While everyone’s piling into AI infrastructure stocks like Micron and SanDisk, consider these out-of-favour Nasdaq 100 names

Proper now, traders all around the world are piling into Nasdaq-listed AI infrastructure stocks. Micron and SanDisk are two of the most well liked names – they’ve soared in 2026.

Now, these stocks may preserve rising; the near-term fundamentals do look robust. Nevertheless, with a lot of these names up greater than 100% this yr, I’m questioning if it is likely to be smarter to give attention to a number of the AI stocks which have been left for useless?

An affordable Magazine 7 inventory

One high-quality AI inventory that’s suffered lately is Microsoft (NASDAQ: MSFT). This yr, it’s really down regardless of all of the AI hype.

Why’s it fallen? As a result of it’s a software program enterprise and traders don’t desire a bar of software program proper now.

I believe there might be a possibility to consider right here whereas the inventory’s below stress. In my opinion, it’s far too early to put in writing this firm off. Current earnings had been robust. For the quarter ended 31 March, income was up 15% yr on yr at fixed forex.

Notably, on the earnings name, the corporate stated that its Copilot service now has 20m paid enterprise seats. This means its AI providers are gaining traction.

It’s price mentioning that Microsoft is the second largest cloud computing firm on the earth (it’s not only a software program play). And it’s growing its personal AI chips. So whereas there are dangers round software program disruption, I proceed to see loads of potential right here, particularly whereas the price-to-earnings (P/E) ratio is within the low 20s.

Constant top-line development

One other identify that’s been lumped into the software program basket is AXON Enterprise (NASDAQ: AXON). The maker of Taser weapons, it’s a world chief in public security.

This firm – which is utilizing AI closely as we speak – continues to develop at a speedy price. For the primary quarter of 2026, income was up 34% to $807m (its ninth consecutive quarter of 30%+ development). On the again of this efficiency, the corporate raised its full-year steering.

Nevertheless, traders weren’t that excited as a result of it’s not an AI infrastructure play.

With the inventory down round 50% from its highs, I see a possibility to consider right here (I’ve been shopping for shares lately). A development slowdown is a danger given the corporate’s excessive P/E ratio (40, utilizing subsequent yr’s earnings forecast), nonetheless, taking a five-year view, I’m very bullish.

No AI slop right here

Lastly, Palantir‘s (NASDAQ: PLTR) one other AI inventory that might be price testing. I’ve been shopping for right here too.

Final quarter, this firm generated income development of an unbelievable 85% as companies within the US scrambled to undertake its AI options. Nevertheless, traders didn’t care – as a result of it’s a software program firm.

Is Anthropic a danger? Doubtlessly. Nevertheless, should you hearken to the Q1 earnings name, the corporate repeatedly talks about how its Synthetic Intelligence Platform (AIP) is superior to plain LLMs.

“AIP is the one platform that establishes a real AI no-slop zone, a crucial requisite to changing potential AI leverage into compounding real-world worth with out risking enterprise catastrophe.”

Palantir Chief Income Officer Ryan Taylor

Now, this inventory’s costly – the forward-looking P/E ratio utilizing subsequent yr’s earnings forecast is 68. Nevertheless, if the corporate retains rising at a prolific price, it’s solely a matter of time till it seems low-cost.

So I believe it’s price contemplating as a development play.