Nvidia (NASDAQ:NVDA), Salesforce (NYSE:CRM), and IBM (NYSE:IBM) are three AI stocks that are currently undervalued and could present an excellent buying opportunity in May 2024.
Nvidia, a world-class AI chip maker, has seen its stock consolidating in recent months as investors await its upcoming earnings report. Despite high expectations, the stock is trading at a reasonable forward price-to-earnings (P/E) multiple of 37.45, making it an attractive option for those looking to capitalize on the growing demand for AI hardware.
Salesforce, known for its AI innovations in customer relationship management, is currently trading at around $280 per share, down approximately 12% from its recent peak. With a forward P/E of 28.5, Salesforce is considered undervalued and well-positioned to leverage AI technology to outperform its rivals in the long run.
IBM, despite experiencing a revenue miss and undergoing a significant acquisition, remains a strong player in the AI space. With its Watsonx generative AI technology, IBM is set to benefit from the rise of AI and could be a promising long-term investment. Trading at a forward P/E of 16.5, IBM’s stock is viewed as a valuable option for investors seeking exposure to the booming AI sector.
As the momentum behind AI stocks cools and investors shift their focus, these undervalued stocks present an opportunity for savvy investors to capitalize on the potential growth of AI technology in the coming years. With their strong positions in the AI market and attractive valuations, Nvidia, Salesforce, and IBM could be worth considering for those looking to diversify their portfolios with AI stocks.
