The popularity of artificial intelligence (AI) stocks this year has sent many companies to absurd valuations. Investors who don't want to pay extravagant premiums for these types of investments may be discouraged at prices in the markets right now. But there are a couple of stocks that are involved with AI and are trading at relatively low earnings multiples. Both Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) and Alibaba Group Holdings (NYSE: BABA) make for some intriguing investment options.

Alphabet's stock is a bit of a sleeping giant when it comes to AI. Both YouTube and Google could benefit from AI-powered tools. Unfortunately, the company got off to a bad start when its chatbot, Bard, didn't make a good first impression as it made an error during its initial demonstration back in February.

However, there's a lot for Alphabet to gain from the emergence of AI. In June, the company announced it would be launching a couple of tools, including one that would automatically place ads, eliminating the guesswork and decision making for advertisers. Earlier, the company also said it would use generative AI to begin experimenting with ad placements in search results.

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Source Fool.com