Best Artificial Intelligence (AI) Stocks to Buy Now December 2025

Kevin Voigt Updated on December 10, 2025

MUISRGNVDAFLEXLRCX

Since Chat GPT was released to the public in November 2022, the value of artificial intelligence (AI) stocks has skyrocketed.

The best example is the story of a once relatively unknown chipmaker, NVIDIA. Valued at just over $10 billion in early 2015, the company had just crossed the threshold as a Large Cap stock. In 2025, NVIDIA became the first company to have a market value of more than $4 trillion, leap-frogging tech titans like Apple and Microsoft thanks to the AI wave.

Many more companies are investing heavily into supporting AI goods and services. Last year alone, US private AI investment grew to $109.1 billion, according to Stanford University’s 2025 AI Index Report.

How to best capitalize on the growth of AI stocks? Here, we analyze and rank the best AI stocks to buy now based on our proprietary Zacks Indicator Score (to see a full list of AI stocks, visit our Artificial Intelligence thematic stock screen).

5 Best AI Stocks to Buy Today

Company (Ticker)	12 Week Price Change	Forward PE	Price	Proj EPS Growth (1 Year)	Projected Sales Growth (1Y)
Micron Technology (MU)	58.94%	14.27	$263.71	113.41%	45.85%
Intuitive Surgical (ISRG)	28.45%	64.84	$555.92	17.28%	18.72%
NVIDIA (NVDA)	5.77%	40.00	$183.78	54.67%	61.44%
Flex (FLEX)	19.75%	21.83	$72.08	18.40%	4.77%
Lam Research (LRCX)	37.64%	34.62	$168.26	15.70%	14.11%

*Updated on December 10, 2025.

Micron Technology (MU)

$263.71 USD +11.29 (4.47%)

3-Year Stock Price Performance

Premium Research for MU

Zacks Rank This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below. Zacks Rank Definition Annualized Return 1 Strong Buy 23.81% 2 Buy 18.15% 3 Hold 10.07% 4 Sell 5.58% 5 Strong Sell 2.74% S&P 500 11.51% Zacks Rank Education - Learn about the Zacks Rank Zacks Rank Home - Zacks Rank resources in one place Zacks Premium - The only way to fully access the Zacks Rank: Strong Buy 1

Zacks Rank	Definition	Annualized Return
1	Strong Buy	23.81%
2	Buy	18.15%
3	Hold	10.07%
4	Sell	5.58%
5	Strong Sell	2.74%
S&P	500	11.51%

Zacks Industry Rank The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank: Top 6% (15 out of 243)

Zacks Sector Rank The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank. A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. Zacks Sector Rank Education - Learn more about the Zacks Sector Rank The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank: Top 6% (1 out of 16)

Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

Value Score A

Growth Score A

Momentum Score A

VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

C Value A Growth C Momentum B VGM

Earnings ESP Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest. Visit the Earnings ESP Center See the Full List of Stocks To Beat Earnings: 5.97%

Market Cap: 4,494.77 B (Large Cap)
Projected EPS Growth:109.41%
Last Quarter EPS Growth:65.32%
Last EPS Surprise:5.94%
Next EPS Report date:Dec. 17, 2025

Our Take:

NVIDIA builds the hardware, networking and software foundation behind modern AI. Its Blackwell architecture and full-stack platforms lead data-center acceleration. Broad Blackwell adoption by clouds and enterprises deepens NVIDIA’s ecosystem moat and creates visibility into future upgrade cycles with a stronger mix.

It broke the $5 trillion market cap mark in October. The latest quarter delivered record revenue and a sharp jump in data-center performance. Heavy investment continues, yet capital returns remain strong. With growing AI demand and a rich roadmap, momentum and technicals remain supportive.

A Zacks Rank #1 underscores robust upward revisions. Style Scores of B for Growth and A for Momentum reflect strong estimates and price trends, while F for Value highlights a premium that hinges on sustained execution. The chart shows a decisive uptrend with 2026–2027 consensus inflecting greater and frequent positive surprises. Price advances have tracked estimate upgrades, a constructive setup for continued leadership.

Intuitive Surgical (ISRG)

$555.92 USD -2.21 (-0.40%)

3-Year Stock Price Performance

Premium Research for ISRG

Zacks Rank This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below. Zacks Rank Definition Annualized Return 1 Strong Buy 23.81% 2 Buy 18.15% 3 Hold 10.07% 4 Sell 5.58% 5 Strong Sell 2.74% S&P 500 11.51% Zacks Rank Education - Learn about the Zacks Rank Zacks Rank Home - Zacks Rank resources in one place Zacks Premium - The only way to fully access the Zacks Rank: Strong Buy 1

Zacks Rank	Definition	Annualized Return
1	Strong Buy	23.81%
2	Buy	18.15%
3	Hold	10.07%
4	Sell	5.58%
5	Strong Sell	2.74%
S&P	500	11.51%

Zacks Industry Rank The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank: Bottom 42% (140 out of 243)

Zacks Sector Rank The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank. A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. Zacks Sector Rank Education - Learn more about the Zacks Sector Rank The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank: Top 31% (5 out of 16)

Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

Value Score A

Growth Score A

Momentum Score A

VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

F Value D Growth D Momentum F VGM

Earnings ESP Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest. Visit the Earnings ESP Center See the Full List of Stocks To Beat Earnings: 0.00%

Market Cap: $200.08 B (Large Cap)
Projected EPS Growth:17.30%
Last Quarter EPS Growth: 7.10%
Last EPS Surprise: 20.60%
Next EPS Report date: Jan. 22, 2026

Our Take:

Intuitive Surgical is a leader in robotic-assisted surgery, layering AI across its digital ecosystem to enhance surgeon performance and outcomes. Procedure growth, a large installed base and data advantages create network effects as new AI features tie training, insights and instrumentation back to the platform, supporting recurring revenue and adoption durability.

The da Vinci 5 system adds greater computing and advanced data analytics features. Continued growth in customer use and higher adoption of its Ion and other platforms will boost its performance. Recent quarters showed healthy topline growth, supported by instruments and accessories revenues as hospitals adopt newer platforms.

A Zacks Rank #1 signals upward estimate revisions, while Style Scores of F for Value, D for Growth and Momentum suggest a quality compounder priced for execution rather than value. On the chart, shares have recovered toward highs while 2026–2027 estimates trend steadily higher.

NVIDIA (NVDA)

$183.78 USD -1.19 (-0.64%)

3-Year Stock Price Performance

Premium Research for NVDA

Zacks Rank This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below. Zacks Rank Definition Annualized Return 1 Strong Buy 23.81% 2 Buy 18.15% 3 Hold 10.07% 4 Sell 5.58% 5 Strong Sell 2.74% S&P 500 11.51% Zacks Rank Education - Learn about the Zacks Rank Zacks Rank Home - Zacks Rank resources in one place Zacks Premium - The only way to fully access the Zacks Rank: Strong Buy 1

Zacks Rank	Definition	Annualized Return
1	Strong Buy	23.81%
2	Buy	18.15%
3	Hold	10.07%
4	Sell	5.58%
5	Strong Sell	2.74%
S&P	500	11.51%

Zacks Industry Rank The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank: Top 26% (62 out of 243)

Zacks Sector Rank The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank. A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. Zacks Sector Rank Education - Learn more about the Zacks Sector Rank The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank: Top 6% (1 out of 16)

Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

Value Score A

Growth Score A

Momentum Score A

VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

F Value B Growth A Momentum C VGM

Earnings ESP Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest. Visit the Earnings ESP Center See the Full List of Stocks To Beat Earnings: 1.68%

Market Cap: 4,494.77 B (Large Cap)
Projected EPS Growth: 54.52%
Last Quarter EPS Growth: 25.25%
Last EPS Surprise:4.84%
Next EPS Report date: Feb. 25, 2026

Our Take:

Flex (FLEX)

$72.08 USD +3.58 (5.23%)

3-Year Stock Price Performance

Premium Research for FLEX

Zacks Rank This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below. Zacks Rank Definition Annualized Return 1 Strong Buy 23.81% 2 Buy 18.15% 3 Hold 10.07% 4 Sell 5.58% 5 Strong Sell 2.74% S&P 500 11.51% Zacks Rank Education - Learn about the Zacks Rank Zacks Rank Home - Zacks Rank resources in one place Zacks Premium - The only way to fully access the Zacks Rank: Buy 2

Zacks Rank	Definition	Annualized Return
1	Strong Buy	23.81%
2	Buy	18.15%
3	Hold	10.07%
4	Sell	5.58%
5	Strong Sell	2.74%
S&P	500	11.51%

Zacks Industry Rank The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank: Top 21% (50 out of 243)

Zacks Sector Rank The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank. A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. Zacks Sector Rank Education - Learn more about the Zacks Sector Rank The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank: Top 6% (1 out of 16)

Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

Value Score A

Growth Score A

Momentum Score A

VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

B Value B Growth D Momentum A VGM

Earnings ESP Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest. Visit the Earnings ESP Center See the Full List of Stocks To Beat Earnings: 0.00%

Market Cap:$25.33 B (Large Cap)
Projected EPS Growth:18.49%
Last Quarter EPS Growth:9.38%
Last EPS Surprise:5.33%
Next EPS Report date:Feb. 4, 2026

Our Take:

Flex is a global design-to-manufacturing partner increasingly focused on AI-scale data-center hardware, from rack-level power to liquid-cooling solutions that enable high-density GPU deployments.

The company’s regionalized footprint and vertical integration position it to benefit as customers reshore and scale AI infrastructure, while advanced power and cooling offerings raise switching costs. Improving Automotive and Renewables trends, and growth in Medical Devices, Optical and Satcom, are expected to support its performance over the long term.

A Zacks Rank #2 (Buy) reflects favorable revisions. Style Scores of B for Value and Growth and D for Momentum suggest a reasonable entry amid a developing AI buildout, despite weaker acceleration. On the chart, shares have climbed to highs as 2026–2027 estimates lift, with upside surprises supporting the move. The alignment of a rising price trend with improving consensus indicates building confidence in Flex’s AI-driven mix shift.

Lam Research (LRCX)

$168.26 USD +2.45 (1.48%)

3-Year Stock Price Performance

Premium Research for LRCX

Zacks Rank This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below. Zacks Rank Definition Annualized Return 1 Strong Buy 23.81% 2 Buy 18.15% 3 Hold 10.07% 4 Sell 5.58% 5 Strong Sell 2.74% S&P 500 11.51% Zacks Rank Education - Learn about the Zacks Rank Zacks Rank Home - Zacks Rank resources in one place Zacks Premium - The only way to fully access the Zacks Rank: Buy 2

Zacks Rank	Definition	Annualized Return
1	Strong Buy	23.81%
2	Buy	18.15%
3	Hold	10.07%
4	Sell	5.58%
5	Strong Sell	2.74%
S&P	500	11.51%

Zacks Industry Rank The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank: Top 41% (98 out of 243)

Zacks Sector Rank The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank. A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. Zacks Sector Rank Education - Learn more about the Zacks Sector Rank The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank: Top 6% (1 out of 16)

Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

Value Score A

Growth Score A

Momentum Score A

VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

D Value A Growth B Momentum B VGM

Earnings ESP Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest. Visit the Earnings ESP Center See the Full List of Stocks To Beat Earnings: -1.44%

Market Cap: $208.26 B (Large Cap)
Projected EPS Growth:15.70%
Last Quarter EPS Growth: -5.26%
Last EPS Surprise:4.13%
Next EPS Report date:Feb. 4, 2026

Our Take:

Lam Research supplies critical etch and deposition tools used to build AI-enabling chips, including HBM and advanced logic that boost bandwidth and energy efficiency. As wafer intensity rises for AI workloads and memory makers invest in HBM and 3D NAND, Lam’s process positions it to benefit from the next equipment upcycle.

Customer capex at leading foundries and memory producers underpins visibility. In the September quarter, 43% of its revenues came from China, followed by 19% from Taiwan and 15% from Korea and the rest from others.

A Zacks Rank #2 and a Style Score of A for Growth point to healthy estimate revisions, while D for Value and B for Momentum reflect a premium multiple supported by improving fundamentals. The chart shows sustained price strength alongside rising 2026–2027 estimates and a pattern of positive surprises, signaling investors are rewarding Lam’s exposure to AI-intensive nodes and memory transitions.

Methodology

The Zacks Rank is a proprietary stock-rating model that uses trends in earnings estimate revisions and earnings-per-share (EPS) surprises to classify stocks into five groups: #1 (Strong Buy), #2 (Buy), #3 (Hold), #4 (Sell) and #5 (Strong Sell). The Zacks Rank is calculated through four primary factors related to earnings estimates: analysts' consensus on earnings estimate revisions, the magnitude of revision change, the upside potential and estimate surprise (or the degree in which earnings per share deviated from the previous quarter).

Zacks builds the data from 3,000 analysts at over 150 different brokerage firms. The average yearly gain for Zacks Rank #1 (Strong Buy) stocks is +23.62% per year from January, 1988, through June 2, 2025.

Selections for Best AI Stocks are based on the current top ranking stocks based on Zacks Indicator Score. For this list, only companies that have average daily trading volumes of 100,000 shares or more and at least five analysts covering the stock were considered. All information is current as of market open, Dec. 10, 2025.

Guide to AI Stocks

The classification of “AI Stocks” is actually quite broad, ranging from companies that provide the essential hardware, companies that create the software to run Large Language Models, and a whole host of other industries and companies that are creating the Artificial Intelligence ecosystem. All stand to gain – or lose – depending on the fortunes of AI tech.

Types of AI Stocks

Hardware (GPUs, Chips) Stocks – NVIDIA, AMD, TSMC, Broadcom

The backbone of AI is raw computing power, and this comes primarily from specialized chips like graphics processing units (GPUs) and AI-focused accelerators. NVIDIA (NVDA) is the undisputed leader in GPUs used for training large language models.

Advanced Micro Devices (AMD) is a rising competitor, with its MI300 series targeting data center AI workloads. Taiwan Semiconductor Manufacturing Co. (TSMC) doesn’t make its own chips but manufactures advanced nodes for nearly every big tech firm—including Apple, Nvidia, and AMD—making it critical to the global AI supply chain. Broadcom (AVGO) has carved a niche in custom ASICs (application-specific integrated circuits) for hyperscale cloud providers, which value tailored chips that reduce energy use and maximize throughput.

These companies benefit from structural demand for more computing capacity, but they also face geopolitical risks such as U.S.-China export restrictions and cyclical swings in semiconductor demand.

AI Cloud & Infrastructure – Microsoft, Amazon, Alphabet

Building AI applications at scale requires massive computing infrastructure. Azure from Microsoft (MSFT) has become a leader by integrating OpenAI’s models directly into its cloud offerings, giving it a first-mover advantage in AI enterprise adoption. Amazon Web Services, a subsidiary of Amazon (AMZN) is deploying its in-house Trainium and Inferentia chips, aiming to lower costs for AI workloads while retaining dominance in cloud services. Alphabet’s (GOOG) Google Cloud is leaning heavily on its proprietary Tensor Processing Units (TPUs) and Gemini AI models to differentiate itself.

Investing in these players is less about speculative growth and more about diversified tech giants whose AI investments bolster an already profitable core business.

Enterprise AI Software & Analytics – Palantir, C3.ai, Adobe, Snowflake

AI isn’t just about hardware; software platforms are where businesses actually apply machine intelligence. Palantir (PLTR) powers decision-making for defense and large corporations with its Foundry and Gotham platforms. C3.ai (AI) focuses specifically on AI-driven applications across industries like energy, finance, and manufacturing. Adobe (ADBE) has integrated AI across its creative suite (e.g., Firefly in Photoshop), while Snowflake (SNOW) has added AI-enabled analytics to its cloud data warehousing business.

These stocks tend to have higher growth potential but also higher risk, as adoption timelines and customer budgets can vary widely.

Cybersecurity AI – CrowdStrike

The rise of AI also heightens cyber risks. CrowdStrike (CRWD) leads in AI-powered threat detection, using machine learning to flag suspicious behavior across millions of endpoints in real time. With ransomware and nation-state attacks increasing, demand for AI-driven security remains strong. Cybersecurity names often benefit from recurring revenue models, which may help smooth out volatility compared to hardware peers.

Benefits and Risks of AI Stocks

Benefits:

Secular Growth: AI adoption is still in early innings, with enterprise use cases expanding rapidly.
Diversified Exposure: Investors can target infrastructure, software, or services depending on risk tolerance.
First-Mover Advantage: Leaders like NVIDIA and Microsoft are shaping the ecosystem, creating strong economic moats.

Risks:

Valuations: Many AI leaders are priced for perfection, leaving little margin of safety.
Hype Cycle: Investor enthusiasm may outrun near-term fundamentals, creating bubble risk.
Regulation: Governments are exploring AI rules around privacy, bias, and national security, which could reshape business models.
Competition: Barriers to entry are high, but fast innovation means today’s leader can quickly lose ground.

How to Choose AI Stocks

When evaluating AI stocks, consider:

Revenue Mix: How much of the company’s growth is truly driven by AI vs. traditional segments?
Moat & Differentiation: Does the company control unique technology (like NVIDIA’s CUDA software ecosystem)?
Customer Adoption: Look for companies with recurring contracts or wide adoption across industries.
Financial Health: Strong balance sheets matter in a capital-intensive industry.
Valuation Metrics: Compare price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and forward growth projections to industry peers.

How to Invest in AI Stocks

There are multiple entry points depending on your goals:

Direct Stock Picks: Best if you want concentrated exposure to specific company leaders or disruptors.
AI Exchange-Traded Funds (ETFs): ETFs such as Global X Robotics & Artificial Intelligence ETF (BOTZ) or iShares Robotics and AI ETF (IRBO) provide diversification by investing in a broad range of companies in the AI space.
Broad Tech ETFs: Like Invesco QQQ (QQQ) or Vanguard Information Technology ETF (VGT), offering AI exposure as part of a bigger tech basket.
Dollar-Cost Averaging (DCA): A strategy to smooth price volatility by buying at regular intervals AI stocks or funds.
Long-Term Holds: Since AI is a multi-decade trend, investors who can weather short-term swings may see the best results.

AI Stocks Alternatives

If you want exposure to AI without betting on a single stock:

ETFs: Offer diversification and reduce single-company risk.
Private Markets: Startups in robotics, generative AI, and enterprise AI could offer upside, though access is limited to accredited investors, which face income or licensing limitations (such as a net worth of $1 million, excluding primary residence, plus a high annual income – $300,000 if married.
Picks-and-Shovels Plays: Companies supplying infrastructure, like power management (e.g., Eaton) or data center REITs (e.g., Equinix), benefit indirectly from AI growth.

Strategies for AI Stocks Moving Forward

Barbell Approach: Combine stable mega-caps (Microsoft, Nvidia) with speculative names (Quantum Computing Inc., Credo) for balanced exposure.
Rebalancing: Trim positions after strong rallies to lock in gains and redeploy into underweighted sectors.
Monitor Earnings: Focus on whether AI adoption translates into sustainable revenue growth.
Look Beyond the U.S.: Consider emerging AI leaders in Europe and Asia for diversification.
Stay Agile: AI is evolving rapidly; reassess holdings every quarter as new winners emerge.

Frequently Asked Questions About AI Stocks

Are AI stocks overvalued?

Many AI leaders are priced at steep multiples compared to the broader market. That doesn’t mean all are bubbles, but investors should separate hype from earnings-driven growth.

What is the forecast for AI stocks?

Most analysts expect AI demand to expand through at least the next decade, with data center spending, AI-as-a-service, and AI-enabled enterprise tools driving revenue.