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 | Implied upside |
| Microsoft Corp. (ticker: MSFT) | 27% |
| Nvidia Corp. (NVDA) | 17% |
| Alphabet Inc. (GOOG, GOOGL) | 5% |
| Amazon.com Inc. (AMZN) | 40% |
| Meta Platforms Inc. (META) | 29% |
| Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) | 20% |
| ASML Holding NV (ASML) | 13% |
| Adobe Inc. (ADBE) | 42% |
| International Business Machines Corp. (IBM) | 11% |
| Arista Networks Inc. (ANET) | 30% |
Microsoft Corp. (MSFT)
Microsoft has invested more than $13 billion in OpenAI and has integrated ChatGPT into its Bing search engine. Microsoft has also combined all its AI copilots into a single AI experience called Microsoft Copilot. In October, OpenAI completed a restructuring process that includes Microsoft taking a 27% ownership stake in OpenAI’s new public benefit corporation called OpenAI Group PBC. Analyst Joseph Bonner says generative AI demand is still outpacing supply, and Microsoft is continuing to invest in AI technology and cloud services to maintain its growth trajectory. Argus has a “buy” rating and $620 price target for MSFT stock, which closed at $487.10 on Dec. 29.
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 September, Nvidia announced a new AI infrastructure deal with the U.K. that includes scaling up U.K. factories by adding up to 120,000 Nvidia Blackwell graphics processing units. Analyst Jim Kelleher says Nvidia has unmatched, transformative AI technology, and the stock still has significant upside ahead. Argus has a “buy” rating and $220 price target for NVDA stock, which closed at $188.22 on Dec. 29.
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 September, Google announced it was rolling out Gemini in its Chrome browsers on mobile devices and PCs, allowing Chrome users to ask Gemini for help with tasks such as understanding websites and managing internet browsing. Bonner says Alphabet’s AI services are gaining traction. Argus has a “buy” rating and $330 price target for GOOGL stock, which closed at $313.56 on Dec. 29.
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 range of AI and machine learning services to its AWS cloud customers, including advanced text analytics, automated code reviews and chatbots. In November, Amazon announced a $38 billion deal with OpenAI to provide the company access to AWS data center infrastructure. Kelleher says Amazon is investing aggressively to become a major player in the AI cloud services space. Argus has a “buy” rating and $325 price target for AMZN stock, which closed at $232.07 on Dec. 29.
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 prioritized building AI infrastructure and developing AI features for Meta’s platforms with the long-term goal of providing personal superintelligence for the company’s billions of users. In November, Meta announced a new initiative to invest $600 billion in U.S. AI infrastructure over the next three years. Bonner says Meta is already capitalizing on AI advancements in ad targeting. Argus has a “buy” rating and $850 price target for META stock, which closed at $658.69 on Dec. 29.
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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 November, TSMC reported 25% revenue growth, which was fueled by demand for AI chips. Kelleher says Taiwan Semi will benefit from generative AI technology becoming more mainstream in coming years. He says AI-driven growth in high-performance computing is still in the very early stages, and Taiwan Semi is building major foundries in the U.S. to help offset the impact of tariffs. Argus has a “buy” rating and $360 price target for TSM stock, which closed at $300.92 on Dec. 29.
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 December, Intel Corp. (INTC) installed its first commercial High-Numerical Aperture EUV tool critical for producing the next generation of AI processors, which happened to be the ASML Twinscan EXE:5200B. Kelleher says AI and premium-tier device demand have supported ASML’s revenue growth and margin expansion. Argus has a “buy” rating and $1,200 price target for AMSL stock, which closed at $1,066.00 on Dec. 29.
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 December, Adobe announced a multi-year partnership with AI video leader Runway aimed at developing exclusive, specialized AI video capabilities. Bonner says Adobe is rapidly innovating in the generative AI space to fend off disruption and maintain profitability. Argus has a “buy” rating and $500 price target for ADBE stock, which closed at $353.16 on Dec. 29.
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, IBM announced an $11 billion acquisition deal for Confluent, a data streaming platform that IBM says will bolster its AI offerings as reliance on AI agents accelerates. Kelleher says IBM is well positioned for the AI technology age. Argus has a “buy” rating and $340 price target for IBM stock, which closed at $305.74 on Dec. 29.
Arista Networks Inc. (ANET)
Arista Networks supplies cloud networking solutions to internet companies, cloud services providers and enterprise data centers. Arista’s high-performance cloud networking solutions and high-throughput data center switches are necessary to provide the processing power required for intensive AI workloads. In November, Arista announced it would be strengthening its partnership with cybersecurity company Palo Alto Networks Inc. (PANW) to deliver secure, modern AI and data center networks that leverage Arista’s AI for networking expertise and Palo Alto’s next-generation firewalls. Kelleher says Arista provides optimal networking platforms for AI applications. Argus has a “buy” rating and $175 price target for ANET stock, which closed at $134.15 on Dec. 29.
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Artificial Intelligence Stocks: The 10 Best AI Companies originally appeared on usnews.com
Update 12/30/25: This story was previously published at an earlier date and has been updated with new information.
