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With the year half over, it's clear that one theme has dominated the market: artificial intelligence. AI remains the prevailing theme because AI hyperscalers continue to invest substantial amounts of money in it.
These piles of money are mostly being invested in data centers, which can take years to be built and become operational. As a result, there are still years of growth in the AI pipeline, which makes investing in these companies today a great idea.
If you've got $5,000 (or really any amount), investing that sum of money into this group seems like a wise idea.
Image source: Getty Images.
Nvidia (NASDAQ: NVDA) is a key supplier in the AI arms race, as its graphics processing units (GPUs) have become the predominant computing unit used for AI computing. It's still experiencing impressive growth, with revenue rising 69% year over year during Q1 FY2026 (ending April 28) and projecting 50% revenue growth to $45 billion in Q2.
This growth is expected to persist for years to come, as the various data centers being built will need to be outfitted with Nvidia GPUs. Furthermore, many of the GPUs deployed over the past few years are starting to wear out, which will require the purchase of even more GPUs.
Nvidia's growth is far from over, and it will continue to be a top AI stock pick, considering that its GPUs are the industry standard for running AI workloads.
Nvidia can't fabricate its own chips, so it outsources that work to Taiwan Semiconductor (NYSE: TSM), the world's leading chip foundry. TSMC serves as the go-to chip manufacturer for nearly every major tech company, having solidified its position with cutting-edge technology, consistent delivery, and industry-leading yields.
Management projects massive growth over the next five years thanks to AI chips. They project a 45% compounded annual growth rate (CAGR) for the next five years, which contributes to the company's overall revenue CAGR of nearly 20% over that same time span.
That growth is an excellent reason to own Taiwan Semiconductor, and I think it's one of the best buys right now.
Amazon (NASDAQ: AMZN) may not be the first company you think of when hearing about AI, but its cloud computing wing is powering many AI workloads right now. Its Amazon Web Services (AWS) is the industry leader in cloud computing, offering clients access to the best computing hardware available. This allows start-ups or companies that don't require a massive data center filled with GPUs to access these cutting-edge devices for training or running their AI models.
AWS is the main part of Amazon's investment thesis for me, as it accounted for 63% of Amazon's operating profits during Q1, despite making up only 19% of revenue. This makes Amazon a cloud computing stock, not a commerce stock, in my eyes. With cloud computing growth expected to persist for many years, it's a great investment to make now.
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) also has a strong cloud computing unit in Google Cloud, and is delivering solid growth from its legacy businesses. However, it is getting no respect from the markets and currently trades at a dirt cheap price tag of 17.8 times forward earnings.
GOOGL PE Ratio (Forward) data by YCharts
Considering that the broader market, as measured by the S&P 500 (SNPINDEX: ^GSPC), trades at 22.8 times forward earnings, Alphabet's stock is trading at a significant discount. With Alphabet delivering market-beating growth and trading at a relatively low price tag, I think it's an excellent stock to consider now, and it helps balance out some of the more expensively valued stocks on this list.
Meta Platforms (NASDAQ: META) is likely better known by its former name, Facebook. It's the parent company of social media sites like Facebook, Threads, Instagram, and WhatsApp, and gets nearly all of its revenue from ads on its platforms.
Meta is working on integrating its AI technology to enhance the advertising experience for both advertisers and users of its platform. This could result in increased revenue for the company, allowing it to continue its impressive 16% revenue growth and 27% operating profit growth that it posted in Q1.
Those are stellar growth figures, and if Meta can deliver results like that again in Q2, it will maintain its status as one of the top stocks to buy right now.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Keithen Drury has positions in Alphabet, Amazon, Meta Platforms, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
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