If you're looking for some of the best stocks to buy with $1,000 right now, you don't have to look too far. In fact, some of the best stocks to invest in right now could be companies whose products and services you use nearly every day. Let's look at two to own right now.
Alphabet
Outside of China, most people in the world use Google search, either directly or as the default search engine through their smartphone. As the gateway to the internet, Alphabet (GOOGL 1.46%) (GOOG 1.40%) holds a powerful position, and artificial intelligence (AI) features are helping drive its search growth.
NASDAQ: GOOGL
Key Data Points
At the same time, the company is reporting huge growth from its cloud computing business, where revenue skyrocketed 48% last quarter. Meanwhile, its custom AI chips, called tensor processing units (TPUs), give it a cost advantage over other competitors, which rely on Nvidia's graphics processing units (GPUs) to power their AI workloads. Alphabet is betting big on AI, planning to spend between $175 billion and $185 billion on capital expenditures (capex) this year. But perhaps an underrated part of the story is that its TPUs cost considerably less than GPUs, so Alphabet's getting a lot more bang for its buck and a better return on its investment.
Between search, AI, and cloud computing, Alphabet is a stock you want to own.
Image source: Getty Images.
Amazon
Another company whose services people use frequently is Amazon (AMZN 1.38%). Amazon is the dominant e-commerce platform, and the key to its success has been its logistics network. The ability to get items to people's doorsteps within a day or two helps drive growth. Meanwhile, through the use of AI and robotics, Amazon continues to improve delivery times and increase operational efficiency. This was clear last quarter, as its North American e-commerce business saw its operating income increase 24% on a 10% rise in sales.
NASDAQ: AMZN
Key Data Points
At the same time, like Alphabet, Amazon is also a cloud computing leader. In fact, it created the industry and still holds the market share lead today. Amazon is beginning to see its cloud computing revenue accelerate, with Amazon Web Services (AWS) revenue growing 24% last quarter, its fastest growth in more than three years. With demand for its infrastructure and AI services strong, it has committed to spending $200 billion in capex this year. And while not as far along as Alphabet's TPUs, Amazon also has its own custom AI chips that are starting to gain traction.
Between its cloud computing growth and the strong operating leverage it is seeing in its e-commerce operation, Amazon is another stock worth holding.
