The S&P 500 index closed on June 25, 2023, just under 1% from its all-time high, recovering nearly all losses from trade war fears. Despite this recovery, several key tech stocks, including Nvidia, Lam Research, and ASML Holding, are currently considered to be trading at attractive valuations amid a growing demand for AI-related products.
Nvidia reported fiscal Q1 sales of $44.1 billion, a 69% increase year-over-year, indicating strong demand for its AI technology. Its forward PEG ratio is at 0.79, suggesting it may be undervalued. Meanwhile, Lam Research saw a 12% year-over-year increase in earnings, supported by demand from Nvidia, and trades at 24 times earnings. ASML, a crucial player in semiconductor manufacturing, currently has a valuation of about 30 times forward earnings and expects sales to rise by 14.8% this year.
Analysts are suggesting that investing in these stocks could lead to significant long-term gains, especially given the continuing demand for advanced technology in AI and semiconductors.
