4 Insanely Cheap AI Stocks to Buy Now

AI stocks have taken a beating over the past week or so. The Nasdaq slid into correction territory on its worst day since April of 2025, and a hotter-than-expected inflation report on Tuesday added to the jitters. But panics like this sell the good companies along with the bad, and that is exactly when the best ones go on sale.

Today we are going to hand you 4 AI stocks trading for a fraction of what the popular names command, still growing fast, and now marked down even further. One is so overlooked that every analyst covering it says Hold, while our own model couldn't disagree more. Another sits more than 45% below its fair value. And we are saving the most beaten-down bargain of the bunch for last, so you will want to stick around to the end.

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1- Hewlett Packard Enterprise (HPE)

We are going to get the party started with a name you already know, Hewlett Packard Enterprise (HPE). This is one of the largest server makers on the planet, and these days it builds the rack-scale machines that run artificial intelligence inside the world's data centers.

So why HPE, and why now? For starters, shares are trading around 25% off their recent highs, a clean chance to buy the dip on a best-in-class name.

And the business is firing on all cylinders. HPE has beaten the stuffing out of estimates in 6 straight quarters. Its networking business, boosted by its Juniper deal, sits right in the path of the AI buildout. This explains why Wall Street experts see earnings growing more than 30% a year going forward, well ahead of its industry.

And you are not paying up for that growth. HPE carries a PEG ratio of 0.88, which is just the price-to-earnings ratio adjusted for growth. Remember, the average stock trades near 1.5, so shares could rally meaningfully from here and still be cheaper than the typical company.

And Wall Street is leaning in hard. Of the 19 analysts covering shares, 9 rate HPE a Strong Buy recommendation and 2 more a Buy recommendation. The most bullish, Asiya Merchant at Citigroup, a top 1% rated analyst, is pounding the table with a fair value target implying nearly 70% upside in the year ahead, as of this writing. In fact, the 3 most bullish analysts on the panel all rank in the top 1%.

Now let's pop the hood on our Zen Ratings quant model. It analyzes every stock across 115 different fundamental, technical, and AI factors, then boils the results down to an intuitive letter grade of A through F. It also provides 7 unique Component Grades for every stock, Value, Growth, Momentum, and more, to point out each stock's unique strengths and weaknesses.

HPE earns an A, a Strong Buy recommendation, landing in the top 1% of all stocks, an elite A rating that greatly increases the odds of future share price outperformance. It also ranks number 3 out of 42 in the Communication Equipment group.

And the Component Grades back it up. Safety lands in the top 24%. Value comes in at the top 13%, on a review of 21 different value measures. Sentiment is stronger at the top 11%, a sign the Smart Money crowd is moving in. The AI grade is in the top 8%, and that grade measures how timely shares are likely to be, not how much AI the company sells. And the standout, Growth, is in the top 1% of the entire market. The one soft spot is Momentum, which is only middling at the top 33%, which fits a stock trading off its highs. 

A cheap, A-rated AI server giant, on sale, with Wall Street pounding the table. Not a bad way to kick off our list. But it gets even better from here…

2- Science Applications International (SAIC)

Our next pick is all about cheap and steady, and it is Science Applications International (SAIC). In plain English, this is the company that handles the engineering and IT work behind America's largest government agencies, and increasingly, that work is AI-enabled.

And the timing fits. As defense, intelligence, and civil agencies race to bake AI into their systems, SAIC is one of the shops they hand that work to, steady demand backed by long-dated contracts. In a market where AI stocks are priced for perfection, that makes it the quiet value play. And here is the headline.

Based on a discounted cash flow model, SAIC trades more than 45% below its fair value. In other words, shares would have to climb a long way just to reach what the business is actually worth. That is a rare discount for a company this stable.

And that discount shows up everywhere you look. Shares change hands at a price-to-sales ratio of just 0.67, so you are paying well under a dollar for every dollar of sales this company brings in. Good luck finding that on the popular AI names.

And this is no broken business. In its last 5 reports, SAIC sailed past the earnings number every single time, with earnings grinding steadily higher off a book of long-dated government contracts. And when we say sailed past, we really mean beat the stuffing out of estimates. Just huge beats all around.

At this stage you know we're going to pop the hood on our Zen Ratings. SAIC earns an A, a Strong Buy recommendation, in the top 4% of all stocks. It also ranks number 3 out of 56 in the Information Technology Services group.

Walk the strong grades with us. Financial strength comes in at the top 20%. Sentiment lands in the top 12%, the Smart Money leaning in. And right at the peak, two truly elite grades, Value in the top 3%, based on those 21 value measures, and Safety in the top 2% of the entire market. Safety is worth a word, because it measures the consistency and predictability of a company's earnings and price, not its debt. A top 2% Safety grade means this is about as steady as they come. The one middling grade is Growth, at the top 42%, which fits a steady contractor rather than a high-flier.

The biggest negative for SAIC is concentration. Its revenue leans heavily on federal budgets, so a government shutdown or a spending squeeze could slow things down. That comes with the territory for a government contractor.

But a deeply discounted, top 4% rated business, with elite Value and Safety, is a potent anchor for a cheap-AI portfolio. Worth a close look.

3- Ingram Micro (INGM)

Now for the cheapest name we have touched yet, Ingram Micro (INGM). If HPE builds the AI servers, Ingram Micro is the giant that gets them out the door. It is one of the world's biggest distributors of technology hardware, the plumbing that moves GPUs and AI infrastructure from the factory to the companies installing it.

And the timing could hardly be better, because Ingram just posted a record quarter. Here is the why now. In its latest report, Ingram posted record sales, up nearly 21% year over year, powered by surging demand for GPU and AI infrastructure, and management raised its guidance for the full year.

And that comes on top of 9 straight earnings beats, a streak of operational excellence that tends to keep rolling. This explains why Wall Street experts see earnings growing around 30% a year going forward, more than 3 times faster than the rest of its industry.

Growth is nice. But growth plus value is much, much nicer. Ingram trades at a shockingly low PEG ratio of just 0.48. Please remember the average stock sits near 1.5, roughly 3 times higher. That means shares could more than double current levels and still be cheaper than the typical company.

Now here is the fun part. Wall Street is fast asleep on this one. All 5 analysts covering shares, including top-ranked names at Morgan Stanley and JP Morgan, every one of them rates it just a Hold.

But our Zen Ratings quant model could not disagree more. Ingram earns an A, a Strong Buy recommendation, in the top 2% of all stocks, and it ranks number 2 out of 56 in the Information Technology Services group.

And the Component Grades are strong across the board. Momentum lands in the top 21%, pointing to timely shares. Value comes in at the top 14%. Growth is stronger at the top 7%, which foreshadows more earnings beats ahead. Sentiment is in the top 8%, the Smart Money crowd onboard. And the standout, the AI grade, is in the top 4%, our model's read that these shares are primed to be timely, which is about the likely timing of shares, not how much AI the company sells.

The one weak spot to flag is the overhang from its private equity owner, Platinum Equity, which has been steadily selling down its stake since the company returned to public markets. Those sales can pressure shares in the short run. It is a supply question, not a crack in a business that is firing on all cylinders.

So you have a record quarter, an AI-fueled growth engine, a rock-bottom valuation, and a quant model screaming its Strong Buy recommendation while Wall Street naps. Perhaps Ingram Micro deserves a spot on your watchlist.

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4- Kulicke and Soffa Industries (KLIC)

Drumroll please, for our final stock, we saved the most beaten-down bargain of them all. This is Kulicke and Soffa Industries (KLIC). Every advanced AI chip has to be packaged and assembled before it can do a thing, and Kulicke and Soffa makes the equipment that does exactly that. Picks and shovels for the AI gold rush.

And here is the gift. Even as the AI story keeps building, shares have been thrown out with the bathwater, and they now trade around 44% off their highs. That is our chance to buy the dip on a best-in-class name.

Here is the growth story. As the AI buildout drives demand for advanced chip packaging, Kulicke and Soffa sits right in the sweet spot. This is showing up in spades. Wall Street experts see revenue climbing around 25% a year, driving earnings up nearly 70% a year going forward, close to 3 times the pace of its industry. And the company has backed that up by crushing the number in 5 straight quarters.

Growth like that usually costs a premium. Not here. Shares trade at a forward price-to-earnings ratio around 11. Even better, they carry a PEG of just 0.55. At under half the average stock's 1.5, shares could nearly triple and still be cheaper than the typical company.

As you would expect for an under-the-radar name, Wall Street coverage is thin, just 2 analysts rate shares. Their loss, our gain. The most bullish, Charles Shi at Needham, a top 2% rated analyst, has a Buy recommendation and a fair value target calling for more than 50% upside in the year ahead, as of this writing. And as more analysts catch on, each new Buy recommendation can act as another catalyst for shares.

At this stage you know we're going to say it. We have yet another elite A-rated stock. Kulicke and Soffa earns an A, a Strong Buy recommendation, in the top 2% of all stocks. In fact, it is the number 1 ranked stock in all of Semiconductor Equipment, topping a list of 30 names that includes giants like ASML.

Walk the grades with us one last time. Value lands in the top 22%, on those 21 value measures. Momentum is in the top 31%. Financial strength comes in at the top 15%, the mark of a well-run company. Sentiment is in the top 14%, the Smart Money onboard. And the crown jewel, Growth, is in the top 1% of the entire market, about the consistency of past growth, which points to more growth still ahead. The soft spot is the Artificial Intelligence grade, which comes in at a D, in the bottom 12% of the market, and to be clear, that measures the likely future timeliness of shares, not how much AI the company sells, so it suggests the timing may take a little patience.

The main risk is cyclicality. Chip equipment orders ebb and flow with the industry's spending cycle, so this one can be lumpy. But you are being paid to wait with a dirt-cheap valuation and a top-ranked rating.

A number 1 ranked, deeply discounted, fast-growing picks-and-shovels play on AI, bought on a 44% dip. That is why it was the perfect stock to finish with today.

So there you have it, 4 insanely cheap ways to own the AI boom. The common thread is that every one of them earns an A, a Strong Buy recommendation, in our Zen Ratings model, trading for a fraction of what the popular AI names command. These kinds of discounts rarely last once the crowd catches on, so if any of them interest you, it may not pay to wait around.

And remember, the Zen Ratings are updated daily. You can pull a free rating on over 4,600 stocks yourself just by typing in a ticker at wallstreetzen.com, so be sure to bookmark the site and check the grade before any buy, hold, or sell decision.

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