Artificial intelligence (AI) is one of the most transformative technologies of our time, driving unprecedented advancements in sectors ranging from healthcare and transportation to communications and beyond. For investors, this creates a landmark opportunity to back the companies at the forefront of this revolution.
As we head into August, three companies in particular stand out for their strategic positioning and potential for growth in the AI space.
The European dark horse with massive ambitions
Nebius Group (NBIS -4.46%) is emerging as a serious contender in the AI infrastructure race. The Amsterdam-based company, led by former Yandex founder Arkady Volozh, reported staggering 385% year-over-year revenue growth in Q1 2025, reaching $55.3 million, driven primarily by demand for its AI infrastructure services. The stock has surged 92% year to date as investors begin to take notice.
What sets Nebius apart is its vertically integrated approach. Rather than retrofitting general-purpose cloud infrastructure for AI workloads, Nebius builds custom hardware and software specifically for intensive AI training and inference.
The company expects to reach $750 million to $1 billion in annual recurring revenue (ARR) by the end of 2025. Backed by 94% low-carbon electricity and a Europe-first strategy, Nebius is positioning itself as a credible long-term alternative to the U.S. hyperscalers, making it one of the most compelling buy-and-hold plays in the AI infrastructure space.
The productivity powerhouse monetizing AI at scale
Microsoft (MSFT -1.75%) stands out as the most pragmatic AI play in tech, with shares up roughly 24% year to date. In fiscal year 2025, the company reported that Azure and other cloud services generated more than $75 billion in revenue, marking a 34% year over year increase. Microsoft also posted $76.4 billion in total revenue for its fiscal fourth quarter, beating analyst expectations and pushing shares to new highs.
Microsoft's strength lies in its integration strategy. Rather than launching stand-alone AI tools, the company has embedded Copilot across its core productivity suite, contributing to measurable growth across Microsoft 365 and cloud services. Teams Phone adoption surpassed 20 million users, and Copilot-enabled services now reach more than 100 million.
With over a billion users across Office and Windows, Microsoft has unmatched distribution for scaling AI tools globally. The company plans to invest $30 billion this quarter alone in AI-enabled infrastructure, reinforcing its leadership in both profitability and long-term platform dominance.
What's the bottom line? While others race to catch up, Microsoft is already cashing in, turning its massive installed base into the most profitable AI deployment machine on the planet.
The advertising giant reimagining social with superintelligence
Meta Platforms (META -2.99%) is taking the most aggressive swing at AI integration, with shares climbing 29% year to date after a blowout Q2. Total revenue hit $47.5 billion, up 22% from the prior year, with advertising contributing $46.6 billion and outperforming expectations. CEO Mark Zuckerberg's push to embed "personal superintelligence" across its platforms is beginning to show measurable traction.
Advanced AI tools are powering more precise ad delivery and improved monetization, while the company's $14.3 billion stake in Scale AI signals an intent to anchor the next generation of core models. Daily engagement remains strong, with 3.48 billion people using Meta's apps each day as of June 2025, a 6% year-over-year gain.
Meta lifted its full-year capital expenditure forecast to between $66 billion and $72 billion, largely to support AI infrastructure and training. But with profit engines running at full speed and unmatched insight into user behavior, Meta is gearing up to dominate the global attention economy.
The AI infrastructure build-out is just beginning
These three companies represent distinct strategies in the ongoing AI hyperbuild. Nebius offers pure-play infrastructure exposure with a European edge; Microsoft delivers integrated productivity gains with immediate monetization; and Meta combines massive social scale with leading-edge AI development. For long-term investors, holding all three offers a balanced way to capture the full spectrum of AI-driven value creation.
