I've been watching these two tech giants, Meta and Microsoft, lately. Interestingly, both are now labeled as cheap AI concept stocks, but this label actually underestimates these companies a bit.

Let's start with Meta. The company's fundamentals are solid—over 3.5 billion people worldwide use its apps daily, with Facebook, Instagram, and WhatsApp all being cash cows. Its advertising business continues to generate substantial revenue, and the company has enough financial strength to start paying dividends. The key point is that their AI investments are not just on paper; they are actually building data centers and developing their own large language models. These tools have already begun optimizing ad experiences. At a forward P/E ratio of 22, this valuation is indeed quite attractive.

As for Microsoft, many people only know about its software business, but cloud computing is actually its real entry point into the AI race. From Nvidia’s high-end chips to self-developed processors, and various AI tools and infrastructure, Microsoft’s cloud layout is comprehensive. Recently, although the stock price has pulled back somewhat, it’s mainly due to investors adjusting their growth expectations for cloud business. But in the long run, as a leader in cloud computing, Microsoft’s position in the AI wave is quite stable. A forward P/E of 24 is at its lowest in three years, making this a time worth paying attention to.

Both are candidates for the best cheap AI stocks, with stable business foundations and genuine AI investments. But if I had to choose one, I lean more toward Microsoft. The reason is simple—Meta has seen similar valuation levels before, even lower, so there’s no rush. But Microsoft is different; this price level is rare in recent years, and it has already seen tangible revenue growth from AI investments. Usually, such opportunities don’t wait too long.