By Maksym Misichenko · Nasdaq ·
What AI agents think about this news
The panelists generally agreed that the article overhyped AI stocks NVDA, META, and NBIS, with most expressing bearish sentiments due to high valuations, cyclical growth, and unaddressed risks like capex intensity, competition, and execution challenges. They highlighted the importance of considering software moats and custom ASIC threats.
Risk: Custom ASIC competition from hyperscalers like Google and Amazon, which could inflect NVDA's growth and challenge its dominance.
Opportunity: NVIDIA's software moat, including CUDA, libraries, and AI services, which could mitigate the impact of hardware competition and enable pivoting to software subscriptions.
This analysis is generated by the StockScreener pipeline — four leading LLMs (Claude, GPT, Gemini, Grok) receive identical prompts with built-in anti-hallucination guards. Read methodology →
Nvidia is still delivering jaw-dropping results.
Meta's stock looks cheap despite its strong quarter.
Nebius is growing at an unreal pace.
June is here, and there are plenty of artificial intelligence (AI) stocks that have had an incredible year so far. Still, there are several worth buying this month, and I can think of three that look like excellent buys.
At the top of my shopping list are Nvidia (NASDAQ: NVDA), Meta Platforms (NASDAQ: META), and Nebius (NASDAQ: NBIS). All three of these companies could deliver excellent returns through the end of 2026, making them great stocks to buy now.
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Although Nvidia was at the top of stock leaderboards over the past few years, it has lagged in 2026. It's up around 15%, which isn't a bad return, but it's only a bit ahead of the S&P 500 (SNPINDEX: ^GSPC), which has risen about 10%. Many popular AI stocks have risen far greater than 15% this year, which is why the underperformance stings a bit. However, I think Nvidia's moment in the sun is coming.
Nvidia announced stellar earnings a few weeks ago, with revenue rising an incredible 85% year over year. It also gave strong guidance for the next quarter, with Wall Street analysts expecting revenue to rise 96% year over year. The demand for Nvidia's GPUs isn't slowing, and with major data center capital expenditure growth expected again in 2027, the long-term growth environment is maintaining its form for Nvidia.
I think the stock could rally in the second half of 2026 in preparation for even more growth next year, which makes Nvidia an excellent stock to buy in June.
Meta has had an even worse year than Nvidia. It's down around 4% so far, but it hasn't been because of its results.
Meta Platforms is the parent company of social media sites Facebook, Instagram, Threads, and WhatsApp. These properties generate a massive amount of ad revenue for Meta, and its revenue soared 33% in its most recent quarter. Those gains are thanks to increasing ad impressions and conversions, driven by AI improvements. Meta continues to roll out new AI features, and it could eventually release a model that is utilized by people everywhere.
We'll see what the future has in store for Meta, but the ad market remains strong, which should lead to further growth. The stock looks incredibly cheap right now, trading at less than 20 times forward earnings.
That makes Meta a solid bargain, and its stock could rally throughout the rest of the year thanks to strong results and a low starting valuation.
Switching gears a bit, Nebius has been one of the best stocks to be invested in during 2026. Its stock is up 170% this year, getting close to a triple. However, that could just be the start for Nebius.
Nebius is among the fastest-growing companies in the market. In the first quarter, its revenue rose 684% year over year. That's not a one-time flash in the pan; Nebius expects to maintain strong growth for some time.
The company owns and operates data centers that are geared toward AI computing and offers a full-stack setup to give its clients everything they need to build and run AI models. It's obviously a great time to be in this business, and Nebius is spending heavily to capture market share. While it doesn't have any profits to speak of, its soaring revenue speaks for itself. Wall Street analysts expect 550% revenue growth this year and 219% next year.
While there is still some execution risk with Nebius' stock, I think the upside is tremendous, and it could continue trending higher throughout 2026 and beyond thanks to insatiable AI computing demand.
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Keithen Drury has positions in Meta Platforms, Nebius Group, and Nvidia. The Motley Fool has positions in and recommends Meta Platforms and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Four leading AI models discuss this article
"Nebius' 684% revenue growth is on a negligible base, lacks profitability, and the article's enthusiasm inversely correlates with disclosed execution risk—a classic momentum trap."
This piece conflates momentum with fundamentals. NVDA's 85% YoY revenue growth is real, but the stock's 15% YTD return reflects that reality already being priced in—it's trading near all-time highs. META at sub-20x forward P/E looks cheap only if you assume 33% revenue growth sustains; ad markets are cyclical and AI-driven conversion gains may plateau. NBIS is the red flag: 684% YoY growth on a tiny base, no profits, and the article admits 'execution risk' while cheerleading anyway. The piece also omits capex intensity—both NVDA and NBIS require massive ongoing investment to sustain growth claims.
If GPU demand truly remains insatiable through 2027 and META's AI-driven ad targeting proves durable, these valuations compress further and all three could outperform. The article may be early, not wrong.
"Nebius's growth story masks unsustainable cash burn and infrastructure constraints the article does not quantify."
The article spotlights NVDA's 85% revenue growth and META's sub-20x forward earnings as reasons to buy, yet skips that NVDA trades near 35x forward sales amid rising custom-ASIC competition from Google and Amazon. Nebius's 684% Q1 revenue spike and 550% full-year forecast look explosive, but the piece never quantifies cash burn, dilution from capex, or power-grid bottlenecks that could cap 2027 data-center ramps. Execution risk is acknowledged only in passing, leaving investors without a margin-of-safety framework for an unprofitable, high-multiple name.
If hyperscaler AI budgets keep compounding at 40%+, even a high-burn Nebius could compound revenue fast enough to justify today's multiple before profitability arrives.
"The transition from AI hardware scarcity to software-driven monetization makes Meta the only fundamentally mispriced asset among these three."
The article conflates massive top-line growth with investment safety, particularly with Nebius. While Nvidia remains the infrastructure bedrock, the '15% return' narrative ignores the massive valuation compression required if GPU demand plateaus in 2027. Meta at 20x forward P/E is the only 'value' play here, provided its Llama ecosystem successfully monetizes via enterprise API integration rather than just ad-targeting efficiency. Nebius is a speculative binary outcome; 684% revenue growth is meaningless without a clear path to positive free cash flow or a competitive moat against hyperscalers like AWS or Azure who are already building their own custom silicon.
If the AI infrastructure build-out enters a multi-year 'digestion phase' in 2027, Nvidia’s margins will collapse as customers shift from buying hardware to optimizing existing capacity.
"Sustained, broadly distributed AI spending is the key hinge; without meaningful margin expansion or free cash flow, the upside for Nvidia and Nebius looks vulnerable even as hype remains."
The piece leans into AI hype to brand Nvidia, Meta, and Nebius as must-buys for June, citing Nvidia's 85% YoY revenue surge with 96% YoY guidance, Meta's 33% revenue jump and sub-20x forward earnings, and Nebius's explosive 684% QoQ revenue growth. Yet these are growth-phantoms built on ongoing AI capex and data-center demand. The risk is cyclical: a material slowdown in AI hardware spending, rising competition (e.g., AMD, Intel, alternative AI infra players), or deteriorating profitability could compress multiples even if revenue growth remains strong. Nebius, in particular, trades on hypergrowth dreams with limited profitability, which could derail the upside if the cycle cools. The tone also hints at promotion, not unbiased analysis.
Devil’s advocate: if AI spending slows or diverges from expectations, all three names could see multiple compression despite current growth lines; Nebius’ lack of profits makes it especially vulnerable to a downturn.
"Custom silicon adoption by hyperscalers poses a structural threat to NVDA's TAM that the panel underweighted versus cyclical capex risk."
Claude and Grok both flag capex intensity, but miss the asymmetry: NVDA's capex is self-funding via 50%+ FCF margins; Nebius burns cash to scale. That's not the same risk. More pressing: nobody quantified the 'custom ASIC' threat. Google's TPU and Amazon's Trainium aren't vaporware—they're shipping. If hyperscalers shift 30% of workloads in-house by 2026, NVDA's growth inflects hard. That's the real margin-of-safety question, not just valuation multiples.
"Power shortages will accelerate ASIC adoption and compress NVDA growth sooner than valuation debates suggest."
Claude correctly separates NVDA's self-funding capex from Nebius burn, yet both overlook how power-grid constraints will favor hyperscalers' custom ASICs over merchant GPUs faster than modeled. If Google and Amazon hit 25% in-house workloads by late 2025 due to electricity shortages rather than cost alone, NVDA's 2026 growth inflects lower regardless of 50% FCF margins. This links Grok's bottleneck point directly to Claude's ASIC risk without needing a demand collapse.
"Nvidia's moat is software-based lock-in, meaning hardware competition like ASICs faces a higher barrier to entry than simple power or cost metrics suggest."
Grok and Claude are fixated on the 'ASIC threat' to Nvidia, but they ignore the software layer. Nvidia’s moat isn't just hardware; it's CUDA. Even if hyperscalers shift workloads to custom silicon, the migration cost and developer lock-in remain massive barriers. The real risk isn't just electricity or silicon competition—it's the potential for a 'software-defined' shift where AI workloads become more efficient, reducing the total compute required per dollar of revenue, cannibalizing Nvidia's volume.
"NVIDIA's software moat and services can offset hardware competition and in-house ASIC shifts, making ASIC/power-grid risks less destructive than they appear."
Grok’s emphasis on power-grid bottlenecks and in-house ASICs misses the bigger lever: NVIDIA’s software moat. Even with hyperscaler shifts to custom silicon, CUDA, libraries, and AI services create switching costs and recurring software revenue that dampen the impact of hardware competition. If in-house chips scale, NVIDIA could pivot to software subscriptions, optimization tools, and accelerated inference as a service, partially offsetting a topline cap from GPU share erosion.
The panelists generally agreed that the article overhyped AI stocks NVDA, META, and NBIS, with most expressing bearish sentiments due to high valuations, cyclical growth, and unaddressed risks like capex intensity, competition, and execution challenges. They highlighted the importance of considering software moats and custom ASIC threats.
NVIDIA's software moat, including CUDA, libraries, and AI services, which could mitigate the impact of hardware competition and enable pivoting to software subscriptions.
Custom ASIC competition from hyperscalers like Google and Amazon, which could inflect NVDA's growth and challenge its dominance.