Missed the First AI Wave? These 3 Stocks Are Still Genius Picks.

Artificial intelligence (AI) investing has been a major market trend over the past three and a half years, but many investors who haven't taken full advantage of the trend may be worried that they have missed their opportunity. However, I don't think it's too late. There are countless AI companies that are primed for even more upside.

The reality is the AI race is far from over, and several stocks in the sector look like top buys right now.

Image source: Getty Images.

Nvidia

Nvidia (NASDAQ: NVDA) has been a market leader since 2023, when this phase of the AI megatrend began to take off. It's the No. 1 provider of parallel processing power for data centers, and it will retain that title until someone takes it from it. Despite its now-monstrous size, it keeps putting up jaw-dropping growth; the average Wall Street analyst projects 73% revenue growth this year. Analysts have historically underestimated how fast Nvidia would grow, but they still project a 33% growth rate next year. However, that consensus estimate will likely rise.

This follows a pattern that Nvidia has already told investors about. By 2030, the company believes global annual data center capital expenditures will total $3 trillion to $4 trillion. That's a huge amount of spending, and would require many companies to ramp up their capital expenditures for several years. Investors are already expecting record expenditures on AI infrastructure in 2026, and 2027 will likely bring more of the same. One of Nvidia's biggest clients, Alphabet, has already informed investors that 2027's capital expenditures will be "substantially higher" than 2026's.

The signs all point to Nvidia's growth streak extending for many more years, making it an excellent stock to buy and hold.

Meta Platforms

Meta Platforms (NASDAQ: META) is just waiting for its moment in the sun. Although it most resembles an advertising company right now, as its revenues come primarily from the ad space it sells on Facebook, Instagram, WhatsApp, and Threads, it has several AI pursuits.

It's working on building what it describes as a personal superintelligence platform it can bring to the masses, and is trying to implement that in conjunction with AI-enabled smartglasses. These wearable devices would move AI away from the keyboard and make its smartglasses more useful as a digital assistant than any device before them. However, Meta is still working on both of these products -- it's not clear if they will pan out.

Regardless, Meta's current business is doing just fine on its own, with revenue rising 33% year over year. With the strong ad business to keep Meta thriving while it develops new products, it makes for a smart, low-risk, high-potential-reward investment.

Micron

The AI build-out has consumed nearly all of the world's production capacity for memory chips. With insufficient supply and high demand, memory chip prices are skyrocketing. That has allowed memory chip fabricators like Micron (NASDAQ: MU) to thrive, and resulted in better results for the company than it has ever delivered before.

Even with a huge surge in the top line already behind it, Wall Street analysts project additional major growth for Micron. Its revenues are expected to rise by 193% this year and by 57% next year. The memory shortage will take several years to sort out, as it takes time to build the fabrication facilities in which these chips are made. Furthermore, with the overall demand for AI computing power increasing, memory demand will likewise rise. This will keep the supply crunch going for several years, at least.

That bodes well for Micron's future, and I think it could be an excellent stock pick over the next few years, but investors will need to keep a close eye on this one in case memory demand falters.

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