Key Points

All three of these stocks have already benefited from the AI boom.
Still, they may only be getting started.

By now, it is evident that artificial intelligence (AI) is far more than a passing trend. The technology is weaving into every industry and sector while reshaping elements of everyday routines. The firms driving this shift, along with their investors, stand to reap substantial rewards over time. With that in mind, here are three AI stocks that rank among the most compelling buys at present: Nvidia (NASDAQ: NVDA), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Amazon (NASDAQ: AMZN).

Image source: the Motley Fool.

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1. Nvidia

Nvidia occupies the core of the AI transformation. The company's GPUs serve as essential hardware for AI training, and it has preserved a strong edge in this area through GPUs that deliver superior raw performance compared to rivals, in addition to its CUDA ecosystem that builds a wide moat via switching costs. Some investors question whether Nvidia can sustain its pace much longer, yet ongoing growth in AI infrastructure spending points to continued strength.

The hyperscalers are committing large sums to capital expenditures and intend to invest even more, as seen with Alphabet. Beyond the major cloud providers, firms in other sectors, including Tesla (NASDAQ: TSLA) - an electric vehicle maker - and Bristol Myers Squibb (NYSE: BMY), a pharmaceutical leader, are also purchasing Nvidia GPUs. Steady demand for its offerings could position Nvidia among the biggest long-term winners as the AI sector keeps expanding.

2. Alphabet

Alphabet's operations - spanning advertising to cloud computing - are advancing due to AI. For example, the company is lifting search volume via AI modes and AI overviews, which supports greater ad demand. At the same time, Google Cloud supplies AI services that enable businesses to create, tailor, and launch AI applications and agents. Google Cloud's year-over-year revenue growth has been speeding up - 48% in the fourth quarter of 2025, 63% in Q1 2026, and 82% in Q2.

These outcomes are difficult to dispute, and with Alphabet increasing its commitment and planning further spending to harness the technology, it should stay among the leaders in the medium term. Some investors view Alphabet's outlays as a negative signal, particularly after it posted negative free cash flow in the second quarter. Yet Alphabet's $514 billion cloud backlog as of the second quarter paints a brighter picture, indicating it may sustain solid cloud sales growth over the coming quarters. Investors should hold Alphabet to benefit from AI.

3. Amazon

Amazon ranks as another leading cloud provider offering various AI services. The company has gained from this trend, as Amazon Web Services sales growth has picked up in recent quarters. In addition, Amazon has an appealing chance to enhance multiple parts of its business with AI. Think about how it could strengthen e-commerce through steps such as improved personalized recommendations, AI-supported seller tools for quicker and more precise product descriptions, enhanced search functions, and more.

Individually, any single initiative may not shift results dramatically. Combined, they could increase engagement and gross merchandise volume on the platform, driving higher revenue and margins. Beyond AI, Amazon maintains a broad, diversified business and leads in nearly every field it enters. The stock holds a vast growth path ahead, making it a strong choice for long-term investors.

Should you buy stock in Nvidia right now?

Before you buy stock in Nvidia, consider this:

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Prosper Junior Bakiny has positions in Alphabet, Amazon, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Bristol Myers Squibb, Nvidia, and Tesla. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.