STOCKS
Cheap AI Stocks for 2025
Morningstar screener reveals artificial intelligence (AI) stocks trading at a discount to their fair value.
The world’s largest firms, including Apple, Microsoft and Google have been bulking up their spending on AI, presenting an opportunity for investors to capitalise on this revolutionary technology.
Companies are racing to implement AI across all types of software, services, business processes, and consumer experiences, to increase efficiency and capture market share with more competitive products and services.
For investors, this represents two major opportunities.
Firstly, investing in ‘AI champions’ who are investing in and may stand to benefit greatly from the technology. Well-known AI champions include tech giants Apple, Microsoft, Google, as well as other industry leaders such as Adobe, Salesforce and CrowdStrike.
Alternatively, investors may want to heed the adage of investing in the ‘picks and shovels’ suppliers rather than the end corporate users. The proliferation of AI requires advanced computing resources and may provide upside for semiconductors, data management vendors, cloud computing and infrastructure leaders, software vendors, and IT services firms.
Find undervalued ‘AI champions’ and ‘picks and shovels’ suppliers that could benefit from the AI revolution
Investors can find semiconductor, IT services, software and other types of suppliers that could benefit from the AI trend – that are currently trading at a discount to their value, with the help of Morningstar Investor premium stock screener - inside the ‘Discover Investment’ > ‘Investment Screeners’ section.
The screener allows investors to filter stocks by industry and quickly see which ones are trading at a discount to their fair value.
Alternatively, investors can also see the stock research reports available on ‘AI champions’ like Apple, Microsoft, Google, and over 1,600 other companies, to see if they are trading at a discount to their fair value plus a detailed appraisal of the stock’s fundamentals, including business outlook, profit drivers, dividend forecasts, risks and uncertainties.
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