Here Are My 3 Top Artificial Intelligence (AI) Stocks to Buy in August

With August here, we're well over the halfway point in 2026. That may be a scary proposition, but it should also have investors hunting for bargain opportunities. I think there are several out there, and now is the perfect time to pounce on them before the market realizes how cheap some of these stocks are.

Three that I'm bullish on are Nvidia (NASDAQ: NVDA), Micron (NASDAQ: MU), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). These companies are delivering excellent results, yet the market isn't quite on board with them as it once was. I think that trend will reverse over the last few months of 2026, making them perfect buys now.

Image source: Getty Images.

1. Nvidia

Nvidia has been a must-own stock in the market since the AI arms race kicked off in 2023; 2026 has been a caveat to that trend. Nvidia's stock is barely positive this year, but that has more to do with market sentiment than actual performance.

Last quarter, the company's revenue growth rate continued to accelerate, coming in at an 85% year-over-year pace. For its second quarter, Wall Street expects that same trend to continue with revenue growth approaching 100%.

Normally, that kind of performance would fetch a hefty premium for the stock, but that's not the case at all. Nvidia now trades at less than 30 times earnings, by far the lowest it has traded in the past few years.

NVDA PE Ratio data by YCharts

With how rapidly Nvidia is growing, I think this price tag is a gift to investors, and they should scoop up shares while they have the chance, as buying opportunities this good rarely come around for Nvidia stock.

2. Micron

In the first half of 2026, Micron was the darling of the stock market, rising more than 300% from the start of the year to the end of June. However, investors began taking profits as soon as the calendar year was halfway through, and Micron now sits about 40% down from its all-time highs. I think this is a huge mistake, because the catalysts that pushed Micron's stock higher are the same ones that will be prevalent in 2026 and 2027.

Micron makes memory chips, and these have been in short supply throughout all of 2026 due to data center demand exceeding industry supply. That has caused prices to skyrocket, boosting Micron's revenue and profits.

While the memory chip market is historically cyclical, this cycle may last a few years due to the sheer magnitude of the demand wave. Micron's management team has already informed investors that they expect "tightness" in the memory chip market beyond 2027, so there is plenty of time for Micron to continue rising.

I think this makes Micron a perfect stock to buy now, and investors who missed out on the initial run can use this sale price to make up for it.

3. Alphabet

Last is Alphabet, which has also sold off in recent weeks. Despite a strong 2026 overall, Alphabet is now down about 15% from its all-time high set at the start of May. Alphabet has been booming as a business, with its latest Q2 results exceeding all expectations.

Revenue rose 24% year over year, and profits skyrocketed thanks to a huge gain on the investment in the Space Exploration Technologies IPO. However, Alphabet still has the shares, so the gain is just on paper. Alphabet could elect to sell shares, as it would help fund its massive data center build-out. Time will tell what it does, but there's certainly a demand for its computing capabilities.

Google Cloud saw revenue skyrocket 82% year over year, indicating major demand for its computing capabilities. That helps justify its massive AI spending bill, and with its core business also benefiting as well, Alphabet looks like a strong stock pick in the AI arms race. With the stock selling off in recent weeks, I think now is the perfect time to pounce and scoop up shares.

Keithen Drury has positions in Alphabet and Nvidia. The Motley Fool has positions in and recommends Alphabet, Micron Technology, and Nvidia. The Motley Fool has a disclosure policy.