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 June 2 Close |
| Microsoft Corp. (ticker: MSFT) | 13.8% |
| Nvidia Corp. (NVDA) | 9.1% |
| Alphabet Inc. (GOOG, GOOGL) | 30.1% |
| Amazon.com Inc. (AMZN) | 30.6% |
| Meta Platforms Inc. (META) | 8.1% |
| Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) | 2.6% |
| ASML Holding NV (ASML) | 33.9% |
| Adobe Inc. (ADBE) | 48.7% |
| International Business Machines Corp. (IBM) | 9.8% |
| Arista Networks Inc. (ANET) | 44.7% |
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 an average $3.70 return on their investment. Analyst Joseph Bonner says Microsoft’s strong financial performance has reassured investors concerned about aggressive AI spending. Microsoft is investing in both internal AI technology development and third-party AI startups. Argus has a “buy” rating and $526 price target for MSFT stock, which closed at $461.97 on June 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 data center and AI demand will be key long-term growth drivers. Argus has a “buy” rating and $150 price target for NVDA stock, which closed at $137.38 on June 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 adding 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. Bonner says Alphabet will integrate Gemini throughout its product stack. Argus has a “buy” rating and $220 price target for GOOGL stock, which closed at $169.03 on June 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 (AWS). 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’ interests. Kelleher says generative AI features have pushed AWS margins to new highs. Argus has a “buy” rating and $270 price target for AMZN stock, which closed at $206.65 on June 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 will enhance targeted advertising. Argus has a “buy” rating and $725 price target for META stock, which closed at $670.90 on June 2.
[See: Best Tech Stocks to Buy in a Recession.]
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. Taiwan Semiconductor recently announced plans to open a new design center in Munich, Germany, that could soon develop AI chips. Kelleher says President Donald Trump’s tariffs and severe restrictions on AI semiconductor exports create uncertainty for TSMC, but AI demand will remain a secular growth driver for the company. The company’s Arizona plant is already manufacturing advanced chips for Apple Inc. (AAPL) and Nvidia. Argus has a “buy” rating and $200 price target for TSM stock, which closed at $194.81 on June 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. (005930.KS) are two of ASML’s largest customers. In May, White House AI and crypto czar David Sacks said restricting trade of EUV equipment to China is the “single most important export control” for the U.S. in the AI semiconductor industry. Kelleher says demand for generative AI applications will support EUV sales. Argus has a “buy” rating and $1,000 price target for ASML stock, which closed at $746.53 on June 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. In April, Adobe said it plans to release a mobile version of Firefly to compete with OpenAI in mobile AI image generation. Bonner says Adobe’s rapid AI innovation will continue with more feature rollouts in the near future. Argus has a “buy” rating and $600 price target for ADBE stock, which closed at $403.40 on June 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 May, IBM and partner EY debuted EY.ai, an AI tool built with IBM watsonx to help organizations streamline data management and automate tax compliance. Kelleher says AI will be critical to IBM’s future. Argus has a “buy” rating and $290 price target for IBM stock, which closed at $263.89 on June 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. Arista’s stock took a hit in late May after Nvidia announced it has added Meta and Google as new customers for its “Spectrum-X” Ethernet network switches, making Nvidia a potential threat to Arista’s Ethernet networking business. Nevertheless, Kelleher says Arista remains the market leader in AI data center cloud networking. Argus has a “buy” rating and $130 price target for ANET stock, which closed at $89.80 on June 2.
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Artificial Intelligence Stocks: The 10 Best AI Companies originally appeared on usnews.com
Update 06/03/25: This story was published at an earlier date and has been updated with new information.
