4 Cheap AI Stocks to Buy Now
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Last week, pop star Lorde stood on stage in Madrid and told the stadium full of fans to reject a piece of technology that some of the biggest names in entertainment, including Kylie Jenner and BLACKPINK’s Jennie, had just spent months getting paid to promote.
That tech belongs to Meta Platforms, Inc. (META), its video-recording AI glasses that celebrities are lining up to sell. Normal people, however, are lining up right behind Lorde to call Meta’s glasses “creepy,” “invasive,” and something you actively do not want strapped to your face. Whereas the billionaires and brand partners see the future, the crowd just sees a surveillance device with a massive marketing budget.
That gap, between what insiders build conviction around and what the public feels comfortable owning, is worth remembering, because it speaks to the five cheap AI stocks I want to talk to you about this week.
Every name on this list has dropped double-digits from its highs over the past month, because retail sentiment turned sour on AI infrastructure the same way it turned sour on face computers.
But Wall Street’s actual conviction did not move an inch.
Samsung Electronics Co. Ltd. just reported a preliminary operating profit of roughly 89.4 trillion won, or nearly $60 billion, up 19 times year over year, driven almost entirely by AI memory demand. On the same morning, International Business Machines (IBM) pre-announced a second-quarter revenue miss and watched its shares crater more than 20% (the stock’s worst session since the 1987 crash) after CEO Arvind Krishna revealed that clients spent the final weeks of June pulling capex out of software and consulting deals to panic-buy supply-constrained servers, storage, and memory ahead of expected price hikes.
The selloff spread fast, dragging down Workday (WDAY), ServiceNow (NOW), Salesforce (CRM), and Accenture (ACN) in sympathy. The same shortage minting record profits in Suwon is cannibalizing enterprise tech budgets everywhere else. If Samsung is collecting the ransom, IBM just showed Wall Street who is paying it.
The crowd does not have to love the trade. They just have to eventually notice the earnings.
So, let’s get into five cheap AI stocks to buy this week:
SpaceX Technologies Inc. (SPCX) is, without question, the most argued-about stock in the market. Half of Wall Street treats it as a cult of personality around Elon Musk, and both the bulls and the bears fall into that trap. What actually matters is that SpaceX is the only vertically integrated company on Earth that can combine rocket launch capability, frontier AI models through xAI, and a live, constant data feed from X. Oppenheimer carries a “buy” rating. Goldman Sachs has a “buy” rating with a $205 price target. Morgan Stanley has a “buy” rating with a $300 price target. Revenue estimates jump from $18.6 billion to $38.7 billion this year, then to $74.2 billion in 2027 and $135 billion in 2028. Twenty-one Wall Street firms have already penciled in 2030 estimates, and they cluster around $330 billion in revenue. Put a 10-times revenue multiple on that, which is not unreasonable for a company growing this fast, and you get a $2 trillion to $3 trillion company. At $150 a share, the math works. I recommend the stock here.
TeraWulf Inc. (WULF) used to mine Bitcoin. Now it leases power. The company just signed a 20-year, $19 billion deal with Anthropic for a 401-megawatt AI campus in Kentucky, and that deal validates the entire pivot from crypto miner to AI infrastructure landlord. TeraWulf is not the best-positioned name in that trade, but it is a legitimate one, and the recent selloff across the AI infrastructure complex hands you an attractive entry. Revenue growth estimates run 89% this year, 210% in 2027, then 72% and 56% after that, taking the company from $168 million in trailing revenue toward $3.3 billion within five years. Gross margins expand from 50% to 70% over that stretch. The stock trades at 33.6 times EBITDA, which is remarkably cheap for triple-digit growth with expanding margins. The chart backs the story up, too: every major pullback since the AI infrastructure rally began has bottomed around the 100-day moving average, roughly a 30% drawdown each time. The stock sits at that exact level right now.
Amazon.com, Inc. (AMZN) just tapped the debt market for $25 billion to fund AI infrastructure, and the same week, it launched 29 more low Earth orbit satellites, bringing its total to 396 and putting the company on track to begin broadband service later this year. That confirms the satellite broadband race has moved from concept to commercial deployment, and it confirms SpaceX is no longer racing itself. Amazon trades at 22.6 times forward earnings and 11 times forward EBITDA, both essentially five-year lows, while revenue growth holds steady in the low double digits and margins expand from the mid-20s toward the mid-30s because of Amazon Web Services. A company this large, this dominant, and this cheap, growing profits faster than sales, deserves a buyer on this dip.
Palantir Technologies Inc. (PLTR) got caught in the software selloff investors are calling “SaaSpocalypse,” and shares sit down roughly 26% to 27% from their highs. The stock remains trapped below a declining 200-day moving average, the worst technical setup a growth stock can carry, and I want to see it reclaim 150, and ideally 160, before I turn constructive. But the growth profile underneath that chart is extraordinary: 73% revenue growth expected this year, then 46%, 44%, 52%, and 49% in the years after, alongside 86% to 87% gross margins. The old argument against Palantir was valuation. That argument no longer holds, because the stock trades at 75.5 times forward earnings and 56.5 times forward EBITDA for what could become a 70% to 80% compounder. Once it reclaims that 200-day line, I recommend putting money to work.
Micron Technology Inc. (MU) sits 22% below its highs, and the bears say memory chips have peaked. Samsung’s blowout quarter says otherwise. The real fear is not today’s demand, which everyone agrees is scorching, but demand 6 to 12 months out, once new memory supply comes online. That question gets answered in about three weeks when hyperscalers report earnings and either reaffirm or hike 2026 capital expenditure plans. Micron’s past pullbacks during this cycle have all bottomed in the 20% to 30% drawdown range, and the stock sits at a 22.6% drawdown right now, with support between $800 and $900. This remains my favorite name in the group.
The dip feels the same every time: a beeping satellite, a scary headline, a chart that looks broken. Then the earnings roll in, and the fear turns out to be the entry point.
We break all five of these names down in far greater depth, charts and all, on this episode of Being Exponential.
