The sale could make NVIDIA actions attractive, but these actions offer even more important opportunities.
It was a few months difficult for the actions of artificial intelligence (AI).
In January, China’s deep AI sparked a sale among flea manufacturers after sharing breakthroughs in the development of a more efficient broad language model which is not as strongly based on calculation power.
The sale accelerated after Nvidia (NVDA 3.16%)) Financial results have indicated who failed to impress investors and meet high expectations.
This was exacerbated in February by Trump administration’s business policies to China, Mexico and Canada. Many expect Taiwan, where Nvidia and other flea manufacturers make their products, appear on the president’s restricted list for future prices.
The result is that NVIDIA shares are now negotiated more than 20% below its summit since the start of the year at the time of writing this article. And many investors may think that it is an excellent opportunity to seize the actions of the AI chief. But Nvidia was not the only stock that saw its price drop during the sale, and there are many other actions that have even more attractive opportunities.
Here are three actions that you cannot afford to ignore now.
Image source: Getty Images.
1. Micron technology
Investors who are optimistic about Nvidia’s long -term potential to continue selling more of its high -end GPUs to hyperscale clients should examine more closely Micron technology (Mu 2.32%)). Micron provides a key component of NVIDIA chips: wide bandwidth memory (HBM).
Memory, not real calculation power, is often the bottleneck in the formation of large -language models. The problem will only increase as the number of more recent LLM parameters increases. New reasoning models also require more memory capacity and more effective access to this memory.
Thus, the progress of memory fleas can have a significant added value for hyperscalers. Micron is one of the main manufacturers of memory chips on the market, providing Nvidia as well as other flea manufacturers with its latest generation of HBM chips.
Memory is also an important component for inference. A greater memory capacity produces faster responses and allows AI systems to maintain larger context windows. As technology moves to an AI to disk, manufacturers of personal devices will have to increase their memory demand.
However, there are some significant risks to consider with Micron.
First of all, it is difficult to establish a significant competitive advantage in memory fleas. The component is easily exchanged for competing chips in data centers and consumption devices. This has allowed Micron to win his position with Nvidia and others in recent years of companies with much more important operations. However, this means that Micron must continue to invest in research and development to ensure that it maintains its technological functioning.
The second risk comes from Micron being a manufacturer of vertically integrated chips. Unlike many flea manufacturers today, Micron manufactures her memory chips herself. This means that it can maintain a larger share of the economy when demand is high, but it also means that it takes more inconvenience when demand drops. This makes the stock very cyclical.
In this spirit, Micron shares are negotiating at an attractive price to date. With a P / E only 15, actions are negotiated with a very low evaluation. However, Micron’s sharing often seem cheap at the top of its cycle.
But with the continuous demand for memory chips thanks to the growing use of artificial intelligence, this cycle can extend a little longer. Analysts are currently expecting the benefit per share to increase by 62.5% during the year 2026, in addition to its huge leap of 429% this year.
The Micron Price / Sales ratio of around 4 is almost in accordance with its average in the past five years, indicating that shares are negotiated at fair value with a high increase in the growing demand for memory flea.
2. Oracle
Oracle (Orcl 1.81%)) has long been a leader in database systems and corporate software. With the rise of megadonts and artificial intelligence, the company’s database software has become essential for many companies. And Oracle has skillfully moved to the management of cloud computing platforms over the years as companies have migrated on-site equipment to remote servers.
Oracle has decided to take charge of the three main public computing public platforms with its database management software and the company notes strong growth in the various cloud computing companies. Management said income from the Multicloud database increased 92% in the third quarter.
In addition to this, Oracle has positioned its own cloud computing infrastructure as an excellent alternative or a complement to the three major public cloud suppliers. Oracle Cloud Infrastructure has become the main growth engine of the company over the past three years, with accelerated growth as it evolves.
There is a high demand for AI infrastructure, which is seen in the increasing performance obligations of the company of $ 130 billion at the end of the last quarter. It is up 63% compared to last year. Management plans to double its data center capacity in 2025 to meet this request.
Oracle benefits from high switching costs for its database software and close integration of this software with its cloud infrastructure. Although the company has many competitors on the market, it is a proven leader in terms of security and stability. A database failure can have a huge impact on a company, and few companies will take the risk of migration of oracle systems to another supplier.
After the recent sale, Oracle shares are negotiated 25 times the estimates of the long -term profits. The strong growth in income lowering the pipeline, as indicated by its increasing performance obligations and the potential for expansion of margins because it evolves its cloud computing activity, it is an advantageous price to pay for the action.
3. Meta platforms
Meta-platforms (Meta 3.91%)) Perhaps the greatest spending when it comes to building an artificial intelligence infrastructure and developing new models. Large Cloud Computing companies could spend more in infrastructure, but a large part of this goes to the maintenance of other customers. Meta’s expenses are all devoted to meeting her own needs, and plans to spend up to $ 65 billion on capital expenditure this year.
There is a good reason why meta spend as much on AI. It is at the heart of almost everything he does. Artificial intelligence is responsible for the conservation of flows on Instagram and Facebook and more recently its rolled product. It optimizes the internship courses and determines who sees what announcements and when they see them, increasing the amount of marketing specialists ready to pay by ad.
Above all, Meta found that its results improved because it spends more to build more general models. He took his coil recommendation engine and applied a wider algorithm for his food and saw an improved commitment. And as it still generalizes the model, it is still better results through advertising and stories. The result is that more users see more advertisements and marketing specialists pay more for each advertising printing.
In addition, it is an excellent progression with a generative AI. More than 4 million marketing specialists use its generative tools to develop advertising campaigns. The generative AI has the power to completely transform Meta’s advertising activities. CEO Mark Zuckerberg sees a future in which an AI agent will be able to develop, execute and optimize an entire campaign for marketing with only a few entries.
The generative AI could play a crucial role in the increase in the monetization of Meta messaging applications, thanks to more powerful chatbots. Other companies could use the META platform to develop customer service and sales chatbots that could increase sales and customer satisfaction at minimal costs. William Blair’s analyst Ralph Schackart believes that this is an opportunity of $ 100 billion in itself.
Meta’s stock was touched in the middle of recent sales. Actions were recently negotiated for only 23 times the long -term profits. Although its massive investments in data centers will weigh on its growth in short -term profits, the long -term opportunity for AI is absolutely massive for Meta, and this may not be completely reflected in the current course of shares.
