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Last week, pop star Lorde stood on stage in Madrid and asked a stadium full of fans to reject a piece of technology that some of the biggest names in entertainment, including Kylie Jenner and BLACKPINK’s Jennie, spent months getting paid to promote.
That technology belongs to Meta Platforms, Inc. (dead), the AI video-recording glasses that celebrities are lining up to sell. However, regular people are lining up right behind Lord to call Meta’s glasses “creepy,” “invasive” and something you don’t want attached to your face. While billionaires and brand partners see the future, the public only sees a surveillance device with a huge marketing budget.
This gap, between what insiders build belief around and what the public feels comfortable owning, is worth remembering, because it speaks to the cheap five. AI shares I want to talk to you about this week.
Every name on this list has fallen by double digits from their highs over the past month, because retail sentiment has gotten bad on AI infrastructure in the same way it got bad on face computers.
But the actual condemnation on Wall Street hasn’t moved an inch.
Samsung Electronics Co., Ltd It just reported preliminary operating profit of about 89.4 trillion won, or nearly $60 billion, up 19 times year-over-year, driven almost entirely by demand for AI memory. On the same morning, International Business Machines (IBM) previously announced a second-quarter revenue loss and watched its shares collapse by more than 20% (the stock’s worst session since the 1987 crash) after CEO Arvind Krishna revealed that clients spent the final weeks of June pulling capital expenditures from software and consulting deals to buy supply-limited servers, storage and memory ahead of an expected price rise.
The sell-off spread quickly and was pulled lower Work day (day), Service now (now), Sales force (Customer relationship management), and Accenture (ACN) in empathy. The same lack of record profits in Suwon is cannibalizing enterprise technology budgets everywhere else. If Samsung is the one collecting the ransom, IBM just showed a Wall Street firm who is paying it.
The audience doesn’t have to like the trade. They just have to notice the profits in the end.
So, let’s go over five cheap AI stocks to buy this week:
SpaceX Technologies Inc. (Spex) It is, without a doubt, the most controversial stock on the market. Half of Wall Street is treating it like a personality cult surrounding Elon Musk, and both the bulls and the bears are falling into this trap. What actually matters is that SpaceX is the only vertically integrated company on Earth that can combine rocket launch capability, frontier AI models through xAI, and a live, continuous data feed from X. Oppenheimer has a “buy” rating. Goldman Sachs has a “buy” rating with a price target of $205. Morgan Stanley has a “buy” rating with a price target of $300. Revenue estimates jump from $18.6 billion to $38.7 billion this year, then to $74.2 billion in 2027 and $135 billion in 2028. 21 Wall Street firms have already made estimates for 2030, accumulating about $330 billion in revenue. Put a 10 times revenue multiple on that, which is not unreasonable for a company growing that quickly, and you get a $2 trillion to $3 trillion company. At $150 a share, the math works. I recommend stocks here.
Terawolf Company (Wolf) Used to mine Bitcoin. Now he hires power. The company just signed a 20-year deal worth $19 billion Anthropic For a 401 MW AI campus in Kentucky, this deal validates the entire axis from cryptocurrency miner to AI infrastructure owner. TeraWulf is not the best name in the trade, but it is a legitimate name, and the recent sell-off via the AI infrastructure pool gives you an attractive entry. Revenue growth estimates are 89% this year, 210% in 2027, then 72% and 56% after that, taking the company from $168 million in trailing revenue to $3.3 billion within five years. Gross margins expand from 50% to 70% during this stretch. The stock trades at 33.6 times EBITDA, which is remarkably cheap for triple-digit growth with expanding margins. The chart backs up the story, too: every major pullback since the AI infrastructure rally began has bottomed around the 100-day moving average, a decline of roughly 30% each time. The stock is sitting at exactly this level right now.
Amazon.com Inc. (Amzn) It just tapped the debt market for $25 billion in AI infrastructure financing, and in the same week, it launched another 29 satellites into low Earth orbit, bringing its total to 396 satellites and putting the company on track to start broadband service later this year. This confirms that the satellite broadband race has moved from concept to commercial deployment, and confirms that SpaceX is no longer in the race by itself. Amazon is trading at 22.6 times forward earnings and 11 times EBITDA, both five-year lows, while revenue growth remains steady in the low double digits and margins are expanding from the mid-20s to mid-30s due to Amazon Web Services. A company this big, this dominant, this cheap profits, growing faster than sales, deserves a buyer at this dip.
Palantir Technologies Inc. (Belter) We got caught in a software sell-off that investors are calling the “SaaSpocalypse,” and shares are down roughly 26% to 27% from their highs. The stock remains trapped below the declining 200-day moving average, the worst technical setup a growth stock can hold, and I want to see it reclaim 150, ideally 160, before I turn to building. But the growth profile under this graph is exceptional: revenues are expected to grow 73% this year, then 46%, 44%, 52%, and 49% in the following years, along with gross margins of 86% to 87%. The long-standing argument against Palantir has been valuation. That argument no longer holds, because the stock trades at 75.5 times forward earnings and 56.5 times EBITDA for what could become a 70% to 80% compound. Once the 200 day line is restored, I recommend putting money to work.
Micron Technology Company (in) It lies 22% below its highs, and bears say memory chips have peaked. Samsung’s explosion quarter says otherwise. The real fear is not demand today, which everyone agrees is high, but demand in 6 to 12 months, once new memory supplies come online. That question will be answered in about three weeks when big business owners report earnings and reconfirm or raise their 2026 capital spending plans. Micron’s previous pullbacks during this cycle have reached a 20% to 30% pullback range, and the stock is sitting at a 22.6% decline at the moment, with support between $800 and $900. This remains my favorite name in the group.
The drop looks the same every time: a beeping satellite, a scary headline, a graph that looks broken. Then the profits roll in, and fear turns out to be the entry point.
We break down these five names in much more depth, with charts and everything This episode of Being exponential.
