[ad_1]
Right now, investors all over the world are piling into Nasdaq-listed AI infrastructure stocks. Micron and SanDisk are two of the hottest names â theyâve soared in 2026.
Now, these stocks could keep rising; the near-term fundamentals do look strong. However, with many of these names up more than 100% this year, Iâm wondering if it might be smarter to focus on some of the AI stocks that have been left for dead?
A cheap Mag 7 stock
One high-quality AI stock that’s suffered recently is Microsoft (NASDAQ: MSFT). This year, itâs actually down despite all the AI hype.
Why’s it fallen? Because itâs a software business and investors donât want a bar of software right now.
I think there could be an opportunity to consider here while the stock’s under pressure. In my view, itâs far too early to write this company off. Recent earnings were strong. For the quarter ended 31 March, revenue was up 15% year on year at constant currency.
Notably, on the earnings call, the company said that its Copilot service now has 20m paid enterprise seats. This suggests its AI services are gaining traction.
Itâs worth pointing out that Microsoft is the second largest cloud computing company in the world (itâs not just a software play). And itâs developing its own AI chips. So while there are risks around software disruption, I continue to see a lot of potential here, especially while the price-to-earnings (P/E) ratio is in the low 20s.
Consistent top-line growth
Another name that’s been lumped into the software basket is AXON Enterprise (NASDAQ: AXON). The maker of Taser guns, itâs a global leader in public safety.
This company â which is using AI heavily today â continues to grow at a rapid rate. For the first quarter of 2026, revenue was up 34% to $807m (its ninth consecutive quarter of 30%+ growth). On the back of this performance, the company raised its full-year guidance.
However, investors werenât that excited because itâs not an AI infrastructure play.
With the stock down around 50% from its highs, I see an opportunity to consider here (Iâve been buying shares recently). A growth slowdown is a risk given the companyâs high P/E ratio (40, using next yearâs earnings forecast), however, taking a five-year view, Iâm very bullish.
No AI slop here
Finally, Palantir‘s (NASDAQ: PLTR) another AI stock that could be worth checking out. Iâve been buying here too.
Last quarter, this company generated revenue growth of an unbelievable 85% as businesses in the US scrambled to adopt its AI solutions. However, investors didnât care â because itâs a software company.
Is Anthropic a risk? Potentially. However, if you listen to the Q1 earnings call, the company repeatedly talks about how its Artificial Intelligence Platform (AIP) is superior to standard LLMs.
âAIP is the only platform that establishes a true AI no-slop zone, a necessary requisite to converting potential AI leverage into compounding real-world value without risking enterprise disaster.â
Palantir Chief Revenue Officer Ryan Taylor
Now, this stock’s expensive â the forward-looking P/E ratio using next yearâs earnings forecast is 68. However, if the company keeps growing at a prolific rate, itâs only a matter of time until it looks cheap.
So I think itâs worth considering as a growth play.
The post While everyone’s piling into AI infrastructure stocks like Micron and SanDisk, consider these out-of-favour Nasdaq 100 names appeared first on The Motley Fool UK.
Should you invest £1,000 in Axon Enterprise right now?
When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.
And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Axon Enterprise made the list?
.custom-cta-button p
margin-bottom: 0 !important;
color:#cc0000;
div.entry-footer div.textwidget div.braze-content-card div.wp-block-custom-block-collection-presentational-card
padding: 0 !important;
margin: 0 !important;
More reading
- Could buying Microsoft stock now be like buying Alphabet in mid-2025 at a share price of $150?
- Should I dump Duolingo from my ISA and buy Palantir stock instead?
- Palantir stock: Iâm buying the dip after this weekâs blowout Q1 earnings
- Buy the dip on Palantir shares?
- Should investors consider buying Palantir stock after its stellar earnings?
Edward Sheldon has positions in Nasdaq, AXON Enterprise, Microsoft, and Palantir. The Motley Fool UK has recommended Axon Enterprise, Microsoft, and Nasdaq. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
[ad_2]
Source link