Here Are the 3 Cheapest Megacap Artificial Intelligence (AI) Stocks on the Market to Buy in 2025

Group 1: Core Insights - The article discusses the identification of the cheapest megacap artificial intelligence (AI) stocks to buy in 2025, emphasizing the importance of defining "megacap" and "cheap" based on various valuation metrics [1][2] - The price-to-earnings-growth (PEG) ratio is used as the primary valuation metric, focusing on companies with significant AI-related products and services [3] Group 2: Company Summaries - Advanced Micro Devices (AMD): With a market cap of approximately $204 billion, AMD has a forward earnings multiple of 24.6 and a low PEG ratio of 0.32, indicating potential value based on projected earnings growth. The company is involved in AI applications through its chips and is acquiring ZT Systems to enhance its AI capabilities [4][5] - Alibaba Group Holding Ltd.: Alibaba's market cap is slightly below $205 billion, trading at 8.9 times forward earnings and a PEG ratio of 0.57. Despite concerns about the Chinese economy and government unpredictability, Alibaba's extensive e-commerce and cloud services position it for potential long-term returns [6][8] - Broadcom: With a market cap of $1.15 trillion, Broadcom's shares trade at nearly 38 times forward earnings, but its PEG ratio is 0.68. The company reported a 220% year-over-year increase in AI revenue, driven by Ethernet networking products and custom AI accelerators, alongside growth opportunities from its VMware acquisition [9][10]