In this article, we will discuss: 8 Best Affordable AI Stocks to Buy Right Now.
On May 12, Bloomberg reported that growing demand for artificial intelligence is causing substantial rises in infrastructure costs, with hyperscalers facing rising component pricing as well as expanding data center investments. Morgan Stanley anticipates that US hyperscaler capital expenditure will surpass $1 trillion by 2027, while Chris Bryant, Bloomberg Opinion Columnist, expects businesses to spend “several trillion dollars” in the coming years. James Covello, Goldman Sachs’ global head of equity research, stated that “nearly all of the value has accrued to the chip layer,” calling the trend “unprecedented and unsustainable.” Bryant noted that chip shortages are limiting supplies for consumer electronics, raising prices.
Costs continue to rise as supply limitations persist, with one prominent chip foundry expecting over $56 billion in expenditure but still failing to fulfill demand. Chris stated that one large software corporation anticipates component inflation to add $25 billion to capital spending, while a major social media company raised its prediction by $10 billion. As per Bryant, one memory chipmaker reported operating margins as high as 72%, while another reported DRAM pricing hikes of more than 90%.
With that said, here are the 8 Best Affordable AI Stocks to Buy Right Now.
Photo by Possessed Photography on Unsplash
Methodology:
We used screeners to identify AI stocks that are trading below a forward P/E of 15, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
8. Micron Technology, Inc. (NASDAQ:MU)
Forward P/E: 7.60
On May 12, Bill Baruch, founder and president of Blue Line Capital, trimmed nearly half his position in Micron Technology, Inc. (NASDAQ:MU) near a $900 target. The company was Bill’s largest position until the “euphoria got too loud to ignore.”
On the same day, Micron Technology, Inc. (NASDAQ:MU) pushed deeper into AI infrastructure. The company reported that it sampled 256GB DDR5 RDIMM modules to key ecosystem partners, delivering speeds up to 9,200 MT/s, “greater than 40% faster” than current modules, while cutting operating power by more than 40% compared to dual 128GB setups.
Raj Narasimhan, the firm’s cloud memory unit head, said the product allows “significantly higher performance,” pointing to gains in capacity, bandwidth, and efficiency.
The business said it is co-validating the modules with partners to accelerate installation, targeting data center clients creating AI and high-performance computing systems at scale.
Micron Technology, Inc. (NASDAQ:MU) provides innovative memory and storage solutions. It operates in four segments: Compute and Networking Business Unit, Mobile Business Unit, Embedded Business Unit, and Storage Business Unit.
7. Workday, Inc. (NASDAQ:WDAY)
Forward P/E: 11.99
Workday, Inc. (NASDAQ:WDAY) is among the Best Affordable Stocks.
On May 15, BWG Global downgraded Workday, Inc. (NASDAQ:WDAY) to Negative from Mixed, reporting checks showing partner sentiment “deteriorated further during fiscal Q1.”
On May 13, Workday, Inc. (NASDAQ:WDAY) reported that it integrated its Sana Self Service Agent into Microsoft 365 Copilot, allowing employees to complete HR and finance tasks without leaving the platform. The company said the tool will help users to get answers and take action directly within Microsoft 365 while maintaining security and compliance controls.
Joel Hellermark, the corporation’s Sana general manager, said “answers simply appear where people already are,” describing the agent’s ability to handle routine workflows inside Copilot.
Srini Raghavan, corporate vice president at Microsoft 365, said the step lets employees access support “in the tools they use every day” while retaining governance. The firm said the solution is broadly available, adding that interactions occur through its platform to protect data control and enforce existing standards.
Workday, Inc. (NASDAQ:WDAY) develops enterprise cloud applications for finance and human resources. It provides financial management, human capital management, and analytics solutions for businesses, educational institutions, and government bodies.
6. Accenture plc (NYSE:ACN)
Forward P/E: 12.05
On May 14, Accenture plc (NYSE:ACN)’s subsidiary Accenture Federal Services and OpenAI announced a strategic partnership to advance AI usage across all the US federal agencies. It stated that Accenture Federal will act as an implementation partner, helping clients move from experimentation to production “in weeks, not years.”
The companies said the initiative combines OpenAI’s models with Accenture Federal’s engineering and security capabilities, expanding access through governance frameworks and federal-ready deployment patterns. It will also allow agencies to modernize legacy systems and migrate AI workloads faster.
Ron Ash, CEO of Accenture plc (NYSE:ACN)’s Accenture Federal Services, said the partnership is for agencies to scale AI quickly, adding that OpenAI enables leaders “to accelerate AI to mission scale from pilots to production at speed.”
Joe Larson, OpenAI’s VP for Government, said the collaboration “gives agencies a faster, safer path” to operational impact. The firms said Accenture Federal will place trained architects, support FedRAMP-aligned pathways, and provide thousands of practitioners with access to OpenAI tools.
Accenture plc (NYSE:ACN) is a multinational professional services firm that helps corporations, governments, and other organizations develop their digital core, streamline their operations, accelerate revenue growth, and improve citizen services, resulting in concrete value at speed and scale. The company includes cloud, data, and AI technologies with industry knowledge, functional expertise, and global delivery capabilities. It offers Strategy & Consulting, Technology, Operations, Industry X, and Song. It operates in three geographical segments: North America, EMEA, and Growth Markets.
While we acknowledge the potential of ACN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ACN and that has 100x upside potential, check out our report about the cheapest AI stock.
Click to continue reading and see the 5 Best Affordable AI Stocks to Buy Right Now.
Disclosure: None. Follow Insider Monkey on Google News.
