I just reviewed an analysis on AI stocks and found an interesting phenomenon—although AI concept stocks have surged wildly over the past two years, many top AI companies are actually valued quite reasonably; they’re not as expensive as everyone thinks.

Specifically, four companies have forward P/E ratios between 26 and 31, which for established companies already leading in the AI field, are actually quite good entry prices. There’s also one company that hasn’t yet turned a profit, but Wall Street analysts expect its stock to increase by over 55% in the next 12 months, and that expectation alone indicates its potential.

I believe these inexpensive AI stocks are worth paying attention to now. First, Microsoft, with a P/E ratio of 29, is practically a bargain for this tech giant. Their cloud services business has recently grown by 40%, and the CEO has explicitly said they will continue to increase AI investment. Their return on investment shows that this company is spending money very wisely.

Next is Meta, with a P/E ratio of 26, the cheapest among the seven tech giants. Their advertising business has been very stable, and now they’re integrating AI to keep users engaged longer and improve ad effectiveness. This company is even developing its own large language models, which could lead to more application scenarios in the future.

Alphabet is also quite interesting. Google Search and Google Cloud have already contributed steady growth, with quarterly revenue recently surpassing $100 billion. Their cloud services include Nvidia chips and self-developed chips, all driving business growth. At a 30-fold valuation, their leadership in search and cloud markets combined with AI growth potential makes them a very good choice.

Oracle, the database giant, has recently demonstrated strength in cloud infrastructure. They expect cloud infrastructure revenue to soar by 77% to $18 billion this year, aiming for $144 billion over the next four years. Why? Because AI companies that need computing power are seeking them out. Oracle’s stock has recently pulled back, but I see this as an opportunity—buying at a 31 P/E ratio for a long-term winner.

Finally, CoreWeave, which went public in March this year, has surged over 300% in the past few months. Although it has recently pulled back like other AI stocks, the demand for AI services shows no signs of weakening. Their business is renting out high-performance chips to run AI workloads, and quarterly revenue has doubled recently. Wall Street expects over 55% growth in the next year, making now a good time for aggressive investors.

Overall, although the valuation of AI concept stocks is indeed much higher overall, these cheap AI stocks are actually reasonably priced now. For investors looking to position in the AI sector, it’s not too late to get in.