Although many artificial intelligence (AI) stocks aren't as cheap as they were in March or April, plenty of AI stocks look like strong bargains at these price points. We're still in the early innings of deploying AI throughout business and our lives, and it's clear that there's a ton more room to go before this build-out is complete.

As a result, the current dip is temporary and gives investors a great opportunity to scoop up shares of some top AI picks at a discount. Three stocks that I think are excellent values right now in the AI realm are Nvidia (NVDA -0.02%), Taiwan Semiconductor (TSM -2.26%), and Alphabet (GOOG -0.34%) (GOOGL -0.42%).

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Nvidia

Nvidia graphics processing units (GPUs) have largely been the computing muscle behind the training and operation of AI models. Nvidia's GPUs are best in class, which is why most analysts estimate that Nvidia has a 90% or greater market share in the data center GPU space. This dominance allowed Nvidia's revenue and profits to soar over the past few years, but it's just getting started.

In 2024, third-party data provided by Nvidia estimated that there were $400 billion in data center capital expenditures. That data also projects that the figure will increase to $1 trillion by 2028. That's monster growth in a short time frame, and with the vast majority of data centers being outfitted with Nvidia GPUs, they're primed to benefit.

Despite that long-term growth, Nvidia only has about a year's worth of growth priced into the stock.

NVDA PE Ratio data by YCharts.

While 39 times earnings looks expensive (and is expensive), 26 times forward earnings isn't nearly as bad. If all projections come true, the forward price-to-earnings (P/E) ratio will become its trailing P/E ratio. At that time, Nvidia would be a pretty cheaply valued stock, especially considering that the primary market that drives Nvidia's sales is expected to increase by 150% over the next four years.

This makes Nvidia an excellent stock to buy now, especially before it reports Q1 fiscal-year 2026 earnings at the end of May.

Taiwan Semiconductor

Taiwan Semiconductor also expects monster growth from AI-related chips. Due to high demand, these chip orders are often placed years in advance, so when TSMC's management team speaks about incredible chip demand, investors should listen up. Over the next five years, Taiwan Semiconductor's management expects AI-related chip revenue to grow at a 45% compounded annual growth rate (CAGR). Overall revenue growth is expected to approach 20% during that same time frame, which is quite strong for a company of Tawian Semiconductor's size.

One concern investors may have is the effects of tariffs on TSMC's business. However, management is already working on opening new fabrication facilities in the U.S. In addition to its initial $65 billion investment in opening a production facility in Arizona, Taiwan Semi will spend an additional $100 billion to establish three more production facilities, two packaging facilities, and one R&D center. That's a massive investment in U.S. domestic chip production, and it makes it an intriguing stock to buy.

Additionally, TSMC's stock is cheap, trading for just 18.6 times forward earnings. Compared to the S&P 500, which trades at 22.5 times forward earnings, Taiwan Semi looks like a great bargain.

Alphabet

If Taiwan Semiconductor is a great bargain, then Alphabet's stock is an absolute steal. Right now, Alphabet shares can be scooped up for an unbelievable 17.1 times forward earnings. That's quite cheap considering that Alphabet is one of the AI leaders with its Google family of products.

While Alphabet may have been late to the game initially, it has caught up with a strong model and has hit a home run with its AI-powered search results summaries.

However, there are fears that an economic concern could slow Alphabet's ad business (where it gets about 75% of its revenue). Furthermore, a district court judge found Alphabet guilty of operating an illegal monopoly in the ad market and search engine space. We're still a long way away from finding out what the resolution of this case will be, as it will undoubtedly end up in front of the Supreme Court. But that hasn't stopped investors from getting out of Alphabet's stock altogether.

Alphabet is still an incredibly strong business (as evidenced by the U.S. government wanting to break it up), and with its cheap stock price, I think right now is an excellent time to buy some shares.