2 No-Brainer Artificial Intelligence (AI) Stocks to Buy Right Now

Key Points

• Applying AI across its operations helps keep Amazon stock in growth mode.

• An AI-driven loan evaluation model could drive outsized returns for shareholders in Upstart Holdings.

• 10 stocks we like better than Amazon ›

Investments related to artificial intelligence (AI) tend to attract considerable interest and investor returns. As this technology offers new innovations and transforms existing industries, these company's shareholders will likely reap the benefits.

Although investors may widely understand some of these available opportunities, the range of lucrative AI investments will likely extend far beyond AI stalwarts such as Nvidia and Palantir. As the technology brings more transformation, investors should prepare for these stocks to rise amid an increased AI focus.

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Amazon

At this point, investors widely understand the success of Amazon (NASDAQ: AMZN). As a pioneer in e-commerce and cloud computing, it has evolved into a conglomerate supported by several consumer-related and tech businesses.

Still, if that leads consumers and investors to overlook it as an AI company, they are likely making a huge mistake. As the world's leading cloud infrastructure company, Amazon Web Services (AWS) plays a critical role in supporting AI-related functions for its clients.

Its generative AI application builder, chatbots, and code builders are just a few examples. Considering that AWS makes up the majority of the company's operating income, this success is crucial to its growth.

The examples are also extensive on the e-commerce side of the business. It supports shopping services and customer service functions for its customers. That underpins fast-growing enterprises within the company, such as digital advertising and third-party seller services. Additionally, AI bolsters robotics and supply chain management to improve efficiencies within its logistics network.

Even though it generated $323 billion in net sales in the first half of 2025, its 11% annual growth is slower than in past years. Still, Amazon kept cost and expense growth in check, meaning its $35 billion in net income for the period grew by 48% compared to year-ago levels.

Overall, the stock is up by about 25% over the last year, which lags the aforementioned rate of profit growth.

However, its 35 price-to-earnings (P/E) ratio is not far above the S&P 500 average of 31, meaning the stock sells at a significant discount compared to past years. With its profits likely to continue growing at a rapid pace, now appears to be a great time to add shares.

Upstart Holdings

Upstart Holdings (NASDAQ: UPST) applies AI to a business long overdue for a technical upgrade -- loan evaluation.

The Fair Isaac Corporation controls the dominant loan evaluation metric, the FICO Score. Nonetheless, the scoring system has not undergone a significant update since its introduction in 1989, leaving the industry vulnerable to competitive challenges.

Upstart continues to upgrade its technology, updating its AI-driven model and approving 92% of loan applications without human intervention. Thanks to the added factors it considers, its model can approve 101% more applicants without increasing risks to lenders, according to Upstart.

Additionally, Upstart has derived the majority of its revenue from evaluating personal loans. Still, it is gaining traction in the auto loan market, and it has begun evaluating applicants for home equity lines of credit. Those avenues should dramatically expand the company's addressable market.

Amid those initiatives, investors should expect considerable growth for Upstart over the next few years. Also, on a macro level, the Federal Reserve moved to trim interest rates, a factor that should further supercharge growth.

Indeed, growth has returned to Upstart after recent declines in loan volumes. In the first half of 2025, revenue of $471 million increased by 84% compared to the same period last year.

During that period, it limited the rise in expenses to 24%, returning the company to profitability. Though the net income for the first two quarters of 2025 is just $3.2 million, it is a vast improvement from the $119 million loss during the same time frame in 2024. Investors have noticed these improvements, and the stock is up by almost 75% over the last year.

Admittedly, the profit levels are too modest to yield an applicable P/E ratio. Still, the forward earnings multiple of 40 is arguably cheap when considering its AI-driven potential for transformation, making Upstart stock an attractive choice for investors.

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Will Healy has positions in Upstart. The Motley Fool has positions in and recommends Amazon, Nvidia, Palantir Technologies, and Upstart. The Motley Fool recommends Fair Isaac. The Motley Fool has a disclosure policy.