These 10 AI Stocks Have The Best PEG Ratio Values Going Into 2024

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 Are We In A Tech Bubble?A question that is on many investors’ minds today is: “Are we in a tech bubble?” and, while some individual tech stocks may continue to perform well in the future, a large number of them – particularly the AI and related (AI & R) stocks  – are experiencing irrational exuberance. 
 Is It Déjà Vu All Over Again?Nomi Prins pointed out last August in a TalkMarkets article (see ) that what was happening in the AI sector at that time reminded her of the dot-com bubble of the early 2000s which, when it burst, “was a watershed moment for hundreds of tech companies, and those that survived were nearly wiped out” and the sector is down a further 12% since she wrote those comments which only emphasizes her point. She gave Amazon as an example of a hype-affected stock that went up dramatically during the euphoria only to fall 94% in the dot.com crash that followed. She concluded her article by saying: “Even though AI is revolutionary, not every AI-related company will be a good investment. Don’t rush into the hype with blinders on…” This article intends to help a potential investor see the reality of the AI sector without the use of rose-colored glasses and presents 10 AI stocks with attractive PEG ratios which should do better than most regardless of what the future holds.
 Is the PEG Ratio A Good Valuation Metric?Since growth is a key component of a stock’s expected return, the inclusion of the growth rate gives the PEG (i.e. Price-to-Earnings Growth over the next 12 months) ratio an advantage over the most commonly used alternatives. It offers a simple way for investors to see how cheap a stock is relative to its growth rate and for comparing stocks to competitors . All things being equal, a lower PEG ratio is better and a PEG ratio of less than 1 is a good indicator that a stock will outperform over the next few years.The above being said, however, the PEG ratio shouldn’t be used as a one-off test to decide whether to buy a stock or not. Instead, it’s a good idea to use the PEG ratio along with other tools such as the balance sheet, debt burden, and cash flow, or other valuation metrics that use the income statement. It’s also important to understand things like a company’s competitive advantage, its addressable market, and its long-term growth prospects.This article analyzes the PEG ratios of 10 AI&R stocks with attractive PEG ratios that have YTD appreciations of 52% or more than that of the 91 constituent Global X Artificial Intelligence and Technology ETF (AIQ) to find the best value AI&R stocks going into 2024. The details are as follows in descending order of PEG ratios.
 The 10 Best Value AI&R Stocks

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