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Artificial intelligence continues to revolutionize industries, yet not all AI investment opportunities carry steep price tags. For patients with a long-term outlook, cheap AI stocks to buy can offer compelling entry points without sacrificing exposure to meaningful growth. Two affordable plays that blend innovation with value are Alphabet (GOOGL) and Okta (OKTA)—each grounded in strategic relevance.
Why Sector Leaders with A Relative Discount Matter
Opting for established, financially disciplined companies ensures not only potential upside but also stability in turbulent markets. These firms carry strong infrastructure, client bases, and evolving business models. Below is a snapshot of how affordability meets performance:
| Company | Ticker | AI Exposure | Valuation Highlight | Growth Potential |
|---|---|---|---|---|
| Alphabet | GOOGL | AI-backed search, cloud, innovation | Forward P/E of 17.5x; ~28% discount to 5-year avg Nasdaq | Google Cloud adoption & AI monetization |
| Okta | OKTA | AI-enhanced identity security tech | Forward P/E ~27x; significantly below past cash flow multiples Nasdaq | Subscription margins, rising cybersecurity AI |
| SoundHound AI | SOUN | Voice recognition & AI assistant solutions | Stock under $10 with niche AI presence Benzinga | Voice AI demand across multiple sectors |
Let’s explore each of these “cheap AI stocks to buy” more closely.
Alphabet (GOOGL): AI Powerhouse at a Bargain
Alphabet stands out as a diversified and growth-oriented AI leader trading at an attractive valuation. With forward P/E near 17.5 times, Alphabet offers around 28% discount to its five-year average, making it a rare value among large-cap tech names See It Market+15Nasdaq+15Morningstar+15.
Its dominance in search ensures massive data flow for AI applications. Google Cloud’s adoption continues to scale, and AI-related ad and platform enhancements bolster margin growth. Investors betting on Alphabet aren’t just buying a tech giant—they’re investing in future-forward AI infrastructure at a fair price.
Okta (OKTA): Low-Cost Entry into AI-Based Security
Okta may not get the same headlines as its larger peers, but its focus on AI-driven identity verification places it at a strategic intersection of cybersecurity and enterprise automation. Okta’s forward P/E ratio has fallen to around 27, with its cash flow multiple well below historical averages Nasdaq. For the price-conscious investor seeking cheap AI stocks to buy, this could signal attractive entry value.
In an age where data breaches are common and digital identities matter more than ever, Okta’s evolving AI tools offer a compelling use case—and clear upside potential.
SoundHound AI (SOUN): Voice Tech at Ground-Level
If you’re aiming for speculative growth at an ultra-low price, SoundHound AI fits the bill. With shares under $10, it offers exposure to AI-powered voice recognition systems across verticals like automotive, hospitality, and consumer apps Yahoo Finance+14Benzinga+14Nasdaq+14. Though higher risk, its niche AI prowess and potential for adoption could deliver outsized returns for long-term investors.
The Case for Cheap AI Stocks to Buy
In a market that often rewards hype over fundamentals, low-cost AI stocks with real-world application and strategic positioning deserve deeper attention. Below are three key reasons these value plays make sense:
- Valuation Tailwinds
Companies like Alphabet and Okta offer healthy AI exposure with realistic valuation multiples—making cheap AI stocks to buy a smart play without overpaying. - Layered Growth Drivers
Whether through ad-based AI monetization (Alphabet), rising demand for secure identity services (Okta), or emergent voice tech markets (SoundHound), each company benefits from multi-layered growth levers. - Diversified Risk Exposure
These names span cloud infrastructure, enterprise tools, and niche innovation—providing versatility in a diversified AI portfolio.
Building a Value-Minded AI Portfolio
For investors eyeing a balanced approach, consider blending these affordable AI plays with select growth giants for broader coverage:
| Investment Type | Example Stocks | Role in Portfolio |
|---|---|---|
| Value-fueled AI picks | Alphabet, Okta, SoundHound | Entry into AI at lower share prices |
| AI superpowers | Nvidia, Microsoft, Amazon | Core holdings for long-term structural AI demand |
| Infrastructure enablers | Arm Holdings, Amphenol | Supportive technologies behind the scenes |
This layered strategy allows for both value-based entry points and steady growth engines.
Final Thoughts
When considering cheap AI stocks to buy, focus on companies with identifiable market strengths, cost advantage, and real AI application—even if they’re not headline darlings.
Alphabet offers a strong mix of valuation and AI breadth. Okta brings a specialized, mission-critical AI toolset at a discount. And SoundHound offers a speculative but wallet-friendly way into specialized voice AI.
Together, these picks strike a compelling balance—grounding optimism in reality. Being choosy, price-aware, and research-driven lets investors ride the AI wave without surrendering discipline.
Also read – https://aiindexes.com/ai-stocks-to-buy-right-now/
