The Smartest AI Stock to Buy With $1,000 Right Now

There's no denying just how much artificial intelligence (AI) has taken over the tech and business world over the past couple of years. With this has come huge investor interest in any company dealing with the technology in any capacity. Some AI stocks are flourishing strictly based on the current AI hype, while others are thorough businesses that will only be boosted by the technology.

As an investor, you should look to invest in a company that falls into the latter category, which is why one of the smartest AI stocks to buy right now is Microsoft (NASDAQ: MSFT).

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Why Microsoft?

Microsoft has one of, if not the most diversified businesses in the big tech world. Where it really stands to gain from AI developments is in its enterprise software businesses. Between Office 365 (Excel, Word, Teams, PowerPoint, etc.), Windows, and Azure, thousands of companies rely on Microsoft to run their daily operations.

By boosting these offerings with AI, Microsoft strengthens its competitive advantage and tightens its grip on the enterprise market. The enterprise software business helps with Microsoft's stability because it's a segment that doesn't tend to take a huge hit when the broader economy isn't at its best. It's much easier for consumers to cut off subscriptions than it is for companies to do so without jeopardizing their day-to-day operations.

When you invest $1,000 in Microsoft, you know you're investing in a thorough business that will benefit from AI, but isn't overly dependent on AI hype for its core business performance.

Stefon Walters has positions in Microsoft. The Motley Fool has positions in and recommends Microsoft. 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.