2 Top Stocks to Buy With $500 Right Now

We're coming to the close of 2025, and it has been an excellent year for stocks. The S&P 500 is up by a healthy 14%, while the tech-dominated Nasdaq Composite has jumped 18%, propelled by the growth of new industries like generative AI.

Looking ahead to 2026, investors will want to have exposure to continuing AI momentum as well as diversification into other aspects of the economy. In my view, for those looking to add new stocks to their portfolios now, Amazon (NASDAQ: AMZN) and Hims & Hers Health (NYSE: HIMS) could make great options for a $500 investment.

Amazon

The generative AI boom is beginning to mature, and it might be time for investors to pivot away from pure-play hardware stocks like Nvidia and start choosing companies that can benefit from the technology, but that don't have all their eggs in one basket. Amazon is unusual because it has significant exposure to the lucrative AI infrastructure market while also having the ability to incorporate the technology into its daily operations.

For starters, Amazon is a significant partner with (and minority owner in) leading AI company Anthropic, which specializes in creating large language models (LLMs) similar to OpenAI's ChatGPT. Anthropic has quickly overtaken its rival in the U.S. enterprise LLM market, attracting a market share of 32% compared to OpenAI's 25%, mainly because of its reliability and security.

As an equity partner, Amazon will see the value of its stake in Anthropic grow as the company gets larger, providing it with a source of noncash income. Furthermore, Anthropic relies on Amazon's cloud computing platform, Amazon Web Services (AWS), to build, train, and deploy its models, so it's also providing steady income to the tech giant.

And Amazon is making strides to incorporate generative AI into its own business. In June, CEO Andy Jassy released a memo saying that the new technology could allow the company to reduce its corporate workforce through efficiency gains. Then in October, Amazon slashed 14,000 jobs, potentially saving it billions of dollars.

That said, Amazon's image as the poster child of AI layoffs (even if not all of its job cuts are AI-related) could introduce reputational risks. Investors should watch the situation carefully over the coming months.

Hims & Hers Health

With all the talk about AI, it may seem like there are no other growth opportunities in the market. But that isn't true. Telehealth is shaping up to be a generational megatrend.

According to analysts at J.P. Morgan, the so-called "Internet of Medical Things" could enjoy a compound annual growth rate of 24% through 2030 as a growing proportion of routine healthcare visits for needs such as psychiatric care and regular appointments are done virtually.

Hims & Hers Health stands out in the telehealth space in part because of its edgy Gen Z and millennial-focused branding. Instead of just offering a service, it has turned healthcare into an experience, focusing on addressing personal and sensitive issues like sexual health, hair loss, and weight loss, which some patients might be less comfortable seeing a doctor about in person. It also offers long-established drugs like Viagra in easy-to-take generic forms such as chewable mints, which makes it even more discreet for consumers.

Image source: Getty Images.

Business is booming. Third-quarter revenue surged 49% year over year to $600 million. A growing number of users are turning to Hims & Hers for personalized treatment plans, relying on the platform to serve several of their healthcare needs.

For example, a patient might use the Hims & Hers platform for sexual health, mental health, and weight loss. As a one-stop shop, Hims can save significant time and money for its users.

Hims & Hers is growing at an impressive clip, but it is still struggling to generate significant profits. Its third-quarter operating income actually fell by around half to just $11.8 million, which was relatively low compared to its $600 million in revenue.

That said, investors shouldn't be too worried about this. Management is pouring hundreds of millions into marketing to establish its brand. This long-term focus on winning market share will probably turn out to be more beneficial than chasing short-term profits.

JPMorgan Chase is an advertising partner of Motley Fool Money. Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Hims & Hers Health, JPMorgan Chase, and Nvidia. The Motley Fool has a disclosure policy.