What Is One of the Best Artificial Intelligence (AI) Stocks to Buy Now?

Key Points

• Many AI stocks have been propped up solely by hype.

• Alphabet operates in most phases of the AI pipeline.

• It is one of the lowest-valued "Magnificent Seven" stocks.

• 10 stocks we like better than Alphabet ›

Much of the tech and business world over the past couple of years has revolved around artificial intelligence (AI) and any company remotely dealing with the technology. It has made many AI stocks some of the best-performing stocks during that time, but it has also brought many AI companies into the light that are only there because of pure speculation and hype.

If you're looking for a good AI stock to invest in that has stood the test of time, proven its ability to innovate, and has growth opportunities ahead of it, look no further than Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL).

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Image source: Getty Images.

What makes Alphabet a great AI stock is that it has its hands in virtually all major phases of the technology:

• Its AI research company, DeepMind, is responsible for critical breakthroughs that have pushed the entire AI field forward.
• It has dozens of its own data centers, giving it more infrastructure control.
• Its cloud platform, Google Cloud, allows it to train, deploy, and scale its AI models in-house (and its quantum computing advancements could make this faster and more efficient).
• It has user-facing AI applications like Gemini, Flow, and Whisk.

Alphabet may not be the best in the market in all of these phases, but its significant presence in the AI pipeline allows it to capture value at every stage and rely less on other companies, unlike many of its competitors. The icing on the cake is that Alphabet seems to be undervalued compared to its other "Magnificent Seven" peers.

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

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Stefon Walters has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.