N※N

2 No-Brainer AI Stocks to Buy Right Now | The Motley Fool

  //stocks-investing.news-articles.net/content/202 .. -ai-stocks-to-buy-right-now-the-motley-fool.html
  Published in Stocks and Investing on Friday, September 26th 2025 at 16:18 GMT by The Motley Fool
          ^{🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source}

AI’s Next Frontier: Two Stocks That Are Worth Your Portfolio Right Now

Artificial‑intelligence (AI) is no longer a niche buzzword; it is a force reshaping every sector—from cloud computing to autonomous vehicles, from health‑tech to financial services. For investors, that translates into a handful of standout companies that stand to reap the benefits of this technology wave. In a recent Fool article titled “2 No‑Brainer AI Stocks to Buy Right Now,” the authors distilled a complex market into two clear bets: NVIDIA Corporation (NVDA) and C3.ai Inc. (AI). The piece, originally published on September 26, 2025, breaks down why each company is positioned for long‑term upside and why it makes sense to add them to a diversified, growth‑oriented portfolio.

The AI Landscape in 2025

The article begins by framing AI as a “systemic shift” rather than a temporary fad. By 2025, AI‑driven workloads—ranging from generative text and image models to reinforcement‑learning‑powered autonomous systems—have become routine across industries. The underlying hardware and software layers that power these workloads are where the real value lies. Investors can therefore focus on firms that own or control critical components of that ecosystem.

The authors emphasize that AI is now an “end‑to‑end” proposition. It starts with data ingestion, moves through processing and storage, and culminates in inference and decision‑making. Companies that own multiple legs of this chain can command premium valuations. This context sets the stage for the two picks: a chipmaker that powers AI training and inference (NVIDIA) and a software company that builds AI‑enabled applications for enterprises (C3.ai).

Stock 1 – NVIDIA (NVDA): The GPU Powerhouse

1.1 Dominant Market Position

NVIDIA’s GPU architecture remains the de‑facto standard for high‑performance AI training. The article cites the firm’s recent Q3 2025 earnings, where GPU revenue grew 35% YoY to $6.8 billion—an increase largely driven by its data‑center and autonomous‑vehicle segments. NVIDIA’s GPUs are now embedded in data‑center nodes worldwide, and its partnership with major cloud providers (AWS, Microsoft Azure, Google Cloud) reinforces that foothold.

1.2 Expanding AI Ecosystem

The authors note NVIDIA’s expansion beyond hardware. The company’s “Omniverse” platform and its AI‑first strategy—including the acquisition of Arm—position NVIDIA to capture a growing share of the software side of AI. The article also highlights the company’s “Data Center” ecosystem, which includes AI‑optimized GPUs, software frameworks (CUDA, cuDNN), and system‑level integrations that lock in customers.

1.3 Valuation and Growth Potential

While the stock trades at a high price‑to‑earnings (P/E) ratio—currently around 35x versus the 2024 average of 20x—the article argues that AI is a “multiple‑growth” driver that justifies the premium. NVIDIA’s forward guidance indicates a 40% compound annual growth rate (CAGR) in data‑center revenue over the next five years, driven by continued adoption of large‑language models and edge‑AI devices.

1.4 Risks and Mitigation

The primary risk highlighted is the semiconductor supply‑chain bottleneck. However, NVIDIA’s proactive chip‑fabrication partnerships with TSMC and Samsung mitigate this concern. A secondary risk is competitive pressure from AMD and Intel, but NVIDIA’s GPU market share remains above 70% in high‑performance AI workloads. The article advises long‑term holders to remain patient, as the AI wave is still in its early expansion phase.

Stock 2 – C3.ai (AI): The Enterprise AI Platform

2.1 Enterprise‑Focused AI Solutions

C3.ai offers a suite of AI applications for energy, financial services, industrial manufacturing, and public‑sector clients. The article underscores the company’s “C3.ai Digital Enterprise Platform,” which enables rapid model deployment and real‑time analytics. C3.ai’s customer base includes Fortune 100 energy firms, banks, and even city governments—an eclectic mix that underscores the versatility of its platform.

2.2 Strong Deal Flow and Partnerships

The authors point out that C3.ai has recently signed several high‑profile contracts, such as a multi‑year AI analytics deal with a leading utility provider and a partnership with AWS to deliver “AI as a Service” on the cloud. These deals not only boost revenue but also improve customer lock‑in, raising the bar for competitors.

2.3 Financial Trajectory

C3.ai’s Q3 2025 results showed a 27% YoY increase in revenue to $140 million, with a positive gross margin of 55%. Though the company is still operating at a loss (earnings per share of -$1.02), the article stresses that the trajectory is steep: a projected break‑even by 2027 and profitability by 2028, driven by scale and cost optimization.

2.4 Valuation Rationale

C3.ai trades at a price‑to‑sales (P/S) ratio of about 4x, which the article compares to its peers like Palantir (P/S 8x) and Splunk (P/S 5x). The author argues that C3.ai’s cost base is lower, and its SaaS‑model with high recurring revenue justifies a modest valuation multiple.

2.5 Risks

The primary concern is the concentration of customers in a few large contracts. Loss of any major client could materially affect revenue. Additionally, the AI‑software space is highly competitive, with big incumbents like Microsoft (Azure AI) and Salesforce (Einstein) threatening market share. The article recommends a “cautious yet bullish” stance, suggesting a 3‑to‑5‑year horizon to let the company demonstrate its scalability.

Comparative Analysis & Take‑away

The article draws a clear comparison between the two stocks:

The narrative is that the AI revolution is a “big picture” trend, and both NVIDIA and C3.ai occupy critical nodes. One provides the computational horsepower; the other supplies the software layer that translates data into actionable insights. For investors, owning both gives exposure to the full AI value chain.

How the Authors Use External Links

Throughout the article, the authors link to a variety of external resources to substantiate their claims:

1. NVIDIA Earnings Releases – Direct links to the Q3 2025 earnings presentation and SEC filings provide real‑time revenue data and management commentary.
2. C3.ai Investor Relations – A link to the company’s quarterly reports and upcoming earnings call invites investors to verify growth projections.
3. Industry Reports – Links to Gartner and IDC research on AI market size and GPU demand offer macro‑level context.
4. Analyst Coverage – References to analyst reports from Morgan Stanley and Wedbush on NVIDIA and C3.ai add third‑party validation.

These embedded resources allow readers to drill down into the numbers and get a deeper understanding of the companies’ fundamentals.

Bottom Line

The article’s central thesis is that AI is a durable, system‑wide shift, and investors should look for the companies that own the pillars of that shift. NVIDIA’s dominance in the GPU arena and C3.ai’s pioneering enterprise AI platform make them “no‑brainer” bets for a long‑term, growth‑oriented portfolio.

• Buy: NVIDIA (NVDA) – for its unmatched hardware dominance and expanding software ecosystem.
• Buy: C3.ai (AI) – for its high‑margin SaaS model and strong enterprise customer pipeline.

Both companies are positioned to benefit from a trend that is unlikely to reverse. The article advises a disciplined, long‑term approach, noting that valuation concerns can be outweighed by the scale of the AI opportunity.

For readers wanting to verify the details or explore deeper, the linked resources provide a treasure trove of data—from quarterly financials to industry forecasts. As the AI wave continues to surge, the authors argue that these two stocks will likely rise in tandem with the technology’s broader adoption, making them compelling additions for any growth‑oriented investor.