Nvidia Isn't The Only One - 4 AI Stocks Sitting At A 50% Discount (I'm Buying the September Dip!)

I have covered almost 16 stocks on this channel since making my first airface cam video in July and you would be surprised to know that only three of these 16 stocks are currently in negative territory. One is down 9% while the other two are barely down 1% on average. But here is where the story becomes really interesting. We are beating both the S&P 500 and the NASDAQ by a wide margin. The NASDAQ is up around 2% during this period. Whereas our portfolio, assuming an equal investment of $10,000 in every stock, is up approximately 11%. That is not a small difference. That is nearly five times the return of the NASDAQ in less than 2 months. Even more impressively, seven of these stocks have already provided doubledigit returns. These are not returns generated over 3 years, two years, or even one year. Seven companies have delivered double-digit gains in less than two months. This is the beauty of identifying undervalued companies and investing in them before the wider market recognizes their true potential. You do not need every stock to become a massive winner. You need to find quality businesses trading below their fair value. Build positions with discipline and give the investment thesis enough time to play out. While most investors are chasing stocks that have already rallied, our focus has been on finding opportunities where expectations are low, but the potential growth is significant. Of course, not every selection will work immediately. One stock is down 9% and that deserves a proper review. But when 13 out of 16 stocks are positive, seven have produced doubledigit returns and the overall portfolio is outperforming the major indices, the results deserve attention. Before we continue, remember that this video is for educational andformational purposes only. I am not a financial adviser and nothing discussed here should be considered financial advice. Always conduct your own research and assess your personal risk tolerance before investing. If you find this analysis valuable, please like the video and subscribe to the channel. And if you want early access to my top stock picks, including updates when I buy and when I sell, join our Discord community through Patreon. The link is in the description. For a modest membership fee of just $25, I believe the value provided is immense. In this video, I will discuss four stocks that I believe are at least 50% undervalued and should be bought in September weakness. Nvidia may be one of the market's most misunderstood growth stories. The stock has already delivered impressive gains, yet its valuation still appears disconnected from the extraordinary earnings trajectory analysts now expect. For fiscal 2027, consensus estimates call for $411 billion in revenue, representing roughly 90% year-over-year growth and earnings of $9.3 per share. By fiscal 2028, revenue is projected to reach $678 billion, while EPS rises to 15.5 per share. By 2029, analysts expect nearly 880 billion in sales and EPS of 20.8. 8 per share. If those forecasts materialize, Nvidia's forward price to earnings multiple falls from approximately 23 times 2027 earnings to just 10 times 2029 earnings. More importantly, estimates are moving higher, not lower. During the last 3 months, Nvidia received 41 upward EPS revisions against only one downgrade. Revenue estimates recorded 46 upward revisions and just one downward revision. Management has also guided toward roughly 70% revenue growth in fiscal 2028 well above the previous consensus expectation of about 44%. Demand visibility remains exceptional. Amazon Web Service plans to deploy an additional 2 million Nvidia GPUs while capital expenditure among the five largest hyperscalers is expected to rise from nearly $800 billion in 2026 to 1.3 trillion in 2027. The principal risk is circular financing. Nvidia has committed billions to AI companies and carries substantial guarantee exposure potentially linking chip demand to capital it helps provide. However, outside financing from major institutions and growing AI revenue at Salesforce, Service Now and Microsoft suggest genuine end user demand exists. Nvidia is therefore not risk-f free, but its combination of explosive growth, rising estimates, and a rapidly declining forward valuation makes the stock unusually compelling. If AI spending remains durable, the market may eventually be forced to reate Nvidia significantly higher. The question is no longer whether Nvidia is growing, but how long the market can keep undervaluing that growth. That brings us naturally from Nvidia to the second stock on our list, Micron. Nvidia may design the powerful GPUs driving the AI revolution. But those processors cannot operate efficiently without enormous amounts of advanced memory. This is where Micron enters the picture. The company supplies the DAM, high bandwidth memory, and NAND required to keep AI systems constantly fed with data. As a infrastructure expands, soaring memory demand has collided with severely constrained supply, creating exceptional pricing power, rapidly rising earnings, and record profitability for Micron. The numbers are extraordinary. Consensus expects fiscal 2026 earnings of 73.4 per share, rising 786% yearover-year. EPS is then projected to more than double to $156 per share in 2027 and reach $172 per share in 2028. At today's valuation, that places Micron at approximately 13 times 2026 earnings, 6* 2027 earnings, and below 6* 2028 earnings. Analyst momentum is equally powerful. During the past 3 months, Micron received 33 upward EPS revisions with zero downgrades. Revenue estimates recorded 38 upward revisions and no reductions. This is important because rising estimates often provide stronger support for a stock than a lower valuation alone. For Micron, the opportunity extends beyond HBM. High volume DDR5 currently generate much of Micron's profit while HBM remains a premium supply constraint long-term growth engine. HBM consumes three to four times more wafer capacity than conventional DRAM, tightening supply across the entire memory market. Meanwhile, Nvidia's future platforms require increasing quantities of advanced memory, and Micron is expanding capacity to compete more aggressively with Samsung and SKH Highix. Near-term, investors will focus on Micron's upcoming earnings, pricing trends, and margin guidance. Management expects approximately $50 billion in quarterly revenue and an 86% gross margin. While HBM4 revenue is scaling rapidly, the risk is cyclicality. Memory shortages will eventually ease, prices will normalize, and earnings could decline sharply, but with demand still exceeding supply, estimates moving upward, and capacity taking years to build, this cycle may have considerably further to run before conditions finally normalize. After Nvidia's GPUs and Micron's memory, the third layer of AI infrastructure is connectivity. And that bring us to Coherent. AI clusters contain thousands of processes that must exchange data at extreme speeds. Coherent supplies the lasers, transceivers, and optical components that make those connections possible. Deutsich Bank named Coherent one of its highest conviction AI hardware pick and shovel stocks. Its reasoning is straightforward. Whether data centers use pluggable optics or co-ackaged optical architectures, they still require lasers. Coherent is supply constraint, effectively sold out for fiscal 2027 and already holding purchase orders extending into 2028. Nvidia has invested 2 billion in the company, strengthening the strategic relationship. The operating results support the excitement. Fourth quarter revenue reached $2.05 $05 billion, increasing 34% while non-GAAP earnings grew 74%. Data center revenue surged 66% helping gross margins expand to 40.2%. Management believes quarterly revenue can exceed 3 billion by the end of fiscal 2027. The most important development may be coherent transition from 3 in to 6 in indium phosphate wafers. Measurement says these wafers can produce four times the output at half the cost simultaneously expanding capacity and improving margins. Consensus EPS is expected to rise from 9.4 in fiscal 2027 to 18.5 per share by 2029, rapidly compressing the elevated valuation. The major risk is execution. Quarterly capital expenditure has jumped to $556 million, leaving coherent exposed if demand slows or new capacity is underutilized. However, long-term customer agreements, constrained supply, and expanding a networks provide unusually strong visibility. Coherent is expensive today, but its earnings could grow into that valuation quickly. After GPUs, memory, and optical connectivity, the next opportunity lies with the company's assembling AI infrastructure. And Celestica stands out. The company designs and manufactures networking equipment, switches, and accelator systems required by hyperscalers building complex data centers. AI demand continues to outrun management's expectations. Celestica raised it 2026 outlook moving from $19 billion in revenue and 10.15 in adjusted EPS to 20.5 billion in revenue and 11.3 in earnings. Third quarter revenue guidance implies approximately 69% year-over-year growth while free cash flow has increased to 600 million. Visibility is currently unusually strong. Component lead time exceed 52 weeks pushing customers toward binding commitments. Management can see demand through 2028 with some discussions extending into 2029. Growth is spread across overlapping programs 10 1.6 TBTE networking RAMs co-ackaged optics AMD's Helios platform and OpenAI's Alpino accelerator project. Importantly, this expansion is becoming more profitable. Adjusted operating margin reached 8.2% and is expected to rise to 8.4% supported by higher factory utilization and greater design content. Meanwhile, Celestica's forward earnings multiple falls from 29* 2026 estimates to 16.6* 2027 earnings and approximately 9* 2029 earnings. However, the risks are substantial. Celestica's three largest customers generated 63% of second quarter revenue. A program delay, customer loss, or decision to move manufacturing internally could damage results. Expansion also requires approximately 1 billion in 2026 capital expenditure and $ 1.5 billion in 2027. A 3 billion equity offering has added dilution. Celestica offers explosive AI growth and improving margins, but investors must balance that opportunity against concentration, execution, and financing risks.