One of the hottest investment trends on Wall Street in recent years has been artificial intelligence technology.
Automation and robotics are disrupting virtually every industry. OpenAI’s ChatGPT, Google’s Gemini and Anthropic’s Claude are just three examples of AI-powered chatbots, coding assistants and productivity suites that are reshaping the world and the modern-day economy and creating opportunities for tech stock investors.
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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 Research analysts:
| Stock | Implied upside* |
| Nvidia Corp. (ticker: NVDA) | 23% |
| Alphabet Inc. (GOOG, GOOGL) | 23% |
| Microsoft Corp. (MSFT) | 2% |
| Amazon.com Inc. (AMZN) | 19% |
| Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) | 20% |
| Broadcom Inc. (AVGO) | 49% |
| Meta Platforms Inc. (META) | 36% |
| ASML Holding NV (ASML) | 23% |
| International Business Machines Corp. (IBM) | 20% |
| Arista Networks Inc. (ANET) | 4% |
*Per Argus Research price targets, using Aug. 6 closing price.
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 May, Nvidia unveiled its new RTX Spark superchip designed to integrate AI agent capabilities directly into slim Windows laptops. Analyst Jim Kelleher says most investors should own Nvidia’s stock in the age of GPU-driven applications and AI acceleration and says Nvidia is central to the AI economy. Argus has a “buy” rating and $270 price target for NVDA stock, which closed at $218.99 on Aug. 6.
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 June, Alphabet announced plans to sell $80 billion in stock to fund investments in AI compute infrastructure that will be necessary to meet unprecedented demand from customers. Analyst Joseph Bonner says Alphabet’s AI infrastructure buildout is a top priority for the company. Argus has a “buy” rating and $440 price target for GOOGL stock, which closed at $357.75 on Aug. 6.
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 June, Microsoft launched seven proprietary, in-house AI models trained entirely from scratch, including MAI-Code-1-Flash, which converts written descriptions to code for applications and websites. Bonner says Microsoft’s impressive second-quarter earnings report eased investor fears surrounding its aggressive generative AI investments. Microsoft’s safe, growing dividend is also a rarity among AI stocks. Argus has a “buy” rating and $510 price target for MSFT stock, which closed at $499.86 on Aug. 6.
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 April, Amazon announced plans to invest up to an additional $25 billion in Anthropic in a deal that includes Anthropic committing $100 billion to AWS services over the next decade. Kelleher says generative AI demand has reinvigorated AWS. Argus has a “buy” rating and $325 price target for AMZN stock, which closed at $272.26 on Aug. 6.
Taiwan Semiconductor Manufacturing Co. Ltd. (TSM)
Taiwan Semiconductor Manufacturing is the world’s largest pure-play semiconductor foundry. It manufactures most of the advanced AI semiconductors for Nvidia and other AI chipmakers. At the company’s annual meeting in June, TSMC CEO C.C. Wei said the company’s Chip-on-Wafer-on-Substrate advanced packaging capacity for AI chips is “extremely tight and sold out through 2026.” Kelleher says accelerating electronic device demand coupled with generative AI becoming more mainstream will help TSMC maintain solid revenue growth in coming years. The company has even begun ramping its 2-nanometer chip production. Argus has a “buy” rating and $500 price target for TSM stock, which closed at $418.20 on Aug. 6.
[Read: 6 of the Best AI ETFs to Buy for 2026]
Broadcom Inc. (AVGO)
Broadcom is a diversified global analog semiconductor supplier. Broadcom produces the high-speed Ethernet networking switches and critical custom AI accelerators that are necessary to power the world’s largest generative AI data centers. In July, Broadcom signed a massive $200 billion deal with Samsung in which Samsung will provide memory and foundry services through 2030, securing Broadcom’s AI accelerator supply chain. Kelleher says Broadcom’s stock is attractively valued relative to most AI stocks. He says demand for both Broadcom’s AI semiconductors and VMware software is impressive. Argus has a “buy” rating and $625 price target for AVGO stock, which closed at $420.57 on Aug. 6.
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 July, Meta’s stock plunged after the company reported that aggressive spending on servers, data centers and AI chips tanked the company’s free cash flow. Bonner says Meta’s new generative AI models could boost revenue. Argus has a “buy” rating and $800 price target for META stock, which closed at $589.90 on Aug. 6.
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 manufacture advanced AI chips. Taiwan Semiconductor and Samsung Electronics Co. Ltd. (5930.KS) are two of ASML’s largest customers. In July, ASML announced Intel Foundry has begun high-volume production of its Panther Lake processors utilizing ASML’s next-generation High Numerical Aperture EUV systems, highlighting ASML’s role in the future of AI logic fabrication. Kelleher says chips needed for generative AI applications require ASML’s leading-edge equipment. Argus has a “buy” rating and $2,100 price target for ASML stock, which closed at $1,704.37 on Aug. 6.
International Business Machines Corp. (IBM)
For years, IBM has been developing ways to adapt its Watson supercomputer to revolutionize healthcare, 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 July, IBM reported that AI contracts now account for more than 30% of its total global consulting backlog. Kelleher says IBM’s developing AI applications and large enterprise customer base make it a solid AI investment. Argus has a “buy” rating and $280 price target for IBM stock, which closed at $233.43 on Aug. 6.
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 supply the processing power required for intensive AI workloads. In June, Arista officially launched its next-generation 1.6-Terabit networking portfolio designed specifically to support customers’ giant AI clusters. Kelleher says Arista is benefiting from accelerating demand for cloud networking and AI solutions and is positioned for sustainable double-digit revenue and earnings-per-share growth. Argus has a “buy” rating and $200 price target for ANET stock, which closed at $192.32 on Aug. 6.
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Artificial Intelligence Stocks: The 10 Best AI Companies originally appeared on usnews.com
Update 08/07/26: This story was previously published at an earlier date and has been updated with new information.
