The Best Stocks to Invest $1,000 in Right Now

Technology stocks, especially those involved in the hot growth area of artificial intelligence (AI), have soared in recent years. And that meant that, for bargain-hunting investors, it was difficult to find an entry point. But in recent weeks, these stocks have declined, led by many top-quality players.

The reasons for this movement? Some are linked to AI, such as the risk that the future revenue opportunity may not meet expectations. Others aren't linked to the industry -- for example, concerns about the war in Iran -- but still weigh on investors' appetite for stocks, particularly those that rely on economic growth.

The turmoil has left many stocks trading at bargain prices, making them fantastic buys -- let's check out the best stocks to invest $1,000 in right now. (For that amount, you can get in on all three.)

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1. Nvidia

Nvidia (NASDAQ: NVDA) is the cheapest of these three tech giants, trading near its lowest level in about a year.

MSFT PE Ratio (Forward) data by YCharts

This dirt cheap price is a real opportunity, considering Nvidia's strength in the booming AI market. The company dominates the AI chip market, and the fact that it prioritizes innovation should keep it in that position. Nvidia has pledged to update its chips annually, a move that may regularly boost revenue and, potentially, the stock price too.

It's also important to note that cloud companies are pouring investment into infrastructure scale-up right now, and as chips are an integral part of this, Nvidia is set to benefit.

2. Alphabet

Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is using AI to improve its Google Search platform, and this is important because, through advertising, this is the company's biggest revenue driver. The tech giant has developed its own large language model and is using it to power these improvements.

Meanwhile, Alphabet also is seeing Google Cloud growth soar thanks to demand for generative AI and AI infrastructure. This is a growing and key revenue source for the company, and with AI in its early days right now, Google Cloud could have plenty of room for additional gains in the years to come.

This makes Alphabet stock look like a bargain you won't want to miss at today's level.

3. Microsoft

Microsoft (NASDAQ: MSFT) is a technology giant with a long-established history across software, cloud services, and more. This has delivered earnings growth over time.

MSFT Revenue (Annual) data by YCharts

On top of this, Microsoft has become an AI powerhouse, thanks to its cloud operations and its investment in AI lab OpenAI. In the most recent quarter, cloud services revenue soared 39%, and Microsoft spoke of high demand for its broad range of cloud services.

Analysts predict the AI market is heading for $2 trillion by early next decade, so there should be plenty of room for Microsoft's cloud and other giants to benefit. All of this means right now, Microsoft looks like a steal -- and a great way to invest part of your $1,000.

Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.