Nvidia remains the company best positioned to benefit from the continuing AI infrastructure buildout.
Alphabet’s search and cloud growth are being driven by AI.
Microsoft’s close relationship with OpenAI positions it to be a long-term AI winner.
10 stocks we like better than Nvidia ›
The artificial intelligence (AI) boom is in full swing, and there are no signs of it letting up. With the technology looking to be a game-changer that could reshape the world we are living in, it is a place you want to be invested.
Let’s look at three top AI stocks to buy right now.
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No company has captured the AI infrastructure wave like Nvidia (NASDAQ: NVDA). Its graphics processing units (GPUs) went from powering video games to becoming the must-have hardware for training AI models, and it hasn’t let go of that lead.
The company built a deep moat with CUDA, as most code for optimizing GPUs was written using its proprietary software platform. Switching off CUDA would mean rewriting code and retraining engineers, which is why Nvidia controls over 90% of the AI GPU market.
Nvidia also smartly moved early into networking. Its NVLink technology lets its GPUs work together as a single system, which is critical for running AI workloads. Its acquisition of Mellanox, meanwhile, gave Nvidia a major presence in data center networking. Last quarter, its networking revenue nearly doubled to $7.3 billion.
Nvidia sees the AI infrastructure market growing to be between $3 trillion to $4 trillion in the next several years from around $600 billion today. With AI infrastructure spending still booming, Nvidia looks well-positioned to continue to be one of AI’s biggest winners.
Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) has quickly turned what was seen as a threat into a growth driver. A year ago, many investors thought AI would cannibalize Google Search, but search revenue growth has actually picked up. Features like AI Overviews, Lens, and Circle to Search are driving more queries, and many of those have commercial intent, which…
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