Tech Titans Take Center Stage: Which of These 4 AI Stocks Is the Better Buy?

Microsoft - Microsoft stock is rated as a "Strong Buy" by 39 out of 48 analysts, with an average target price of $630.59, indicating a potential upside of 32.6% [1] - The company has strengthened its partnership with OpenAI, gaining exclusive Azure privileges and extended access to models and IP [2] - Microsoft ended the quarter with $102 billion in cash and short-term investments, and has a record backlog of $392 billion, positioning it well for growth [2] - The company invested $34.9 billion in AI and cloud expansion, with half allocated to shorter-lived chips and hardware, and the other half for long-term infrastructure [3] - In the fiscal 2026 first quarter, Microsoft reported revenue of $77.7 billion, a 17% increase year-over-year, and earnings of $4.13 per share, up 21% [4] Amazon - Amazon stock is also rated as a "Strong Buy," with 49 out of 57 analysts recommending it, and an average target price of $295.85, suggesting a potential upside of 36% [8] - Amazon Web Services (AWS) reported a 20% year-over-year revenue increase in Q3, with an annualized revenue run rate of $132 billion and a backlog of $200 billion [7] - The company is investing over $90 billion this year to prepare for an AI-driven future, while maintaining healthy profitability with EPS rising 36% to $1.95 [7] Meta Platforms - Meta Platforms stock is rated as a "Strong Buy" by 43 out of 56 analysts, with an average price target of $838.62, indicating a potential upside of 42.3% [11] - The Family of Apps segment generated $50.8 billion in revenue, a 26% increase year-over-year, driven by strong advertising demand [9] - Reality Labs revenue increased by 74% to $470 million, supported by interest in AI-enabled products [10] Alphabet - Alphabet stock is rated as a "Strong Buy" by 43 out of 55 analysts, with an average target price of $317.92, suggesting a potential upside of 6% [14] - The company reported $102.3 billion in revenue for Q3, marking its first-ever $100 billion quarter, with a 16% year-over-year growth [12] - Google Cloud revenue grew by 34% to $15.2 billion, with a backlog of $155 billion, up 82% from last year [13]