3 Best Artificial Intelligence (AI) Stocks to Buy in February

Group 1: AI Investing Landscape - The release of DeepSeek's R1 model has caused a temporary panic in AI stocks, but some have since recovered [1][2] - The DeepSeek breakthrough should be viewed as a catalyst rather than a deterrent for AI investments [2] Group 2: Nvidia - Nvidia was significantly impacted by the DeepSeek announcement, as it was assumed that demand for its high-powered GPUs would decrease [3][5] - DeepSeek's use of Nvidia H800 GPUs highlights the efficiency with which it operates under U.S. export restrictions, but U.S. AI firms continue to prioritize powerful models requiring substantial Nvidia GPUs [4][5] - Nvidia is projected to have a strong fiscal year 2026 with expected revenue growth of 52%, and its stock is currently trading at 27 times forward earnings, presenting a buying opportunity [5] Group 3: Meta Platforms - Meta Platforms experienced a sell-off after the DeepSeek release but quickly rebounded due to strong Q4 results, with ad revenue increasing by 21% and EPS rising by 50% [6][7] - The company plans to invest between $60 billion and $65 billion in capital expenditures for 2025, primarily focused on AI, indicating a commitment to developing powerful models [7][8] - CEO Mark Zuckerberg anticipates breakthroughs in AI engineering capabilities by 2025, positioning Meta as a potential leader in AI innovation [8][9] Group 4: ASML - ASML plays a crucial role in AI by manufacturing extreme ultraviolet lithography machines essential for high-end chip production, holding a unique position in the market [10] - Despite facing export control challenges affecting its China business, ASML's mid-point revenue guidance for FY 2025 indicates a 15% growth, reflecting strong performance [11] - ASML's Q4 net bookings exceeded expectations, signaling robust growth prospects and alleviating concerns about its business health [12] - The CEO of ASML stated that low-cost AI models are beneficial for the chip industry, as they increase demand for computing hardware, making ASML a compelling investment [13]