Top 5 AI Stocks to Invest In Now
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 11 hours ago
0mins
Should l Buy GOOGL?
Source: NASDAQ.COM
- Alphabet Investment Opportunity: Purchasing 10 shares of Alphabet for about $2,800 capitalizes on its comprehensive AI strategy, including top-tier AI chips and models, which are expected to drive future growth, with a current P/E ratio of 24 indicating a strong buy signal.
- Amazon Undervalued: Buying 10 shares of Amazon for around $2,100 takes advantage of its P/E ratio below 27, significantly lower than competitors, while its cloud computing business is accelerating, and future investments in data centers are likely to enhance returns.
- ServiceNow's Strong Growth: Investing $1,800 for 18 shares of ServiceNow, which achieved $600 million in annual contract revenue last quarter with its NowAssist AI solution, is projected to reach $1 billion by year-end, indicating deep penetration in IT and other departments.
- Salesforce's Market Leadership: Acquiring 10 shares of Salesforce for $1,800 leverages its Data 360 and Informatica acquisition, positioning it as a key player in the AI space, with a current P/E ratio of just 12, reflecting an attractive investment opportunity.
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Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to rise
33 Analyst Rating
26 Buy
7 Hold
0 Sell
Strong Buy
Current: 273.500
Low
305.00
Averages
374.25
High
400.00
Current: 273.500
Low
305.00
Averages
374.25
High
400.00
About GOOGL
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strong U.S. Crude Performance: U.S. crude for May also increased by 1.5% to $102.92 per barrel, with a 51% rise in March, representing the best performance since May 2020, reflecting concerns over supply disruptions.
- Escalating Geopolitical Risks: Iranian drones targeted fuel tanks at Kuwait International Airport, causing a massive fire and exacerbating global economic fears over reliance on Middle Eastern oil, especially with shipments through the Strait of Hormuz nearly halted.
- Trump's Withdrawal Statement: Trump indicated that U.S. forces are expected to leave Iran in two to three weeks, dismissing the need for a negotiated deal to end the conflict, which could lead to further oil price volatility and impact global market stability.
See More
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- Strong Earnings Report: Alphabet's revenue for Q4 2025 rose 18% year-over-year to $113.8 billion, showcasing robust demand across its core search and cloud businesses, reflecting the company's competitive strength and attractiveness in the market.
- Search Business Resurgence: The Google search segment saw a 17% year-over-year revenue increase to $63 billion, with management attributing this growth to advancements in artificial intelligence, indicating the company's leadership in technological innovation.
- Cloud Business Explosion: Google Cloud's revenue reached $17.66 billion, up 48% year-over-year, while cloud backlog surged 55% to $240 billion, demonstrating strong demand for AI products and significant future growth potential.
- Robust Cash Flow: Alphabet generated $52.4 billion in operating cash flow in Q4, with net income rising 30% year-over-year to $34.5 billion, indicating the company's ability to maintain strong profitability and financial health while making substantial investments.
See More
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- Consumer Confidence Boost: The US March consumer confidence index unexpectedly increased by 0.8 to 91.8, surpassing the anticipated decline to 87.9, indicating a strengthening consumer outlook that may drive spending and economic growth.
- Strength in China: China's March manufacturing PMI rose to 50.4, better than the expected 50.1, signaling signs of economic recovery that could positively impact global growth prospects and further support US stock performance.
- Falling Bond Yields: The 10-year Treasury note yield dropped to 4.28%, a one-week low, reflecting reduced inflation worries, which may provide support for the stock market and enhance investor interest in equities.
See More
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- Surge in Cloud Backlog: Google Cloud's backlog soared 55% sequentially to $240 billion, indicating strong demand for enterprise AI software products and further solidifying the company's leadership in the cloud computing market.
- Significant Revenue Growth: In Q4 2025, Alphabet's total revenue grew 18% year-over-year to $113.8 billion, primarily driven by accelerating growth in its cloud and search businesses, reflecting sustained market demand for its core offerings.
- AI Product Momentum: Revenue from products built on generative AI models surged nearly 400% year-over-year in Q4, showcasing the company's innovative capabilities in AI and laying a solid foundation for future revenue growth.
- Robust Cash Flow: Alphabet generated a record $52.4 billion in operating cash flow in Q4, with net income rising 30% year-over-year to $34.5 billion, enabling the company to expand its cloud business while also repurchasing shares and paying dividends.
See More
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- Update Blocked: Apple has blocked updates for at least two popular AI coding apps, including Replit, citing safety concerns, a move that risks pushing developers to other platforms and undermining Apple's leadership in the developer ecosystem.
- Market Potential: The AI coding tools market has rapidly emerged in the past 18 months, with companies now valued in the billions, and Apple's restrictive measures could lead to innovation flourishing outside its ecosystem, impacting App Store revenues.
- User Experience Impacted: Many beginners and non-professional developers rely on tools like Replit for app development, and Apple's restrictions may alienate these users, affecting their loyalty to the iPhone and future app development intentions.
- Strategic Misstep Risk: While Apple aims to protect its App Store, it may inadvertently drive developers to open web platforms, risking a loss of competitive advantage in future app ecosystems, reminiscent of the challenges faced in the 1990s.
See More
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- Source Code Leak: Anthropic confirmed a leak of part of the internal source code for its popular AI coding assistant, Claude Code, which, while not involving sensitive customer data, could provide competitors with critical insights into its technology, potentially undermining its market position.
- Human Error Issue: A spokesperson stated that the leak was due to a release packaging issue caused by human error rather than a security breach, indicating potential weaknesses in the company's internal processes that may require enhanced oversight and controls to prevent future incidents.
- Surge in User Attention: The leaked code garnered significant attention on social media, with a related post amassing over 21 million views shortly after its release, reflecting the public's keen interest in AI technology and potentially increasing pressure on competitors to accelerate their development efforts.
- Revenue Growth Amidst Competition: Since its launch, Claude Code has achieved an annual run-rate revenue exceeding $2.5 billion, and while its success has attracted many developers, the source code leak could weaken its competitive edge, prompting rivals like OpenAI and Google to intensify their investments to capture market share.
See More
