AI-Driven Tech Giants at Bargain Prices: Meta and Microsoft Face-Off

Finding truly affordable artificial intelligence stocks remains a challenge in today’s market. Yet amid the valuation surge, two industry titans are trading at attractive levels—offering investors a rare opportunity to gain exposure to the best cheap ai stocks to buy now. Meta Platforms and Microsoft represent more than speculative plays; they’re established powerhouses with proven business models and genuine artificial intelligence capabilities built into their core operations.

Two Profitable Leaders Redefining the AI Landscape

The appeal of these two tech giants lies in a fundamental advantage: both Meta and Microsoft had already built highly profitable, revenue-generating businesses before the AI boom arrived. Unlike younger companies betting everything on artificial intelligence, these companies can fund massive infrastructure investments while simultaneously rewarding shareholders and maintaining consistent earnings growth.

More importantly, both are strategically positioned within the artificial intelligence revolution. They’re not peripheral players hoping to catch a wave—they’re building the actual infrastructure and tools that power the AI ecosystem. This distinction matters enormously when evaluating which stocks deserve a position in your portfolio.

Meta’s Advertising Empire Meets AI Innovation

Meta reaches over 3.5 billion people daily through Facebook, Messenger, Instagram, and WhatsApp. This unparalleled user base generates a steady stream of advertising revenue, creating a financial foundation that can support aggressive investment in emerging technologies.

The company’s artificial intelligence strategy centers on internal infrastructure development. Meta has constructed extensive data centers, developed proprietary large language models, and integrated these tools throughout its platform ecosystem. The result? Improved user experiences, smarter ad targeting, and enhanced content recommendations. These capabilities may eventually unlock entirely new revenue streams beyond traditional advertising.

What makes Meta particularly compelling for value-conscious investors is its valuation. At 22x forward earnings estimates, the stock trades at a significant discount to its historical levels. Notably, even after delivering impressive quarterly earnings reports, Meta’s valuation has remained remarkably stable—suggesting investors may have time to accumulate shares at reasonable prices without rushing.

Microsoft’s Cloud Infrastructure Powers AI Expansion

Microsoft’s revenue streams extend well beyond its famous productivity software. The company has built a formidable cloud business that’s become the primary vehicle for delivering artificial intelligence capabilities to enterprise customers. Through this cloud platform, Microsoft offers a comprehensive suite: in-house developed artificial intelligence tools, processors sourced from industry leader Nvidia, and entire systems designed to accelerate customer AI projects.

The demand for cloud computing capacity has surged, prompting Microsoft to aggressively expand its infrastructure. Recent stock weakness, stemming from investor concerns about quarterly cloud revenue growth, shouldn’t obscure the longer-term picture. Cloud infrastructure investments and revenue generation work on different timelines, and Microsoft’s positioning as a market leader virtually guarantees it will capture significant value as artificial intelligence implementation accelerates across industries.

Here’s where Microsoft’s valuation becomes especially noteworthy: the stock currently trades at 24x forward earnings estimates—its lowest level in at least three years. This represents a departure from historical norms, when Microsoft typically commanded premium valuations.

Valuation Comparison: Finding Value in Growth Stocks

The contrast between these two valuations tells an important story. Meta has historically traded in its current valuation range, suggesting limited upside surprise from multiple expansion. Microsoft, conversely, has spent most recent years trading at substantially higher multiples. Today’s discount represents a genuine anomaly—a rare window when a cloud infrastructure leader is available at below-average costs.

Both companies possess the financial strength to pursue simultaneous priorities: infrastructure buildout for artificial intelligence competitiveness, shareholder returns, and operational growth. This financial flexibility distinguishes them from younger technology companies forced to choose between growth and profitability.

Making Your Investment Decision: When to Buy

If forced to choose between these two best cheap ai stocks to buy now, Microsoft edges ahead as the more compelling opportunity. While Meta remains reasonably priced, Microsoft’s departure from historical valuations suggests a more significant discount. Microsoft is already converting its artificial intelligence infrastructure investments into measurable revenue gains, meaning the company sits at an inflection point where valuations could expand as growth accelerates.

The timing reinforces this perspective. Markets have punished Microsoft shares recently despite the company’s continued artificial intelligence expansion and cloud dominance. This momentary weakness creates precisely the type of opportunity value investors seek—a quality company at a lower-than-normal price during a transformative technology cycle.

Both Meta and Microsoft make sensible additions to growth-oriented portfolios. However, for investors seeking to buy now with maximum margin of safety, Microsoft presents the more attractive risk-reward profile at current valuations. The combination of historical undervaluation, proven business operations, genuine artificial intelligence integration, and expanding cloud revenues suggests meaningful upside potential as the artificial intelligence investment cycle matures.