5 Top Artificial Intelligence Stocks to Buy in August

Key Points

• Nvidia and Broadcom are AI infrastructure leaders.

• Palantir's AI platform is driving huge growth for the company.

• Alphabet and GitLab are two AI stocks that are still cheap.

• 10 stocks we like better than Nvidia ›

Artificial intelligence (AI) continues to be reshaping the world we live in, which can be both exciting and scary. It's also reshaping the stock market, and it is certainly an area you want to invest in.

Let's look at the stocks of five AI leaders that would make top stock buys this month.

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Image source: Getty Images.

1. Nvidia

Nvidia (NASDAQ: NVDA) remains the king of AI infrastructure. Its graphics processing units (GPUs) power most AI workloads worldwide, and in the first quarter, it commanded an astonishing 92% of the GPU market. What really sets it apart is its CUDA software platform, which it planted into universities and research labs years before AI went mainstream. That early push created a generation of developers trained on its tools and libraries built on top of its platform, building a moat that rivals struggle to cross.

Nvidia has also accelerated its product cycle, planning new chip launches annually to stay ahead of the competition. Its growth opportunities also go beyond data centers, with the automotive market another big opportunity, thanks to the rise of self-driving and robotaxis.

Nvidia's mix of market dominance, software moat, and expansion into new markets keeps it firmly at the center of AI.

2. Palantir Technologies

Palantir Technologies (NASDAQ: PLTR) started as a critical analytics partner to U.S. government agencies but is now making its mark in commercial markets. Its Artificial Intelligence Platform (AIP) integrates data from numerous sources into an "ontology," allowing AI models to produce clear, actionable results.

AIP is essentially becoming an AI operating system, making it a vital platform as companies begin to use AI in their operations. The strength of AIP could be seen in its Q2 results, as the company's U.S. commercial revenue surged 93%, while its total deal value more than doubled and its customer base climbed 43%.

Given the breadth of use cases across very different industries that AIP can handle, Palantir has a long runway of growth in front of it. The company has continued to see accelerating revenue growth, and the best part is that many of its customers are still in their early stages of usage.

As an essential component of the emerging AI economy, Palantir has the potential to grow into one of the largest companies in the world.

3. Alphabet

Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) is proving that AI can strengthen its core businesses. Search has gained momentum with AI Overviews, which is now being used by over 2 billion people a month, helping drive a 12% year-over-year increase in search revenue last quarter. Google Cloud is another major beneficiary of AI, with its revenue jumping 32% and operating profit more than doubling in Q2, thanks to strong AI demand on its Vertex platform.

Another area that is often overlooked is Alphabet's Tensor Processing Units (TPUs). As inference performance per dollar starts becoming one of the most important factors in running AI models, Alphabet has a nice advantage with its custom chips.

In addition to search and cloud computing, Alphabet is also seeing solid contributions from its other businesses. YouTube ad revenue grew 13% last quarter, with Shorts leading the way. Meanwhile, Waymo is picking up steam, rolling out its robotaxi services to new cities across the U.S.

From a valuation perspective, Alphabet is one of the most attractive AI stocks in the market, trading at a forward P/E just over 20. This makes it a must-own stock.

4. Broadcom

Rather than competing directly with Nvidia with GPUs, chipmaker Broadcom (NASDAQ: AVGO) is playing to its strengths in AI networking and custom chip design. Its Ethernet switches and other networking components are critical for moving vast amounts of data between AI clusters. Demand here is booming, with its AI networking revenue up 70% in Q1.

The real prize, though, may be its work on custom application-specific integrated circuits (ASICs). Broadcom helped develop Alphabet's TPUs and is now designing chips for multiple hyperscalers (companies with massive data centers), with management estimating its top three customers alone could represent a $60 billion to $90 billion opportunity in fiscal 2027.

Its recent acquisition of VMware adds another growth lever, with its Cloud Foundation platform helping enterprises manage AI workloads across hybrid cloud environments. Between its leadership in data center networking components, custom chip expertise, and virtualization software, Broadcom is becoming one of the most important players in AI infrastructure.

5. GitLab

GitLab (NASDAQ: GTLB) is evolving from a code repository into a full-fledged AI-powered software development platform. Its GitLab 18 release brought more than 30 upgrades, including Duo Agent, which can automate testing, deployment, security, and monitoring. That's important, because developers spend only a fraction of their time writing code. Automating the rest of the workflow can dramatically increase productivity.

GitLab has delivered steady 25%-plus revenue growth since going public, with Q1 sales rising 27% year over year. The value of its platform in an AI-driven development world opens the door to a possible shift from seat-based to consumption-based pricing, which could drive revenue even higher. With AI changing how software is built, GitLab's end-to-end approach positions it as a key player in enterprise software development.

As investors worry about the impact of AI on software, GitLab's stock has fallen to a very attractive valuation of a forward price-to-sales (P/S) ratio of 7 times the 2025 analyst estimates.

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Geoffrey Seiler has positions in Alphabet and GitLab. The Motley Fool has positions in and recommends Alphabet, GitLab, Nvidia, and Palantir Technologies. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.