Analyst Flags 3 AI Stocks to Buy on a Pullback as Valuations Top 60 Times Earnings
Updated
Updated · twelfthmagpie.com · May 25
Analyst Flags 3 AI Stocks to Buy on a Pullback as Valuations Top 60 Times Earnings
1 articles · Updated · twelfthmagpie.com · May 25
Edward Sheldon named AMD, Arm and CrowdStrike as AI stocks to target only after a market pullback, arguing their recent rallies have left current entry points unattractive.
AMD is his top agentic-AI infrastructure pick because data-center GPU-to-CPU ratios are shifting from 1:4 or 1:8 toward 1:1, but he would wait for the stock to drop from about $430 to near $300.
Arm also fits that CPU theme as it pushes deeper into data centers; despite powering 99% of smartphones and launching a new agentic-AI chip in March, Sheldon prefers a retreat from roughly $250 to about $170.
CrowdStrike rounds out the list as an AI-era cybersecurity play after surging from $350 in late March to $650, helped by Anthropic's April Project Glasswing partnership; he would consider buying around $450 to $500.
The common constraint is valuation: AMD trades near 60 times earnings, Arm about 100 and CrowdStrike roughly 130, leaving little room for slower growth or weak guidance.
What if today’s high AI stock prices are justified and the predicted pullback never arrives?
Could energy stocks become the biggest, overlooked winners of the power-hungry AI revolution?
With AI now finding security flaws, is the future of cybersecurity just a battle between competing AIs?