The Best AI Stocks to Buy Now: Where Smart Money Is Positioning for the AI Future
Artificial Intelligence may feel like it’s everywhere already, but according to analysts, we’re still in the early innings of the AI revolution. While recent headlines around Chinese AI labs and global tariffs caused short-term volatility, the long-term story remains strong.
Key highlight:
The Morningstar Global Next Generation Artificial Intelligence Index returned ~40% in 2025 (as of Dec. 18), showing just how powerful the AI theme continues to be.
How These AI Stocks Were Selected
Morningstar filtered for companies that:
• Are major constituents of its AI Index
• Earned 4 or 5-star ratings
• Were undervalued as of Dec. 18, 2025
The result is a diversified mix of chipmakers, cloud giants, platforms, and enterprise software leaders driving the AI ecosystem.
Top AI Stocks to Watch (With Key Insights)
Nvidia (NVDA) – The Backbone of AI Computing
• Dominates AI GPUs and data-center infrastructure
• Strong competitive moat driven by its Cuda software ecosystem
• Still seen as undervalued (~27%) despite massive gains
Nvidia remains the standard for AI training and inference.
Microsoft (MSFT) – AI Meets Enterprise Scale
• Azure cloud is the centerpiece of Microsoft’s AI strategy
• Deep integration with OpenAI
• Strong recurring revenues from Office, LinkedIn, Dynamics
AI adoption strengthens Microsoft’s already powerful ecosystem.
Amazon (AMZN) – AI + Cloud + Commerce
• AWS is a core AI infrastructure provider
• Advertising and cloud services drive margins higher
• AI improves logistics, recommendations, and efficiency
AI is quietly boosting Amazon across multiple businesses.
Broadcom (AVGO) – The Custom AI Chip Powerhouse
• Major supplier of networking chips and custom AI accelerators
• Benefiting from cloud giants seeking alternatives to Nvidia
• Strong cash flow and disciplined acquisitions
A less flashy but very strategic AI beneficiary.
Meta Platforms (META) – AI at Social Media Scale
• AI powers ad targeting, content discovery, and engagement
• Nearly 4 billion users across its platforms
• Investing heavily in AI models like Llama
AI strengthens Meta’s ad dominance and user engagement.
Advanced Micro Devices (AMD) – The Challenger in AI Chips
• Positioned as the most viable second source to Nvidia
• Strong presence in data centers and AI accelerators
• Partnership with OpenAI boosts credibility
AMD benefits as customers diversify AI chip suppliers.
Alibaba (BABA) – AI + Cloud in China
• Core e-commerce business funds AI and cloud expansion
• AliCloud supports AI infrastructure development
• Aggressive share buybacks and strong balance sheet
AI supports Alibaba’s long-term restructuring and global push.
Tencent (TCEHY) – AI Embedded in Daily Digital Life
• AI enhances gaming, advertising, payments, and cloud services
• WeChat provides unmatched data and monetization potential
• Strong investment ecosystem
Tencent’s AI edge lies in data, scale, and integration.
Oracle (ORCL) – Enterprise AI Infrastructure Dark Horse
• Rapid growth in AI-driven cloud bookings
• Serves major AI players like OpenAI and Meta
• One of few firms offering data + infrastructure + software
Oracle is becoming a serious AI infrastructure contender.
Big Picture Takeaway
AI investing isn’t just about flashy names—it’s about owning the full ecosystem:
• Chips & infrastructure (Nvidia, AMD, Broadcom)
• ☁️ Cloud platforms (Microsoft, Amazon, Oracle)
• Data-rich platforms (Meta, Tencent, Alibaba)
These companies are positioned to benefit as AI adoption deepens across industries.
Artificial Intelligence may feel like it’s everywhere already, but according to analysts, we’re still in the early innings of the AI revolution. While recent headlines around Chinese AI labs and global tariffs caused short-term volatility, the long-term story remains strong.
Key highlight:
The Morningstar Global Next Generation Artificial Intelligence Index returned ~40% in 2025 (as of Dec. 18), showing just how powerful the AI theme continues to be.
How These AI Stocks Were Selected
Morningstar filtered for companies that:
• Are major constituents of its AI Index
• Earned 4 or 5-star ratings
• Were undervalued as of Dec. 18, 2025
The result is a diversified mix of chipmakers, cloud giants, platforms, and enterprise software leaders driving the AI ecosystem.
Top AI Stocks to Watch (With Key Insights)
Nvidia (NVDA) – The Backbone of AI Computing
• Dominates AI GPUs and data-center infrastructure
• Strong competitive moat driven by its Cuda software ecosystem
• Still seen as undervalued (~27%) despite massive gains
Nvidia remains the standard for AI training and inference.
Microsoft (MSFT) – AI Meets Enterprise Scale
• Azure cloud is the centerpiece of Microsoft’s AI strategy
• Deep integration with OpenAI
• Strong recurring revenues from Office, LinkedIn, Dynamics
AI adoption strengthens Microsoft’s already powerful ecosystem.
Amazon (AMZN) – AI + Cloud + Commerce
• AWS is a core AI infrastructure provider
• Advertising and cloud services drive margins higher
• AI improves logistics, recommendations, and efficiency
AI is quietly boosting Amazon across multiple businesses.
Broadcom (AVGO) – The Custom AI Chip Powerhouse
• Major supplier of networking chips and custom AI accelerators
• Benefiting from cloud giants seeking alternatives to Nvidia
• Strong cash flow and disciplined acquisitions
A less flashy but very strategic AI beneficiary.
Meta Platforms (META) – AI at Social Media Scale
• AI powers ad targeting, content discovery, and engagement
• Nearly 4 billion users across its platforms
• Investing heavily in AI models like Llama
AI strengthens Meta’s ad dominance and user engagement.
Advanced Micro Devices (AMD) – The Challenger in AI Chips
• Positioned as the most viable second source to Nvidia
• Strong presence in data centers and AI accelerators
• Partnership with OpenAI boosts credibility
AMD benefits as customers diversify AI chip suppliers.
Alibaba (BABA) – AI + Cloud in China
• Core e-commerce business funds AI and cloud expansion
• AliCloud supports AI infrastructure development
• Aggressive share buybacks and strong balance sheet
AI supports Alibaba’s long-term restructuring and global push.
Tencent (TCEHY) – AI Embedded in Daily Digital Life
• AI enhances gaming, advertising, payments, and cloud services
• WeChat provides unmatched data and monetization potential
• Strong investment ecosystem
Tencent’s AI edge lies in data, scale, and integration.
Oracle (ORCL) – Enterprise AI Infrastructure Dark Horse
• Rapid growth in AI-driven cloud bookings
• Serves major AI players like OpenAI and Meta
• One of few firms offering data + infrastructure + software
Oracle is becoming a serious AI infrastructure contender.
Big Picture Takeaway
AI investing isn’t just about flashy names—it’s about owning the full ecosystem:
• Chips & infrastructure (Nvidia, AMD, Broadcom)
• ☁️ Cloud platforms (Microsoft, Amazon, Oracle)
• Data-rich platforms (Meta, Tencent, Alibaba)
These companies are positioned to benefit as AI adoption deepens across industries.