TLDR
- Alphabet (Google) trades at a P/E ratio of 27, below the S&P 500 average of 32, despite a 50% stock gain this year
- Meta Platforms has 3.5 billion daily users across its apps and plans to invest $70-72 billion in investments for AI development
- Micron Technology is the only US manufacturer of high-bandwidth memory (HBM) chips and has seen 49% revenue growth in fiscal 2025
- Google Cloud now accounts for 14% of Alphabet’s revenue, up from 12% last year, showing growth beyond search
- Meta’s net profit fell 9% in the first three quarters of 2025 due to rising income tax expenses despite a 27% increase in operating income
The technical stock rally has been selective. While companies like Palantir and IonQ have seen valuations soar, many established tech companies are still attractively priced. Three major techniques business with AI initiatives trading at reasonable valuations compared to the broader market.
Alphabet trades below the market average
Alphabet currently trades at 27 times earnings, below the S&P 500 average of 32. The stock is up 50% this year. The company plans to spend $91 billion to $93 billion on capital expenditures in 2025.
Google Cloud has become an important driver of growth. The division now makes up 14% of the company’s revenue in the first three quarters of 2025. This is up from 12% the previous year.
The autonomous driving platform Waymo is gaining traction. The service has expanded its operations across several cities. This diversification provides revenue options beyond traditional search advertising.
Meta Platforms invests in AI infrastructure
Meta platforms trading at 28x earnings with over 3.5 billion daily users. The company operates Facebook, Instagram and WhatsApp. These platforms reach approximately 43% of the world’s population.
Digital ad revenue grew 22% in the first three quarters of 2025. This segment still accounts for 98% of Meta’s total revenue. The company is investing between $70 billion and $72 billion in capital expenditures this year.
Net income fell 9% in the first three quarters of 2025. Rising income tax expenses offset a 27% increase in operating income. The stock has risen about 10% this year.
Meta uses data from its billions of users to train AI models. The company is working on integrating AI tools across its platforms. These investments are aimed at supporting the digital advertising business.
Micron benefits from demand for memory chips
Micron technology has transformed from a cyclical stock to a growth story. The company designs memory chips for various applications. AI development has created demand for specialized memory products.
Micron is the only US manufacturer of high-bandwidth memory chips. Only three companies globally produce HBM chips. These components are important for AI accelerators.
Revenue rose 49% in fiscal 2025, which ended Aug. 28. The net result increased by 11 times during the same period. The stock has risen 125% this year.
Micron trades at 30 times worse earnings. The forward P/E ratio is just 13. This lower forward multiple reflects expected earnings growth from continued AI chip demand.
