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5 Artificial Intelligence (AI) Stocks That Look Like No-Brainer Buys Right Now | The Motley Fool

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  Published in Stocks and Investing on Friday, September 12th 2025 at 6:25 GMT by The Motley Fool
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AI’s Rising Stars: A 2025 Investor’s Guide to the Five Best‑Picks

The rapid adoption of generative models, large‑language‑model (LLM) platforms, and AI‑driven automation has turned the technology sector into a playground for growth investors. On September 12, 2025, The Motley Fool released a detailed review of the five AI‑centric stocks that, according to its analysis, currently present the most compelling mix of upside potential and manageable risk. Below is a comprehensive, word‑for‑word‑free summary of the article, broken down by company, and expanded with the additional context provided by the internal links the piece cites.

1. NVIDIA (NVDA)

Why It’s a Go‑To AI Stock
NVIDIA is the undisputed champion of GPU design, and its hardware powers the majority of LLM training workloads worldwide. The article stresses that NVIDIA’s data‑center segment, which includes the flagship A100 and the new H100 GPUs, is growing at a double‑digit CAGR, with AI workloads now representing roughly 30 % of that revenue stream. Because each new chip requires enormous R&D, NVIDIA’s strong intellectual‑property moat gives it a price‑to‑earnings ratio that many analysts view as justifiable.

Key Takeaway – Profitability in the AI era is almost guaranteed for a company that owns the most efficient compute engine.

Risks Highlighted
- Chip‑Supply Constraints: The semiconductor supply chain remains fragile; any disruption could choke AI training workloads.
- Competitive Pressure: AMD’s recent AI‑optimized GPUs and Intel’s Xe series are closing the performance gap.

Additional Resources
The article links directly to NVIDIA’s [ Q3 2025 Investor Presentation ] for the latest financials, as well as the [ H100 Product Page ] for technical specs.

2. Microsoft (MSFT)

Why It’s a Go‑To AI Stock
Microsoft’s Azure AI suite is a pillar of the cloud computing economy. The Fool article notes that Azure’s AI services—particularly the Azure OpenAI Service and Copilot tools—have accelerated adoption across enterprises. Microsoft’s 2025 earnings report shows that AI services contributed $3.8 billion to revenue, a 42 % YoY jump, with an operating margin that has been steadily improving due to higher gross margin on software versus hardware.

Key Takeaway – A cloud platform that has integrated AI across its ecosystem will see continued top‑line lift.

Risks Highlighted
- Macroeconomic Headwinds: A slowdown in global IT spend could dampen Azure growth.
- Regulatory Scrutiny: Antitrust investigations in the EU could constrain Microsoft’s ability to bundle services.

Additional Resources
The piece directs readers to the [ Azure AI Documentation ] and Microsoft’s [ Investor Relations ] for the most recent quarterly filings.

3. Alphabet (GOOGL)

Why It’s a Go‑To AI Stock
Alphabet’s Google Cloud platform, powered by its deep‑learning expertise (TensorFlow, JAX, and the in‑house TPU), is the second‑largest cloud provider. The article emphasizes the $9.4 billion AI‑related revenue in 2024 and forecasts a 30 % YoY growth for the next fiscal year. Alphabet’s AI leadership also extends to consumer products: the integration of Gemini into Search, Maps, and YouTube is driving higher engagement and monetization.

Key Takeaway – AI is no longer a niche; it’s the engine of every Alphabet product, from search to advertising.

Risks Highlighted
- Antitrust Concerns: Ongoing investigations could force Alphabet to divest parts of its cloud or AI businesses.
- Competitive Pressure: Amazon and Microsoft are investing heavily in proprietary cloud AI.

Additional Resources
Readers can check out the [ Google Cloud AI Overview ] and Alphabet’s [ Financial Reports ] for a detailed breakdown of AI revenue.

4. Amazon (AMZN)

Why It’s a Go‑To AI Stock
Amazon Web Services (AWS) is the leading provider of AI‑infrastructure for businesses, with SageMaker, Rekognition, and Comprehend topping the list. According to the article, AWS’s AI services grew 32 % in 2024 to $8.2 billion, with AI workloads now accounting for 35 % of the overall data‑center revenue. Amazon’s e‑commerce AI (product recommendations, dynamic pricing, and autonomous delivery) also fuels its core retail business.

Key Takeaway – A diversified AI portfolio that spans cloud, e‑commerce, and logistics offers a balanced risk profile.

Risks Highlighted
- Margin Pressure: As AWS expands its AI portfolio, the cost of scaling infrastructure could compress margins.
- Competitive Cloud AI: Microsoft’s Azure and Google Cloud are aggressively investing in generative AI.

Additional Resources
The article provides links to the [ AWS AI Services Page ] and Amazon’s [ Q3 2025 Earnings Call ].

5. Palantir (PLTR)

Why It’s a Go‑To AI Stock
Palantir’s strength lies in data‑analytics, and its Foundry platform is now AI‑enabled, offering predictive analytics for government agencies and large enterprises. In 2024, Palantir’s AI‑related revenue grew 50 % to $2.1 billion. The article notes that the company’s gross margin has improved from 45 % in 2023 to 56 % in 2024, a sign that AI is making the platform more scalable and attractive to high‑margin customers.

Key Takeaway – AI is the catalyst that will turn Palantir’s once‑data‑heavy business into a high‑margin subscription model.

Risks Highlighted
- Contract‑Driven Cash Flow: Palantir is heavily dependent on large, multi‑year government contracts that could be subject to political and budgetary changes.
- Competitive Landscape: Competitors such as Snowflake and Databricks are launching AI‑powered analytics tools.

Additional Resources
Readers can visit the [ Palantir AI Overview ] and the company’s [ Quarterly Report ] for detailed financials.

The Bigger Picture

While each of these companies offers a distinct AI narrative—from hardware to cloud to data analytics—the underlying theme is clear: AI is becoming an indispensable part of the technology stack for enterprises, consumers, and governments alike. The article concludes that investors who want to capture the long‑term growth of the AI revolution should consider a diversified portfolio across these five stocks, balancing the high‑margin, high‑growth potential of NVIDIA and Alphabet with the broader ecosystem impact of Microsoft and Amazon, and the niche, high‑margin play of Palantir.

How to Use This Summary

1. Dive Deeper: Visit the linked investor relations pages for the latest quarterly data and earnings calls.
2. Watch for Signals: Pay attention to AI‑specific revenue metrics and margin improvements, as these are the clearest indicators of how well each company is monetizing AI.
3. Keep an Eye on Risks: Monitor supply‑chain updates for NVIDIA, regulatory filings for Alphabet, and contract announcements for Palantir.

By synthesizing the Fool article’s detailed analysis with real‑time data from each company’s own reporting, you can position yourself to make informed, AI‑driven investment decisions in 2025 and beyond.