Top 4 Ai Stocks To Invest In This August Msn

Bonisiwe Shabane

-Dec 3, 2025, 12:09 AM

top 4 ai stocks to invest in this august msn

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. The AI boom still has many years to go before reaching full maturity. The artificial intelligence (AI) boom is alive and investors need to understand that this is a long-term trend, and that any dip (like we're expecting now) may be a great opportunity to buy the... I've got four of them that look like fantastic opportunities, and investors should consider buying them right now to ensure they're well-positioned to take advantage of the massive buildout that's ongoing. Nvidia (NVDA +2.65%) has been a top AI investment pick since the AI arms race kicked off in 2023. Its graphics processing units (GPUs) have become the industry standard, and it likely won't relinquish that position anytime soon.

It has orders for $300 billion worth of its top-tier AI computing chips coming up over the next five quarters, making it an excellent stock to consider scooping up, especially after many of the... Despite notions that Nvidia is overvalued, I think it's cheap. What investors forget to consider is Nvidia's amazing growth rate. The PEG ratio accounts for this growth, and anything under 1 is considered undervalued. Analysis - The top AI stocks to watch in August Stock Ideas - Merging AI and Quantum computing: Here's the stock to watch

News - Morgan Stanley boosts Meta target to $850 on strong Q2 results Startups - Why most ai startups won’t survive 2026 and what the smart ones are doing differently Trends - The agentic AI revolution: Experts explain key business trends 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. 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."

Top 4 Ai Stocks To Invest In This August Msn

People Also Search

You Might Be Using An Unsupported Or Outdated Browser. To

Advertisers Do Not And Cannot Influence Our Ratings. We Use

Other Fees May Apply. The AI Boom Still Has Many

It Has Orders For $300 Billion Worth Of Its Top-tier

News - Morgan Stanley Boosts Meta Target To $850 On