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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Whether it be machine learning, large language models, smart applications and appliances, digital assistants, synthetic media software, or autonomous vehicles, companies that aren’t investing in AI products and services risk becoming obsolete. Countless companies stand to benefit from AI, but 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 | Upside Potential From May 2 Close |
| Microsoft Corp. (ticker: MSFT) | 20.8% |
| Nvidia Corp. (NVDA) | 31.0% |
| Alphabet Inc. (GOOG, GOOGL) | 34.1% |
| Amazon.com Inc. (AMZN) | 42.1% |
| Meta Platforms Inc. (META) | 21.4% |
| Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) | 11.5% |
| ASML Holding NV (ASML) | 44.8% |
| Adobe Inc. (ADBE) | 57.5% |
| International Business Machines Corp. (IBM) | 18.1% |
| Arista Networks Inc. (ANET) | 42.8% |
Microsoft Corp. (MSFT)
Microsoft has invested nearly $14 billion in OpenAI and has integrated ChatGPT into its Bing search engine. The company has also combined all its AI copilots into a single AI experience called Microsoft Copilot. Microsoft recently released a study that found that for every $1 organizations invest in generative AI, they are realizing a $3.70 return on their investment. Analyst Joseph Bonner says Microsoft’s cloud and AI investments have the company positioned for long-term growth, and demand for AI features currently outpaces supply. Argus has a “buy” rating and $526 price target for MSFT stock, which closed at $435.28 on May 2.
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 April, Nvidia announced it is working with its manufacturing partners to design and build factories that will, for the first time, fully produce Nvidia AI supercomputers entirely within the U.S. Analyst Jim Kelleher says Nvidia’s first-mover advantage in AI chips will continue to create value for investors. Argus has a “buy” rating and $150 price target for NVDA stock, which closed at $114.50 on May 2.
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 March, Google announced it is integrating its Gemini 2.0 AI model into its search engine to answer more complex math and computer coding questions in the overviews section of search results. Kelleher says Alphabet is successfully fending off AI search competition. Argus has a “buy” rating and $220 price target for GOOGL stock, which closed at $164.03 on May 2.
Amazon.com Inc. (AMZN)
Amazon has integrated AI into every aspect of its business, including its targeted advertisements, its marketplace search and recommendation algorithms, and its Amazon Web Services division. Amazon offers a wide range of AI and machine learning services to its AWS cloud customers, including advanced text analytics, automated code reviews and chatbots. One of Amazon’s newest AI features is Interests, which automatically identifies new products in Amazon’s store that match users’ passions and hobbies. Kelleher says Amazon is gaining momentum in AI and could outperform its Magnificent Seven counterparts. Argus has a “buy” rating and $270 price target for AMZN stock, which closed at $189.98 on May 2.
Meta Platforms Inc. (META)
Meta Platforms is a market leader in social media and online advertising and is the parent company of Facebook, Instagram and other platforms. 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 April, Meta announced it is launching a stand-alone AI assistant that will run on Meta’s Llama AI model and compete with ChatGPT and other AI apps. Bonner says AI improves Meta’s targeted advertising. Argus has a “buy” rating and $725 price target for META stock, which closed at $597.02 on May 2.
[Read: 10 Best Tech Stocks to Buy for 2025]
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 March, TSMC announced it will invest an additional $100 billion in advanced semiconductor manufacturing in the U.S., a move which could help the country further reduce its reliance on overseas AI chip production in Taiwan. Despite tariff uncertainties, Kelleher says AI demand and a rebound in electronic device sales will fuel sustainable double-digit annual revenue growth for TSMC. Argus has a “buy” rating and $200 price target for TSM stock, which closed at $179.28 on May 2.
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 (EUV) lithography equipment necessary to produce advanced AI chips. Taiwan Semiconductor and Samsung Electronics Co. Ltd. (OTC: SSNLF) are two of ASML’s largest customers. In March, ASML announced a new partnership with nonprofit chip research hub imec on research and sustainability, including tackling the challenges of AI-driven technological advancements. Kelleher says demand for generative AI applications and premium-tier edge devices will support EUV sales growth in 2025. Argus has a “buy” rating and $1,000 price target for ASML stock, which closed at $690.33 on May 2.
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 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 recently announced new AI agents that brands can use to send targeted, customized marketing messages to different users based on their online activity. Bonner says innovative AI features will be key to the Adobe bull thesis. Argus has a “buy” rating and $600 price target for ADBE stock, which closed at $380.87 on May 2.
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 February, IBM introduced AI Integration Services, which will help clients transform end-to-end business processes into agentic apps and maximize AI return on investment. Kelleher says generative AI momentum has helped IBM exceed earnings expectations. Argus has a “buy” rating and $290 price target for IBM stock, which closed at $245.55 on May 2.
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. In March, Arista unveiled its EOS Smart AI Suite aimed at optimizing AI performance and efficiency, including cluster load balancing for managing traffic across AI clusters and supporting consistent, low-latency network flows. Kelleher says Arista is producing optimal networking platforms for AI applications and has expanding AI opportunities. Argus has a “buy” rating and $130 price target for ANET stock, which closed at $91.02 on May 2.
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Artificial Intelligence Stocks: The 10 Best AI Companies originally appeared on usnews.com
Update 05/05/25: This story was published at an earlier date and has been updated with new information.
