Read the headlines and you might get the impression that the S&P 500 is trading at ridiculous levels. Dig a little deeper though, and some well-known blue-chip US shares actually look rather cheap.

Here are two that I think deserve closer attention this month.

Nvidia

The first stock is Nvidia (NASDAQ:NVDA), which has dipped from $240 to $219 in the space of a couple of weeks.

I know, I know. Nvidia is already the world’s largest company, with a colossal $5.25trn market cap. How much bigger can it really get?

Well, the tech firm expects revenue to grow 89% to $108bn in the current quarter. For the full year, revenue is anticipated to surge 90% to about $412bn. Next fiscal year? $692bn. The year after? $903bn!

So we have absolutely insane growth pencilled in, driven by insatiable demand for the company’s AI chips. Note that SpaceX has emerged as another key customer, with reports that it’s looking to raise $40bn to spend on Nvidia GPUs.

We think the [Nvidia] Vera Rubin architecture is the best architecture. We think it’s the best AI computer…We’re exclusive to Nvidia. 

Elon Musk, SpaceX CEO.

Now, all this spending has stoked fears about an AI bubble. There’s also growing pushback on building new data centres due to concerns about their energy and water consumption. If there’s a sudden pullback in capital expenditure, Nvidia’s growth could slow significantly.

Yet Morgan Stanley still sees total AI investment almost doubling to $1.8trn by 2028. And due to its position at the epicentre of the AI revolution, Nvidia is set to continuing benefiting from this historic buildout, as well as the emerging physical AI/robotics revolution.

The average stock price target among Wall Street analysts is $334 — some 52% higher! It’s easy to see why when Nvidia is trading at just 14 times next year’s forecast earnings.

At this price, I reckon it’s well worth considering buying and holding.

AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue, and demand is accelerating.

Jensen Huang, Nvidia CEO.

Booking

The second stock is Booking Holding (NASDAQ:BKNG). Shares of the travel booking platform have cratered 25% since late August.

Put simply, the market fears that autonomous AI agents will bypass Booking’s platforms by connecting travellers directly with hotel websites. This can’t be ruled out long term, and it could eventually put pressure on the firm’s industry-leading margins.

Thing is though, almost 90% of the company’s booked room nights are for alternative accommodations, boutique hotels, and small regional chains. Only about 10% come from the massive global chains like Marriott and Hilton.

In reality, family-owned European hotels aren’t going to build AI agent interfaces. Also, I’m not convinced that most consumers will trust AI agents to book travel accommodation any time soon.

As CFO Ewout Steenbergen points out: “Booking travel is high stakes, high emotions, high value, and it can’t go wrong. So they [consumers] still very much would like to go to the platform they know and trust and they rely on.”

If AI proves less of a threat than feared, the stock’s currently on sale at just 13.5 times next year’s expected earnings. Booking is also aggressively buying back its own shares.

I think it’s an interesting contrarian play to consider.

Should you invest £5,000 in Nvidia right now?

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And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Nvidia made the list?

Ben McPoland owns shares of Nvidia and SpaceX.