Have $500? 3 Undervalued Stocks to Pave Your Way to Profits in 2024

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Identifying the best undervalued stocks to buy can be difficult in 2024 as investors navigate a tough macroeconomic environment. However, if you're willing to look in the right places you can be on your mighty way. 

These undervalued stocks don't necessarily have to be unknown by investors on Wall Street. However, they can often be underestimated by the broader market and possess intrinsic value that has yet to be fully recognized. They may belong to sectors poised for resurgence, possess innovative technologies, or demonstrate resilience in the face of market volatility. Through careful analysis, these undervalued stocks to buy could offer the possibility of handsome returns over the long term.  

Now, let's discover the top undervalued stocks to buy in May 2024.

Taiwan Semiconductor (TSM)

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Taiwan Semiconductor (NYSE:TSM) is gearing up for a record year in FY24. They are a crucial player in the AI revolution, which advanced semiconductor chips made by TSMC will largely fuel.

Taiwan Semiconductor is up more than 50% YTD, as Wall Street is starting to notice its role in artificial intelligence. It is no secret that TSMC will significantly benefit from AI tailwinds in 2024. This is largely due to the unprecedented demand for AI GPUs as companies rush to capitalize on generative AI services.

However, TSMC's recent news is the ultimate game changer for 2024. The company no longer needs ASML's proprietary EUV machines to create next-generation semiconductor chips. This could save the company billions as it continues ramping up its production capacity in the United States, Europe and Asia. With strategic investments in infrastructure and strong demand for AI GPUs, TSM stock is well on its way to the $1 trillion market cap status.

Meta Platforms (META)

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Meta Platforms (NASDAQ:META) continues demonstrating its value as one of the leading social media giants. Their family of Apps (Facebook, Instagram, WhatsApp and Messenger), make them a formidable player in the digital advertising market. Additionally, their key investments in AI infrastructure are only just beginning. 

Meta Platforms have been at the forefront of the social media revolution over the last two decades. Facebook and its family of apps have grown larger and larger, bolstering its advertising growth prospects. However, the company's key investments in AI and the metaverse will be their primary growth drivers.

The company is coming off a record 2023 fiscal year, which led it to issue its first-ever dividend. Moreover, their CFO, Susan Li, has reiterated that they will ramp up their infrastructure investments in FY24. These two positive developments signal their confidence in the business moving forward. As the advertising market returns to pre-pandemic levels, Meta's forward P/E of 24.39 makes the stock a bargain at current levels.

Oracle (ORCL)

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Oracle (NYSE:ORCL) is a multinational software company set to benefit from the increased demand for AI applications. Their robust data center infrastructure is the backbone of AI, and their Gen2 cloud infrastructure will be the foundation for processing the most demanding AI workloads. 

Oracle has not gotten much love compared to many other pure play AI companies. However, that will soon change as Wall Street digests the scale and impact of its Gen2 cloud infrastructure. Their technology is specifically designed for enterprise workloads and is widely adopted by AI hyperscalers like Microsoft and Amazon.

This infrastructure is crucial for running complex AI models and workloads. However, even more important is the role data centers will play in the new world of AI. Oracle is embracing this reality with a plan to build 100 new data centers to satisfy demand. With its cloud business at a $20 billion annual run rate in 2024, Oracle is just scratching the surface of its AI-driven potential.

On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Terel Miles is a contributing writer at InvestorPlace.com, with more than seven years of experience investing in the financial markets.