4 Genius Artificial Intelligence Ai Stocks To Buy In August

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. Looking to secure huge growth potential with artificial intelligence stocks? The timeline may be short.

While few expect AI spending to decline in the short term, stock prices often reflect a promising outlook long before expected profits materialize. With AI adoption poised to go mainstream in the coming year, now is the time to stake your claim. Below is a brief overview of the state of AI, followed by a list of six AI stocks that look promising for 2025. A McKinsey report characterizes 2023 as the year "the world discovered generative AI (gen AI)." 2024 is when businesses began realizing value from using gen AI. The rising adoption has sparked extreme demand for AI-capable computing power. Data centers, in turn, invested billions in hardware and software for powering, developing and training AI applications.

In 2025, companies like OpenAI will look to move AI's capabilities into increasingly complex tasks. Use cases for AI will expand across industries and into the personal computing space. Organizations that have invested in AI will attempt to quantify the business value of those investments. How those business value questions resolve will influence the S&P 500. Stephen Wu, founding and managing partner of Carthage Capital Management, notes that nearly half of the S&P 500 is concentrated in tech stocks. "With AI expectations running high," Wu explains, "it's crucial for AI to continue meeting expectations or there may be severe consequences."

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, Taiwan Semiconductor, Alphabet, and ASML. 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. Fortunately, Nvidia has reapplied for its export license and says it has assurances from the government that it will be approved. While this won't affect Q2 results (which Nvidia will report in late August), a restart of H20 sales to China should boost growth for the remainder of the year. This will give Nvidia's stock a strong boost, making it a smart stock to buy in August.

Taiwan Semiconductor is the world's largest chip foundry, and makes chips for companies like Nvidia that lack the capabilities to do it themselves. TSMC is winning business from other foundries, making it the clear leader in this space. It has already reported Q2 results, which delivered impressive 44% year-over-year revenue growth in U.S. dollars. However, that's just the beginning. Management expects that for the five-year period starting in 2025, it will deliver nearly a 20% compound annual growth rate (CAGR) for revenue.

With TSMC's stock trading at 25 times forward earnings, it's not that expensive right now. Alphabet recently reported impressive earnings, with revenue rising 14% year over year and diluted earnings per share (EPS) rising 22%. Normally, that would cause a big tech company to be assigned a forward earnings multiple in the high 20s to the low 30s, but Alphabet doesn't receive the same respect as other big tech... It trades for less than 20 times forward earnings, making it cheaper than the S&P 500, which trades at 24 times forward earnings. This cheap price tag is assigned to Alphabet's stock because investors are worried about Google Search losing market share to generative AI products. However, that hasn't surfaced.

Google has integrated AI search overviews, which bridge the gap between a full generative AI experience and traditional search. Management stated that over 2 billion people have used this and that it has the same monetization as a traditional search. There have been no signs of weakness with Google Search, as revenue rose 12% year over year in the recent quarter. This indicates that Alphabet is cheap for no solid reason, which makes it a great buy for August. ASML is probably the least known company on this list, but it may be the most important. ASML has a technological monopoly on extreme ultraviolet (EUV) lithography, which chip fabricators (like Taiwan Semiconductor) use to lay the microscopic electrical traces on chips.

Without ASML's machines, none of the AI tech we enjoy today would be possible. As chip demand rises, so will demand for ASML machines. While management was a bit bearish on its 2026 outlook thanks to tariff concerns, the long-term trend is still positive for ASML, as it's clear that chip demand is increasing. ASML is still slated to deliver strong growth over the next few years, and its fairly cheap 26 times earnings estimates price tag looks like a steal considering its dominant market position. Nvidia's growth rate could reaccelerate with its China export license expected to be restored. Taiwan Semiconductor and ASML are seeing increased chip demand.

Alphabet is the cheapest big tech stock by far, and looks like a steal at these levels. 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 (NASDAQ: NVDA), Taiwan Semiconductor (NYSE: TSM), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and ASML (NASDAQ: ASML). These four have a great combination of growth and value. Three major artificial intelligence stocks delivered strong second quarter 2025 earnings results that beat Wall Street expectations.

ASML Holding, Alphabet, and Taiwan Semiconductor Manufacturing Company all reported revenue growth while trading at attractive valuations compared to their growth prospects. These AI infrastructure companies play crucial roles in the semiconductor supply chain and cloud computing services. Their Q2 2025 performance demonstrates continued strength in artificial intelligence demand across multiple sectors. ASML Holding posted Q2 2025 earnings that exceeded analyst estimates for both revenue and profit margins. The Dutch semiconductor equipment manufacturer produces extreme ultraviolet lithography machines essential for manufacturing advanced AI chips. These EUV systems use concentrated ultraviolet light to create intricate patterns on silicon wafers.

The company maintains a monopoly position as the world’s only producer of EUV lithography equipment. This unique market position makes ASML stock critical to global semiconductor manufacturing and AI chip production. Major foundries depend on ASML’s advanced equipment to produce cutting-edge processors. Despite beating Q2 earnings expectations, ASML stock has declined nearly 40% from its 52-week high of $945.05. The semiconductor equipment stock currently trades at $690.75 with a market capitalization of $272 billion. This price decline occurred after management issued conservative 2026 guidance.

These are the top AI stocks based on best value, fastest growth, and most momentum. July saw significant developments in artificial intelligence, highlighted by OpenAI’s launch of the ChatGPT agent, capable of independently executing complex, multi-step tasks such as web browsing, data analysis, and creating deliverables like slide decks. This advancement marks a move toward fully autonomous AI agents that could disrupt traditional white-collar work. On the regulatory front, China proposed a global AI cooperation framework aimed at regulating the rapidly evolving technology and fostering the sharing of technology between its allies, challenging U.S. dominance in the sector. These are the best AI stocks to watch for August 2025.

All data is current as of July 28, 2025. Value investing is about finding stocks trading below their true worth, with the expectation that the market will eventually correct the mispricing and the stock price will rise. Investors often use price-to-earnings (P/E) ratio to find stocks that are undervalued, as a lower P/E ratio can indicate that a company is valued at less than its fundamental value. However, it may take multiple quarters or years before a turnaround materializes. Some stocks may also remain cheap for a reason, falling into a "value trap," continuing to underperform despite appearing undervalued. Moreover, the P/E ratio should not be viewed in isolation.

Investors should ask why a stock is trading at a discount to its peers and whether that gap is likely to close due to a business recovery, or the market recognizing the value opportunity. Artificial intelligence has quickly taken over industries worldwide and is therefore rapidly becoming attractive to investment. As August nears, most investors are eyeing the best AI stocks to buy. This article will discuss some of the leading AI stocks showing high growth potential, which is based on robust business models, innovative technologies, and strong market positions. NVIDIA leads in AI mainly as a result of being a high-performance graphic processing unit manufacturer. The corporation's graphic processing units drive AI research, data centers, and autonomous vehicles.

Entering AI through CUDA, NVIDIA has huge changes in deep learning and created a place in AI infrastructure. Strong Financial Performance: NVIDIA continued to showcase robust revenue growth, driven by the strong performance in Gaming and Data Centers.AI Advantages: Company-developed GPUs were grossly used in artificial intelligence research and various applications, thereby... Why Buy It: With continued innovation and leadership in AI hardware, NVIDIA is on strong ground for an investment looking to ride the boom in AI. Alphabet, the parent company of Google, is serious about pioneering AI. Works on AI by Google through its subsidiary DeepMind have also pushed many boundaries on artificial intelligence, from natural language processing to computer vision.Key Highlights: These market leaders continue to deliver strong growth.

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