3 Screaming Buy Artificial Intelligence (AI) Stocks Set for a Massive Summer Rebound
Key Points
Nvidia is still delivering great results and huge growth.
Microsoft has sold off without a good reason.
Meta Platforms is the cheapest of the three.
- 10 stocks we like better than Nvidia ›
The artificial intelligence (AI) investing realm hasn't been unanimously bullish lately, like it was over the past three years. While some skepticism is healthy, it can sometimes grow to the point where major bargains are available. I think that's exactly what we're seeing with some stocks, and I think there are three that look like genius buys right now.
Three stocks that I think could rebound through the summer are Nvidia (NASDAQ: NVDA), Microsoft (NASDAQ: MSFT), and Meta Platforms (NASDAQ: META). Each of these stocks is a fair bit off its all-time high, and if the market fully values them, they could see strong returns in a short time frame.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Image source: Getty Images.
All three companies are posting solid results
Nvidia is the world's largest company, but I still think there's plenty of room for more. It's down about 11% from its high, but you wouldn't know that from its results. Nvidia continues to see unprecedented demand surrounding its computing equipment. Nvidia makes GPUs (graphics processing units) and various equipment to support its core GPU offering, and is the industry leader in this segment.
During its most recent quarter, revenue skyrocketed 85% higher. However, it's not done there. Wall Street analysts expect Nvidia to grow revenue at a 96% pace in Q2 and an 81% pace for fiscal year (FY) 2027 (ending January 2027). With strong results ahead, I think it's a major buying opportunity for Nvidia's stock right now.
Microsoft is also one of the world's largest companies, and is exposed to AI in multiple segments. The most obvious is through its business productivity software, which has integrated Copilot, Microsoft's AI assistant, into many of its offerings. The success of this product has led to its AI annual recurring revenue rising to $37 billion, up 123% year over year.
Another area Microsoft is exploring for AI is cloud computing, as Azure has become a top place to train and run AI models. Azure's revenue rose 40% in its latest quarter, highlighting strong demand. Overall, Microsoft's revenue rose 18% year over year during the quarter, making another strong and successful report. Despite that, Microsoft's stock is down 32% from its all-time high.
Last is Meta Platforms. At its core, Meta operates several social media platforms (such as Facebook, Instagram, Threads, and WhatsApp) and generates nearly all of its revenue from ads on these platforms.
This has been a great business lately, thriving on a strong ad market and the various AI tools and capabilities it has introduced to its platform. During Q1, Meta's revenue skyrocketed 33% thanks to stronger ad revenue. However, that hasn't been good enough for investors, as the stock is down nearly 29% from its all-time high. The market is a bit concerned about Meta's massive AI spending without a lot to show for it.
This leads to a cheap stock valuation, which Nvidia and Microsoft can also claim.
This trio is trading at bargain prices
Starting with Meta, it trades for a mere 17.6 times forward earnings.
Data by YCharts.
This is especially exacerbated by the fact that the S&P 500 (SNPINDEX: ^GSPC) trades for 21.5 times forward earnings. Meta is a huge bargain right now, and if it can keep up its growth rate, it's a smart stock to buy.
Microsoft's FY 2026 ends in June, so it makes more sense to value the stock based on FY 2027 earnings. From this standpoint, Microsoft's stock also looks attractive.
Data by YCharts.
At less than 20 times forward earnings, Microsoft stock is also cheaper than the S&P 500, and makes for a great buy now.
Lastly, there is Nvidia, which trades for 22.8 times forward earnings.
Data by YCharts.
That's more expensive than the broader market, but only barely so. However, it also indicates that none of next year's growth has been priced in. Wall Street estimates that Nvidia's revenue will grow at a 41% pace next year, which could lead to massive returns toward the end of this year and during 2027. As a result, I think Nvidia is a smart stock to buy, as its future is still bright.
Should you buy stock in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $393,037!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,280,627!*
Now, it’s worth noting Stock Advisor’s total average return is 913% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 23, 2026.
Keithen Drury has positions in Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
