Investing in artificial intelligence (AI) stocks presents exciting opportunities for growth, as the technology is poised to transform industries and create remarkable advancements. Consequently, many AI companies have seen their stock prices surge, resulting in high valuations that can discourage potential investors. However, some AI stocks are now trending toward more budget-friendly prices, signaling a potential chance for both growth and value investors. Let’s explore three promising AI stocks currently available at attractive valuations.

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1. Super Micro Computer

Super Micro Computer (NASDAQ: SMCI) has experienced significant earnings growth and rising stock prices this year, thanks primarily to increasing demand for its AI data center products, including workstations and servers. Interestingly, the company has seen its quarterly revenue soar into the billions, surpassing its total annual revenue from 2021.

Strong earnings continue, and recently, Super Micro announced it has been shipping 100,000 graphics processing units (GPUs) for AI each quarter. Collaborating with top chip designers like Nvidia, the company integrates advanced technology into its equipment.

However, certain challenges have hindered the stock’s progress. Concerns surfaced following a short-selling report highlighting alleged issues at Super Micro, alongside a Wall Street Journal story hinting at a potential Justice Department investigation. Additionally, the company has postponed filing its annual 10-K report, all of which has dampened investor confidence.

At this point, cautious investors may want to hold off on investing in Super Micro until the current uncertainties are addressed. Nevertheless, some aggressive investors might find the stock appealing at just 14 times its expected earnings.

2. Alphabet

Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) stands out as the most affordable among the high-growth tech stocks known as the “Magnificent Seven,” trading at 21 times forward earnings estimates. Despite this lower valuation, Alphabet boasts a solid history and equally promising future potential.

Most people recognize Alphabet primarily through Google Search, the leading search engine globally, where advertising contributes significantly to the company’s income. However, Alphabet’s investment in AI has also propelled its Google Cloud business to new heights.

In its latest quarter, Google Cloud reported double-digit revenue growth alongside a triple-digit rise in operating income. Notably, cloud revenue exceeded $10 billion for the first time, while operating income surpassed $1 billion. The surge in revenue is partly attributed to Alphabet’s AI infrastructure, which has drawn in billions of dollars this year, with over 2 million developers utilizing these tools.

With initiatives aimed at providing comprehensive AI solutions and integrating AI into Google Search, Alphabet seems well-positioned to become a major force in AI in the long term.

3. Meta Platforms

Meta Platforms (NASDAQ: META) also belongs to the Magnificent Seven, trading at a reasonable valuation of 27 times expected earnings. As a leader in social media through platforms like Facebook, Instagram, and WhatsApp, Meta is making significant investments in AI, which could strengthen its influence in the industry.

This year, Meta aims to prioritize AI, planning to acquire the equivalent of 600,000 graphics processing units by year’s end. The company is working to create AI applications that enhance user interaction, which could in turn boost time spent on its platforms, leading advertisers to increase their spending.

With advertising currently accounting for the majority of Meta’s revenue, investing in AI can help sustain and grow this vital income stream. Given the current valuation, Meta represents a promising addition for investors seeking both growth and value.

Should you invest $1,000 in Super Micro Computer right now?

Before making any investment decisions regarding Super Micro Computer, it’s important to evaluate the following:

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Suzanne Frey, an executive at Alphabet, is a board member of The Motley Fool. Randi Zuckerberg, who has previously worked for Facebook and is related to Meta Platforms CEO Mark Zuckerberg, is also on the board of The Motley Fool. Adria Cimino does not hold any positions in the stocks mentioned. The Motley Fool endorses and holds positions in Alphabet, Meta Platforms, and Nvidia. They have a disclosure policy.

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