3 Phenomenal Artificial Intelligence (AI) Stocks to Buy Right Now

Core Viewpoint - AI investing remains a dominant market theme with significant capital flowing into the sector, benefiting companies deploying AI solutions. Nvidia, Alphabet, and Meta Platforms are highlighted as major players likely to succeed in the AI arms race [1]. Group 1: Nvidia - Nvidia is recognized as the gold standard in AI investing, with its GPUs being the primary computing devices for AI applications. The expected increase in data center capital expenditures by Alphabet and Meta in 2026 will positively impact Nvidia [3]. - Following the revocation of Nvidia's export license for H20 chips, revenue growth guidance for Q2 was revised from 77% to 50%, with anticipated sales of $8 billion from these chips. Nvidia has reapplied for the license, which is expected to be approved, albeit with a 15% export tax [4]. - The outlook for Nvidia in 2026 remains positive, making it a recommended stock for investment [5]. Group 2: Alphabet - Alphabet has improved its standing in the AI sector with its generative AI model, Gemini, which is now integrated into Google Search, contributing to its usage [6]. - Despite fears that AI could replace Google searches, Google Search revenue increased by 12% year-over-year in Q2. The market undervalues Alphabet's stock, trading at 20.2 times forward earnings compared to the S&P 500's 24.1 times [7][9]. - Alphabet's current stock price is considered a bargain for long-term investors, reflecting outdated analysis [9]. Group 3: Meta Platforms - Meta is investing heavily in AI technologies to enhance ad experiences on platforms like Facebook and Instagram, resulting in improved ad conversion and increased user engagement [10]. - Recent news about potential downsizing of Meta's AI division may indicate a strategic shift to reorganize AI research for long-term benefits, which is viewed positively by investors [11]. - Meta continues to grow rapidly with substantial cash flows for AI research and has acquired top AI talent, positioning it well for future success in AI [12].