3 Beaten Down AI Infrastructure Stocks to Buy in June
24/7 Wall St. • • business
Key Points:
- AI infrastructure stocks NVIDIA, Broadcom, and Microsoft have all pulled back significantly from their 52-week highs despite strong revenue growth driven by AI demand.
- NVIDIA trades 26% below its high, with Q1 FY2027 revenue up 85% year-over-year and strong data center growth, but faces risks from export restrictions and macro volatility.
- Broadcom saw a sharp 22% drop in a week after strong Q2 results, with AI semiconductor revenue up 143% YoY, though concerns over valuation and customer concentration remain.
- Microsoft is down 17% year-to-date, trading at the lowest multiple in the group despite 30-40% cloud growth and a $37 billion AI revenue run rate, with capital expenditure increases weighing on sentiment.
- Overall, the trio presents a compelling entry point for investors betting on continued AI infrastructure expansion amid near-term volatility.
