After a rough start to the year, tech stocks are bouncing back. The Nasdaq Composite has recovered about half of its early-2025 losses, and artificial intelligence remains a key driver behind many companies’ future growth.
While some AI stocks have already rebounded, three major players are still trading at attractive prices — and investors might not want to ignore them.
1. Amazon (AMZN)
Amazon’s cloud division, AWS, remains a global leader. In Q1 2025, it brought in $29.3 billion — up 17% year over year. Though growth was slower than competitors, AWS is still the biggest cloud provider and is currently capacity constrained, something Amazon plans to fix with over $100 billion in capital spending this year. Much of that will go into expanding AWS and its custom AI chips, Trainium and Inferentia.
Beyond AI, Amazon’s logistics overhaul is driving impressive efficiency, with shipping costs up just 3% despite 8% growth in order volume. Even with tariffs affecting global trade, Amazon’s broad business and strong margins help it stay resilient.
The stock still trades around 10% below its long-term valuation average — a potential buying opportunity for long-term investors.
2. Lam Research (LRCX)
Lam makes the machines that build the world’s most advanced semiconductors, including high-bandwidth memory chips vital for AI training. As LLMs and GPUs become more demanding, Lam’s memory-focused equipment is in high demand.
The company saw revenue rise 24% in Q1, and it expects more growth despite market uncertainty. Lam’s advantage lies in its strong R&D cycle — the more it earns, the more it reinvests to stay ahead. Even after its recent slide, Lam stock trades at just 19 times forward earnings, making it a solid long-term AI play.
3. Meta Platforms (META)
Meta is going all-in on AI. It raised 2025 capital spending to up to $72 billion to support AI and metaverse development. The investment is paying off, with 16% revenue growth last quarter thanks to stronger user engagement and rising ad prices.
CEO Mark Zuckerberg sees AI playing a huge role in automated ad creation, customer service, and commerce on platforms like Messenger and WhatsApp. Meanwhile, Meta continues to generate over $10 billion in free cash flow per quarter, giving it the financial muscle to keep innovating.
Despite recent recovery, Meta stock still trades at just 23 times forward earnings — a modest price for a company with such potential.
Bottom Line:
These three stocks — Amazon, Lam Research, and Meta Platforms — are well-positioned in the AI space but are still trading below their highs. With strong fundamentals, expanding AI investments, and long-term growth potential, they may be some of the best AI bargains on the market right now.
