What Are the 3 Best Bargain Artificial Intelligence (AI) Stocks to Buy Right Now
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The Motley Fool

What Are the 3 Best Bargain Artificial Intelligence (AI) Stocks to Buy Right Now

July 27, 2025
05:45 AM
4 min read
AI Enhanced
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Not all artificial intelligence (AI) stocks have to break the bank.

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Quick insights and key information

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4 min read

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investment

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Published

July 27, 2025

05:45 AM

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The Motley Fool

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Key Topics
stockstradingfinancialtechaimarket cyclesseasonal analysismarket

Interestingly, Finding bargains in the artificial intelligence (AI) world isn't easy, but they're out there

Three that I've got my eye on are Taiwan Semiconductor (TSM 1

Moreover, 60%), Adobe (ADBE -0

Additionally, 25%), and Alphabet (GOOG 0. 45%) (GOOGL 0 (which is quite significant)

All three of these trade at a hefty discount to the broader market, yet are still quite mising, in light of current trends

Nevertheless, If you're looking for value in the AI space, this trio is an excellent starting point

Image source: Getty Images, considering recent developments

How do these three fit into AI, in today's market environment

Furthermore, Meanwhile, Taiwan Semiconductor is the best-positioned of this trio

The evidence shows 's the primary chip fabricator for some of the leading companies, including Nvidia and Apple, given the current landscape

Its chip duction facilities fabricate chips that its customers have designed, placing TSMC into a neutral position in the AI race, amid market uncertainty

It performed phenomenally well over the past few years, with revenue in U

Additionally, Dollars rising an astounding 44% in the second quarter, which exceeded expectations

This strength is expected to persist for many years (noteworthy indeed)

At the same time, Management guided at the start of 2025 that it expects its revenue to increase at nearly a 20% compound annual growth rate over the next five years, in light of current trends

Taiwan Semi is a key player in AI nology, and it holds an enviable position

Adobe makes leading graphics design tools that are the industry standard

Whether it's editing or image creation, Adobe is a top option, considering recent developments

However, investors are growing increasingly concerned that generative AI creation nologies could displace Adobe

Furthermore, Image and creation using generative AI models has come a long way, and has reached a point where it's nearly indistinguishable from what humans create

As a result, many are forecasting the downfall of Adobe

However, I think that's a bit premature

Moreover, Adobe has also invested heavily in generative AI and has its own Firefly duct that allows seamless integration of AI with its existing editing tools

This analysis suggests that allows Adobe to compete in this realm while also giving creators more control over the end duct than what many generative AI models do

This could keep Adobe relevant within the graphic design industry, making the forecast of its downfall somewhat inaccurate, in today's financial world

Currently, Adobe is performing well and has posted consistent revenue growth over the past few years

ADBE Operating Revenue (Quarterly YoY Growth) data by YCharts

Nevertheless, If Adobe is supposed to be getting displaced, don't tell it that, as it's still growing at a healthy pace

Last is Alphabet, the parent company of the Google engine, in today's market environment

Market analysis shows s stock is running into the same fears as Adobe's, as investors worry that generative AI will replace Google

While some have made the switch, investors need to remember that Google is an ingrained habit among internet users around the globe, in light of current trends

However, It would take a massive nological leap, which most users won't need anyway, to get them to switch

At the same time, Google has already implemented the AI overviews feature, which seamlessly integrates results and AI, and that could be enough to maintain the vast majority of its dominant market (this bears monitoring)

In contrast, If Google can maintain most of its market, the stock is poised to move higher, as it trades at a significant discount to the broader market

How cheap is this trio

Alphabet's stock trades at a deep discount to the broader market, despite strong results (quite telling) (noteworthy indeed), in this volatile climate

GOOGL PE Ratio (Forward) data by YCharts, considering recent developments

Additionally, Considering that the S&P 500 trades for 23. 8 times forward earnings, this seems a reasonable price to pay for the upside that Alphabet vides, in this volatile climate

Adobe is similarly cheap, trading for 18 times forward earnings

ADBE PE Ratio (Forward) data by YCharts

However, Taiwan Semiconductor is actually more expensive than the broader market at 25 times forward earnings

Furthermore, Conversely, However, it's expected to grow at essentially double the pace of the market over the next five years, so this slight premium to the market seems a bit low

As a result, I'm confident labeling Taiwan Semiconductor as a bargain buy right now (this bears monitoring) (an important development).