New: Introducing the Finviz Crypto Map

Learn More

4 No-Brainer Artificial Intelligence (AI) Stocks to Buy Right Now

By Lyle Daly | July 25, 2025, 3:36 AM

Key Points

  • Chipmakers like Nvidia and Taiwan Semiconductor are reporting soaring revenue.

  • Alphabet is tying generative AI technology into its already successful Google Search and Android OS businesses.

  • Amazon is improving order fulfillment with mobile robots and developing AI tools for its customers, sellers, and advertisers.

Artificial intelligence (AI) stocks have been delivering incredible gains to investors. And with so many companies using AI technology, there's no shortage of investment opportunities.

While businesses involving new technology can be volatile, you don't need to take on outsized risk to get AI exposure. The four companies below are all highly successful and should be long-term winners.

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

A wide angle shot of a large Nvidia building.

Image source: Getty Images.

1. Nvidia

Nvidia (NASDAQ: NVDA) is the largest AI chipmaker and the largest company in the world, with a market cap of $4.2 trillion as of July 18. While Nvidia is on the expensive side -- it trades at more than 55 times earnings -- it has also delivered double-digit revenue growth for nine consecutive quarters.

Considering the popularity of Nvidia's graphics processing units (GPUs), a crucial part of generative AI infrastructure, that trend should continue. AI hyperscalers are investing heavily in data centers. They spent $430 billion on data centers in 2024, and that's expected to rise to $1.1 trillion by 2029. Nvidia had a 92% share of the data center GPU market in Q1.

In addition to holding a dominant position in a rapidly growing market, Nvidia is a well-run company with a fantastic company culture, ranking fourth on Glassdoor's list of the best places to work in 2025. Even with a high valuation, this is an excellent business that plays a key role in AI development.

2. Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing (NYSE: TSM), often shortened to TSMC, is another company that's essential to chipmaking. Other companies design chips, but TSMC handles the manufacturing. Most of the major semiconductor companies are clients of TSMC, including Nvidia, Advanced Micro Devices, Apple, and Qualcomm.

Rising demand for AI chips has driven substantial revenue growth for TSMC. In Q1 2025, TSMC reported $25.5 billion in net revenue, up 35% year over year. It also grew its profit margin, with earnings per share (EPS) increasing 54% to $2.12.

For a fast-growing tech company, TSMC isn't prohibitively expensive. It trades at less than 28 times earnings at the time of this writing, far cheaper than the Nasdaq-100 index.

3. Alphabet

Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) had a strong start to the year, as revenue grew 12% year over year to $90.2 billion in Q1 2025. Operating margin increased from 32% to 34%, and EPS increased 49% to $2.81.

You wouldn't know it from Alphabet's share price, which is down 2% on the year. The prevailing sentiment around this tech giant is concern regarding its online search business. Google Search accounted for 56% of its revenue last quarter ($50.7 billion). The growing popularity of ChatGPT and other generative AI chatbots will likely impact that business. If people can get their questions answered by a chatbot, they won't need to search the web as much.

But Alphabet is leveraging AI to improve its products and services. Google Search results now feature AI Overviews, which have 1.5 billion users per month. Google Gemini, while far behind ChatGPT, is the third-largest AI chatbot with a 13.5% market share. I'd expect that number to grow significantly, given that Gemini is now the default AI assistant on devices running Android 10 or later. Android has a 74% share of the mobile operating system market as of June 2025.

Trading at less than 21 times earnings, Alphabet is cheaper than the S&P 500 index. This is a great opportunity to buy one of the top tech companies without paying a premium.

4. Amazon

Amazon (NASDAQ: AMZN) is best known for its online retail dominance, and it has incorporated AI to streamline its operations. For a recent example, it's the largest manufacturer of mobile robotics and hit a major milestone last month when it deployed its one-millionth robot. The company also introduced a new generative AI model, DeepFleet, which improves the travel time of its robotic fleet through its fulfillment network by 10%.

CEO Andy Jassy said last month that Amazon has more than 1,000 generative AI services and applications in progress or built. This includes tools for customers, sellers, and advertisers who use Amazon and Amazon Web Services (AWS).

Looking at the most recent numbers, Amazon grew net sales by 9% year over year to $155.7 billion in Q1 2025. Growth in EPS was particularly impressive, jumping 62% to $1.59. Even with shares trading at about 37 times earnings, Amazon is a quality AI stock to have in your portfolio.

Should you invest $1,000 in Nvidia right now?

Before you buy stock in Nvidia, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $634,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,046,799!*

Now, it’s worth noting Stock Advisor’s total average return is 1,037% — a market-crushing outperformance compared to 182% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 21, 2025

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Lyle Daly has positions in Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

Latest News