Technology stocks continue to help lead the market higher and remain a great space to find investment ideas. Let's look at three top tech stocks to buy right now.
1. Nvidia
There has been a lot of news recently around new artificial intelligence (AI) chip challengers, but Nvidia (NVDA -0.17%) remains the company at the forefront of AI infrastructure. The company's graphic processing units (GPUs) are powering most of the world's AI workloads today, and that dominance doesn't look to be slipping anytime soon.
Image source: Getty Images.
Nvidia is much more than a chipmaker. Its edge comes from its CUDA software platform, which it smartly provided for free to universities and research labs that were doing the early work on AI. That led to early AI foundational code being written for its chips and locked in a generation of developers into its ecosystem. Today, the company's chips, networking, and software work together as one integrated tech stack, giving customers performance advantages.
The company's huge commitment to partner with OpenAI is another sign that it's not content to sit back. While other chipmakers have struck deals with OpenAi, Nvidia is the only company getting a significant equity stake in the AI model leader. Together, the two companies will work together to help shape where AI is going.
With demand for AI infrastructure still far outpacing supply, Nvidia's growth story is nowhere near finished. Nvidia is arguably the most important stock in the market today, and one to own.
2. Alphabet
If there is one company that will challenge Nvidia as an AI leader, it's Alphabet (GOOGL 2.23%) (GOOG 2.17%). The company has its fingers in multiple aspects of AI, with a unique positioned.
Arguably, no company has as complete of an AI tech stack as Alphabet. Its strength starts with its Gemini large language models (LLMs), which rival those of OpenAI. Meanwhile, the company has developed its own custom AI chips, called tensor processing units (TPUs), that were designed to optimally run its cloud computing infrastructure. The chips are in their 7th generation, and far ahead of most other custom AI chips.
Its software stack, which includes Vertex AI, meanwhile, is top-notch. Alphabet even owns the largest private fiber network in the world, which ensures low latency. Its pending acquisition of cloud cybersecurity company Wiz also adds to its vertical offering.
Right now, this vertical AI integration is helping power revenue growth and operating leverage at Google Cloud. Last quarter, Google Cloud revenue climbed 32% to $13.6 billion, while its operating income more than doubled to $2.8 billion. Meanwhile, it's using its Gemini model to help power its search and AI chatbot offerings, as well.
Fears that chatbots would eat into Google's search business have faded as the company blended its Gemini models directly into its core products. Features such as AI Overviews, Circle to Search, and Lens have made search more dynamic, leading to more queries, while its new AI mode lets users easily shift from AI-powered search to a traditional AI chatbot. Alphabet is no longer just playing defense when it comes to search and AI; it's clearly playing offense, and it is well-positioned to win given its distribution and data advantages.
Alphabet is also making early progress in new areas such as robotaxis through Waymo and in quantum computing, which could eventually open new growth streams. Between search, cloud, and its AI push, Alphabet is a growth stock to buy right now.
3. GitLab
Compared to the two stocks above, GitLab (GTLB -2.59%) is certainly flying under the radar. However, this is a company that has been seeing strong growth. It's grown its revenue by between 25% to 35% for eight consecutive quarters, including 29% last quarter, and more strong growth could be in store as the company continues to evolve.
GitLab started as a platform for developers to securely write and store code, but has evolved into a full software development lifecycle solution. Its Duo AI agent has the potential to be a big growth driver, as it helps automate repetitive work that eats up most of a developer's day. Freeing up time to actually write code means more software projects, which drives more demand for GitLab's tools.
Meanwhile, the company is starting to shift to a hybrid seat-plus-usage pricing model. This could be a huge growth driver for Gitlab, as it lets the company capture more revenue from usage and the increased value its offering is now bringing to its customers. A usage model also counteracts the biggest bear argument against the stock, which is that AI will reduce the number of coders.
That bearish argument has driven the stock to an attractive valuation, with it trading at a forward price-to-sales (P/S) multiple of 6.5 times 2026 analyst estimates. For a company with approximately 90% gross margins growing revenue near 30%, that's a huge bargain.
