From Nasdaq: 2025-06-14 05:55:00

AI has become a hot topic on Wall Street, with over 40% of S&P 500 companies mentioning it on earnings calls. While AI offers growth opportunities, it can also be a costly investment. Investors should be cautious of overpaying for growth that may slow down as businesses scale.

Investing in AI stocks can be challenging, especially with a limited budget. Three companies with stocks under $200 per share offer value and growth potential in the AI sector. Alphabet, Qualcomm, and Applied Materials are poised to benefit from the growth of artificial intelligence and computing.

Alphabet has seen the impact of AI on its core Google Search product, with services like ChatGPT affecting market share. Despite regulatory pressures and concerns about AI’s impact on cash flow, Alphabet’s profitable cloud computing business and capital return program make it an attractive investment at $177 per share.

Qualcomm, known for its mobile processors, is transitioning into the data center business with CPU designs for AI acceleration. With a strong position in Android phones and a licensing business, Qualcomm’s stock at $160 per share offers great value for investors looking for long-term growth potential.

Applied Materials, a key player in chip-making equipment for AI, has seen steady revenue growth and expanding margins. With a forward P/E of about 18.5 at $175 per share, the company’s position in the market and technological advancements make it a compelling investment opportunity for those interested in the AI sector.



Read more at Nasdaq: 3 No-Brainer Artificial Intelligence (AI) Growth Stocks to Buy With $200 Right Now