Artificial Intelligence (AI) continues to look like it has the potential to be a game-changing technology that helps shape the world we live in. It also has the potential to be one of the best areas to invest in over the long haul. That is, if you make the right AI investment decisions.
Not every AI-related stock will generate live-changing returns, but there are some already doing that (with the potential to keep doing it). Let's look at three AI stocks to buy like there is no tomorrow.
1. Nvidia
When looking at AI stocks, the first place to start is with Nvidia(NASDAQ: NVDA). The company has been the biggest winner of AI infrastructure spending, as its graphic processing units (GPUs) provide the computing power needed to train AI models and run inference. Meanwhile, AI infrastructure spending only continues to increase.
Currently, numerous megacap tech companies and well-funded AI start-ups, such as OpenAI and Elon Musk-backed xAI, are all spending heavily on developing AI models. Meanwhile, the spending on AI infrastructure from these companies is only increasing. Nvidia's largest customer, Microsoft, has announced it will spend around $80 billion in 2025 on AI-related capital expenditure, while Amazon plans to spend $100 billion, Alphabet(NASDAQ: GOOGL)(NASDAQ: GOOG) $75 billion, and Meta Platforms up to $65 billion.
That's a lot of money being directed toward AI infrastructure, and Nvidia will capture its fair share of this spending. While Amazon and Alphabet use some custom AI chips, they also both use Nvidia's GPUs. Meanwhile, Nvidia has about a 90% market share in the mass-merchant GPU market due to the wide moat it has created with its CUDA software platform and CUDA X AI microservices and libraries, which have proven to be superior to rivals such as Advanced Micro Devices.
Meanwhile, Nvidia's stock remains attractively valued, trading at a forward-price-to-earnings (P/E) ratio of 25 times 2025 analysts' estimates and a price/earnings-to-growth (PEG) of 0.5, with PEGs under 1 usually viewed as undervalued.
Image source: Getty Images.
2. Alphabet
When it comes to AI, Alphabet owns one of the leading cloud computing companies, Google Cloud, which is benefiting from increasing AI demand. In Q4, Google Cloud's revenue jumped 30% to $12 billion, while the unit's operating income surged 142% to $2.1 billion.
Like other cloud providers, the company's growth is being restrained by capacity constraints, which is why it is increasing its capital expenditures (capex) to keep up with demand. In addition to using Nvidia GPUs, the company developed its own custom AI chips with the help of Broadcom, called TPUs (tensor processing units), which it says help lower costs and inference times. This should help give the company some cost advantages and allow it to continue to improve its Google Cloud operating margins.
Meanwhile, the company made its Gemini 2.0 AI model available to the public earlier this month and has begun incorporating it into its search and AI Overviews to be able to answer more complex questions, solve mathematical equations, and even help with coding. With the company historically only serving ads on about 20% of its search queries, monetizing its AI overviews and Gemini through ads could be an eventual big growth driver. The company has also developed a number of other strong AI products, including its Veo 2 text-to-video generator that looks vastly superior compared to OpenAI's Sora, which was launched around the same time.
In addition, Alphabet has taken the lead in other cutting-edge technologies such as quantum computing and autonomous driving, with its Waymo unit the only company currently offering paid robotaxi rides in the U.S. The stock is also inexpensive, trading at a forward P/E of just 18 times.
3. Salesforce
Customer relationship management (CRM) software company Salesforce(NYSE: CRM) is looking to be the leader in the next big evolution of AI with agentic AI. While users can create content through various prompts with generative AI, agentic AI takes it a step further, where AI agents can go out and perform tasks autonomously with little human supervision. For example, generative AI can provide you with a recipe and plan a meal, while with agentic AI it can go out and order all the ingredients needed for the meal.
Salesforce entered the agentic AI market with its new Agentforce solution. Its platform offers both out-of-the-box AI agents that can handle specific tasks such as customer service, as well as low-code and no-code tools that can be used to customize its AI agents. Salesforce has said that if you can describe the job, Agentforce can create an AI agent for it.
Agentforce is a consumption-based solution that costs $2 per conversation, so the more customers find its agents useful, the bigger the opportunity it is for the company. Thus far, the platform has seen strong demand from Salesforce customers. After being launched in October, Salesforce announced in mid-December that it already had more than 1,000 deals in place. Earlier, it projected that it would have 1 billion AI agents deployed by the end of its fiscal year 2026 (ending January 2026).
Trading at a forward P/E of under 26 times with a PEG below 0.6, the stock is attractively valued given the big potential opportunity in front of the company.
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Geoffrey Seiler has positions in Alphabet and Salesforce. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, and Salesforce. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
