3 No-Brainer Artificial Intelligence (AI) Stocks That Can Be Suitable Options for Any Investor

Source The Motley Fool

If you want to invest in artificial intelligence (AI), the good news is there are a lot of options for you to consider. But not all of them are safe.

If you're a risk-averse investor or simply want exposure to AI without having to worry about your portfolio, there are some excellent stocks to consider that you can simply buy and forget about. Nvidia (NASDAQ: NVDA), Microsoft (NASDAQ: MSFT), and Amazon (NASDAQ: AMZN) are big names in tech, and they can also benefit significantly from AI.

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Here's why investing in these three behemoths may be a great way to keep your risk low while still potentially setting yourself up for some great long-run returns.

An elderly person using an AI chatbot.

Image source: Getty Images.

1. Nvidia

Chipmaker Nvidia is simply unstoppable. I don't think it will double or triple in value anytime soon given that its valuation is already fairly high at more than $3 trillion. But I still see it as being a solid growth stock to hang on to for both the short and long terms.

The biggest risk facing the business today is a slowdown in AI spending. If that happens, its growth will take a hit, and investors may opt for other growth stocks instead.

But that's already been happening. As of the end of last week, Nvidia's stock was up just 6% since the start of the year, and that return would have been worse if not for a recent rally. Investors have already begun to pivot to other hot AI stocks.

What I like about the company are its incredibly high profit margins. Even though it took a $4.5 billion hit in its most recent quarter (ended April 27) due to U.S. export restrictions to China, its net income still totaled $18.8 billion and was nearly 43% of its top line, $44.1 billion.

Nvidia looks to be an unshakable company. And while its valuation may seem high, trading at an estimated 33 times its expected future earnings (based on analyst expectations), it's still a slam-dunk buy given its dominance in the AI chip market.

2. Microsoft

An even safer stock than Nvidia may be Microsoft. What's great about this business is that it's less dependent on just the AI market than Nvidia. It doesn't make chips, but it does have its AI Copilot, which enhances the company's existing software, including its popular office products.

Microsoft has been a big name in tech for decades, and the company is looking to cash in on this new growth opportunity. One catalyst that may still be waiting in the wings is growth in its computer business as Copilot-powered personal computers and devices are now available and could appeal to consumers who want stronger machines. But with the economy being less than ideal right now, it may take some time before demand takes off.

For now, however, Microsoft is still doing well, reporting 13% revenue growth in its most recent quarter (which ended March 31), with its top line hitting $70.1 billion and profits rising by 18% to $25.8 billion.

3. Amazon

Another diverse tech company that can benefit significantly from AI is Amazon. Its growth opportunities are so plentiful that I believe it will become more valuable than the stocks listed here. Not only is it making its own chips, but it is also investing heavily into AI data centers, chatbots, and even robotaxis via its Zoox subsidiary.

And on top of all this, Amazon still has the most popular online marketplace in the world, which can benefit from AI helping people find which items they want to buy, and helping sellers develop effective marketing strategies. The company's net sales through the first three months of the year totaled $155.7 billion, which was an increase of 10% when excluding the impact of foreign exchange.

Its already robust cloud business, Amazon Web Services, which drives the bulk of the company's operating profit, should benefit significantly from more AI-powered growth as more businesses store data in the cloud. Last quarter, the segment generated $11.5 billion in operating profit, accounting for 63% of the company's total. More growth in that area of its operations should result in even better profits in the future.

Amazon's business is incredibly strong, and with its operations potentially getting even more diversified in the future, this is one of the safest AI stocks to own.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

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