2 Top AI Stocks to Buy Beyond the “Magnificent Seven”

The “Magnificent Seven” stocks, a group of Apple, Amazon, Nvidia, Meta Platforms, Microsoft, Alphabet, and Tesla, get most of the AI hype. Their stocks have collectively smashed the broader market for the past 18 months.

However, many of these names have floated higher to the point that they may not be the best buys on the market today. So, instead, consider broadening your horizons. There are AI stocks beyond the Magnificent Seven.

There’s a good chance you can buy Super Micro Computer (NASDAQ: SMCI) and Duolingo (NASDAQ: DUOL) today and enjoy great long-term returns.

1. Super Micro Computer

Shares of Super Micro Computer have gone parabolic, soaring 850% over the past year. I’ll admit, it feels odd saying that shares are still buyable, but I cannot deny the data. First things first: Why is Super Micro Computer up so much? The company has become an important role player in building AI data centers. The company sells turnkey modular server systems. Companies that don’t want to waste the time, effort, or money to figure out how to build their systems are going to Super Micro.

The company’s seeing growth take off as a result. Revenue grew 103% year over year in its most recent quarter and 73% quarter over quarter. Management expects revenue growth to accelerate to over 200% year over year next quarter. Triple-digit growth will move stock, and the industry is poised to continue growing. According to Grand View Research, the world’s data center footprint could double by 2030 to support AI’s growth.

Analysts believe Super Micro Computer will earn nearly $22 per share this year, pricing shares at a forward price-to-earnings ratio (P/E) of 49. Meanwhile, earnings growth is expected to average 55% annually over the next three to five years. A forward P/E ratio of 49 is reasonable for a business growing earnings at a 55% clip. At a PEG ratio under one, that’s an outright bargain if the company lives up to expectations.

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2. Duolingo

Duolingo has been a highflier over the past year. Shares are up an impressive 70%. However, I don’t think the company or the stock is…

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