What Is One of the Best AI Stocks to Buy Right Now?
AI Stocks Surging as Tech Giants Battle for Dominance
The AI gold rush accelerates—while Wall Street analysts scramble to justify their price targets.
NVIDIA's Unstoppable Momentum
Chips powering the AI revolution continue crushing earnings expectations. Data center revenue explodes as every major tech firm races to build AI infrastructure.
Microsoft's Enterprise Play
Azure AI services capture corporate clients fleeing expensive in-house solutions. Integration across Office suite creates sticky revenue streams that competitors envy.
The Dark Horse Candidates
Smaller players leveraging specialized AI applications—from healthcare diagnostics to autonomous systems—outpace legacy tech dinosaurs. Their agility becomes their greatest asset in this land grab.
Why Timing Matters Now
Regulatory scrutiny looms while valuation multiples stretch to dot-com era levels. Smart money positions before the next earnings cycle separates contenders from pretenders.
Remember: The same analysts now hyping AI stocks were pushing metaverse investments eighteen months ago.
Aiming squarely at AI
In Microsoft's conference call discussing its fourth quarter of fiscal 2025 results at the end of July, CEO Satya Nadella and his fellow top executives mentioned AI no less than 37 times.
Image source: Getty Images.
The technology is obviously top of mind to Microsoft from the C-suite on down, and it's plowing gobs of capital into its development. It's a major investor in OpenAI, the developer of arguably the most well-known AI tool (ChatGPT).
In what's surely not a coincidence, it's also a frequent user of OpenAI's technology. In varied ways, it's integrating this into a range of products, most notably Copilot, the "digital assistant" easily accessible by Windows and Office 365 users. Other products and services, such as the Bing search engine, Edge browser, and the GitHub developer platform, have also received AI spruce-ups.
One business of many
The great advantage of being an AI company packed into a sprawling tech powerhouse active in many revenue-generating segments (software, video games, cloud computing, etc.) is that there isn't a compelling need for the AI operations to be profitable (in contrast to a pure-play AI business). At least, not for some time yet.
Plus, Microsoft is a cash-generating giant as it has been throughout its history. It can devote large chunks of capital to continued AI integration, and it more than has the human and operational resources to get the job done. The company might not be considered a "proper" AI stock, but it's sure plunging DEEP into the technology, and it's a smart (if a bit sideways) buy on the tech's future.
