One of the most popular and profitable investment themes on Wall Street in the 2020s has been artificial intelligence technology.
OpenAI’s ChatGPT chatbot, Microsoft’s Copilot productivity tools and GitHub’s Copilot coding assistants are just three examples of AI products that are changing the way the world communicates, learns and creates.
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Virtually every company in the economy is rushing to integrate AI technology, robotics and automation into its business model, but a handful of companies have AI products and services at the very core of their businesses. Here are 10 of the best AI stocks to buy, according to Argus analysts:
| Stock | Implied change* |
| Nvidia Corp. (ticker: NVDA) | -2% |
| Alphabet Inc. (GOOG, GOOGL) | 11% |
| Microsoft Corp. (MSFT) | 47% |
| Amazon.com Inc. (AMZN) | 23% |
| Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) | 11% |
| Broadcom Inc. (AVGO) | 0% |
| Meta Platforms Inc. (META) | 30% |
| ASML Holding NV (ASML) | 13% |
| International Business Machines Corp. (IBM) | 64% |
| Arista Networks Inc. (ANET) | 41% |
*Based on May 15 closing prices and Argus analysts’ price targets.
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 March, Nvidia announced seven new chips on the Vera Rubin platform are in full production to scale the world’s largest AI factories. Analyst Jim Kelleher says Nvidia’s Vera Rubin architecture includes Groq language processing units (LPUs) that provide 30 times better efficiency and performance than Nvidia’s Hopper architecture. Argus has a “buy” rating and $220 price target for NVDA stock, which closed at $225.32 on May 15.
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 April, Google released Gemma 4, its most intelligent line of AI models to date, designed for advanced reasoning and agentic workflows. Analyst Joseph Bonner says Alphabet is aggressively integrating its advanced Gemini AI models throughout product stacks, and AI is already improving ad targeting. Argus has a “buy” rating and $440 price target for GOOGL stock, which closed at $396.78 on May 15.
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 February, Microsoft’s MAI Superintelligence team released three new foundational AI models — the Transcribe-1 speech-to-text model, Voice-1 audio generation model and Image-2 video generation model. Bonner says Microsoft is investing heavily in AI technology as it capitalizes on robust demand for AI-based cloud services. He says AI-facilitated cost cuts could boost margins over time. Argus has a “buy” rating and $620 price target for MSFT stock, which closed at $421.92 on May 15.
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 February, Amazon announced AWS is investing $50 billion in OpenAI to accelerate AI innovation for startups, enterprises and consumers. Kelleher says generative AI demand has fueled a rebound in AWS revenue growth. Argus has a “buy” rating and $325 price target for AMZN stock, which closed at $264.14 on May 15.
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 April, TSMC reported 35% revenue growth and told investors it is benefiting from elevated demand for AI semiconductors from customers such as Apple Inc. (AAPL) and Nvidia. Kelleher says two of Taiwan Semiconductor’s biggest bullish catalysts are accelerating electronic device demand and generative AI becoming more mainstream. He says Taiwan Semi is successfully ramping its leading-edge 3-nanometer and 5-nanometer chips to meet surging AI demand. Argus has a “buy” rating and $450 price target for TSM stock, which closed at $404.35 on May 15.
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Broadcom Inc. (AVGO)
Broadcom is a diversified global analog semiconductor supplier. Broadcom produces the high-speed Ethernet networking switches and critical custom AI accelerators (XPUs) that are necessary to power the world’s largest generative AI data centers. In April, Broadcom announced a new partnership with Meta Platforms Inc. (META) to co-develop multiple generations of custom XPUs, enabling optimization of Meta’s AI infrastructure. Kelleher says Broadcom’s business is firing on all cylinders, and that ongoing momentum stems largely from AI semiconductor demand. He says Broadcom also has a relatively attractive valuation for an AI investment. Argus has a “buy” rating and $425 price target for AVGO stock, which closed at $425.19 on May 15.
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 April, Meta announced plans to lay off 10% of its employees as it integrates AI into its workflow and restructures its workforce around the technology. Bonner says AI can improve ad targeting and engagement. Argus has a “buy” rating and $800 price target for META stock, which closed at $614.23 on May 15.
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 April, ASML raised its 2025 revenue guidance to between $42.1 billion and $46.8 billion, citing unprecedented and accelerating demand for AI chipmaking equipment. Kelleher says a normalized supply chain and demand for premium-tier devices and AI technology will help ASML outperform. Argus has a “buy” rating and $1,700 price target for ASML stock, which closed at $1,501.81 on May 15.
International Business Machines Corp. (IBM)
For years, IBM has been developing ways to adapt its Watson supercomputer to revolutionize health care, finance, law and academia. IBM’s portfolio of watsonx enterprise AI and data platform 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 announced a new enterprise operating model for the AI era built on agents, data, automation and hybrid cloud services. Kelleher says many IBM enterprise customers are updating their infrastructures for the AI age. Argus has a “buy” rating and $360 price target for IBM stock, which closed at $219.30 on May 15.
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 March, Arista announced its new eXtra-dense Pluggable Optics (XPO) technology, designed specifically to support AI networking by delivering record-breaking throughput and unprecedented rack density. Kelleher anticipates Arista’s AI networking revenue will more than double in 2026, and he says AI-driven cloud networking growth supports Arista’s Ethernet solutions demand. Argus has a “buy” rating and $200 price target for ANET stock, which closed at $141.97 on May 15.
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Artificial Intelligence Stocks: The 10 Best AI Companies originally appeared on usnews.com
Update 05/18/26: This story was previously published at an earlier date and has been updated with new information.
