Where should I put my money? That's the question every investor must answer. The challenge is that there are thousands of alternatives. Which of those alternatives is most attractive will vary based on whom you ask.
Like many other observers of the investing world, I have my opinions. Here are three of the best stocks to invest $50,000 in right now, in my view.
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1. Alphabet
Sometimes, choosing the ideal stocks to buy boils down to finding companies that have a good chance of winning in markets likely to grow tremendously in the future. I think Google parent Alphabet (GOOG +2.59%) (GOOGL +2.50%) is a great example of such a company.
It's a near certainty that artificial intelligence (AI) will have a bigger impact over the next few years than it does today. Alphabet is an AI pioneer. The company's soon-to-be-released Google Gemini 3.0 large language model (LLM) could further cement its AI leadership.
NASDAQ: GOOGL
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The scramble to harness the power of AI should accelerate the shift from on-premises hosting of applications and data to cloud hosting. Alphabet's Google Cloud already ranks as the fastest-growing major cloud services provider. It's poised to be a huge beneficiary of surging cloud adoption over the next several years.
Alphabet is also a major player in key emerging technologies. Its Waymo unit is the leader in the rapidly expanding robotaxi market. Google Quantum AI hopes to develop a useful, large-scale quantum computer within the decade.
2. Dominion Energy
I view Dominion Energy (D +0.51%) as a kind of backdoor way to profit from the AI boom. The data centers that house AI applications consume enormous amounts of power. Virginia, where Dominion is headquartered, is home to the world's largest data center market.
Dominion's business isn't all about AI, though. The company provides electricity to around 3.6 million homes and businesses in three states: Virginia, North Carolina, and South Carolina. Dominion also provides natural gas to roughly 500,000 customers in South Carolina.
NYSE: D
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One key reason why I like Dominion Energy right now is that it could be a safe haven if the economy and/or stock market stumbles. Utility stocks tend to hold up well during turbulent periods. Even though Dominion's stock has jumped by a double-digit percentage this year, it's still reasonably valued with a forward price-to-earnings ratio of 17.
Income investors should especially love Dominion's dividend yield of 4.4%. I fully expect more dividend increases will be on the way from this utility giant.
3. Vertex Pharmaceuticals
Vertex Pharmaceuticals (VRTX +0.28%) has been one of my favorite stocks for a while. There's a lot to like about this big biotech company.
For one thing, Vertex enjoys a monopoly in treating the underlying cause of cystic fibrosis (CF). While this kind of market dominance doesn't last forever in the biopharmaceutical world, the company should be well-positioned for years to come. Vertex's patents on its most powerful CF therapy, Alyftrek, don't expire until 2039. The nearest potential rival to the drugmaker's CF therapies is only in phase 2 clinical trials.
NASDAQ: VRTX
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Vertex's CF franchise ensures the company will have a steady revenue stream and significant profitability. However, its growth should come from other products. I put Journavx at the top of the list. It's a non-opioid pain drug that's both safe and effective. Journavx seems likely to become Vertex's first blockbuster drug in years outside of CF.
I'm especially enthusiastic about Vertex's pipeline. The company could file for regulatory approvals for two new drugs next year: zimislecel in treating severe type 1 diabetes and povetacicept in treating IgA nephropathy. Vertex also has other promising late-stage candidates, notably including inaxaplin, which targets APOL1-mediated kidney disease.
