In this article, we will take a look at some of the best stocks to buy now according to AI.
If there’s one thing that is everywhere, it’s AI. From educational institutions and corporations to government organizations and now the stock market, AI has transformed the way the world works.
Many people believe that real art is in knowing the use of AI “responsibly,” and this is why most companies are mastering responsible AI governance while embracing its potential. According to a report by eToro, one in ten retail investors utilizes AI tools, including ChatGPT, to pick stocks and alter investments.
As eToro Global Markets Strategist, Ben Laidler, cites,
“Consumer AI tools are seeing the fastest growth rates of any technology in history, and it’s no surprise that early adopters are starting to use them for investing.”
Our Methodology
In this article, we have selected stocks that were featured in Insider Monkey’s article “15 Stocks That Will Make You Rich in 5 Years According to ChatGPT.” We have ranked these stocks based on the returns they have delivered since the article’s publication in December 2023, arranged from highest to lowest.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
11. Adobe Inc. (NASDAQ:ADBE)
Returns as of August 19, 2025: -40.1%
Wedbush has removed Adobe Inc. (NASDAQ:ADBE) from its IVES AI 30 list, which is a group of 30 tech companies that Daniel Ives believes will define the future of AI in the years ahead.
Among the biggest fears Adobe Inc. (NASDAQ:ADBE) faces is the rise of generative AI. One wonders: why should I pay a subscription fee to creative professionals when there are cheaper or even free alternatives available for creating and designing? However, there’s certainly more to the company, which is why many analysts recommend buying the stock.
The company’s transition from tools to systems is what’s making it attractive. AI monetization, platform lock-in, and expanding margins, along with Firefly Video Model and premium AI tiers, will position Adobe Inc. (NASDAQ:ADBE) well in the market.
Adobe Inc. (NASDAQ:ADBE) is a California-based technology company that operates through three segments: Digital Media, Digital Experience, and Publishing and Advertising. Founded in 1982, the company is committed to empowering everyone, everywhere.
10. PayPal Holdings, Inc. (NASDAQ:PYPL)
Returns as of August 19, 2025: 12.55%
Dimensional Fund Advisors LP increased its stake in PayPal Holdings, Inc. (NASDAQ:PYPL) by 14% during the first quarter. Following the purchase of 491,997 shares, the firm owns 4,012,795 shares of the company’s stock, valued at $261,792,000.
PayPal Holdings, Inc. (NASDAQ:PYPL) is undergoing a strategic shift with the management now focusing on high-margin segments and improved execution. By 2027, the company is anticipated to unlock $4.4 billion to $8.8 billion in incremental TPV, which means $300 million to $500 million in new revenue generation.
In this trembling market, investors keep PayPal Holdings, Inc. (NASDAQ:PYPL) as a top pick due to its profitable growth, aggressive share repurchases, and a robust balance sheet. This is supported by the management’s emphasis on branded processing and accelerating growth in Venmo.
PayPal Holdings, Inc. (NASDAQ:PYPL) is a California-based company that operates as a technology platform facilitating digital payments for both consumers and merchants. Founded in 1998, the company is committed to democratizing financial services.
9. Johnson & Johnson (NYSE:JNJ)
Returns as of August 19, 2025: 14.05%
According to the recent disclosure with the Securities and Exchange Commission (SEC), Sector Gamma AS has increased its position in Johnson & Johnson (NYSE:JNJ) by 25.6% in the first quarter. The firm now owns 98,000 shares of the company’s stock, including the addition of 20,000 shares. With a stake worth $16.25 million, the consumer healthcare giant ranks as Sector Gamma AS’s sixth-largest holding.
Many analysts believe that the story of Johnson & Johnson (NYSE:JNJ) is far from over. Just recently, the company’s revenue and EPS surpassed Wall Street’s expectations by a significant margin. If its “outdated” superstar Stelara is weakening, the oncology franchise is gaining momentum. So, much of the decline has been more than compensated for. And that’s what is so special about the company.
Much of the hope surrounds Erleada, which is becoming the definitive standard in prostate cancer treatment, achieving $908 million in sales. This 17.8% quarter-over-quarter increase signals one thing: it’s just getting started.
Johnson & Johnson (NYSE:JNJ), headquartered in New Jersey, offers healthcare products worldwide. Founded in 1886, the company operates in two main segments: Innovative Medicine and MedTech. With a commitment to care for the world, the healthcare powerhouse distributes its products to wholesalers, hospitals, and retailers.
8. Apple Inc. (NASDAQ:AAPL)
Returns as of August 19, 2025: 19.90%
According to the report by South Korean outlet ETNews, Apple Inc. (NASDAQ:AAPL) will skip the launch of schedule in 2026, breaking from its tradition by not releasing its base model. The reason is simple – it’s saving the spotlight for its first-ever foldable smartphone, which will be unveiled in the fall alongside iPhone 18 Air, 18 Pro, and 18 Pro Max.
During the first half of 2026, Apple Inc. (NASDAQ:AAPL) will only debut its budget-friendly iPhone 17e, while the basic iPhone 18 will appear in 2027. Following this, the tech powerhouse will transition into a two-stage annual cycle, whereby the primary models will be introduced in the spring, and flagships and folding versions in the fall.
This is a smart strategy, considering the lack of interest from customers throughout the rest of the months. Apple Inc. (NASDAQ:AAPL) is heavily dependent on Services, which is now its main growth catalyst, with an emphasis on delivering sustained double-digit growth, peak margins, and resilience against macroeconomic pressures.
Apple Inc. (NASDAQ:AAPL) is a California-based provider of smartphones, personal computers, tablets, wearables, and accessories that was founded in 1976. With a mission to bring the best user experience, the company offers iPhone, Mac, and iPad, among others.
7. Tesla, Inc. (NASDAQ:TSLA)
Returns as of August 19, 2025: 33.89%
FCG Investment Co has increased its stake in Tesla, Inc. (NASDAQ:TSLA) by a whopping 546.9% in the first quarter, according to the latest Form 13F filing with the SEC. With the acquisition of 7,050 shares of the company’s stock, the firm now owns 8,339 shares, making the stock its 21st largest holding.
Many analysts believe that the company’s financial position is weakening, owing to declining revenues, margins, and cash flow. Despite surpassing top-line expectations, Tesla, Inc. (NASDAQ:TSLA) finds itself in an unfavorable situation, which appears only temporary, thanks to developments in autonomy, growing FSD adoption, and the upcoming launch of more affordable models.
Earlier on Monday, Tesla, Inc. (NASDAQ:TSLA) announced the launch of Model Y L in China to enhance competitiveness. This six-seat version of the Model Y is directed at Chinese consumers who prefer long-wheeled vehicles.
Tesla, Inc. (NASDAQ:TSLA) is a Texas-based manufacturer and seller of electric vehicles, and energy generation and storage systems. Incorporated in 2003, the company operates through two segments: Automotive and Energy Generation and Storage.
6. Microsoft Corporation (NASDAQ:MSFT)
Returns as of August 19, 2025: 37%
Terry Tillman, an analyst at Truist, has increased the price target on Microsoft Corporation (NASDAQ:MSFT) to $675 from $650, while maintaining a Buy rating on the stock. This potential upside of nearly 29% from the current level is driven by robust secular growth in cloud and AI.
The research firm highlights the company’s momentum associated with cloud and AI secular growth drivers, along with the impact of growth-stimulating halo effect across individual infrastructure, data, and app businesses. Sustained cloud expansion, combined with evolving AI demand, can lead to improved revenue, profit, and cash flow in the long term.
The financials of Microsoft Corporation (NASDAQ:MSFT) tell an equally compelling story, with the company’s year-to-date return surpassing the market return by an impressive 14.22%. Despite macro and CapEx risks, the tech giant’s AI focus, smooth Copilot adoption, and a profitable OpenAI partnership position make it a winning stock.
Microsoft Corporation (NASDAQ:MSFT), founded in 1975, is a Washington-based company that offers software, services, devices, and solutions internationally. With three main segments: Productivity and Business Processes, Intelligent Cloud, and Personal Computing, the company is committed to empowering every person and organization.
5. Alphabet Inc. (NASDAQ:GOOG)
Returns as of August 19, 2025: 41.49%
On Monday, Alphabet Inc. (NASDAQ:GOOG) agreed to pay A$55 million ($35.8 million) in fines in Australia, following the nation’s consumer watchdog finding that it had undermined competition by paying the two leading telecommunications companies to pre-install its search app on Android phones. This arrangement has not only shut down rival search engines but also disrupted the whole market.
According to the Australian Competition and Consumer Commission (ACCC), Google’s agreements with Telstra and Optus, between December 2019 and March 2021, required them to pre-install Google Search on all Android devices sold to customers, whereas this didn’t apply to other search engines.
The two tech giants were, in exchange, granted a share in the revenues generated from ads viewed by the consumers on their Android handsets. Alphabet Inc. (NASDAQ:GOOG) has come clean about it by accepting the penalties.
Alphabet Inc. (NASDAQ:GOOG) is a California-based company that operates through its Google Services, Google Cloud, and Other Bets segments. Incorporated in 1998, the company has delivered a 5-year return of 173.43% in contrast to the 91.23% return of the S&P 500 (^GSPC).
4. Amazon.com, Inc. (NASDAQ:AMZN)
Returns as of August 19, 2025: 49.58%
On Monday, it was revealed that Arm Holdings has hired Rami Sinno, artificial intelligence chip director at Amazon.com, Inc. (NASDAQ:AMZN), in an effort to develop its own complete chips.
Up to this point, Arm has not developed its own chips; rather, it merely designs the core architecture and instruction set for processors that big names like Apple and Nvidia utilize in their chips. Sinno, who was responsible for developing the company’s two homegrown AI chips, Trainium and Inferentia, had a direct role in helping Amazon.com, Inc. (NASDAQ:AMZN) build and run large AI applications.
Just recently, Amazon.com, Inc. (NASDAQ:AMZN) achieved what seemed impossible by expanding into same-day fresh grocery delivery, tapping a $940 billion US grocery market. With vast logistics, data analytics, and a $4 billion infrastructure investment, it is no doubt that Amazon.com, Inc. (NASDAQ:AMZN) is a leader in the market.
Amazon.com, Inc. (NASDAQ:AMZN) is a Washington-based company that offers consumer products, advertising, and subscription services through both online and physical stores. Founded in 1994, the company is committed to becoming the world’s most customer-focused company.
3. Shopify Inc. (NASDAQ:SHOP)
Returns as of August 19, 2025: 84.37%
According to the Form 13F filing with the SEC, Corient IA LLC has increased its position in Shopify Inc. (NASDAQ:SHOP) after the purchase of 9,000 shares. The company accounts for 0.6% of the firm’s portfolio.
Shopify Inc. (NASDAQ:SHOP) continues to deliver impressive revenue growth of more than 30%, alongside margin expansion, surpassing expectations, and capturing market share in key verticals. Despite strong financials, the company’s valuation seems quite high, and that’s what keeps some investors on the sidelines.
Just recently, Saudi Arabia’s sovereign wealth fund offloaded stakes during the second quarter, and among them is Shopify Inc. (NASDAQ:SHOP). The biggest risk associated with the company is a potential decline in Merchant Solutions, a segment that contributes over 70% to the company’s revenue. The last card the company can play is to either engage in acquisitions of start-ups or boost its free cash flow margin.
Shopify Inc. (NASDAQ:SHOP) is a Canadian commerce technology company that offers tools to start, scale, and run a business. Incorporated in 2004, the core offerings of the company include the Shopify platform, Shopify Payments, Shop Campaigns, and advertising on the Shopify App Store.
2. Netflix, Inc. (NASDAQ:NFLX)
Returns as of August 19, 2025: 149.63%
Corient IA LLC has increased its stake in Netflix, Inc. (NASDAQ:NFLX), making the stock its fourth-largest holding. With the purchase of 1,648 shares worth approximately $1,537,000, the streaming giant now represents 1.1% of the firm’s investment portfolio.
Netflix, Inc. (NASDAQ:NFLX) has recently found itself in a heated debate. While the advocates highlight the company’s robust revenue growth, record-high operating margins, and unmatched content efficiency, the bears are of the view that the company’s premium valuation multiple ignores declining viewership and increased dependence on price hikes.
With intensifying competition from Amazon Prime Video, Disney+, and Apple TV+, it’s crucial for Netflix, Inc. (NASDAQ:NFLX) to maintain its market capitalization through sustained innovation and a continued emphasis on content creation. As long as the entertainment powerhouse continues to support initiatives like local for local strategy and Netflix Houses, we have a good reason to believe in the stock.
Netflix, Inc. (NASDAQ:NFLX), headquartered in California and founded in 1997, is an entertainment service provider. The company’s core offerings include television (TV) series, documentaries, feature films, games, and streamed content, accessible through a range of internet-connected devices.
1. NVIDIA Corporation (NASDAQ:NVDA)
Returns as of August 19, 2025: 269.44%
J.W. Cole Advisors Inc. has increased its stake in NVIDIA Corporation (NASDAQ:NVDA) by 72.7% during the first quarter, according to the latest Form 13F filing with the Securities and Exchange Commission (SEC). Following the addition of 328,544 shares, the firm now owns 780,172 shares of the stock, valued at $84,555,000.
Analysts remain bullish on NVIDIA Corporation (NASDAQ:NVDA) due to three catalysts: networking growth, AI lab demand, and server shipment momentum. The statistics displayed by the company look as attractive as its dominance in the global semiconductor race. Having said that, the stock’s year-to-date return stands at an impressive 34.40% in contrast to the 9.66% return delivered by the S&P 500 (^GSPC).
There’s no doubt that the competition is intensifying, but what keeps the company’s position strong in the market is its AI-driven data center growth and dominant GPU ecosystem, driving revenue and profit acceleration.
NVIDIA Corporation (NASDAQ:NVDA) is a California-based computing infrastructure company that offers graphics and compute, and networking solutions. Founded in 1993, the giant serves a wide range of clients in the gaming, professional visualization, data center, and automotive industries.
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