Top AI Stocks You Should Buy to Rejuvenate Your Portfolio

An updated edition of the Aug. 19, 2025, article.

Artificial Intelligence (AI) is reshaping industries by enabling machines to analyze vast datasets, identify patterns and make informed decisions. The rapid deployment of generative AI (Gen AI), agentic AI, and multi-modal learning supported by advanced hardware like GPUs and TPUs is fueling innovation across healthcare, finance, robotics, cybersecurity and e-commerce. AI now powers chatbots, diagnostics, fraud detection and autonomous systems, boosting agility while simultaneously improving efficiency.

Per IDC, global spending on AI is expected to reach $307 billion in 2025, expanding to $632 billion by 2028. Per Gartner, global Gen AI spending is expected to hit $644 billion in 2025, indicating 76.4% growth over 2024. U.S. tech giants, including Microsoft MSFT, Adobe, Alphabet GOOGL and Meta Platforms META, have been at the forefront of bringing remarkable advances to AI technology, well supported by powerful AI chips from NVIDIA NVDA, Analog Devices ADI and Micron Technology MU. The recent deal between Open-AI and AMD reflects growing demand for AI chips.

Microsoft-backed OpenAI introduced GPT-5 in August, which offers multi-modal understanding across text, images, audio and more. The latest model offers stronger reasoning, emotional intelligence, persistent memory for personalized interactions and an autonomous task-performing agent. AI is evolving rapidly, with Meta Platforms’ latest AI systems boasting self-improvement without human intervention, pushing AI toward superintelligence. Anthropic released Claude Opus 4.1 in August for data analysis tasks, while Alphabet introduced Nano Banana (Gemini 2.5 Flash Image) for image generation and editing.

Alphabet is infusing AI into its search business in order to attract more users, while Meta Platforms’ focus on integrating AI into its platforms is driving user engagement. Both initiatives are driving ad revenue growth. 

We believe that the rapid deployment of AI technology and huge spending on its development efforts offer significant growth opportunities for investors. Our Artificial Intelligence Screen is an invaluable source for identifying AI stocks with massive growth prospects.

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3 AI Stocks to Buy Right Now

Analog Devices is benefiting from secular growth drivers in automation, AI infrastructure, and automotive electrification. This Zacks Rank #1 (Strong Buy) company is riding on its strong market position in high-performance analog (HPA), especially in the industrial, communications infrastructure and consumer markets. You can see the complete list of today’s Zacks #1 Rank stocks here.

Analog Devices has a leading market position in converters, where it has around half the market share. The company sells converters and amplifiers in integrated forms, which are categorized as “other analog” products. Analog Devices has a leading position in the digital signal processor market.

ADI expects fiscal fourth-quarter revenues to increase 23% year over year, with revenues of $3 billion at the midpoint, with industrial and consumer leading the recovery. This outlook suggests a return to Analog Devices’ long-term model growth of 7-10% annually, backed by structural tailwinds in AI, automation and electrification.

Micron Technology is benefiting from surging demand for HBM and robust DRAM pricing recovery. The pricing benefits are likely to be driven by rising AI server demand, causing a scarcity in the availability of cutting-edge DRAM supplies. This will support Micron’s margin expansion and profitability.

This Zacks Rank #1 company is capitalizing on the AI boom with its HBM3E solutions, which are increasingly being adopted by major hyperscalers and enterprise customers. Micron is poised to be the key beneficiary of surging AI-related infrastructure spending, as companies continue to build out GPU clusters and AI data centers that require advanced memory solutions. AI PCs are an important part of Micron’s growth plan. MU’s new LPCAMM2 memory is made for AI-ready laptops and workstations that need to handle heavy workloads, such as AI tasks, simulations, and multitasking.

An expanding partner base that includes the likes of NVIDIA, AMD and Intel, is enabling Micron to capture a larger share of the AI infrastructure market. Deepening relationship with major cloud and enterprise customers ensures stable revenue streams and reduces the risk of pricing volatility. For the first quarter of fiscal 2026, Micron anticipates revenues of $12.5 billion (+/-$300 million) and adjusted earnings of $3.75 (+/- 15 cents).

Microsoft is benefiting from its strategy of infusing AI into its applications. AI assistants, including Microsoft 365 Copilot for commercial customers and the consumer Copilot in Windows, reached 100 million monthly active users in fourth-quarter fiscal 2025. The integration of AI capabilities across this Zacks Rank #2 (Buy) company’s product portfolio is driving revenues per user for Microsoft 365 commercial cloud products. 

Microsoft is accelerating its AI push, committing more than $30 billion to capital expenditures in the first quarter of fiscal 2026. Alongside this, the company has pledged an additional $30 billion to the U.K. over the next four years, signaling that its AI strategy is rapidly materializing and driving an aggressive global expansion. Microsoft is expanding its product ecosystem with the launch of proprietary AI models, MAI-Voice-1 and MAI-1-preview.

In terms of cloud infrastructure, Microsoft has transformed every Azure region into an AI-first environment with liquid cooling capabilities, positioning itself at the forefront of the AI infrastructure wave. Microsoft has added more than two gigawatts of datacenter capacity over the past 12 months, now operating more than 400 datacenters across 70 regions globally, above any other cloud provider.

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This article originally published on Zacks Investment Research (zacks.com).

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