10 Best Artificial Intelligence Stocks
Artificial intelligence, automation and robotics are disrupting virtually every industry. Remarkable advances in AI technology – including OpenAI’s ChatGPT AI chatbot, GitHub’s Copilot AI code generation software and Google’s Gemini AI model – are now familiar names for many.
Whether it be machine learning, large language models, smart applications and appliances, digital assistants, synthetic media software, or autonomous vehicles, companies that aren’t investing in AI products and services risk becoming obsolete. Countless companies stand to benefit from AI, but a handful of stocks have AI and automation as a central part of their businesses. Here are 10 of the best AI stocks to buy, according to Argus:
| Stock | Implied upside over Aug. 8 closing price |
| Microsoft Corp. (ticker: MSFT) | 30.6% |
| Alphabet Inc. (GOOG, GOOGL) | 23.4% |
| Amazon.com Inc. (AMZN) | 23.6% |
| Nvidia Corp. (NVDA) | 42.9% |
| Meta Platforms Inc. (META) | 17.7% |
| Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) | 21.5% |
| Adobe Inc. (ADBE) | 27.3% |
| ASML Holding NV (ASML) | 42.6% |
| International Business Machines (IBM) | 17.8% |
| Arista Networks Inc. (ANET) | 16.6% |
Microsoft Corp. (MSFT)
Microsoft has invested $13 billion in OpenAI and has integrated ChatGPT into its Bing search engine. Microsoft has also combined all its AI copilots into a single AI experience called Microsoft Copilot. In May, the company published its inaugural Responsible AI Transparency Report, publicly detailing the company’s AI practices, spelling out its AI goals and highlighting its accountability initiatives. Analyst Joseph Bonner says Microsoft is investing heavily in AI via both internal development and outside stakes in AI startups. Microsoft CEO Satya Nadella aims to prioritize generative AI opportunities. Argus has a “buy” rating and $526 price target for MSFT stock.
Google and YouTube parent company Alphabet uses AI and automation in virtually every facet of its business, from ad pricing to content promotion to Gmail spam filters. Google launched its Bard AI chatbot in March 2023. In December 2023, Google announced Gemini, its most capable and expansive AI model ever. In May, Google launched AI Overview, a service that provides AI-generated summaries on the top of Google search results. Bonner says Google is working to integrate its Gemini advanced AI model throughout its tech stack. Argus has a “buy” rating and $200 price target for GOOGL stock.
Amazon.com Inc. (AMZN)
Amazon has integrated AI into every aspect of its business, including targeted advertisements, marketplace search and recommendation algorithms, and Amazon Web Services (AWS). Amazon offers a wide range of AI and machine learning services to its AWS cloud customers, including advanced text analytics, automated code reviews and chatbots. Amazon is reportedly investing $100 billion over the next decade in building a network of AWS data centers that can handle the tremendous AI workload. Analyst Jim Kelleher says the push for AI cloud services has reinvigorated AWS. Argus has a “buy” rating and $205 price target for AMZN stock, which closed at $165.80.
Nvidia Corp. (NVDA)
High-end chipmaker Nvidia provides the massive processing power needed to run advanced AI applications. Nvidia has been one of the best-performing stocks in the entire market in recent years, and it’s largely due to the company’s AI exposure. CEO Jensen Huang recently announced Nvidia will begin designing and rolling out new AI chips on an annual basis rather than the two-year chip refresh cycles it has used in the past. Kelleher says Nvidia’s Blackwell platform enables generative AI on trillion-parameter large language models. Argus has a “buy” rating and $150 price target for NVDA stock, which closed at $104.97.
Meta Platforms Inc. (META)
Meta Platforms is a market leader in social media and online advertising and is the parent company of Facebook, Instagram and other platforms. Meta is reportedly planning to release free AI customer-relations chatbots for businesses on its WhatsApp messaging platform. The move will be a test of CEO Mark Zuckerberg’s bold strategy to make Meta’s AI technology free and open to the public in an effort to gain market share and drive down competitors’ prices. Bonner says Zuckerberg has repeatedly built large customer bases and then effectively monetized them. Argus has a “buy” rating and $600 price target for META stock, which closed at $509.63.
Amazon.com Inc. (AMZN)
Amazon has integrated AI into every aspect of its business, including targeted advertisements, marketplace search and recommendation algorithms, and Amazon Web Services (AWS). Amazon offers a wide range of AI and machine learning services to its AWS cloud customers, including advanced text analytics, automated code reviews and chatbots. Amazon is reportedly investing $100 billion over the next decade in building a network of AWS data centers that can handle the tremendous AI workload. Analyst Jim Kelleher says the push for AI cloud services has reinvigorated AWS. Argus has a “buy” rating and $205 price target for AMZN stock, which closed at $165.80.
Nvidia Corp. (NVDA)
High-end chipmaker Nvidia provides the massive processing power needed to run advanced AI applications. Nvidia has been one of the best-performing stocks in the entire market in recent years, and it’s largely due to the company’s AI exposure. CEO Jensen Huang recently announced Nvidia will begin designing and rolling out new AI chips on an annual basis rather than the two-year chip refresh cycles it has used in the past. Kelleher says Nvidia’s Blackwell platform enables generative AI on trillion-parameter large language models. Argus has a “buy” rating and $150 price target for NVDA stock, which closed at $104.97.
Meta Platforms Inc. (META)
Meta Platforms is a market leader in social media and online advertising and is the parent company of Facebook, Instagram and other platforms. Meta is reportedly planning to release free AI customer-relations chatbots for businesses on its WhatsApp messaging platform. The move will be a test of CEO Mark Zuckerberg’s bold strategy to make Meta’s AI technology free and open to the public in an effort to gain market share and drive down competitors’ prices. Bonner says Zuckerberg has repeatedly built large customer bases and then effectively monetized them. Argus has a “buy” rating and $600 price target for META stock, which closed at $509.63.
Amazon.com Inc. (AMZN)
Amazon has integrated AI into every aspect of its business, including targeted advertisements, marketplace search and recommendation algorithms, and Amazon Web Services (AWS). Amazon offers a wide range of AI and machine learning services to its AWS cloud customers, including advanced text analytics, automated code reviews and chatbots. Amazon is reportedly investing $100 billion over the next decade in building a network of AWS data centers that can handle the tremendous AI workload. Analyst Jim Kelleher says the push for AI cloud services has reinvigorated AWS. Argus has a “buy” rating and $205 price target for AMZN stock, which closed at $165.80.
Nvidia Corp. (NVDA)
High-end chipmaker Nvidia provides the massive processing power needed to run advanced AI applications. Nvidia has been one of the best-performing stocks in the entire market in recent years, and it’s largely due to the company’s AI exposure. CEO Jensen Huang recently announced Nvidia will begin designing and rolling out new AI chips on an annual basis rather than the two-year chip refresh cycles it has used in the past. Kelleher says Nvidia’s Blackwell platform enables generative AI on trillion-parameter large language models. Argus has a “buy” rating and $150 price target for NVDA stock, which closed at $104.97.
Meta Platforms Inc. (META)
Meta Platforms is a market leader in social media and online advertising and is the parent company of Facebook, Instagram and other platforms. Meta is reportedly planning to release free AI customer-relations chatbots for businesses on its WhatsApp messaging platform. The move will be a test of CEO Mark Zuckerberg’s bold strategy to make Meta’s AI technology free and open to the public in an effort to gain market share and drive down competitors’ prices. Bonner says Zuckerberg has repeatedly built large customer bases and then effectively monetized them. Argus has a “buy” rating and $600 price target for META stock, which closed at $509.63.
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