“The Next AI Gold Rush: 5 Undervalued Stocks That Could 10x by 2026 🚀”

The boom of next AI Gold rush has begun with a big blast — and this time, it’s not only a hype, but a real investments of wroth trillions of dollars flowing into the Artificial Intelligence sector. And the revolution in this sector also has the power to change the future of entire infrastructure — like from data centers to chips, cloud computing and automation. If you are thinking that the AI stocks are expensive now then just think again! Still there many undervalued AI gems in the market that has the power to deliver multi-bagger return in next few years.

Some of the poplar analyst like Joseph Hog also indicates some hints that some AI stock that remain very cheap even after their recent run-up. So, this article is generally based on those stocks — where there is a possibility that the next wave of AI profit cloud flow. So be ready because the the AI festival has just now started.

The AI Infrastructure Players

The first step is to find the winner—where the money is going, where the supply chain is stronger. The AI revolution is based on chips, accelerators, and the brain of data center and servers.

1. Micron Technologies (MU): The King of Memory 👑
   The largest company of our list is Micron, ticker MU, with a market valuation of approx $181 billion, a hidden gem. Despite of having a jump of 54%, its a still definite buy after its July recommendation. AI need more speed, and High Bandwidth Memory (HBM) of Micron provides the data to AI chips. As we all know, the more complex AI models, the greater the memory demand. The company has upgraded its Q4 guidance in August, and increasing its revenue outlook by $500 million, and also improving the profits. As the investor expected 22% of annual growth by 2026. This is a strong base to your AI portfolio.
2. Super Microcomputer (SMCI) & Hewlett Packard Enterprise (HPE): Server King
   The Nvidia’s chips are neurons, like wise the brain of the server data center. These server makers are watching the increased revenue and SMCI and HPE are the cheapest bargins.

• SMCI stock is flat since July, but it remain a leader in AI server with a market share of 22%. According to the analyst, this stock is a near pure-play AI stock and despite a 180% jump, its valuation is still cheap relative to its growth. As far as the AI data centers business grow, SMCI stock remain the best and that’s for sure.
• HPE stock is 20% up since July. HPE has a strong enterprise customer base and also have a deep partnership with the Nvidia. There high-performance liquid-cooled products race are in the race. Activist investors like Elliot Management are also buying these shares, which could lead to strategic change in the near future. Its both growth potential and valuation are good.

The AI Adopters: The Breakers of the Old Way

AI is not just only the manufacturers game, it’s also a company which transforming their business by doing it:

3. Upstart Holdings (UPST): Lending Revolution 💰 Online lender Upstart get a jump of 20% after this July, the stock fell in August due to the increase of loan delinquencies, but this is temporary. Upstart is a AI-first company, that has transformed the loan industry.

• Customer acquisition costs reduces by 50%.
• Loan onboarding cost also reduces by two-thirds.
• Offering lower interest rate as compare to its Competitors. There is a possibility of having a strong performance in 2025: with a $1 billion revenue and 20% earnings margin. Its valuation is attractive and assuming a growth of 45%.

4. EPAM Systems (EPAM): Digital Sipahi despite of being a $10 billion consulting and engineering services company, the company is recently offering the buy opportunities. It also has deeply invested in software development, positioning for the $2.1 trillion IT services market. It has showed 18% revenue growth in Q2.

How to Find Your Diamond:

All we need to do is Smart and disciplined valuation analysis. Don’t be content with the average return, try to conduct quantity research to find the best stocks that will outperform in the future market.

Price-to-Sales (P/S) ratio is my favorite for growth stocks. It tells how much the investors are paying for each dollar of sales. But the growth really matters.

• Example: AMD has a P/S of 10, Workday 7.6 but AMD is projecting a growth of 24% annual sales, while Workday is only 13%. So that’s why it makes sense to invest more in AMD.
• Also calculate the adjusted P/S, which is also a factor of growth. A low adjusted P/S means the best deals are in the market.

Other Stocks are also Worth Considering:

• Dell Technologies (DELL): 15% up since July, a good server player but lag behind the HPE and SMCI in AI high-performance.
• July se 15% upar, achha server player hai lekin HPE aur SMCI se peeche hai AI high-performance mein.
• The Trade Desk (TTD): It run a AI ad-tech platform and have a strong value stock ahead of Q3 earning.
• AI ad-tech platform chalata hai, Q3 earnings ke pehle ek strong value stock.
• Marvell Technologies (MRVL): With strong accelerators, helping the data centers to get most of the expensive chips.
• Accelerators mein strong, data centers ko expensive chips ka maximum fayda dilata hai.
• Symbotic (SYM): 80% up since July. AI and robotics has now transformed the warehouse logistic completely. The long-term is favorite but now it looks like little expensive, just wait for the pullback.

Mega-Cap Wasteful Spending:

We don’t have included the big giants in our cheap stock list because they are too expensive on a growth-adjusted basis:

• Amazon (AMZN): We have find the best deal in mega-cap, trading at a 3.6 times sales, but now slow with 10% growth. A good for the long-term hold.
• Nvidia (NVDA): This stock is on the heavy run, but really expensive with 33 times P/S or 73 times adjusted.
• Palantir (PLTR): It trades around 150 times sales, looks like little expensive.

Bottom Line: (Celebration Continue 🎉

The AI market has been expensive since July, but the deep value is still there if you try to dig in the right place. Some of the stocks like SMCI, HPE and Micron shows that you can achieve the victory by following the supply chain and using the growth-adjusted valuations. AI buildout is a generation event. You can continue your deep analysis, find the cheap stocks and just don’t participate in the AI boom, but also try to lead it.