2 No-Brainer AI Stocks to Buy Right Now
Stocks across industries have suffered in recent times, amid concerns that President Trump's tariffs on imports would crush earnings and economic growth. But investors have been particularly worried about technology companies as many rely on producing their goods abroad. That means as they import these products into the U.S., they'll have to pay import duties, cutting into their profits.
In recent days, Trump put an exemption on electronics products, but this exemption may not be permanent. All of this means uncertainty remains. At the same time, though, it's important to keep in mind that tech players have successfully faced other headwinds in the past, and established players have what it takes to manage difficult times and win over the long term. On top of this, certain tech companies operate in the area of artificial intelligence (AI), which could offer significant growth in the years to come.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
With this in mind, and considering that valuations of many top players have declined, here are two no-brainer AI stocks to buy right now.
1. Advanced Micro Devices
You may immediately think of Nvidia when you think of AI chips, but rival Advanced Micro Devices (NASDAQ: AMD) is proving it can excel in this market too. AMD has been a leading player for years in the market for central processing units (CPU), the main processors in computers. And in recent times, it's put a focus on developing data center business, serving the AI market with both CPUs and graphics processing units.
Last year, its EPYC processor and AMD Instinct accelerator drove data center gains, helping the unit's annual revenue almost double. Data center revenue for the 12 months reached a record of more than $12 billion, and chief executive officer Lisa Su sees "clear opportunities for continued growth" thanks to the company's product lineup and overall AI market demand.
It's important to remember that, though Nvidia is the leader in the AI chip market, there's still plenty of room for a rival like AMD to be successful too. Customers aiming to apply AI to real world problems need an extraordinary amount of computing power for tasks like training and inferencing -- and they probably won't rely on just one provider to do the job.
Today, AMD shares are trading for 20 times forward earnings estimates, down from about 28 back in January. This represents a great entry point to a stock well-positioned to benefit from the ongoing AI boom.
2. Alphabet
Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), like AMD, isn't the leader in a key AI market -- in this case, cloud computing. Its Google Cloud is in the third spot after Amazon 's Amazon Web Services and Microsoft 's Azure. But Google Cloud still is an enormous player delivering double-digit quarterly growth, and it's benefiting greatly from demand in the AI market. As in the AI hardware market, the cloud market also offers opportunities for more than one company to win.
In the recent quarter, Google Cloud revenue jumped 30% to $12 billion thanks to strong demand from AI customers. Growth is likely to continue as Alphabet expands Google Cloud's reach. For example, last year the company started work on 11 new cloud regions and data centers across the U.S. and internationally.
On top of this, Alphabet also generates billions of dollars in earnings from its Google Search platform -- and here it's steadily held onto the world's top position over time. Alphabet generates most of its revenue through Google as companies advertise there to reach us, their target audience. So this represents a steady source of growth for the company.
Alphabet hasn't been expensive over the past year, trading at about 24 times forward earnings estimates at its peak -- but today it looks exceptionally cheap at 17 times forward earnings. At this level, and considering Alphabet's prospects as AI growth continues, the company is a no-brainer buy right now.
Should you invest $1,000 in Advanced Micro Devices right now?
Before you buy stock in Advanced Micro Devices, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Advanced Micro Devices wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $518,599!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $640,429!*
Now, it's worth noting Stock Advisor 's total average return is791% — a market-crushing outperformance compared to152%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of April 14, 2025
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Adria Cimino has positions in Amazon. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
22 minutes ago
- Globe and Mail
Support for solar energy and offshore wind falls among Democrats and independents, AP-NORC poll says
Americans' support for green energy tax credits and renewable energies like wind and solar power has decreased in recent years, according to a new poll, driven by a softening in support from Democrats and independents. The poll from The Associated Press-NORC Center for Public Affairs Research finds that U.S. adults' support for tax credits for electric vehicles and solar panels has weakened, as well as their enthusiasm for offshore wind farm expansion. While Democrats remain the strongest supporters of these initiatives, the poll reveals signs of growing cynicism within their ranks. The poll results coincide with sweeping changes President Donald Trump's Republican administration is making to regulations related to energy and climate change, including slashing the federal workforce in these departments. And although Democrats and independents have weakened their support for some green energy initiatives, there has not been an increase in support for Trump's energy policies. The poll found only about 4 in 10 U.S. adults — including only 1 in 10 Democrats and about 2 in 10 independents, along with three-quarters of Republicans — approve of the way Trump is handling climate change, which largely tracks with his overall approval rating. Democrats and independents drive decline in support for renewable energy credits About 6 in 10 Democrats, 58%, favor tax credits for purchasing an electric vehicle, down from about 7 in 10 in 2022. Among independents, support declined from 49% in 2022 to 28%. Only one-quarter of Republicans supported this policy in 2022, and that hasn't changed measurably. 'As far as the pollution goes ... the vehicles nowadays put out very little emissions to the air,' said JD Johnson, a 62-year-old Democrat from Meadowview, Virginia, who somewhat opposes tax credits to purchase an electric vehicle. That's partly because he sees the electric vehicle manufacturing process as energy intensive and believes gasoline-powered vehicles have made improvements with the pollutants they emit. The decline in favoring solar panel tax credits was across the board rather than being concentrated among Democrats. 'For solar panels, in all honesty, I don't think they're that efficient yet,' said Glenn Savage, 78, a left-leaning independent from Rock Hill, South Carolina. 'I'd rather see them pour money into research and try to get the solar panels more efficient before they start giving tax breaks to the public. I may be wrong on that, but that's just my thought.' Scientists say transitioning to renewable energies and ditching fossil fuels that release planet-warming emissions are essential to protect the planet. Billions of dollars in project grants for clean technologies awarded during President Joe Biden's Democratic administration have been canceled by the Trump administration, and the offshore wind sector has been stunted by Trump's executive order that paused approvals, permits and loans for wind energy projects. Fewer than half of U.S. adults, 44%, now say that offshore wind farms should be expanded in the U.S., down from 59% in 2022. About half favor expanding solar panel farms, while about two-thirds were in support in 2022. When people are concerned about the economy and their personal finances, environmental issues are sometimes prioritized less, said Talbot Andrews, an assistant professor in the department of government at Cornell University who was not involved in the poll. 'I think it makes people anxious to think about increased taxes or increased spending on environmental issues when the cost of eggs are going through the roof,' Andrews said. Low support for Trump's efforts to expand offshore drilling and coal mining Trump has championed the expansion of offshore oil drilling, as well as domestic coal production. Despite a decline in support for expanded renewable energies, the new poll shows that only about one-third of U.S. adults think offshore drilling for oil and natural gas should be expanded in the U.S., and only about one-quarter say this about coal mining. In both cases, Republicans are much more likely than Democrats to support expanding these energy sources. Trump has sought to open up national monuments for oil drilling, but more U.S. adults oppose than support auctioning off more public space for oil drilling. Only about one-quarter of U.S. adults favor this, while 4 in 10 are opposed. Republicans are much more likely than independents or Democrats to be in support. Bipartisan support for consumer rebates and home appliance ratings The Energy Star program that certifies appliances, such as dishwashers and refrigerators, as energy efficient recently appeared in headlines when the EPA made plans to scrap the program. The blue and white logo is well recognized, and experts say the program has long had bipartisan support until recently. The poll found three-quarters of Democrats support providing consumer rebates for efficient home appliances, compared with 6 in 10 Republicans. Patrick Buck, 54, from Chicago, describes himself as a liberal Republican and is a fan of the consumer rebates for energy-efficient appliances. 'It seems to work in terms of transforming what people have in their houses, because a lot of people have a lot of old appliances and just can't afford new ones,' he said. Safe air, water, meat and produce The poll found only about 2 in 10 U.S. adults are 'extremely' or 'very' confident in the federal government's ability to ensure the safety of their drinking water, the air they breathe and the meat, poultry, fruits and vegetables they buy in grocery stores. About 4 in 10 U.S. adults are 'somewhat' confident in the federal government's ability to ensure the safety of each of these, and about 4 in 10 are 'not very' or 'not at all' confident. The Trump administration has announced plans to roll back rules and policies related to limiting pollution and greenhouse gas emissions, such as rules that limit pollution from power plants and blocking California's efforts to phase out cars that run on gas. The federal government has also cut staff at the Food and Drug Administration, the federal agency tasked with protecting public health and ensuring food supply safety. ___ The AP-NORC poll of 1,158 adults was conducted June 5-9, using a sample drawn from NORC's probability-based AmeriSpeak Panel, which is designed to be representative of the U.S. population. The margin of sampling error for adults overall is plus or minus 4 percentage points. ___ The Associated Press' climate and environmental coverage receives financial support from multiple private foundations. The AP is solely responsible for all content. Find the AP's standards for working with philanthropies, a list of supporters and funded coverage areas at
Winnipeg Free Press
33 minutes ago
- Winnipeg Free Press
World Bank grants South Africa a $1.5B loan for infrastructure upgrade and green energy transition
JOHANNESBURG (AP) — The World Bank granted South Africa a $1.5 billion loan to upgrade transportation infrastructure and help it transition toward a low-carbon economy, the country's National Treasury said Monday. Deteriorating rail systems, jammed ports and frequent blackouts have hindered vital industries like mining and auto manufacturing in South Africa, contributing to slow economic growth over the last decade in Africa's most developed economy. South African President Cyril Ramaphosa and his coalition government have pledged to tackle corruption and decades of poor management as well as pursue reforms to get the country out of its economic rut and ease its extremely high unemployment rate. While it did not give specifics, the South African government said it expects the World Bank loan will enable inclusive economic growth and job creation by assisting in the removal of important infrastructure bottlenecks, especially in the energy and freight transportation sectors. 'This agreement reinforces the strong and constructive collaboration between the World Bank and the government of South Africa,' said the National Treasury. 'This partnership marks a significant step toward addressing South Africa's pressing economic challenges of low growth and high unemployment.' Additionally, because the financing has better conditions than conventional borrowing, such as a three-year grace period, it should reduce escalating debt-service expenses, it added. South Africa's 2025-26 budget has allocated over R1 trillion over the next three years toward critical transportation, energy, water and sanitation infrastructure while improving access to basic services. However, real gross domestic product was revised downward to 1.4% in 2025 from 1.9% previously projected by the Finance Ministry projected in March because of the worsening global outlook and the persistence of logistics constraints and higher borrowing costs. Finance Minister Enoch Godongwana said government debt is projected to stabilize at 77.4% of GDP in 2025/26. Earlier this year, the dismantling of USAID by the Trump administration cut around $436 million in annual funding to South Africa for HIV treatment and prevention, putting the program and thousands of health care jobs on the line. Godongwana said the country doesn't have the funds to cover the more than $430 million shortfall caused by the Trump administration's cuts in foreign aid, which have threatened the vast network of support for one of the world's largest HIV-positive populations. ___ AP Africa news:
Edmonton Journal
35 minutes ago
- Edmonton Journal
Iran fires missiles at U.S. base in Qatar in retaliatory strike
Article content Iran fired missiles at a U.S. air base in Qatar in retaliation for President Donald Trump's weekend airstrikes on three of its nuclear facilities. Qatar said the barrage at Al Udeid base, the biggest such U.S. facility in the Middle East, was intercepted and that there were no casualties. Al Udeid is the regional headquarters for U.S. Central Command, which oversees the American military in the Middle East. There are about 9,000 US service members in gas-rich Qatar, which sits just across the Persian Gulf from Iran. Article content Article content Oil prices fell immediately after the attack, with Brent dropping 3.3 per cent to $74.48 a barrel as of 6:10 p.m. Earlier, the U.S. and U.K. urged citizens in the country to take shelter and the Qatari government suspended air traffic. The move comes after the U.S. struck three major nuclear sites in Iran on Saturday night. Trump said they were 'obliterated' and Tehran vowed to retaliate. Qatar suspends flights over its airspace Global airlines felt the brunt of the escalating conflict in the Middle East, as missile exchanges forced carriers to navigate around a wide swath of territory, tear up flight schedules and turn around aircraft mid-flight. Qatar suspended flights over its airspace late Monday, shortly before Iran launched a missile strike at a U.S. air base in the country around 7:45 p.m. local time. Qatar's move effectively halted operations of its namesake airline and forced dozens of flights from carriers including Etihad, Emirates and FlyDubai out of position. Article content The disruptions are most consequential yet for air traffic in the region. Qatar Airways runs a global operation out of its Doha hub, connecting more than 170 destinations around the world. Turkish Airlines suspended service to Gulf destinations including Dubai, home to one of the world's busiest airports, while other airlines, including Singapore Airlines Ltd., British Airways canceled flights. The latest developments signify a widening of the war between Israel and Iran after Trump joined the fight on Sunday by attacking Iran's nuclear sites. The dramatic escalation, and Iran's retaliation, risk disrupting economies that had previously been shielded from the fallout of regional hostilities. Qatar and nearby Dubai have spent decades turning themselves into global aviation powerhouses, meaning that any narrowing or outright closure of air service creates a serious knock-on effect for the travel industry. Doha and Dubai are only a short distance from Iran, sitting on the other side of Persian Gulf and not far from the Strait of Hormuz, a key shipping artery for the world's oil supplies that's become a flashpoint in the growing conflict. Article content Dubai is home to Emirates, the world's largest international carrier. Hamad International Airport in Doha, in the capital of Qatar, is among the ten largest, operating more than 500 flights a day. Together, they handle much of the traffic within the Middle East and are transfer points for long-haul travel between Asia, Europe and North America. They had avoided previous suspensions that were contained to countries surrounding Israel and the skies over nations where Iran's missiles pass. Prior to the U.S. strikes on Sunday, Tehran had threatened to hit U.S. bases in the Persian Gulf should Washington get involved, and close down Hormuz. The skies over large swaths of the Middle East have been restricted several times during the past 20 months, making flying through Israel, Jordan, Lebanon, Syria, Iraq and Iran difficult. Thousands of passengers stranded Article content The closures have forced airlines to cancel flights on profitable routes, spend more on jet fuel and pass through countries they usually avoid like Afghanistan, as they avoid dangerous skies. It has also meant hundreds of disrupted flights and thousands of stranded passengers. Israel has started to allow outbound flights after halting them since its latest attacks on Iran starting June 13. Tel Aviv is expected to let about 1,000 passengers per day leave the country from Ben Gurion Airport and Haifa. The U.K. is organizing a chartered flight for British nationals who want to leave Israel, while Germany sent a military transport plane to extract citizens and France said it also plans repatriation flights. 'Everything depends on how long this lasts,' Ziad Daoud, chief emerging markets economist at Bloomberg Economics, said of the fallout from the flight cancellations. 'If there was a stoppage of flights for a day or two, there won't be an impact, but if this is a prolonged thing then obviously it's an issue.' —Leen Al-Rashdan with assistance from Danny Lee, Siddharth Philip, Nicholas Takahashi, Mihir Mishra and Dan Williams. Latest National Stories
