double the earnings growth that S&P 500 companies are anticipated to deliver. ExpandNASDAQ: MUMicron TechnologyToday's Change(-3.19%) $-13.34Current Price$405.35Key Data PointsMarket Cap$471BDay's Range$396.67 - $413.7352wk Range$61.54 - $455.50Volume32MAvg Vol35MGross Margin45.53%Dividend Yield0.11% However, the market is underestimating its potential. That's because the demand for memory chips exceeds the supply, and this supply constraint is unlikely to go away until 2028, at least. Micron, therefore, seems on track to sustain its terrific growth rates for the long run. Not surprisingly, Micron has a price/earnings-to-growth ratio (PEG ratio) of just 0.64 based on the annual earnings growth it is expected to deliver over the next five years, according to Yahoo! Finance. A PEG ratio below 1 indicates that a company is undervalued when its growth potential is considered, suggesting that Micron is a no-brainer buy right now.Read NextMar 12, 2026 •By Jennifer SaibilHere's What I Think Is Going On With Nvidia StockMar 12, 2026 •By Adria CiminoThe Biggest Risk to Nvidia Stock That Nobody Is Talking AboutMar 12, 2026 •By Danny Vena, CPANvidia Is Making a Massive $26 Billion Bet on the Future of Artificial Intelligence (AI)Mar 11, 2026 •By Geoffrey Seiler3 Top Artificial Intelligence Stocks to Buy in MarchMar 11, 2026 •By Leo Sun2 Artificial Intelligence (AI) Stocks With Generational Wealth PotentialMar 11, 2026 •By Danny Vena, CPANvidia Just Poured $2 Billion Into This $28 Billion AI Cloud Company -- Here's Why It Matters for 2026About the AuthorHarsh Chauhan is a contributing Motley Fool technology analyst covering semiconductors, consumer electronics, artificial intelligence, and software. Harsh previously worked as a journalist for CCN Markets covering crypto and macroeconomics, a contributor at Capital 10x covering metals, mining, and industrial stocks, and a research associate at Zacks Investment Research. He holds a bachelor’s degree in commerce from St. Xavier’s College in Kolkata, India.TMFTechJunk13X@techjunk13Stocks MentionedNvidiaNASDAQ: NVDA$183.18(-1.53%)-$2.85Micron TechnologyNASDAQ: MU$405.35(-3.19%)-$13.34*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.