5 No-Brainer Artificial intelligence (AI) Stocks to Buy Right Now

Source Motley_fool

Artificial intelligence (AI) is quickly changing the world we live in. With the technology perhaps being a once-in-a-generation opportunity, it's not too late to invest in the stocks leading the AI charge.

Let's look at five leading AI stocks to buy right now.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Artist rendering of AI chip.

Image source: Getty Images.

1. Palantir Technologies

Palantir Technologies (NASDAQ: PLTR) is quickly emerging as one of the most compelling growth stories in AI by helping organizations actually put AI to work.

By gathering data and structuring it into an "ontology," Palantir's AI platform (AIP) maps digital assets to real-world objects and processes to let customers apply AI to solve real-world problems. AIP is being used for a variety of tasks, from optimizing supply chains to automating underwriting to even monitoring for sepsis in hospitals.

While the company has long been an important government vendor, Palantir's growth is currently being powered by the U.S. public sector. Given the wide array of applications across industries that AIP can be used for, Palantir has a massive opportunity in front of it.

Recently, Palantir has introduced AI agents within AIP that go beyond analysis to take action. Agentic AI is becoming the next big AI push, and could be a big growth driver for the company.

That said, the stock isn't cheap, and government budget cuts could potentially impact growth. Still, Palantir's technology looks unmatched, and the company is well-positioned to be a long-term AI leader.

2. Nvidia

Nvidia (NASDAQ: NVDA) continues to be one of the top ways to invest in the AI infrastructure boom. Its graphics processing units (GPUs) are the backbone of AI data centers thanks to their powerful parallel processing capabilities. And as the engine that helps run AI workloads, demand for GPUs continues to soar as organizations race to build and run AI models and apps.

Nvidia's real moat, however, comes from its CUDA software platform, which it created to make it easier for developers to program its chips. Since then, it has built a powerful suite of tools and libraries that further enhance its GPUs' performance for AI workloads.

The tight integration between its powerful GPUs and CUDA helped Nvidia attain an over 90% share in the GPU market in Q1. Its new Blackwell chips are ramping up faster than any product in its history, and demand for its full-stack AI "factories" continues to surge. Beyond the data center, Nvidia is also gaining traction in the automotive space, with revenue expected to hit $5 billion this year.

A slowdown in AI spending is a risk, but Nvidia remains one of the best-positioned companies to benefit from the AI infrastructure build-out.

3. Advanced Micro Devices

While it may trail Nvidia by a wide margin in the GPU space, Advanced Micro Devices (NASDAQ: AMD) is nonetheless still carving out a niche in AI infrastructure, especially in inference.

While Nvidia's GPUs dominate AI training thanks to its powerful CUDA software platform, inference is a bit of a different story. Inference is less technically demanding, with more emphasis on latency, power, and cost. In fact, AMD recently said that one of the largest AI model companies is using its chips for a significant portion of its daily inference traffic.

That's important because the AI inference market is expected to become much larger than training over time. Even if AMD is only able to take some moderate market share away from Nvidia, given the size and growth of this market, it would still be meaningful.

At the same time, AMD has become a leader in data center central processing units (CPUs), where it's steadily gaining share. While not as large of a market as GPUs, this is still a strong and growing part of the AI infrastructure build-out.

The biggest risk for AMD is that it will always play second fiddle to Nvidia, or that AI infrastructure spending slows. But if inference spending takes off and AMD can grab some share, its stock should have a lot of upsides from here.

4. Taiwan Semiconductor Manufacturing

Another beneficiary of the AI infrastructure boom is Taiwan Semiconductor Manufacturing (NYSE: TSM), or TSMC. As the world's leading semiconductor contract manufacturer, TSMC is the company that actually makes advanced chips, such as GPUs.

Profitably producing advanced chips at scale isn't easy. It requires cutting-edge technology, high utilization, and precision manufacturing. For its part, TSMC has become the leader in advanced nodes and packaging, which is the manufacturing process that allows more transistors to fit on a chip, making them both more powerful and energy efficient. With rivals Intel and Samsung struggling, TSMC has become the go-to partner for top chip designers.

This has given the company strong pricing power and made it an integral part of the semiconductor supply chain. TSMC is currently working closely with its largest customers to expand capacity to keep up with the high demand for AI chips.

The biggest risk is a slowdown in AI infrastructure spending, which could hit both revenue and fab utilization. But given how tight advanced-node capacity is today, that risk seems manageable. For long-term investors, TSMC looks like a great way to play the continued growth of AI and advanced semiconductors.

5. Alphabet

While Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) continues to face questions about whether AI will disrupt its dominant search business, the reality is far more nuanced. Yes, Apple recently claimed Google searches through its Safari browser fell for the first time, but that came during an antitrust trial, where Apple had every incentive to downplay Google's strength. Meanwhile, Alphabet said its search queries continue to grow, with Q1 search revenue climbing 10%.

More importantly, Alphabet is adapting, which is what all great technology companies eventually have to do. Its new AI-powered search tools are focused on monetizing commercial queries, which has always been its bread and butter. Features like Shop by AI and virtual try-ons aren't gimmicks; they're smart moves to capture purchase intent in an AI world.

Meanwhile, with decades of adtech experience and a massive distribution advantage through Android and Chrome, Alphabet is still in the driver's seat.

Beyond search, Alphabet is seeing strong growth in its cloud computing business, Google Cloud, as customers build AI models and apps through its Vertex AI platform and run them on its data center infrastructure. In addition, the company has also taken the lead in autonomous driving through its Waymo robotaxi business, which is expanding quickly throughout the U.S. This is a compelling long-term opportunity not priced into the stock.

Risks remain around government regulation and AI competition, but with a forward P/E of less than 19 times, the stock is dirt cheap for a company with so many growth levers.

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Geoffrey Seiler has positions in Alphabet. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Apple, Intel, Nvidia, Palantir Technologies, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy.

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