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/Downside Potential From July 2 Close |
| Microsoft Corp. (ticker: MSFT) | +7.1% |
| Nvidia Corp. (NVDA) | -4.6% |
| Alphabet Inc. (GOOG, GOOGL) | +23.1% |
| Amazon.com Inc. (AMZN) | +22.7% |
| Meta Platforms Inc. (META) | +10.7% |
| Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) | -14.3% |
| ASML Holding NV (ASML) | +25.1% |
| Adobe Inc. (ADBE) | +32.1% |
| International Business Machines Corp. (IBM) | +0.8% |
| Arista Networks Inc. (ANET) | +28.5% |
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. In May, Microsoft announced Microsoft Discovery, a new platform that allows scientific researchers and engineers to collaborate with specialized AI agents to facilitate scientific research. Analyst Joseph Bonner says Microsoft is moving aggressively to capitalize on the opportunities generative AI technology is opening via both internal AI development and investments in AI startups. Argus has a “buy” rating and $526 price target for MSFT stock, which closed at $491.09 on July 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. Cloud services provider Nscale recently announced plans to deploy 10,000 Nvidia Blackwell graphics processing units by the end of 2026 as part of an effort to make the U.K. a global leader in AI technology. Analyst Jim Kelleher says AI demand will be key to Nvidia’s growth outlook. Argus has a “buy” rating and $150 price target for NVDA stock, which closed at $157.25 on July 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 May this year, Google rolled out AI Mode, a new feature designed to use AI to provide more detailed and tailored responses to search queries. Bonner says Alphabet has done an excellent job maintaining its internet search dominance despite AI challengers and antitrust litigation. Argus has a “buy” rating and $220 price target for GOOGL stock, which closed at $178.64 on July 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 Amazon Web Services. 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. Amazon CEO Andy Jassy recently said in a memo to employees that AI will “reduce our total corporate workforce as we get efficiency gains.” Kelleher says demand for AI technology has helped energize its AWS business and significantly boost cloud services profit margins. Argus has a “buy” rating and $270 price target for AMZN stock, which closed at $219.92 on July 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 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. Meta reportedly plans to allow brands to create ads and target users using only AI technology by the end of 2026. Bonner is bullish on Meta’s $14.3 billion investment in Scale AI. Argus has a “buy” rating and $790 price target for META stock, which closed at $713.57 on July 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. The company 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 that could soon develop AI chips. Kelleher says tariff uncertainty has clouded Taiwan Semiconductor’s outlook, but AI demand continues to fuel sales growth. He anticipates a rebound in electronic device demand and ongoing AI growth as AI technology becomes more mainstream. Kelleher projects ongoing double-digit annual revenue growth. Argus has a “buy” rating and $200 price target for TSM stock, which closed at $233.60 on July 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 are two of ASML’s largest customers. In May, U.S. 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 AI and premium-tier device demand are revenue growth drivers. Argus has a “buy” rating and $1,000 price target for ASML stock, which closed at $799.59 on July 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 is innovating rapidly and integrating AI technology throughout its product offerings. Argus has a “buy” rating and $500 price target for ADBE stock, which closed at $378.47 on July 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 generative AI sales are critical to IBM’s growth outlook. Argus has a “buy” rating and $290 price target for IBM stock, which closed at $287.65 on July 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 products 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 can capitalize on cloud-based AI data center networking demand. Argus has a “buy” rating and $130 price target for ANET stock, which closed at $101.13 on July 2.
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Artificial Intelligence Stocks: The 10 Best AI Companies originally appeared on usnews.com
Update 07/03/25: This story was published at an earlier date and has been updated with new information.
