Have $5,000? These 3 Stocks Could Be Bargain Buys for 2026 and Beyond

Key Points

Nvidia’s stock is inexpensive despite its strong performance over the past few years.
TSMC looks poised to continue to reap the benefits of the AI infrastructure buildout.
Currently in the bargain bin, Salesforce has the foundation to be a leader in agentic AI.
10 stocks we like better than Nvidia ›

While artificial intelligence (AI) stocks have led the market higher the past few years, that doesn’t mean there still aren’t bargain buys to be found. If you have $5,000 to invest right now, splitting it between three attractively valued AI stocks could be a smart move. Let’s look at three to consider now.

1. Nvidia

While Nvidia (NASDAQ: NVDA) has been one of the market’s biggest growth stories, its valuation is also still highly attractive. The stock trades at a forward price-to-earnings (P/E) ratio of under 25 times next year’s analyst estimates and a price/earnings-to-growth (PEG) ratio of less than 0.7 times. Positive PEGs below 1 are typically considered undervalued.

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Artist rendering of stock chart going up in 2026.

Image source: Getty Images.

That’s a bargain for a company that grew its revenue by 62% last quarter and has established itself as one of the biggest beneficiaries of the AI infrastructure buildout.

With leading foundry Taiwan Semiconductor Manufacturing (NYSE: TSM) projecting that AI chip demand will grow at a mid-40% compound annual growth rate (CAGR) over the new few years, Nvidia should be able to at least keep up with the industry’s growth given that its graphics processing units (GPUs) are the primary chips powering AI workloads. Meanwhile, its CUDA software platform, which is where most foundational AI code was written, continues to provide a wide moat.

2. Taiwan Semiconductor Manufacturing

Taiwan Semiconductor is another AI leader whose stock remains attractively valued despite continued strong revenue growth. Its stock trades at a forward P/E of less than 20 times analyst 2026 earnings estimates, and its PEG is well below 1 times. Meanwhile, the company grew its revenue by nearly 41% last quarter.

TSMC, as it’s also known, finds itself in an enviable position as not only the leading manufacturer of advanced logic chips, but really the only foundry capable of producing chips at small node sizes at scale with few defects. Nodes refer to the density of how many transistors can fit onto a chip, and chip designers and manufacturers are continually looking to shrink node sizes to create more powerful and energy-efficient chips.

As rivals have struggled with yields, TSMC’s newest 2-nanometer chips have exceeded expectations, leading it to push up the construction timeline on facilities that can manufacture 1.4nm chips (2 generations ahead). Given this, TSMC has a near monopoly in advanced chip manufacturing. As such, it is expanding capacity to meet demand while also raising prices, which should help it see strong growth well into the future.

See also <!DOCTYPE html><html><head><title>Enhanced Security Measures Taken to Combat Rising Data Breaches</title></head><body><h2>Strategic Investments in Cybersecurity Services</h2><p>Amid a relentless surge in data breaches, U.S. enterprises are fortifying their defenses with cutting-edge tools and services, as detailed in the latest research report by Information Services Group (ISG).</p><h2>Escalation of Data Breaches</h2><p>The ISG Provider Lens™ Cybersecurity — Solutions and Services report for the U.S. highlights a notable escalation in data breaches from 2022 to 2023, with healthcare and financial services industries bearing the brunt of these cyber onslaughts. In response, the federal government and states have imposed regulations necessitating companies to bolster their security protocols, further complicating the landscape for enterprise security teams.</p><h2>Rethinking Strategies for Business Resilience</h2><p>Doug Saylors, the partner and co-leader of ISG Cybersecurity, points out that recent threats and sophisticated attack mechanisms have unearthed vulnerabilities in vital infrastructure within U.S. corporations. Consequently, Chief Information Security Officers (CISOs) are reassessing their strategies, prioritizing business resilience in the face of evolving cyber risks.</p><h2>Technological Advancements in Defense</h2><p>While the demand for cybersecurity solutions and services surges, organizations are streamlining their security technology arrays to drive down costs and maximize resource efficiency. Many are turning to AI technologies to aid in data analysis, enabling them to pinpoint vulnerabilities and fortify areas predicted to sustain the most detrimental impact from cyber breaches.</p><h2>Adopting Innovative Security Platforms</h2><p>The report identifies emerging technologies such as quantum computing and passwordless identity access management as rapidly gaining traction. Moreover, on a global scale, platforms like Extended Detection and Response (XDR) and Security Service Edge (SSE) are evolving as indispensable tools for enterprises in combating cyber threats.</p><h2>Transition to Zero Trust Architectures</h2><p>To reduce potential attack surfaces and mitigate the fallout from breaches, many large companies are transitioning from traditional perimeter-based security to Zero Trust Architectures (ZTAs). Implementing ZTAs necessitates a skilled workforce and substantial investments in access controls, identity management, and continual verification.</p><h2>Enhanced Focus on Third-Party Security Risk</h2><p>Enterprises with intricate supply chains are increasingly vulnerable to attacks on third-party vendors linked to their IT infrastructure. To address this risk, they are scrutinizing vendors' security postures and taking proactive measures to manage risks across their supply chains.</p><h2>Resilience Among Small and Medium-Sized Businesses</h2><p>Amidst constrained resources, many small and medium-sized businesses (SMBs) are emphasizing fundamental security practices such as automated patch management and user education. For advanced technologies and expertise beyond their internal IT capabilities, SMBs are turning to managed security services and cloud-based security solutions.</p><h2>Global Cybersecurity Leadership</h2><p>ISG's report recognizes various industry leaders across different cybersecurity quadrants. IBM emerges as a Leader in six quadrants, with Accenture, Deloitte, and TCS following closely as Leaders in four quadrants each. The report also identifies Rising Stars — companies with promising potential — including EY and Persistent Systems.</p><h2>Top Performer in Customer Experience</h2><p>Zensar Technologies secures the title of the global ISG CX Star Performer for 2024 among cybersecurity providers, based on outstanding customer satisfaction scores in ISG's Voice of the Customer survey.</p></body></html><!DOCTYPE html><html><head><title>Insight into the ISG Provider Lens™ Cybersecurity Report</title></head><body>The Illuminating ISG Provider Lens™ Cybersecurity Exploration

3. Salesforce

One area of the tech sector that has struggled since AI went mainstream is software stocks. This includes Salesforce (NYSE: CRM), which now trades at a 20 times forward P/E multiple and a PEG well below 1 times.

While the company hasn’t benefited from AI in the same way as infrastructure stocks, it does have a big opportunity with AI agents. This is an emerging field where AI does not just give answers to questions but goes out and performs tasks. As agentic AI advances, it could help create a virtual workforce.

One of the biggest barriers to this is that AI can sometimes hallucinate and give wrong answers, which becomes an even bigger concern with AI agents. However, it has been found that AI performs much better when it has clean, structured data from which to draw. Salesforce, meanwhile, has been building the foundation to become an organization’s sole source of truth for data AI agents can act upon.

The company’s strength was always breaking down data silos between departments to help give employees, especially customer service reps, a unified view, and it expanded on this with its Data 360 solution, which could also gather and organize data from third-party vendors like cloud computing providers. More recently, it acquired Informatica, which can help it reach into and extract information from legacy on-premise databases.

All this gives Salesforce the foundation to become a leading agentic AI company, which should help accelerate its growth in the years ahead.

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Geoffrey Seiler has positions in Salesforce. The Motley Fool has positions in and recommends Nvidia, Salesforce, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

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