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What Is One of the Best Artificial Intelligence (AI) Stocks to Buy Now?

The Motley FoolSep 12, 2025 4:45 PM

Key Points

  • Astute investors can no longer ignore the ongoing AI trend.

  • It's rare to see a business that is a leader in all of the various aspects of AI, from research and hardware to cloud and user-facing apps.

  • This company’s crown jewel segment is adapting well to the new way people search for information.

Whether you love it or hate it, it's increasingly looking like artificial intelligence (AI) is a major technological shift that will have huge implications for our economy over the long term. Investors can no longer ignore this trend. It's a smart move to consider ways to gain portfolio exposure.

There are a lot of AI stocks out there, but here is one of the best options to consider buying right now.

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ai robots holding chart going up and right.

Image source: Getty Images.

Involved in all phases of AI

Different businesses have different kinds of exposure to AI. Some are involved in the research process, while some work on developing chips. Others provide cloud services or even offer user-facing apps. Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is the rare company that does all of these things.

Google DeepMind is its research lab. It's building chips called Tensor Processing Units. Google Cloud is a leading platform that provides various AI tools and features to customers. And maybe most impressive is the fact that the Gemini models are deeply embedded in the company's offerings. "Today, all seven of our two billion-user products -- Android, Chrome, Gmail, Maps, Play Store, Search, and YouTube -- are using Gemini," the 2024 10-K reads.

Alphabet is a vertically integrated AI powerhouse. This puts it in a powerful position to lead this next tech revolution.

What about Google Search?

Investors have been worried that Google Search, which represents 56% of Alphabet's revenue, would take a hit as people started using chatbots more to find information, leading to fewer queries, less traffic, and lower ad sales. This doesn't seem to be the case at all, as this segment posted 12% revenue growth in the second quarter (ended June 30).

What's more, the new AI Mode feature is a success thus far, with 100 million monthly active users in the U.S. and India in Q2.

This supports the view that there might be no better AI stock than Alphabet.

Should you invest $1,000 in Alphabet right now?

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Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.

Disclaimer: The information provided on this website is for educational and informational purposes only and should not be considered financial or investment advice.

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