You don't have to dig too deep to find under-the-radar stocks that can outperform the S&P 500. Some are just large companies that are still capable of producing high revenue growth while expanding margins. Investing in well-known, reliable companies can also save time while generating compounded returns. It's a no-brainer to give these kinds of stocks serious consideration.
Let's look at three no-brainer stocks that are all behemoths in their respective industries. Two of them have market caps well above $1 trillion, while the third stock on this list has real potential to become a $1 trillion company within the next five years.
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1. Alphabet
Alphabet (GOOGL +0.47%) (GOOG +0.90%) has been a top pick for many years because of how it dominates search. However, its efforts with artificial intelligence (AI) are the bigger opportunity right now. Gemini, Waymo, Google Cloud, and Alphabet's new custom AI chips are long-term catalysts that could accelerate revenue growth.
NASDAQ: GOOG
Key Data Points
Although those segments may lead to long-term stock gains, Alphabet already has fast-growing businesses under its corporate umbrella. Its search engine is a proven product that brings in billions of dollars every quarter. Alphabet's cloud platform continues to make great strides, including 34% year-over-year revenue growth in Q3. The company also has more than 300 million paid subscribers for Google One and YouTube Premium.
Investors were initially worried that AI models like OpenAI's ChatGPT would out-innovate Alphabet and hurt its dominance. However, the recent quarters suggest that Alphabet is expanding its market share in key categories while tapping into attractive long-term opportunities.
It's no surprise that Alphabet has outperformed the S&P 500 this year. Google's parent company is one of the few firms that has exciting high-growth opportunities in its early stages and established business segments that continue to produce excellent results.
2. Microsoft
Microsoft (MSFT +1.00%) is another tech giant that is growing in multiple industries and has exposure to several AI opportunities. Microsoft Azure revenue increased by 26% year-over-year in fiscal 2026's first quarter (ended Sept. 30, 2025), and Microsoft's various cloud services now account for as much as 60% of the company's total top-line revenue. Growth should accelerate as Azure turns into a larger slice of the pie.
NASDAQ: MSFT
Key Data Points
While cloud is the main story surrounding Microsoft stock, it also owns LinkedIn, Xbox, Activision Blizzard, and various personal computing products. The company's top-line success also comes with high margins, and that's a big reason why Microsoft was able to return $10.7 billion to shareholders as dividends and stock buybacks in Q1 FY26.
Microsoft is also working on its own custom AI chips, but hasn't made as much progress as Alphabet. However, the company's Copilot AI model has helped people become more productive and can act as a shopping assistant.
Microsoft isn't as exciting an AI stock as Alphabet. However, it's still achieving impressive revenue growth while returning significant capital to shareholders. Microsoft is a reputable stock that has produced enticing long-term returns while making up a large portion of the S&P 500.
3. Advanced Micro Devices (AMD)
Advanced Micro Devices (AMD +1.34%) is the smallest stock on this list, but with a market cap that's approaching $400 billion, it's still a mega-cap stock. While AMD's 35% year-over-year revenue growth in Q3 delighted investors, the company's partnership with OpenAI made it a more potent Nvidia competitor.
One week after sharing Q3 results, AMD unveiled its strategy to lead the $1 trillion compute market, which included a long-term 35% compound annual growth rate (CAGR) at the company level. It also expects more than 60% CAGR for its data center business.
NASDAQ: AMD
Key Data Points
Demand for AI chips remains insatiable. AI models like ChatGPT rely on these chips to function, and any innovations like autonomous vehicles and robots will also require top-caliber AI chips. Nvidia has been the industry's leader for multiple years, but AMD is coming for some of its market share.
More tech giants are looking for alternatives to Nvidia, and that can greatly benefit AMD. The stock has been a roller coaster for several years, but the OpenAI collaboration and long-term strategy may be what AMD needs to enter a sustained rally.
