The Best Stocks to Invest $1,000 in Right Now

Key Points

• Nvidia and Microsoft are leading the AI charge and will likely maintain their positions for years to come.

• Amazon looks like a good buy right now as investors overlook the company's long-term potential.

• The Vanguard S&P 500 ETF isn't technically a stock, but the fund is still a fantastic place to let your money grow.

• 10 stocks we like better than Nvidia ›

Whether you're just getting started in investing or you've been doing it for years, it can be overwhelming to whittle so many investment opportunities down to just a few to choose from. That's why it's helpful to occasionally scan a list of the best stocks to pick, in case one or two ideas have slipped off your radar.

Admittedly, the ideas below are likely stocks you've heard about before, but I think each one gives investors a unique opportunity to benefit from right now -- and all are certainly worth putting $1,000 towards and holding for years to come. Here's why each is a 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 »

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1. Nvidia

Nvidia (NASDAQ: NVDA) deserves a spot on this list because the company is the runaway leader in artificial intelligence (AI). While nearly every tech company is fighting for AI software dominance right now, Nvidia gets to sit back and benefit no matter who comes out ahead.

That's because the company designs most of the processors used in AI data centers -- with a massively impressive 70% to 95% of the market -- and all the tech giants are essentially buying up as many Nvidia processors as they can to compete with each other. That's led to Nvidia's revenue spiking 69% in first-quarter 2026 to $44.1 billion and earnings rising 33% to $0.81.

With the AI data center market poised to reach an estimated $2 trillion by 2029, Nvidia likely isn't done benefiting from this AI turf war.

2. Amazon

Some investors might be surprised to see Amazon (NASDAQ: AMZN) on this list, since the stock failed to keep pace with the S&P 500's gains year to date. But I think investors are missing Amazon's long-term opportunities as they chase flashier companies.

What other company dominates the U.S. e-commerce market, leads the cloud computing market, and is now a rising advertising company all at the same time? With its e-commerce market share of 40%, cloud market share of 41%, and an estimated 14% of the U.S. digital ad market, I don't see why investors are shunning Amazon stock.

Sure, cloud sales could be growing faster, but there's no sign of real concern -- especially when Amazon's total sales rose 13% to $168 billion and earnings jumped 33% to $1.68 in the recent quarter. With a price-to-earnings (P/E) ratio of about 34, Amazon's stock looks like a good deal compared to the average P/E ratio of 51 for internet companies.

3. Microsoft

If it's been a while since you've considered buying Microsoft (NASDAQ: MSFT) stock, now is the time to revisit the idea. Microsoft wisely made early investments in OpenAI, giving it the ability to integrate ChatGPT into its products early and catching many of Microsoft's rivals flatfooted.

Many companies have an impressive AI chatbot these days, though. Microsoft's real advantage is that it incorporated AI into its Azure cloud computing service and its widespread Microsoft 365 suite of products. Microsoft's cloud and AI revenue rose 27% in the quarter to $46.7 billion, and there's more where that came from.

As the second-largest cloud computing provider and the fastest-growing, Microsoft's early moves in AI could help set it apart in the cloud market. That matters for the company's long-term growth prospects, because global AI cloud revenue will reach an estimated $2 trillion by 2030.

4. Vanguard S&P 500 ETF

This one is a bit of a curveball because it's not exactly a stock, but rather an exchange-traded fund. But what good are rules, if not to be broken, right? This fund should be on your buy list because it tracks the S&P 500, giving you exposure to the U.S. economy, no matter which part is growing.

The Vanguard S&P 500 ETF (NYSEMKT: VOO) makes it easy for you to track the market and does so with little cost to you. The fund's expense ratio is just 0.03% annually.

If you want to invest in the market, but don't feel like picking individual stocks, the Vanguard S&P 500 ETF is as close to set-it-and-forget-it investing as you can get. Not only is this a great way to let your money grow over time, keeping your money in the fund is a good way to avoid trying to time the market, which is especially difficult during uncertain economic times.

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

Before you buy stock in Nvidia, consider this:

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See the 10 stocks »

*Stock Advisor returns as of August 13, 2025

Chris Neiger has positions in Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Amazon, Microsoft, Nvidia, and Vanguard S&P 500 ETF. 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.