My 3 Favorite Stocks to Buy Right Now

The U.S. equity market has been volatile in 2025, demonstrating sharp swings and record-breaking highs. However, investors seem to remain optimistic, considering that the AAII Sentiment Survey registered at 44.03% bullish at the end of October, higher than its long-term average of 37.6%.

The technology-heavy Nasdaq Composite index is currently up by 23.4% so far in 2025. Despite concerns about rising inflation and interest rate cuts, corporate earnings are growing at an exceptional pace.

Against this backdrop, it makes sense to pick stakes in companies with sustainable growth drivers, large addressable markets, and clear competitive advantages. Here's why I think these three exceptional stocks are strong buys now.

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Alphabet

Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) has surpassed the $100 billion quarterly revenue milestone for the first time in its history, in the third quarter of its fiscal 2025. The company's net income also soared 33% year over year to roughly $35 billion. This demonstrates that while artificial intelligence (AI) was previously perceived as a threat, the company has successfully leveraged it into a high-margin opportunity.

The company's AI Overviews and AI Mode features are already driving higher volumes of total queries and commercial queries for the Search business. The monetization of advertisements below and within the response in AI Overviews (which is at baseline) is at the same rate as in traditional search.

Google Cloud is also benefiting from the explosive demand for AI infrastructure services, with revenue soaring 34% year over year to $15.2 billion and an operating margin of 23.7% in the third quarter. The cloud business's contracted backlog also grew 82% year over year to $155 billion at the end of the third quarter, suggesting strong multi-year revenue visibility.

Some investors may be concerned about Alphabet's heavy projected capital investment of nearly $91 billion to $93 billion in AI initiatives and the subsequent jump in depreciation expenses in 2025. However, while the company's strategy of investing in data center capacity may prove painful in the short run, it can translate into impressive share price gains for Alphabet in the next few years.

Broadcom

Broadcom's (NASDAQ: AVGO) custom AI chips and networking solutions have become mission-critical in the global AI infrastructure buildout. Besides its three major hyperscaler clients, the company has secured orders worth over $10 billion for racks of AI accelerators from a fourth prominent hyperscaler customer.

Additionally, the company has also partnered with OpenAI to develop and deploy the latter's 10-gigawatt worth of custom chips starting in the second half of 2026. Anthropic has expanded its partnership to utilize Alphabet's nearly one million tensor processing units (TPUs), which will increase its compute capacity by over 1 gigawatt by 2026. Broadcom is expected to benefit, as it has been the primary co-designer for these TPUs.

Broadcom's networking chips, such as the Tomahawk 6 switch and Jericho fabric routers, are being used widely to enable low-latency and high-bandwidth networking in large AI clusters, within data centers, as well as between data centers located at different sites. Infrastructure software has also become a key growth engine, with revenue increasing 17% year over year to $6.8 billion and accounting for 43% of the company's total revenue.

The company's revenue was up 22% year over year to $16 billion, while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin was 67% in the third quarter. With a contracted backlog of $110 billion, Broadcom is well-positioned to continue posting impressive results in the coming quarters.

Amazon

Amazon (NASDAQ: AMZN) has stepped back into the spotlight, driven by reacceleration in growth at its cloud computing business, AWS. In the third quarter, AWS revenue increased 20.2% year over year to $33 billion, putting the business on an annualized run rate of $132 billion.

Amazon's broad infrastructure and complete control of the technology stack enabled it to attract several prominent customers. Anthropic is currently using Amazon's project Rainier, involving multiple U.S. data centers with nearly 500,000 Trainium2 chips, to train the next version of the Claude AI model. The company expects Anthropic to use more than one million Trainium 2 chips by the end of 2025.

Amazon has also entered into a $38 billion deal with OpenAI, allowing the latter to run its core AI workloads on AWS for the next seven years. These deals highlight AWS' execution capabilities at massive scale, especially for complex AI workloads. AWS also has exceptional multi-year revenue visibility.

Besides AWS, advertising is also a significant high-margin growth engine, with revenue growing 22% year over year to $17.7 billion in the third quarter. The e-commerce business is also becoming strong, as the company focuses on same-day delivery and expansion in rural areas.

Amazon's revenue increased 13.4% year over year to $180.2 billion, and operating income was $17.4 billion in the third quarter. The company has added 3.8 gigawatts of data center capacity over the last 12 months and expects to double capacity by 2027. Amazon has also guided for capital expenditures to be around $125 billion in 2025 and even higher in 2026. Not surprisingly, rising depreciation expenses can put pressure on margins over the next couple of years.

Despite this, Amazon is riding several robust AI-powered tailwinds and is balancing growth and profitability. Hence, the payoff for investing in this stock seems attractive for a long-term investor.

Manali Pradhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Amazon. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.