The AI landscape is seeing significant activity across hardware, software, and investment. Alphabet is considered a strong AI stock, trading at under 19 times analysts' projected 2026 earnings, with Google Search revenue up 12% in Q2, driven by AI features. Over 2 billion people are using AI Overviews in Google Search. Google Cloud revenue also surged 32% in Q2, with CEO Sundar Pichai noting that nearly all Gen AI unicorns use Google Cloud. Alphabet's Gemini model is integrated into Google Search, and the company is developing its own Tensor Processing Units. Nvidia, whose chips are crucial for AI computing, is projected to reach $49 billion in AI-related revenue in 2025. Billionaire David Tepper's Appaloosa Management increased its investments in Nvidia, TSMC, and Intel, signaling a focus on AI hardware, while reducing its stake in Meta by 27%. Meta is leveraging AI to enhance ad experiences on Facebook and Instagram, boosting user engagement. CoreWeave, a cloud-based GPU provider for AI tasks, counts OpenAI, Meta, and IBM among its top customers, and Nvidia has made it their biggest single-stock investment. Aehr Test Systems received orders for its Sonoma systems to test AI chips, reflecting a market expected to surpass $600 billion by 2032. Poet Technologies is working on the "semiconductorization" of photonics to support AI and data centers. China plans to roll out next-generation chips, according to AI startup DeepSeek. Fortinet provides AI-driven network security, and Workday is seeing early AI adoption in its cloud applications.
Key Takeaways
- Alphabet's stock is undervalued, with Google Search revenue growing 12% due to AI features and over 2 billion users utilizing AI Overviews.
- Nvidia's AI-related revenue is projected to reach $49 billion in 2025, solidifying its position in AI hardware.
- David Tepper's Appaloosa Management increased investments in Nvidia, TSMC, and Intel, while reducing its stake in Meta, indicating a shift towards AI hardware.
- Meta is using AI to improve ad experiences on Facebook and Instagram, leading to increased user engagement.
- CoreWeave, a cloud-based GPU provider, counts OpenAI, Meta, and IBM as top customers, with Nvidia as an investor.
- Aehr Test Systems received orders for Sonoma systems to test AI chips, reflecting a market expected to exceed $600 billion by 2032.
- Google Cloud revenue grew 32% in Q2, with nearly all Gen AI unicorns using the platform.
- Poet Technologies is developing photonics technology to support AI and data centers.
- China's AI startup DeepSeek plans to roll out next-generation chips.
- Fortinet provides AI-driven network security solutions, and Workday is experiencing early AI adoption in its cloud applications.
Alphabet stock a cheap way to invest in AI growth
Alphabet is considered a cheap AI stock because it trades at less than 19 times analysts' 2026 earnings estimates. Google Search revenue grew 12% in the second quarter, showing AI features are helping drive more searches. Over 2 billion people use AI Overviews in Google Search, and its AI Mode is gaining popularity. Google Cloud revenue surged 32% in Q2, and Waymo is leading the autonomous driving race.
Top AI stocks Nvidia Alphabet and Meta poised for gains
Nvidia, Alphabet, and Meta Platforms are expected to be major winners in the AI market. Nvidia's chips are key for AI computing, and increased AI capacity will benefit the company. Alphabet's Gemini ranks among the best AI models and is integrated into Google Search. Meta is using AI to improve ad experiences on Facebook and Instagram, leading to increased user engagement.
Long-term AI investments Nvidia Microsoft Alphabet and more
Nvidia and AMD are set to lead in AI infrastructure, while Microsoft and Alphabet have strong businesses and growing cloud units. AI is boosting growth at Meta, which is investing in AI talent. Nvidia's chips are used to train AI models, making it a winner as computing power demand increases. Microsoft's partnership with OpenAI is driving revenue growth, and Alphabet's Google Search benefits from AI enhancements.
Alphabet poised for growth in AI market
Alphabet is well-positioned in AI, with involvement in research, infrastructure, platforms, and services. The company is developing its own Tensor Processing Units to power AI. Google Cloud Platform (GCP) revenue grew 32% in Q2, and CEO Sundar Pichai noted that nearly all Gen AI unicorns use Google Cloud. Shares are trading at a discount, making Alphabet a top AI stock.
David Tepper invests in Nvidia TSMC and Intel sells Meta shares
Billionaire David Tepper's Appaloosa Management increased its investments in AI hardware companies like Nvidia, Taiwan Semiconductor Manufacturing (TSMC), and Intel during Q2 2025. Tepper's fund significantly increased its positions in Nvidia and TSMC, and started a new position in Intel. At the same time, Appaloosa reduced its stake in Meta Platforms by 27%. Meta was the most popular AI stock among billionaire fund managers.
David Tepper bets on AI hardware revolution
David Tepper's Appaloosa Management reduced its stake in Meta while increasing positions in Nvidia, TSMC, and Intel. This move signals a focus on the AI hardware layer. Tepper sees the future of AI in the physical infrastructure that powers it. Nvidia's AI-related revenue is projected to hit $49 billion in 2025, and TSMC is allocating 28% of its wafer capacity to AI chips.
Retail investors can tap into AI value chain
Retail investors can access AI stocks through direct exposure, enablers and infrastructure, strategic exposure, and thematic beneficiaries. Direct exposure includes model developers like Alphabet and Microsoft. Enablers and infrastructure involve semiconductors (Nvidia, AMD) and cloud providers. Strategic exposure includes companies integrating AI into their operations, like Apple and Amazon. Thematic beneficiaries include consulting firms and energy providers.
AI stocks for maximum growth direct exposure
Direct Exposure (Pure AI Plays) stocks offer maximum exposure to the AI revolution. These companies build the models, platforms, applications, and hardware that define the industry's future. Companies include Alphabet, Microsoft, Meta Platforms, Palantir, and Snowflake. AI-only hardware startups like Ambarella and BrainChip design chips optimized for AI processing.
Trending AI stocks on Wall Street now
China plans to roll out its next-generation chips soon, according to AI startup DeepSeek. Fortinet, Inc. provides enterprise-level network security solutions using AI. Tepper Sports & Entertainment (TSE) uses Fortinet's solutions across its facilities. Workday, Inc. provides enterprise cloud applications and is seeing early AI adoption.
Poet Technologies stock buy recommendation for AI growth
Poet Technologies (POET) is developing the "semiconductorization" of photonics to make it practical. Using light is harder than electronics, but POET is working to make it easier. Demand is massive as modern AI and data centers progress toward full potential. POET is pre-commercial, requiring a venture capital or angel investor mindset.
Aehr stock surges on AI chip boom
Aehr Test Systems received additional orders for six Sonoma packaged part burn-in systems from a major cloud provider. The systems will test AI chips designed for massive-scale workloads. The AI chip market is expected to surpass $600 billion by 2032. Aehr's Sonoma systems streamline burn-in and reliability testing in package form.
AI investment opportunities and risks
AI creates opportunities for investors seeking to invest in cutting-edge innovation. AI empowers businesses to enhance efficiency, understand customers, improve decisions, and speed innovation. Machine learning, deep learning, and generative AI are key components. AI is transforming how we live, learn, work, and conduct business.
Wolfspeed's leadership change offers buy opportunity
Wolfspeed appointed Robert Feurle as CEO to drive restructuring and SiC production efficiency. The company's 200mm SiC wafer platform offers cost advantages. Restructuring reduced debt and secured liquidity, positioning Wolfspeed to scale production. Despite short-term risks, the stock trades at a discount, presenting a contrarian opportunity.
CoreWeave a hot AI stock but not the next Nvidia
CoreWeave is a hot AI stock that provides cloud-based GPUs for processing AI tasks. It was founded in 2017 as a crypto miner but repurposed its GPUs for AI tasks. Nvidia invested in CoreWeave, making it Nvidia's biggest investment in a single stock. CoreWeave operates 33 data centers and its top customers include OpenAI, Meta, and IBM.
Sources
- This Artificial Intelligence (AI) Stock Looks Dirt Cheap Right Now @themotleyfool #stocks $GOOGL $GOOG
- 3 Phenomenal Artificial Intelligence (AI) Stocks to Buy Right Now @themotleyfool #stocks $NVDA $^GSPC $GOOGL $META $GOOG
- These 5 AI Stocks Could Be Smart Buys for Long-Term Investors @themotleyfool #stocks $NVDA $MSFT $GOOGL $META $AMD $GOOG
- 1 Top Artificial Intelligence (AI) Stock Ready for a Bull Run @themotleyfool #stocks $GOOGL $GOOG
- Billionaire David Tepper Piled Into Nvidia, TSMC, and Intel, and Sold Shares of the No. 1 Artificial Intelligence (AI) Stock Among Billionaire Fund Managers @themotleyfool #stocks $NVDA $TSM $INTC $META
- David Tepper's AI Stock Reallocation: A Contrarian Bet on the Hardware Revolution
- How Retail Investors Can Tap Into the AI Value Chain
- Direct Exposure AI Stocks for Maximum Growth
- 10 Trending AI Stocks on Wall Street
- Light At The End Of AI Bottleneck: Pre-Commercial Poet Technologies Stock Buyable (POET)
- AI Chip Boom Sends Aehr Stock Surging As Major Cloud Giant Places Big Test System Order
- Investing in AI: Assessing the Investment Opportunities
- Navigating Earnings Volatility: Why Wolfspeed's Leadership Change Offers a Contrarian Buy Opportunity Amid AI Hardware Uncertainty
- Is This Artificial Intelligence (AI) Stock the Next Nvidia? @themotleyfool #stocks $CRWV $NVDA $CORZ
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