Artificial intelligence stocks have had a huge run over the last year. Some names have delivered returns that would have seemed impossible not long ago. Yet investor and YouTuber Let’s Talk Money host Joseph Hogue, CFA, who has more than 750,000 subscribers, believes a few AI stocks still offer attractive value despite those gains.
Hogue pointed out that some of the AI stocks he identified as bargains a year ago have produced large returns. Symbotic climbed as much as 811%, Micron gained 964%, and his basket of AI picks delivered an average return of 303% over the past year.
Even so, he argues that investors should focus on growth relative to valuation instead of looking only at how far a stock price has already moved.
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AI Stocks Still Trading at Attractive Valuations
The first company on Hogue’s list is Lumentum Holdings. The company supplies optical and photonics components used in data centers, an area seeing strong demand from AI infrastructure spending. Hogue noted that earnings are expected to more than double over the next year, and the company has reportedly filled order capacity through 2028.
Credo Technology is another stock he likes. The company develops networking chips and connectivity products used inside AI data centers. Revenue is expected to more than double this year, and Credo controls more than 73% of the active electrical cable market used by large technology companies building AI infrastructure.
Super Micro Computer also made the list despite its volatile share price. Hogue said the company remains one of the leading suppliers of AI servers. Revenue is projected to grow 51% this year, and demand for AI data center hardware continues to support the business.
Nvidia remains one of Hogue’s top picks despite its massive rally. The company still controls more than 85% of the AI data center chip market and is expected to deliver revenue growth of about 61% over the next year. He believes Nvidia’s combination of hardware, software, and profitability gives it one of the strongest positions in the AI industry.
The final stock is Micron Technology. Demand for high-bandwidth memory chips remains strong, with much of the industry’s production capacity already committed well into future years. Hogue noted that expected earnings growth of more than 300% makes Micron one of the cheapest AI stocks when growth is factored into valuation.
News Pushing Stock Prices This Week
The market started the week strong. The S&P 500 closed at a record 7,609.78 on June 2, its 24th record high of the year. AI optimism drove gains. The Nasdaq ended last week at a record 27,086.81. Marvell Technology jumped 35% after Nvidia CEO Jensen Huang said the company could become the next trillion-dollar stock. Earnings stayed strong too. 85% of S&P 500 companies beat earnings expectations, and 81% topped revenue forecasts.
Then Wednesday brought pressure. US-Iran tensions flared up again after new military incidents in the Persian Gulf and attacks linked to the region. Oil shot higher. WTI crude traded above $96 a barrel, and Brent hit $98. Higher energy costs brought back worries about inflation and growth.
Investors also had to deal with strong economic data and new rules. ADP said the private sector added 122,000 jobs in May. That lowered hopes for Fed rate cuts soon. The 10-year Treasury yield moved near 4.44%, which put pressure on growth stocks.
In crypto markets, regulators approved perpetual Bitcoin futures. That hit traditional exchange operators hard. CME Group fell 9% over two days, and Cboe Global Markets dropped 16%, their worst week since 2020.
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What This Means for the AI Stock Price Outlook
AI is still one of the strongest forces in the market. Companies that build data center gear, chips, networking equipment, and memory parts keep putting up strong numbers. That helps support AI stocks across the board.
Also, investors are weighing that growth story against higher bond yields, rising oil prices, and world tensions. If earnings keep beating expectations, many AI stocks could still have room to run higher, even with all the problems facing the wider market.
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