The artificial intelligence (AI) revolution is upon us, and with that a nearly endless array of businesses joining the fray and investing in the rapidly evolving world of AI. However, it's more important than ever to take the time to discern the wheat from the chaff so you can find quality companies that have the ability to stand the test of time in your portfolio.
There are opportunities to invest in the AI space for investors of virtually every experience level and zone of interest.
If you're looking for no-brainer AI stocks to buy right now, and you have the appropriate risk-tolerance and investment horizon to put cash into growth stocks, here are two names to consider for your portfolio in the near term.
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1. Alphabet
Alphabet (GOOGL +5.10%) (GOOG +4.95%), Google's parent company, is undoubtedly one of the most talked-about names when it comes to investments in the AI space. The company is heavily investing in and integrating AI across its various products and services. The tech giant is actively focused on developing its own AI models, like Gemini, and using AI to enhance existing products like YouTube and the flagship Search business.
Alphabet is also building custom hardware like Tensor Processing Units (TPUs) to efficiently train and run AI models, and exploring new business opportunities with AI, in arenas ranging from self-driving cars (Waymo) to healthcare (Verily). The company is significantly increasing its investment in AI infrastructure, reflecting a strong commitment to the technology and its potential for the future growth of the business as it evolves in the next decade and beyond.
In the company's recent Q2 earnings, management elevated its projected capital expenditures for 2025 from a previous mouth-watering figure of $75 billion, up to an even more stunning $85 billion. This increased spending is primarily directed toward servers, accelerated data center build-outs, and overall cloud computing infrastructure to support Alphabet's AI endeavors.
NASDAQ: GOOGL
Key Data Points
Alphabet certainly has the robust financial profile to support its ambitious AI aims. The company's Q2 2025 revenue of $96.4 billion represented a 14% increase year over year, while it remains highly profitable. Alphabet's diluted earnings per share (EPS) of $2.31 were up more than 20% from the same period one year ago.
Google Services revenue grew by approximately 12%. Meanwhile, YouTube ad sales increased by 13%, and Google Cloud sales surged by 32%. Alphabet also has a substantial cash balance, reporting $95.1 billion in cash, cash equivalents, and marketable securities at the end of its Q2.
Whether you're a beginner AI investor or simply want to put cash to work in a storied tech business, Alphabet satisfies on both counts. In my view, this remains a company you can truly buy, hold, and add to again and again through the years.
2. Upstart Holdings
Upstart (UPST +5.95%) is another way to capitalize on the potential of the AI revolution, albeit a company that is likely better suited to the more risk-tolerant of investors. Unlike the established business that underpins Alphabet, Upstart has been around for about 13 years and operates in a completely different industry, with entirely different growth levers.
Upstart's business model is based on a two-sided platform that connects borrowers with lending partners, using AI-driven underwriting to assess credit risk and improve loan access and pricing. The company earns revenue through fees charged to lending partners for loan originations, servicing, and referrals. Upstart monetizes its platform by selling loans to institutional investors, while it carries a smaller portion of loans on its business balance sheet.
Upstart uses proprietary AI algorithms to analyze a wide range of data points, going beyond traditional credit scores to assess risk more accurately. This allows the company to approve more borrowers and offer lower interest rates, while potentially reducing losses for lenders. Given the predictive qualities of Upstart's platform, the last few years and the difficult lending environment have presented some unique challenges for the business.
NASDAQ: UPST
Key Data Points
Upstart has approved fewer loans, fewer institutional investors have been inclined to purchase loans given the increased cost of doing so, and loan volume has remained down overall. However, that trend seems to be shifting. Upstart also continues to refine the accuracy of its platform while onboarding new bank and credit union partners. It recently expanded into home equity line of credit (HELOC) offerings, and across 1,000 loans in this product line in 2024, it experienced zero defaults.
Fast-forward to 2025. Upstart had a strong first quarter, with total revenue reaching $213 million, a 67% increase year-over-year. The company also saw a significant improvement in its loss from operations, which narrowed to $4.5 million from $67.5 million in the same quarter last year. Its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) margin reached 20% for the first time in three years.
Platform originations grew by 89% year over year, driven by model wins, improved borrower health, and more competitive capital, and personal loan originations jumped 83% from one year ago. Upstart's HELOC product also saw strong growth, with originations increasing 52% quarter over quarter. In Q1, 92% of 241,000 funded loans were fully automated with no human intervention.
For investors with a healthy appetite for volatility and an understanding of the cyclical dynamics of the lending space, Upstart could be a worthy contender for a well-diversified portfolio.
