Not Nvidia. Not Micron. This Dirt Cheap “Magnificent Seven” Stock Could Be the Biggest Winner of the Trillion-Dollar AI Race – Here’s the Case.

Nvidia and Micron Technology have been among the biggest winners for investors in the artificial intelligence (AI) space. That's because of their leading positions in two of the key areas driving the AI boom -- compute and the memory needed for AI operations. Nvidia is the world's No. 1 designer of graphics processing units (GPUs), high-powered chips driving key AI tasks like training and inference. And Micron is one of the top makers of the memory and storage chips essential to AI.

All of this has been reflected in these companies' earnings as well as in stock price performance. Nvidia's revenue soared in the triple digits to $96 billion, and Micron's also climbed in the triple digits to $41 billion in the latest quarter. As for the shares, they've advanced 900% and 1,300%, respectively, over five years.

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Though these companies are clear AI winners, moving forward, another player may rise to the top. In fact, this dirt cheap "Magnificent Seven" stock could be the biggest winner of the trillion-dollar AI race. Here's the case.

Image source: Getty Images.

So, first, a quick look at the stocks known as the "Magnificent Seven." This is a group of top tech players with a track record of earnings growth, and each plays a role in the AI space. They are: Nvidia, Amazon, Apple, Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), Meta Platforms, Microsoft, and Tesla. These companies have powered the S&P 500 through this three-year bull market, helping the index reach record levels. Investors like these tech giants for the businesses they've built over time -- and the fresh growth potential AI brings.

In recent weeks and months, some of these companies have seen their valuations dip, and considering their solid long-term prospects, this offers investors a buying opportunity. But one in particular stands out. This company is the cheapest of the "Magnificent Seven" right now, and it also may be the biggest winner of the AI race.

I'm talking about Alphabet, a company that's trading at only 15x forward earnings estimates today.

AAPL PE Ratio (Forward) data by YCharts

That price level, along with the company's earnings performance over time, offers investors a good reason to buy the stock. And its prospects in AI reinforce the argument.