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What Is 1 of the Best Artificial Intelligence (AI) Stocks to Buy Right Now?

What Is 1 of the Best Artificial Intelligence (AI) Stocks to Buy Right Now?

Author:
foolstock
Published:
2025-09-26 08:51:07
17
2

AI Stocks Surge as Algorithms Outperform Human Fund Managers—Again

The Quantifiable Edge

Forget the hype cycle—this AI player delivers measurable enterprise value. While Wall Street analysts chase shiny objects, one company's machine learning solutions actually reduce operational costs by double-digits. Their neural networks process data 40% faster than legacy systems, creating tangible ROI instead of PowerPoint promises.

Execution Over Exaggeration

While competitors burn cash on experimental projects, this stock's AI integration drives real revenue growth quarter after quarter. Their proprietary algorithms automate workflows that used to require entire departments—cutting overhead while scaling precision. The tech doesn't just look smart on earnings calls; it bypasses traditional inefficiencies that plague less agile corporations.

The Bottom Line

In a market saturated with AI pretenders, this company delivers the rare combination of technological innovation and fiscal discipline. Their stock might not generate the flashiest headlines, but it consistently outperforms benchmarks while maintaining reasonable valuations. Because sometimes the best AI investment isn't the one that promises to revolutionize everything—it's the one that quietly prints money while others chase trends.

A computer chip with AI written in middle of it.

Image source: Getty Images.

Selling picks and shovels

The AI boom is on. And there has been no single business within this trend that can top's (NVDA 0.27%) success. Its shares have skyrocketed 1,280% in the past five years (as of Sept. 26). That incredible run comes from unbelievable demand for the company's graphics processing units (GPUs) that power AI data centers, helping to train large language models.

Nvidia is the classic pick-and-shovel investment. It sells the necessary infrastructure, consisting of its popular GPUs, as well as its CUDA programming platform, for customers to develop AI applications. Consequently, the business gains from the massive amount of AI-related spending that's happening now.

Worth a closer look

Even after the stock's jaw-dropping gain in recent years, the stock isn't that expensive. Investors can scoop up shares at a forward price-to-earnings ratio of 39.7. This is what the market is asking in order to own the clear leader in the AI race.

Wall Street analysts expect Nvidia's revenue and earnings per share to increase at compound annual rates of 34.9% and 35.5%, respectively, between fiscal 2025 and fiscal 2028. This is a very robust outlook that justifies buying the stock today.

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