Top Undervalued AI Stocks: Micron, TSMC, Qualcomm Dominate

TLDR

• Micron Technology has 29 Buy ratings and trades at single-digit P/E with 50%+ revenue growth forecast
• TSMC manufactures AI chips for Nvidia and Apple with analysts projecting 40-45% stock upside
• Qualcomm’s Snapdragon chips power AI in phones and cars with P/E below competitors
• Marvell expects 42% revenue jump and 80% earnings growth in fiscal 2026 from data center demand
• Alibaba’s AI cloud business trades cheaper than US tech stocks with 17 analyst Buy ratings

AI stocks dominate headlines in 2026, but many trade at expensive valuations. Five companies offer AI exposure without extreme price tags.

These stocks combine growth potential with reasonable valuations. Analysts rate most of them as Buy or Strong Buy.

Micron Technology: Memory Chips for AI Computing

Micron makes DRAM and high-bandwidth memory used in AI servers. Data centers running AI programs need these memory chips to function.

Micron Technology, Inc., MU

The stock has a single-digit forward P/E ratio. Few S&P 500 companies with 50% revenue growth trade this cheap.

Analysts strongly back Micron with 29 Buy and 5 Strong Buy ratings. Just 3 analysts say Hold.

The average price target reaches $295. Tight memory supply should keep chip prices elevated through 2026.

TSMC: Manufacturing Chips for Tech Giants

Taiwan Semiconductor builds processors for Apple, Nvidia, and AMD. The company runs the world’s most advanced chip factories.

Taiwan Semiconductor Manufacturing Company Limited, TSM

Goldman Sachs rates TSMC a Buy with 40 to 45 percent upside potential. Revenue should climb 30 percent in 2026 and 28 percent in 2027.

Analyst ratings show 10 Buy and 2 Hold with zero Sells. TSMC dominates the chip manufacturing market with proven profitability.

Qualcomm: AI Chips for Phones and Vehicles

Qualcomm makes Snapdragon processors found in smartphones and cars. The company brings AI features to devices people use daily.

About 56 percent of analysts rate Qualcomm as Buy or Strong Buy. Another 38 percent say Hold with just 6 percent rating it Sell.

The stock trades below most AI competitors on a P/E basis. Earnings should grow as more phones and cars add AI capabilities in 2026.

Marvell Technology: Networking Gear for AI Data Centers

Marvell sells high-speed networking equipment to cloud providers. These products connect AI processors in large data centers.

Zacks Research forecasts 42 percent revenue growth in fiscal 2026. Earnings could jump 80 percent in the same period.

The stock has 4 Strong Buy, 22 Buy, and 12 Hold ratings. Average analyst targets sit around $115 per share.

Data center construction drives demand for Marvell products. The stock offers direct exposure to AI infrastructure spending.

Alibaba: Chinese E-Commerce With AI Cloud Services

Alibaba runs China’s biggest online shopping sites. The company also operates cloud computing with AI tools and language models.

The stock trades cheaper than American tech companies. MarketBeat shows 17 Buy, 3 Hold, and 1 Sell ratings.

Multiple firms rate Alibaba as Overweight or Outperform. Price targets in the high $100s suggest room for gains.

Cloud revenue grows faster than e-commerce sales. The AI cloud business provides a new growth engine for the company.