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 Aug. 1 Close |
| Microsoft Corp. (ticker: MSFT) | +0.3% |
| Nvidia Corp. (NVDA) | -13.6% |
| Alphabet Inc. (GOOG, GOOGL) | +16.3% |
| Amazon.com Inc. (AMZN) | +25.7% |
| Meta Platforms Inc. (META) | +5.3% |
| Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) | +23.2% |
| ASML Holding NV (ASML) | +44.9% |
| Adobe Inc. (ADBE) | +43.7% |
| International Business Machines Corp. (IBM) | +35.9% |
| Arista Networks Inc. (ANET) | +10.5% |
Microsoft Corp. (MSFT)
Microsoft has invested about $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’s strong financial performance has silenced critics of its heavy AI technology spending. Bonner says Azure Cloud has been a particularly strong growth source. Argus has a “buy” rating and $526 price target for MSFT stock, which closed at $524.11 on Aug. 1.
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 to provide infrastructure to make the U.K. a global leader in AI technology. Analyst Jim Kelleher says data center and AI technology are Nvidia’s core growth drivers. Argus has a “buy” rating and $150 price target for NVDA stock, which closed at $173.72 on Aug. 1.
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, Google rolled out AI Mode, a new feature designed to use AI to provide more detailed and tailored responses to search queries. Bonner says Google continues to roll out AI features as it integrates Gemini throughout its product stack. Argus has a “buy” rating and $220 price target for GOOGL stock, which closed at $189.13 on Aug. 1.
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. 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 AI will “reduce our total corporate workforce as we get efficiency gains.” Kelleher says generative AI demand has energized AWS sales, pushing AWS margins to their highest levels ever. Argus has a “buy” rating and $270 price target for AMZN stock, which closed at $214.75 on Aug. 1.
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. Meta reportedly plans to allow brands to create ads and target users using only AI technology by the end of 2026. Bonner says AI-based targeted advertising and Ray-Ban AI glasses are significant opportunities. Argus has a “buy” rating and $790 price target for META stock, which closed at $750.01 on Aug. 1.
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 July, Taiwan announced its “Ten Major AI Infrastructure Projects” initiative, which is aimed at investing in silicon photonics, quantum technology and AI robots and could create a significant tailwind for Taiwan Semi in the next decade. Kelleher says TSMC is facing major tariff uncertainty, but AI demand will help the company maintain double-digit annual revenue growth for the foreseeable future. Argus has a “buy” rating and $290 price target for TSM stock, which closed at $235.21 on Aug. 1.
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 needed to produce advanced AI chips. Taiwan Semiconductor and Samsung Electronics are two of ASML’s largest customers. In July, ASML Chief Financial Officer Roger Dassen said any easing of U.S. restrictions on the sale of certain AI processors to China would be a major bullish catalyst for chip demand. Kelleher says generative AI application demand is supporting strong EUV sales growth. Argus has a “buy” rating and $1,000 price target for ASML stock, which closed at $689.82 on Aug. 1.
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 June, Adobe launched its Firefly mobile app, its all-in-one platform for Adobe’s Firefly generative AI models, including features such as text-to-video, text-to-image and image-to-video tools. Bonner says Adobe will continue to launch AI features throughout its product set. Argus has a “buy” rating and $500 price target for ADBE stock, which closed at $347.80 on Aug. 1.
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 June, IBM announced the first software integrating watsonx.governance and Guardian AI Security to help customers keep AI systems and agents safe and secure. Kelleher says he is bullish on IBM’s generative AI momentum and new z17 mainframe. Argus has a “buy” rating and $340 price target for IBM stock, which closed at $250.05 on Aug. 1.
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 July, Arista acquired the VeloCloud SD-WAN portfolio from Broadcom and expanded its AI-driven enterprise offerings with the launch of new switching, Wi-Fi 7 access points and WAN capabilities. Kelleher says Arista’s AI opportunity is expanding as generative AI demand fuels accelerating growth in cloud-based data center networking. Argus has a “buy” rating and $130 price target for ANET stock, which closed at $117.57 on Aug. 1.
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Artificial Intelligence Stocks: The 10 Best AI Companies originally appeared on usnews.com
Update 08/04/25: This story was published at an earlier date and has been updated with new information.
