Important points
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The first companies investors should buy operate in all areas of AI and are at the forefront of this technology.
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The founder and CEO of the second-largest AI business is spending lavishly on deploying personal superintelligence.
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These two “Magnificent Seven” stocks trade at reasonable price-to-earnings ratios of less than 30 times.
Investors like to follow the biggest trends that are changing the economy. Nothing has been more significant in recent years than the remarkable rise of artificial intelligence (AI). Businesses of all shapes and sizes are looking for ways to leverage this technology to drive growth and reduce costs. And investors want to figure out how to best position their portfolios for long-term returns.
The good news is you don’t have to search extensively to find the top. AI stocks. These $2 trillion companies are worth investing in right now.
Will AI create the world’s first millionaire? Our team published a report on one little-known company called an “essential monopoly” that provides critical technology needed by both Nvidia and Intel. Continued “
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Alphabet is an end-to-end AI giant
The first stocks to lead the AI race are alphabet(NASDAQ:Google)(NASDAQ:GOOG). The selection may not be surprising, considering the company has long been a dominant force in the Internet era. Rely on AI capabilities to strengthen your empire.
What sets Alphabet apart is its presence across all areas of AI. The company operates an AI research lab called DeepMind. It is developing a chip known as a tensor processing unit. And Alphabet uses Google Cloud Platform (GCP) to The rapidly growing field of cloud computing This completes the company’s leading position in the AI infrastructure layer.
When it comes to GCP, it operates at a very high level. Fourth quarter sales increased 48% year over year. CEO Sundar Pichai says the backlog is $240 billion.
Alphabet’s various apps and platforms, including Search, Gmail, Maps, and YouTube, are all powered by AI. We also use AI capabilities to enhance creativity and monetization for our advertising clients. alphabet collected $295 billion in advertising revenue in 2026, so they need to cater to these customers.
In 2026, Alphabet’s capital expenditures (Capex) are expected to total $170 billion at the midpoint. This represents an 87% year-over-year increase and clearly demonstrates management’s commitment to AI.
Meta Platform leverages AI to power engagement and advertising capabilities
The next stocks to consider are: meta platform(NASDAQ:Meta). It has also been at the forefront of the internet revolution and operates many popular social media platforms. Facebook, Instagram, WhatsApp, Messenger, and Threads together counted a mind-boggling 3.58 billion daily active users in the fourth quarter. Recruitment like this is unparalleled. And that gives the meta a powerful network effect.
Founder and CEO Mark Zuckerberg’s AI intentions are clear. He wants to bring personal superintelligence to people around the world.
Engagement is important to Metaplatform. AI can help improve personalized content recommendations and increase the time users spend in your app.
Meta also introduced AI-powered advertising enhancements, as ad sales accounted for 98% of the company’s overall revenue base last year. Zuckerberg’s goal is for AI to automate the entire advertising process for customers who provide clear goals and budgets.
Like Alphabet, Meta spares no expense. Last year, we brought in some great AI talent into our company, and it paid off. And capital spending to expand computing capacity was $72 billion in 2025. the Capital investment forecast for 2026 Between $115 billion and $135 billion.
These are two of the cheapest ‘Magnificent Seven’ stocks
Investors may be wondering why now is the best time to buy these companies. In addition to strong financial performance, the valuation is also attractive. This is an important element that should always be included in a thorough analysis.
On top of that microsoftThese two stocks are the cheapest among the prestigious club “Magnificent Seven”. Alphabet and Meta’s price-to-earnings ratios are 28.1x and 28.4x, respectively. Investors who are buying these top AI stocks now are improving the quality of their portfolios.
Should you buy Alphabet stock now?
Before buying Alphabet stock, consider the following:
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Neil Patel has no position in any stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy.
