Catch pre-market movers with AI signals.
Do You Have the Guts to Buy the AI Stocks Right Now?
- (1:00) - Breaking Down The Performance of Top AI Stocks
- (9:15) - Traceys Top Stocks For Your Watchlist
- (31:45) - Episode Roundup: AVGOAVGO--, BE, SNDKSNDK--, STRL, VRT, FIX
- Podcast@Zacks.com
Welcome to Episode #499 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, is joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Tracey went solo to talk about the AI stocks, including the semiconductors, memory companies, and the AI infrastructure companies like those in power generation, cooling of the data centers, and the manufacturers of the interiors of the data centers such as the racks.
Earlier this year, the AI Revolution stocks were among the hottest on Wall Street. But over the summer, the stocks sold off.
For some, it was a single digit pullback. But for others it was over 40%.
Do you have the guts to buy when these stocks are on sale?
3 AI Stocks That Are on Sale Right Now
1. Broadcom Inc. (AVGO)
Broadcom designs and develops semiconductors and infrastructure software solutions. On Sep 2, 2026, it reported third quarter fiscal 2026 results and beat the Zacks Consensus on earnings. BroadcomAVGO-- has a perfect earnings surprise record. It has not missed on earnings in five years.
AI semiconductor revenue in the third quarter rose 221% year-over-year to $16.7 billion. Broadcom expects revenue to accelerate further in the fiscal fourth quarter of 2026 to $21.7 billion, up 236% year-over-year.
Thanks to strong AI demand, earnings are expected to jump 72.9% in fiscal 2026.
The company saw record quarterly free cash flow of $13.7 billion, up 95% from the third quarter of last year. Cash and cash equivalents at the end of the fiscal third quarter was $24 billion.
Yet Broadcom shares are down 14.6% in the last month. It’s attractively priced on a price-to-earnings (P/E) basis. It has a forward P/E of 31.
Is this a buying opportunity in a semiconductor company like Broadcom?
2. Bloom Energy Corp. (BE)
Bloom Energy manufactures fuel cell systems that provide on-site power to data centers, manufacturing facilities, and mission critical businesses.
On July 28, 2026, it reported its second quarter 2026 results and saw record revenue which surpassed $1 billion for the first time. Bloom EnergyBE-- also raised full year revenue guidance.
Shares of Bloom Energy are off the June 2026 all-time highs but have recently rallied and are up 19% in the last month.
Bloom Energy isn’t cheap on a P/E basis. It trades with a forward P/E of 104, which is really stretched. But earnings are expected to jump 238% in 2026 with another 85% in 2027. Investors are buying the growth.
Bloom Energy is expected to be added to the S&P 500 on the rebalancing on Sep 21, 2026.
Is this a buying opportunity in a power generation name like Bloom Energy?
3. Sandisk Corp. (SNDK)
Sandisk is a global semiconductor memory company. AI is heavily memory-centric both in data centers and in AI-enabled devices due to higher storage content.
On Aug 5, 2026, SandiskSNDK-- reported its fiscal fourth quarter 2026 results and saw record revenue, gross margin, and earnings per share. Data center revenue was up 1,298% in the fourth quarter to $3 billion. For the full year, data center revenue jumped 437% to $5.1 billion.
Earnings are expected to jump 201% in fiscal 2027 after soaring 2,270% in fiscal 2026 on strong demand for memory.
Shares of Sandisk are off their all-time highs and are down 3.3% in the last 3 months. But the stock has rallied over the last thirty days, gaining 35.9% in that time.
Sandisk is still cheap on a P/E basis. It’s a true value stock with a forward P/E of just 8.3. A company with a P/E under 10 is considered to be undervalued.
Is this a buying opportunity in Sandisk?
What Other AI Stocks are on Sale Right Now?
Tune into this week’s podcast to get three more AI stocks for your watch list.
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Sandisk Corporation (SNDK): Free Stock Analysis Report
Broadcom Inc. (AVGO): Free Stock Analysis Report
Bloom Energy Corporation (BE): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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