Artificial intelligence, automation and robotics are disrupting virtually every industry. In recent years, the world has gotten a firsthand look at remarkable advances in AI technology, including OpenAI’s ChatGPT AI chatbot, Google’s Gemini AI model and DeepSeek’s AI assistant.
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With all sorts of potential applications — machine learning, large language models, smart applications and appliances, digital assistants, synthetic media software and autonomous vehicles all fall under the broad umbrella of AI — companies that aren’t investing in AI products and services risk becoming obsolete. Countless companies stand to benefit from this cutting-edge technology, but only a handful of stocks have AI and automation as a central part of their businesses. Here are 10 of the best AI stocks to buy, according to Argus:
Stock | Implied upside from Feb. 3 close |
Microsoft Corp. (ticker: MSFT) | 28.0% |
Nvidia Corp. (NVDA) | 50.0% |
Alphabet Inc. (GOOG, GOOGL) | -0.6% |
Amazon.com Inc. (AMZN) | -3.1% |
Meta Platforms Inc. (META) | -1.6% |
Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) | 35.1% |
ASML Holding NV (ASML) | 71.0% |
Adobe Inc. (ADBE) | 36.8% |
International Business Machines Corp. (IBM) | -0.3% |
Arista Networks Inc. (ANET) | 16.6% |
Microsoft Corp. (MSFT)
Microsoft has invested $13 billion in OpenAI and has integrated ChatGPT into its Bing search engine. Microsoft has also integrated all its AI copilots into a single AI experience called Microsoft Copilot. The company is reportedly working on teaching a new set of autonomous AI agents that can act on behalf of users by taking actions such as approving customer returns and reviewing shipping invoices 24 hours a day without human prompts. Analyst Joseph Bonner says Microsoft’s AI and cloud investments will help the company maintain long-term growth. Argus has a “buy” rating and $526 price target for MSFT stock, which closed at $410.92 on Feb. 3.
Nvidia Corp. (NVDA)
High-end chipmaker Nvidia provides the massive processing power needed to run advanced AI applications. Nvidia has been one of the best-performing stocks in the entire market in recent years, and it’s largely due to the company’s AI exposure. In November, Nvidia demonstrated new AI technology aimed at the music, video game and movie industries that can modify voices and produce novel sounds. Analyst Jim Kelleher says Nvidia’s remarkable growth opportunities extend beyond AI to end markets such as gaming, professional visualization and automation. Argus has a “buy” rating and $175 price target for NVDA stock, which closed at $116.66 on Feb. 3.
Google and YouTube parent company Alphabet uses AI and automation in virtually every facet of its business, from ad pricing to content promotion to Gmail spam filters. Google launched its Bard AI chatbot in March 2023 and its Gemini general AI model in December 2023. In December 2024, Google reported a major breakthrough in its Google Quantum AI Willow chip, a 105-qubit chip that could have major AI technology applications. Bonner says Alphabet has done an exceptional job defending its search and advertising businesses from generative AI competition. Argus has a “buy” rating and $200 price target for GOOGL stock, which closed at $201.23 on Feb. 3.
[SEE: 8 Best Quantum Computing Stocks to Buy for 2025]
Amazon.com Inc. (AMZN)
Like many of its rivals, Amazon has also integrated AI into nearly every aspect of its business, including its targeted advertisements, its marketplace search and recommendation algorithms, and Amazon Web Services (AWS), its cloud computing arm. Amazon offers a wide range of AI and machine learning services to its AWS customers, including advanced text analytics, automated code reviews and chatbots. In December 2024, Amazon announced a new family of multimodal generative AI models, called Nova, that can generate images, text and videos. Kelleher says AWS is leveraging its cloud services leadership position to become a key player in AI. Argus has a “buy” rating and $230 price target for AMZN stock, which closed at $237.42 on Feb. 3.
Meta Platforms Inc. (META)
Meta Platforms is a market leader in social media and online advertising and is the parent company of Facebook, Instagram, WhatsApp, Messenger and Threads. CEO Mark Zuckerberg has adopted a bold strategy of making Meta’s AI technology free and open to the public in an effort to gain market share and drive down competitors’ prices. In December, Meta released Motivo, an AI model that can control a digital avatar and potentially improve the metaverse experience. Bonner says Meta is already using generative AI to improve its targeted advertising. Argus has a “buy” rating and $686 price target for META stock, which closed at $697.46 on Feb. 3.
Taiwan Semiconductor Manufacturing Co. Ltd. (TSM)
Taiwan Semiconductor Manufacturing is the world’s largest pure-play semiconductor foundry. Taiwan Semi manufactures all the advanced AI semiconductors for Nvidia and other AI chipmakers. In December, Reuters reported TSMC is in talks with Nvidia to manufacture Nvidia’s Blackwell AI chips at TSMC’s new plant in Arizona. Kelleher says tariffs and restrictions on U.S. chip exports could be a headwind for Taiwan Semi, but mainstream adoption of AI technology coupled with receding inflation and rebounding electronic device demand will support growth in 2025 and beyond. Argus has a “buy” rating and $270 price target for TSM stock, which closed at $199.80 on Feb. 3.
ASML Holding NV (ASML)
ASML produces photolithography systems and other processing equipment used in semiconductor fabrication. ASML is the only major producer of the extreme ultraviolet lithography equipment used to produce advanced AI chips. Taiwan Semiconductor and Samsung Electronics Co. Ltd. (OTC: SSNLF) are two of ASML’s largest customers. Booming AI demand helped ASML generate record fourth-quarter bookings. Kelleher says AI and premium-tier device demand coupled with normalized supply chains should help ASML expand margins and generate predictable revenue growth. He says ASML has a strong balance sheet and a commitment to shareholder returns. Argus has a “buy” rating and $1,250 price target for ASML stock, which closed at $731.06 on Feb. 3.
Adobe Inc. (ADBE)
Adobe produces creative content software and other applications used for marketing and e-commerce. The company’s Firefly generative machine learning model is generating customer interest across its Photoshop, Illustrator and other platforms. Adobe has also applied its Sensei AI and machine learning technology to its Adobe Analytics, Campaign and Target products. Adobe’s newest batch of generative AI tools includes Firefly Bulk Create, an app that allows users to resize or replace the backgrounds of up to 10,000 images in a single click. Bonner says Adobe’s AI innovation is impressive. Argus has a “buy” rating and $600 price target for ADBE stock, which closed at $438.60 on Feb. 3.
International Business Machines Corp. (IBM)
For years, IBM has been developing ways to adapt its AI supercomputer Watson to revolutionize health care, finance, law and academia. IBM’s portfolio of Watson AI solutions includes applications to improve customer service, automate workflow processes and predict outcomes. IBM’s Watson Studio even helps enterprise customers build AI applications. In December 2024, IBM announced a collaboration with defense intelligence company Janes that will integrate open source defense and security intelligence data into IBM’s watsonx AI and data platform. Kelleher says IBM is generating significant AI and hybrid cloud momentum. Argus has a “buy” rating and $260 price target for IBM stock, which closed at $260.73 on Feb. 3.
Arista Networks Inc. (ANET)
Arista Networks supplies cloud networking solutions to internet companies, cloud service providers and enterprise data centers. Arista’s high-performance cloud networking solutions and high-throughput data center switches provide the processing power required for intensive AI workloads. Arista shares got a boost in January when OpenAI, Oracle and SoftBank announced their new Stargate partnership and pledged to invest up to $500 billion in U.S. AI infrastructure. Kelleher says generative AI investments have led to accelerating demand for Arista’s optimal AI networking solutions. Argus has a “buy” rating and $130 price target for ANET stock, which closed at $111.50 on Feb. 3.
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Artificial Intelligence Stocks: The 10 Best AI Companies originally appeared on usnews.com