Artificial intelligence (AI) investing is still a dominant market theme right now. There is a ton of money flowing into this space, and many companies stand to benefit as they deploy AI solutions.
Three stocks that have my attention right now are Nvidia (NVDA +1.67%), Alphabet (GOOG +1.99%) (GOOGL +1.71%), and Meta Platforms (META +1.81%). This trio has a ton going for them, and will likely be among the major winners in the AI arms race.
Image source: Getty Images.
1. Nvidia
Nvidia has been the gold standard in AI investing since the arms race kicked off in 2023. Its graphics processing units (GPUs) have been the primary computing devices used for AI, and any further capacity build-out will benefit Nvidia.
Both Alphabet and Meta Platforms have informed investors that data center capital expenditures will increase in 2026 to expand their AI computing capacity. This bodes well for Nvidia, as does the return of its China export business.
NASDAQ: NVDA
Key Data Points
In April, the Trump administration revoked Nvidia's export license for H20 chips. This was a big deal, and caused Nvidia's revenue guidance for Q2 to fall from 77% growth to 50% growth, as the H20 chips were expected to generate about $8 billion in sales during Q2 alone. Nvidia has reapplied for its license with assurances from the government that it will be approved, although it will likely need to pay a 15% export tax. Still, if Nvidia can export to China again, it will be a massive win for the company.
Although Nvidia has had a successful few years, 2026 still looks bright for Nvidia, making it a smart stock to scoop up now.
2. Alphabet
Alphabet was the laughingstock of the AI world when it was beaten to the punch to launch several AI products. However, that is no longer the case. Alphabet's generative AI model, Gemini, ranks among the best available and has been integrated into the Google Search engine, making it one of the most often used models, too.
There's a widespread fear in the investing community that AI will replace Google searches someday, but that hasn't come to fruition, as Google Search's revenue rose 12% year over year in Q2. Despite this success, the market is undervaluing Alphabet's stock compared to the broader market.
GOOG PE Ratio (Forward) data by YCharts
At 20.2 times forward earnings, Alphabet's stock trades at a sizable discount to the S&P 500 (^GSPC +1.20%), which trades for 24.1 times forward earnings.
Alphabet is still an AI leader, despite its slow start. The cheap price tag is an artifact of dated analysis with Alphabet, making today's price a bargain for long-term investors.
3. Meta Platforms
Meta is the parent company of social media sites like Facebook and Instagram, and is heavily investing in AI technologies to improve ad experiences on these platforms. They've already seen a ton of success, with improved ad conversion as well as an increase in time on the platform, thanks to AI-powered recommendations.
NASDAQ: META
Key Data Points
Meta made headlines recently when it announced it may downsize its AI division. While there isn't a ton of information available, this could be a prudent business practice. Meta may have found a dead end in some of its AI research, and instead of endlessly pursuing it, it decided to reorganize its AI research to benefit the company over the long term. This change of course is a warm welcome to investors who saw Meta sink billions of dollars into its metaverse ambitions, so this move should be viewed positively.
The reality is that Meta is a dominant business that's still growing rapidly and has substantial cash flows to research and expand its AI capabilities. Meta has acquired some of the top AI talent available, and this move should lead to a successful AI approach over the long run. Because of that, I think Meta is an excellent stock to scoop up right now.
