3 Best Ai Stocks To Buy In August The Motley Fool

Bonisiwe Shabane

-Dec 2, 2025, 10:42 PM

3 best ai stocks to buy in august the motley fool

Three companies. Three strategies. One AI megatrend investors can't afford to ignore. Artificial intelligence (AI) is one of the most transformative technologies of our time, driving unprecedented advancements in sectors ranging from healthcare and transportation to communications and beyond. For investors, this creates a landmark opportunity to back the companies at the forefront of this revolution. As we head into August, three companies in particular stand out for their strategic positioning and potential for growth in the AI space.

Nebius Group (NBIS +1.31%) is emerging as a serious contender in the AI infrastructure race. The Amsterdam-based company, led by former Yandex founder Arkady Volozh, reported staggering 385% year-over-year revenue growth in Q1 2025, reaching $55.3 million, driven primarily by demand for its AI infrastructure services. The stock has surged 92% year to date as investors begin to take notice. What sets Nebius apart is its vertically integrated approach. Rather than retrofitting general-purpose cloud infrastructure for AI workloads, Nebius builds custom hardware and software specifically for intensive AI training and inference. Artificial intelligence (AI) stocks have sold off significantly over the past 30 days, and while some names remain overvalued, several appear to be bargains for long-term investors.

Wall Street loves to panic. Over the past 30 days, artificial intelligence (AI) stocks have endured a brutal correction as investors suddenly remembered that valuations matter. But here's what the fearful crowd is missing: The infrastructure buildout powering AI is accelerating, not slowing. For long-term investors willing to buy when others are selling, this sell-off has created genuine bargains across the AI landscape. Here is a brief overview of 10 top AI stocks I'd buy right now. Alphabet (GOOGL 1.01%) (GOOG 0.96%) operates Google Search, YouTube, and Google Cloud.

The company has emerged as Nvidia's (NVDA +1.42%) most formidable rival thanks to its Tensor Processing Unit (TPU) chips. A near-$4 trillion market cap, combined with dominant positions in both AI software and hardware, makes this a must-own name. The artificial intelligence (AI) revolution is no longer on the horizon; it’s happening now. From AI-powered search engines to cloud infrastructure, artificial intelligence is driving transformation across virtually every major industry. Investors looking to tap into this explosive growth are turning to trusted resources like the Motley Fool’s Stock Advisor service. Keep in mind that Motley Fool is not a brokerage and is not regulated by the SEC.

However, Motley Fool stock picks do tend to produce monster returns. Known for its long-term investment philosophy and market-beating recommendations, Stock Advisor has consistently identified emerging trends and standout companies. As the AI boom accelerates, the Motley Fool has spotlighted several top AI stocks that they believe are poised to deliver substantial returns. These companies are not only leading in AI innovation but also show the kind of earnings growth, market influence, and product strength that long-term investors seek. Here are five of the Motley Fool’s top AI stock picks for 2025 and beyond. AI is transforming how companies operate, offering smarter decision-making, automation, and cost-saving efficiencies.

For investors, this shift presents opportunities to back companies that are shaping the future of industries like cybersecurity, e-commerce, advertising, cloud computing, and more. You need to invest in tech stocks in order to enjoy market-beating returns. While it's important for investors to keep a balanced portfolio, you can't afford to overlook tech stocks in this market. Tech stocks are the muscle behind U.S. markets these days, accounting for 34% of the makeup of the entire S&P 500. They are also outperformers, as the tech-heavy Nasdaq Composite is outperforming both the S&P 500 and the Dow Jones Industrial Average so far this year.

The lesson here? You need to have tech stocks in your portfolio if you want to outperform the market. Tech stocks are immensely popular these days as companies are racing to train large language models (LLMs) to customize their platforms with generative artificial intelligence (AI) offerings in order to roll out new services... The race to build AI products is far from over, and buying stocks that will be best positioned to capitalize on the trend is a smart way to invest right now. If you're looking for the best tech stocks for August, I'm recommending Nvidia (NVDA +2.20%), Alphabet (GOOG +0.41%) (GOOGL +0.36%), and Taiwan Semiconductor Manufacturing (TSM +1.72%). The unquestioned leader in tech stocks right now is chipmaker Nvidia.

As the creator of the most advanced graphics processing units (GPUs) that top companies use to power their AI platforms, Nvidia has grown to be the most valuable publicly traded company in the world... AI spending could still be in its infancy, and the vast majority of businesses have yet to fully adopt generative AI. We could be in the midst of an AI bubble, according to OpenAI CEO Sam Altman. The key to long-term survival is a wide moat, or sustainable competitive advantage. For all the attention artificial intelligence (AI) has received over the last three years, it's possible we're still very early in the spread of the technology. Just 9.2% of the 1.2 million U.S.

businesses surveyed by the U.S. Census Bureau in June said that they have adopted AI in parts of their operations. That number continues to climb every quarter, though. There's a long runway ahead for AI, but that doesn't make every stock in the space a long-term winner. It's likely AI stocks will face some major headwinds at some point in the not-too-distant future. Sam Altman, CEO of OpenAI, says we're currently in a bubble, but that doesn't diminish the long-term importance of AI innovations.

A European AI infrastructure company is quietly outgrowing established cloud giants with purpose-built technology and strategic positioning. The productivity software leader is successfully monetizing AI integration across its massive user base, while competitors struggle with adoption. The social media giant's AI investments are already paying dividends in advertising revenue even as it pursues ambitious superintelligence goals. Artificial intelligence (AI) is one of the most transformative technologies of our time, driving unprecedented advancements in sectors ranging from healthcare and transportation to communications and beyond. For investors, this creates a landmark opportunity to back the companies at the forefront of this revolution. As we head into August, three companies in particular stand out for their strategic positioning and potential for growth in the AI space.

Written by Justin Pope, Will Healy, Jake Lerch for The Motley Fool-> Meta Platforms continues to gain momentum, and it's hard to ignore at this point. ASML’s valuation is far below its five-year average. Alphabet's revenue grew 14% in its most recent quarter. Artificial intelligence (AI) continues to drive technology stocks higher, a trend that hasn't let up much since early 2023. These three semiconductor industry stocks look like long-term AI winners.

Artificial intelligence (AI) continues to be a driving theme in this market. One of the smartest ways to continue playing this trend could be with semiconductor-related stocks that are poised to continue to benefit from the ongoing data center buildout. Let's look at three stocks across three different areas of the semiconductor value chain that should be long-term winners -- and which investors can still scoop up this month. Nvidia (NVDA +2.20%) is still the undisputed leader in AI chips. It has taken an extraordinary market share in graphics processing units (GPUs), which are the primary chips used to train AI models and run inference. Its dominance isn't the result of simply having better chips but rather the software ecosystem it has built around them.

Years ago, Nvidia offered its CUDA software platform for free to universities and research labs, which led to an entire generation of developers being trained on its platform. Certain AI stocks still have a lot more room to run. Artificial intelligence (AI) investing is still a prevailing theme in the market, and there are several stocks that look like excellent buys in August. If you're looking to increase your AI exposure, then taking a look at these four is a great idea. At the top of my list for best AI stocks to buy in August are Nvidia (NVDA +2.20%), Taiwan Semiconductor (TSM +1.72%), Alphabet (GOOG +0.41%) (GOOGL +0.36%), and ASML (ASML +1.25%). These four have a great combination of growth and value.

Nvidia has been the top stock of AI investing for a reason: Its graphics processing units (GPUs) have become the nearly universal computing equipment for training and running AI workloads. The demand for Nvidia GPUs is still quite strong, and it could get another growth catalyst in the near future. Back in April, the U.S. government revoked Nvidia's license to export to China the H20 chips that it had specifically designed to meet export restrictions. This was a huge blow to Nvidia's business, with Nvidia losing out on $8 billion in projected revenue from the $45 billion it had expected to generate. You might be using an unsupported or outdated browser.

To get the best possible experience please use the latest version of Chrome, Firefox, Safari, or Microsoft Edge to view this website. Artificial intelligence is revolutionizing industries across the board. So, it should come as no surprise that AI stocks are powering ahead, with many notable performers on the S&P 500. For best AI stocks, the stocks selected on our list are predicted to generate positive earnings per share (EPS) growth, carry analyst consensus of “buy or better” and hold a market cap of $10... Our editors are committed to bringing you independent ratings and information. Advertisers do not and cannot influence our ratings.

We use data-driven methodologies to evaluate financial products and companies, so all are measured equally. You can read more about our editorial guidelines and the investing methodology for the ratings below. Trades of stocks, ETFs and their options are commission free. Other fees may apply. Trades of stocks, ETFs and their options are commission free. Other fees may apply.

3 Best Ai Stocks To Buy In August The Motley Fool

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