What Are the 2 Top Artificial Intelligence (AI) Stocks to Buy Right Now?

Artificial intelligence (AI) is starting to impact every sector of the economy and reshaping how things get done. Let's look at two leading AI companies benefiting from this trend that still trade at attractive valuations.

1. Alphabet

Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) remains one of the best-positioned AI plays on the market, as it has arguably the most complete AI stack of any company. This all starts with its leading large language model (LLM), Gemini, which is a driver for both its cloud computing and search businesses. Alphabet also has perhaps the most advanced custom AI chip on the market in its tensor processing units (TPUs), which it can use for both its own computing needs to help lower costs, as well as offer them to customers.

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In addition, it has leading software offerings, like Vertex AI, that can help Google Cloud customers build and deploy their own AI models and apps using Gemini as a foundational model. Plus, it even owns the largest private fiber network in the world.

Alphabet's AI prowess is best seen with Google Cloud, where revenue has been growing quickly, and where it's starting to see strong operating leverage. This was on display in Q2, when Google Cloud revenue climbed 32%, while operating income more than doubled. This segment is seeing insatiable demand, and the company is spending aggressively to add capacity to try and keep up with it.

At the same time, Alphabet remains the dominant player in search, and AI is starting to drive growth. It's introduced several new AI features, such as Lens and AI Overviews, which are helping drive more search queries. And as search starts to meld into AI to become more of a discovery platform, it's been gaining traction both with its new AI Mode and its Gemini stand-alone chatbot app.

What gives Alphabet its edge is the combination of reach and data. Its Chrome browser and Android smartphone operating system command more than 70% global market share, and Google remains the default search engine for most devices, including Apple's. That makes it the gateway to the internet for most people. It also gives it a constant stream of behavioral data that powers its LLM, giving Alphabet insights that no other company can match. Throw in one of the most far-reaching ad networks on the planet, and no other company can monetize search and AI chatbot queries as well as Alphabet.

Alphabet's other businesses are not to be overlooked. YouTube continues to grow as one of the world's largest media platforms, benefiting from AI-driven recommendations and new short-form video tools. It's also expanding in emerging areas, like its Waymo robotaxi business and quantum computing, which could become sizable profit centers over time.

Even with all this, Alphabet remains one of the cheapest megacap AI stocks, trading at a forward price-to-earnings (P/E) ratio of less than 24 times 2026 earnings estimates. That's why it's one of the best AI stocks to buy now.

2. Amazon

Amazon (NASDAQ: AMZN) is another AI stock with big opportunities that trades at an attractive valuation. The stock has admittedly been a laggard the past few years, but it has been making moves behind the scenes that position it well for the future.

While many people know Amazon as an e-commerce giant, its largest segment by profitability and fastest growing is Amazon Web Services (AWS). Amazon pioneered the cloud industry, and AWS is still the market share leader. While AWS's revenue growth has been solid, jumping 17.5% year over year last quarter, it has trailed the growth of other leading cloud companies.

However, growth is likely to start accelerating as the company spends aggressively on new capacity and large customer Anthropic begins to make a spending push after just completing a $13 billion financing round.

Like Google Cloud, AWS's growth is being fueled by rising demand from companies building AI models and applications. What makes AWS unique is that, through its Bedrock service, it gives customers access to a variety of third-party foundation LLMs that they can use to customize their own models. Meanwhile, for customers who want a little more control or to build their own models, it offers its SageMaker platform. It has also developed its own custom chips, Trainium and Inferentia, to help train AI models and for inference, respectively.

In its e-commerce business, meanwhile, Amazon has turned to AI and robotics to help drive efficiencies and operating leverage. It now has more than a million robots in its fulfillment centers, which are all coordinated by its DeepFleet AI model. Meanwhile, it is using AI to help its logistics network speed up delivery times and reduce costs.

Amazon is now using AI to determine which fulfillment centers are best suited to hold certain items, how to optimize delivery routes, and to help drivers locate difficult-to-find drop-off spots. The benefits of this behind-the-scenes work are starting to show up, as last quarter its North American segment saw a 47% surge in operating income on just 11% sales growth.

With Amazon's stock trading around 28 times next year's earnings estimates, investors can get this AI and robotics leader at one of its lowest valuation levels ever, making it a great time to buy the stock.

Geoffrey Seiler has positions in Alphabet and Amazon. The Motley Fool has positions in and recommends Alphabet, Amazon, and Apple. The Motley Fool has a disclosure policy.