Yahoo Finance·2025-12-08 09:30Core Viewpoint - The article discusses the current state of AI stocks, highlighting that despite significant price increases, some major AI companies still offer reasonable valuations, suggesting potential investment opportunities [1][2]. Group 1: AI Stock Valuations - Some AI stocks are trading at forward earnings estimates between 26x and 31x, indicating fair prices for established companies with strong AI prospects [2]. - One company, not yet profitable, is expected to see its stock price increase by over 55% in the next 12 months, suggesting it may be a bargain buy [2]. Group 2: Company Highlights - Microsoft: - Trades at 29x forward earnings estimates, considered cheap for its established technology empire and strong AI presence [5]. - Revenue from cloud services surged by 40% recently, driven by demand from AI customers, with plans for continued AI investment [6]. - Meta Platforms: - A social media giant leveraging advertising revenue from platforms like Facebook and Instagram, showing a strong earnings growth track record [7]. - Plans to integrate AI to enhance user engagement and improve advertising effectiveness, potentially boosting ad revenue further [8].