The AI boom has given rise to numerous winners, yet the most talked-about entities usually come with sky-high valuations. Some of the more intriguing opportunities lie in companies constructing the infrastructure underlying AI — the chips, memory, cloud, and servers that keep everything running. Here are five undervalued AI stocks worthy of consideration.
Oracle Is Quietly Becoming an AI Cloud Powerhouse
Oracle was once regarded as a legacy database company. That narrative is changing rapidly.
Oracle Corporation, ORCL
In its most recent quarter, Oracle reported a 22% revenue growth, a 44% cloud revenue increase, and an 84% growth in Oracle Cloud Infrastructure. Its remaining performance obligations — contracted future revenue — soared 325% to $553 billion. The company has also raised its fiscal 2027 revenue target to $90 billion.
The market might still be valuing Oracle as if it were an old enterprise software business. However, its revenue composition is shifting toward AI cloud infrastructure, which usually commands a higher valuation. If it continues to convert that backlog into actual revenue, the stock could have room to climb higher.
AMD Is Closing the Gap With Nvidia
AMD isn’t Nvidia, but it’s no longer playing catch-up.
Advanced Micro Devices, Inc., AMD
In the fourth quarter of 2025, AMD recorded a record revenue of $10.3 billion with a 54% gross margin. Its data center segment brought in $5.4 billion, a 39% year-over-year increase, driven by strong demand for EPYC processors and Instinct GPUs.
What sets AMD apart is that investors aren’t paying the same premium they do for some AI counterparts. AMD has multiple avenues to succeed — AI GPUs, server CPUs, embedded chips, and broader cloud spending. If it continues to gain market share in high-performance computing, the current valuation could seem inexpensive in retrospect.
Micron Is the Memory Play the Market Is Underpricing
AI servers require massive amounts of high-bandwidth memory. Micron is among the few companies capable of supplying it at scale.
In fiscal first-quarter 2026, Micron reported revenue of $13.6 billion, a 57% year-over-year rise. The company also achieved record free cash flow and announced it’s increasing capital expenditure to back next-generation HBM production.
Memory stocks are traditionally cyclical, making investors wary of paying a premium. But AI might be fostering a more enduring demand cycle than the market is acknowledging for Micron. If HBM supply remains tight, the stock may warrant a higher multiple than commodity memory firms typically receive.
TSMC Makes the Chips That Power Almost Everything in AI
TSMC manufactures the advanced chips that fuel nearly every major AI product. Nvidia, AMD, and Apple all depend on TSMC to fabricate their chips.
In Q4 2025, TSMC reported a 25.5% dollar-based revenue growth, with a 62.3% gross margin and a 54% operating margin. Revenue in January and February 2026 was 29.9% higher than the same period a year prior.
Historically, the stock has traded at a discount to U.S. chip rivals due to geopolitical concerns regarding Taiwan. However, in terms of pure operating performance, TSMC compares favorably with almost any large-cap chip company. As AI hardware demand keeps advanced manufacturing capacity strained, its earnings potential may continue to expand.
Dell’s AI Server Business Is Growing Faster Than the Market Realises
Dell has stealthily emerged as one of the more significant players in AI infrastructure.
In its fiscal fourth quarter of 2026, Dell reported an overall revenue growth of 39%. AI-optimized server revenue soared 342% to a record $9 billion. The company began the year with a $43 billion AI server backlog — a level of forward visibility that most hardware firms lack.
Dell is still frequently valued as if it were a legacy PC maker. But with AI servers now contributing an increasing share of revenue, the gap between its valuation and its actual business composition is expanding. Investors seeking AI exposure without paying peak prices have begun to take notice.
Final Thoughts
These five stocks — Oracle, AMD, Micron, TSMC, and Dell — aren’t the most prominent names in the AI arena. But they are providing the compute, memory, manufacturing, cloud, and systems that enable the AI development. For investors who believe the obvious AI leaders are already fully valued, this group presents a distinct entry point into the same long-term trend.
