TLDR
- Nvidia, ASML, and Amazon are trading at discounts to their historical valuations despite appearing expensive at first glance
- Nvidia trades at 52.5 times operating cash flow, below its five-year average of 55.1
- ASML is the only company worldwide manufacturing EUV lithography systems essential for AI chip production
- Amazon stock has underperformed in 2025, climbing only 2.6% compared to the S&P 500’s 6.4% gain
- All three stocks offer different ways to invest in AI growth at current discount prices
The artificial intelligence sector has seen wild price swings in 2025, with the S&P 500 recovering from a 19% decline in April. While AI stocks may appear expensive on the surface, three companies are actually trading below their historical valuations.
Nvidia leads the pack despite its hefty price tag. The chip giant trades at 52.5 times operating cash flow, which seems expensive until compared to its five-year average of 55.1. The company’s trailing price-to-earnings ratio of 53 also sits below its five-year average of 70.2.
The semiconductor company designs graphics processing units for data centers where AI computing happens. Nvidia also holds ownership stakes in various AI companies across generative AI and healthcare sectors.
ASML provides the backbone for AI chip manufacturing. The Dutch company makes hardware, software, and services that help produce the microchips found in AI applications. Most importantly, ASML creates extreme ultraviolet lithography systems that print the smallest features on microchips at the highest density.
The EUV Monopoly
ASML holds a unique position as the only company worldwide that manufactures EUV lithography systems. These systems are essential tools for advanced semiconductor makers like Taiwan Semiconductor Manufacturing and Intel. The company’s customers depend on this technology to create the most advanced chips.
ASML’s stock trades at 33.7 times trailing earnings. While this might not seem like a bargain, the company’s five-year trailing earnings multiple of 40.8 makes the current price more attractive.
Amazon offers the broadest AI exposure among the three companies. The e-commerce giant has underperformed in 2025, rising only 2.6% compared to the S&P 500’s 6.4% gain. Concerns about tariffs and their impact on retail operations have kept investors cautious.
Cloud Computing and AI Tools
Amazon Web Services supports customers developing their own AI resources. The company also creates AI tools like virtual assistant Alexa and Amazon Q, an AI assistant for workplace settings. Amazon uses AI across all its business operations, from logistics to customer service.
The stock currently trades at 36.7 times trailing earnings. This represents a discount to its five-year average price-to-earnings ratio of 64.1. The underperformance in 2025 has created an entry point for new investors.
All three companies provide different angles on AI investment. Nvidia offers the most direct exposure to AI hardware. ASML provides essential manufacturing tools for AI chips. Amazon combines AI development with practical applications across multiple business lines.
The companies’ current valuations reflect temporary market conditions rather than fundamental weakness. Each maintains strong positions in their respective AI market segments. Their historical trading multiples suggest current prices offer value for long-term investors.
Nvidia’s stock price of $171.32 represents a discount from its 52-week high of $172.40. ASML trades at $753.77, well below its 52-week high of $957.21. Amazon’s current price of $223.17 sits below its 52-week high of $242.52.
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