The Smartest Artificial Intelligence (AI) Investment Moves to Make With $5,000 in July
Keithen Drury, The Motley Fool
Mon, July 13, 2026 at 1:59 PM GMT+5:30
4 min read
- NVDA
+4.03% - MSFT
+0.19% - MU
-1.24%
If you’ve got $5,000 (or really, any amount) burning a hole in your pocket, then there are a handful of stocks that I think would make for great buys now. Among them are Nvidia (NASDAQ: NVDA), Micron (NASDAQ: MU), and Microsoft (NASDAQ: MSFT)
All three of these companies are leaders in their respective industries, and each is also on sale right now compared to historical averages — but these prices won’t last forever
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
Nvidia
It may be hard to stomach the idea that the world‘s largest company by market cap is actually underpriced, but that’s exactly what the numbers tell investors. Right now, it trades at 22.6 times forward earnings and 15.9 times next year’s expected earnings
For reference, the S&P 500(SNPINDEX: ^GSPC) trades for 21.7 times forward earnings, so Nvidia is only slightly more expensive than the broad market average. However, when one looks a bit further into the future, it looks dirt cheap, as 2027 is expected to be another year of strong growth for Nvidia due to the continuing ramp-up of the data center build-out. Additionally, a GPU upgrade cycle is coming later this year, as the new Rubin architecture will launch. Nvidia’s Rubin chips are expected to reduce inference token costs by a factor of 10 compared to its Blackwell GPUs, and to be 4 times more efficient for training.
Those major performance increases will help Nvidia deliver a strong growth rate again next year. Wall Street analysts project 41% growth, but they have consistently underestimated Nvidia’s growth since 2023. I think that’s likely to be the case again this year, which could lead to an incredible 2027 stock performance, especially from its currently cheap starting point
Micron
Micron is a candidate for stock of the year, as it has risen by a jaw-dropping 250% so far this year — even after its recent pullback. With a rise like that in the rear-view mirror, it may seem odd to continue recommending the stock, but the reality is that Micron’s growth wave hasn’t wrapped up yet
The data center build-out has created massive demand for memory chips, and there simply isn’t enough production capacity to meet that demand. With such shortages come skyrocketing prices, and Micron’s revenues and profits have soared as a result. This supply-and-demand imbalance isn’t expected to be fully resolved anytime soon; Micron’s management team believes that market conditions won’t improve before 2028
