What Is One of the Best Artificial Intelligence (AI) Stocks to Buy Now?

Source Motley_fool

Key Points

  • Microsoft is one of the most diversified tech businesses in the world.

  • Microsoft's partnership with OpenAI saves it time and money versus building these AI models in-house.

  • OpenAI is currently sharing around 20% of its revenue with Microsoft.

  • 10 stocks we like better than Microsoft ›

There is no shortage of artificial intelligence (AI) stocks on the market nowadays. These companies deal with everything ranging from chipmaking to cloud infrastructure to consumer-facing applications, and more. However, not all AI stocks are created equal, and I'd argue that many of these companies are only propped up by the current AI hype.

On the other hand, Microsoft (NASDAQ: MSFT) is a company involved with AI that is diversified, profitable, and already monetizing it at scale. In my opinion, it's undoubtedly one of the best AI stocks to buy now.

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Digital cloud icons arranged on a dark circuit board background, symbolizing cloud computing and data networks.

Image source: Getty Images.

One thing Microsoft has going for it regarding AI is its partnership with OpenAI. This partnership gives Microsoft first dibs on OpenAI's newest models and early integration, which is an advantage for Microsoft because it doesn't take on all the heavy lifting and costs that are required to build and run these advanced AI models in-house. This saves time, resources, and billions in a time when time is of the essence in the AI arms race.

As a bonus, Microsoft currently receives around 20% of OpenAI's revenue, though this figure is projected to be around 8% by the end of the decade. In either case, Microsoft is in a good position to profit from OpenAI's growth while continuing to strengthen its ecosystem of products and services.

Microsoft already has a stronghold on enterprise software and productivity tools. Boosting them with AI features can strengthen their value proposition.

Should you invest $1,000 in Microsoft right now?

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Stefon Walters has positions in Microsoft. The Motley Fool has positions in and recommends Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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