Missed April's AI Rally? These 3 Stocks Still Look Like Bargains.

Key Points

Microsoft is delivering solid results, but the stock isn't responding.

Nvidia is still a top AI investment pick.

Meta Platforms is delivering impressive growth, but the market isn't respecting it.

• 10 stocks we like better than Microsoft ›

There wasn't a hotter sector on Wall Street during April than artificial intelligence (AI). Stocks in that space soared, and many hit fresh all-time highs. However, some of them have retreated from those peaks, and others still haven't fully recovered from their prior dips. So there are some solid bargains available in the market.

Three that I think look like solid bargains right now are Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), and Meta Platforms (NASDAQ: META). All of these stocks can be bought today with confidence, and I think their returns from here through the end of 2026 will crush the market.

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Microsoft

Although Microsoft has rallied from its lows, it's still down by around 22% from its high established in October. However, if you look at Microsoft's recent financials, you wouldn't think that this would be the case.

During its fiscal 2026 third quarter (which ended March 31), Microsoft's revenue rose 18% year over year to $82.9 billion. That's an impressive gain, but it was outpaced by its net income, which rose 23%. Considering Microsoft's size, it's hard to find much to complain about in those figures. Even better, its cloud computing star, Azure, delivered 40% revenue growth during the quarter, thanks to rising demand for AI computing resources.

I think the market will come back around to Microsoft's stock, especially if it can continue delivering solid quarters like this. Investors can buy now, but they may need to be patient as they wait for Microsoft to come back into style.

Nvidia

Nvidia may seem like an odd inclusion in this list because it's only down around 2% from its all-time high, which it set a few days ago. However, I'm not looking at trailing all-time highs; I'm looking at where it could go.

Most of the time, Nvidia starts the year at a fairly low valuation, then as more results come in, it spikes toward the end of the year.

As we get closer to many companies revealing their 2027 projections, I won't be surprised to see Nvidia's stock rise to a forward price-to-earnings ratio in the mid-30s, which would represent about a 40% upside from today's levels. That's a huge jump, and would make Nvidia a major bargain at today's levels if it follows historical trends. One of its major clients, Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), has already informed investors that its capital expenditures in 2027 will be substantially higher than 2026's lofty levels. This bodes well for Nvidia's future, and I think it makes it a solid buy.

Meta Platforms

Meta may be the most overlooked AI hyperscaler out there. This is mainly due to the prominence of its social media division, which includes platforms like Facebook and Instagram. So far, AI integration in these apps has been fairly weak, but Meta has used its developing AI prowess to ensure that its ads on the platform are effectively placed, which has led to soaring revenue growth.

During Q1, Meta's revenue rose 33% year over year. That's incredible growth for a company that isn't selling chips, and showcases how it's capitalizing on the improvements that AI can provide.

As another buying point, Meta's valuation is now just over 19 times forward earnings.

For reference, the S&P 500 (SNPINDEX: ^GSPC) trades for 21.7 times forward earnings. It's not often you can buy a stock trading at a healthy discount to the market when the company in question is also growing much faster than average, but that's the kind of bargain that Meta represents.

I think all three of these tech companies are slated for some strong returns through the rest of 2026, and with multiyear AI-related growth still on the horizon, each is a great long-term stock pick.

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Keithen Drury has positions in Alphabet, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, Microsoft, 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.