Here Are My Top 3 Artificial Intelligence Stocks to Buy Right Now
Keithen Drury, The Motley Fool
Sun, July 19, 2026 at 10:05 PM GMT+5:30
4 min read
- NVDA
-2.21% - GOOG
-2.17% - MU
-0.50%
The artificial intelligence (AI) race is far from over, and plenty of cloud computing capacity still needs to be built to support it. AI isn’t even close to being used everywhere yet, and the amount of computing capacity that will be necessary to handle an AI-first economy is hard to imagine
I think that bodes well for a handful of companies, and those that stand to benefit from increased data center construction top the list of my favorite investments now. I think investors should consider loading up on Nvidia (NASDAQ: NVDA), Micron Technology (NASDAQ: MU), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), since these three are bound to benefit from major AI spending increases
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
Nvidia
Nvidia has been the big name in AI investing since the infrastructure-building boom kicked off in 2023: Its products sit at the center of nearly every data center constructed. Its GPUs have dominated the AI computing market for their flexibility and reliability, and countless companies choose them to run their workloads
The chipmaker’s dominance looks sustainable. It reported an 85% revenue increase last quarter, and Wall Street analysts project nearly 100% growth next quarter. All of that growth is without chip sales to China, and Nvidia could be able to reenter that market in a meaningful way soon
As a cherry on top, management has already told investors that it expects $1 trillion in data center capital expenditures (capex) from the big four AI hyperscalers next year, up from $650 billion this year. That’s an indication that the data center construction trend is alive and well, which will benefit the other two companies on this list as well. Alphabet has also confirmed this on its end: It told investors to expect “significantly” higher capex in 2027
Despite its incredible recent results and a rock-solid outlook, Nvidia trades for only 23.7 times forward earnings, just barely over the S&P 500’s forward P/E ratio of 21.7
That’s a minor premium to pay for one of the best stocks in the market, and with long-term growth tailwinds, it’s a no-brainer buy at these levels
Micron
Micron makes memory chips, which are in huge demand for AI data centers. More specifically, it makes NAND and DRAM memory, which have different use cases in servers. The company and its peers don’t have sufficient production capacity to satisfy soaring demand, and constructing new foundries will take time. As a result, memory prices have skyrocketed, boosting Micron’s revenue and profits
