Artificial intelligence (AI) stocks like Alphabet (GOOG, GOOGL) and Taiwan Semiconductor (TSM) are considered cheap in a pricey market. Both offer value to investors, with Alphabet deriving majority revenue from ads and TSM dominating chip fabrication. Google Search faces competition from generative AI, but its revenue growth remains strong. TSM projects high growth rates and is undervalued for its potential.

Alphabet, the parent company of Google, faces challenges with Google Search revenue and competition from generative AI. However, the stock trades at a discount compared to the market, with a forward P/E ratio of 19. Despite concerns, Google Search’s revenue growth remains healthy, and the stock may rise after Q2 results.

Taiwan Semiconductor (TSMC) leads in chip fabrication, serving clients like Apple and Nvidia. TSMC’s advanced chip technology and strong client demand position it for significant growth. Despite this, TSMC’s stock trades at 24.9 times forward earnings, undervalued for its projected growth rates. Investing in TSMC before potential stock rise is advised.

Read more at Nasdaq: 2 Artificial Intelligence (AI) Stocks That Could Be Too Cheap to Ignore Right Now