In this article, we will look at the 5 Best American AI Stocks to Buy Now. Please visit the 10 Best American AI Stocks to Buy Now if you’d like to see an extended list and methodology behind it.
5. ServiceNow Inc. (NYSE:NOW)
Potential Upside: 52.16%
Number of Hedge Fund Holders: 118
ServiceNow Inc. (NYSE:NOW) is one of the best American AI stocks to buy now. On May 5, KeyBanc reiterated an underweight rating on ServiceNow and set an $85 price target on the stock following the company’s financial analyst day, according to a report by Investing.com.
On May 4, ServiceNow held its Financial Analyst Day, where its CEO, Bill McDermott, announced a target of $30 billion in subscription revenue by 2030. Keybanc highlighted that this represents a 17.5% compound annual growth rate from 2027 through 2030 based on the midpoint of 2026 guidance.
Additionally, the company is targeting to operate on a rule of 60 or higher by 2030, a benchmark in which the revenue growth rate plus its profit margin equals 60 or higher.
KeyBanc said it considers both targets as positive, noting that these strike the right balance of aspirational and achievable.
Based on 49 analyst ratings compiled by CNN, 90 percent of analysts rated ServiceNow a Buy, with an average price target of $140, representing a 52.16% upside from the current price of $92.01.
Meanwhile, ServiceNow announced the expansion of its partnership with NVIDIA to extend agentic AI governance from desktops to data centers. The collaboration also introduces Project Arc, a new enterprise autonomous desktop agent, secured by the NVIDIA OpenShell runtime and governed by ServiceNow AI Control Tower, that will run on employee desktops and autonomously complete complex work.
In addition, ServiceNow said its AI Control Tower is now included in the NVIDIA Enterprise AI Factory-validated design, extending enterprise governance to large-scale model workloads.
ServiceNow (NYSE:NOW) provides an end-to-end workflow automation platform for digital businesses. The ServiceNow AI Platform integrates with any cloud, any model, and any data source to orchestrate how work flows across the enterprise.
4. NVIDIA Corp. (NASDAQ:NVDA)
Potential Upside: 36.13%
Number of Hedge Fund Holders: 264
NVIDIA Corp. (NASDAQ:NVDA) is one of the best American AI stocks to buy now. On May 6, NVIDIA announced a multiyear commercial and technology partnership with Corning Inc. aimed at expanding the U.S.-based manufacture of the advanced optical connectivity solutions needed to power next-generation AI infrastructure.
Under the partnership, Corning will boost its U.S.-based optical connectivity manufacturing capacity by 10x and expand its U.S. fiber production capacity by more than 50% to meet the accelerating demand driven by AI factory buildouts. Corning will also construct three new advanced manufacturing facilities in North Carolina and Texas, which are expected to create more than 3,000 new, high-paying American jobs.
NVIDIA said Corning’s expanded capacity will supply the optical connectivity that hyperscale data centers use to deploy NVIDIA-accelerated computing at scale. It added:
“Modern AI workloads require thousands of NVIDIA GPUs — requiring unprecedented volumes of high-performance optical fiber, connectivity and photonics to move data at extraordinary speed and scale. As AI factories grow larger and more numerous, optical connectivity becomes an important component of the AI infrastructure.”
According to 70 analyst ratings compiled by CNN, 93% rated Nvidia Buy, while 6% rated it Hold. NVIDIA has an average price target of $267.50, a 36.13% upside from the current price of $196.50.
NVIDIA Corp. (NASDAQ:NVDA) designs and manufactures graphics processing units (GPUs), system-on-a-chip units (SoCs), and AI hardware and software. Its GPUs are used in gaming, high-performance computing, AI training, and inference and serve as the backbone of data center infrastructure worldwide.
3. Alphabet Inc. (NASDAQ:GOOGL)
Potential upside: 9.41%
Number of Hedge Fund Holders: 288
Alphabet Inc. (NASDAQ:GOOGL) is one of the best American AI stocks to buy now. On May 5, Bloomberg reported that Alphabet raised over $17 billion by selling Euro-denominated bonds and its first Canadian-dollar notes to fund investments in artificial intelligence.
According to the report, the company priced €9 billion ($10.5 billion) in euro bonds, citing people with knowledge of the matter. It added that the sale in six parts drew more than €18.3 billion of bids. Additionally, the Google parent also raised C$8.5 billion ($6.2 billion) from a four-part bond sale in Canadian dollars.
Last week, Alphabet reported that consolidated revenues surged 22% to $109.9 billion, the company’s 11th consecutive quarter of double-digit growth. During the period, revenues from Google Services jumped 16% to $89.6 billion, mainly due to a 19% growth in Google Search & other, 19% in Google subscriptions, platforms, and devices, and 11% in YouTube ads.
Based on 73 analyst ratings compiled by CNN, 86% rated Alphabet’s shares Buy, while 14% rated them Hold. The stock has an average price target of $425, a 9.41% upside from the current price of $388.43.
Alphabet Inc. (NASDAQ:GOOGL) is a holding company that engages in software, health care, transportation, and other technologies. It owns several notable platforms, including Google Search, Google Maps, Gmail, and YouTube. The company is also known for pioneering work and research in cloud computing, quantum computing, and artificial intelligence.
2. Microsoft Corporation (NASDAQ:MSFT)
Upside Potential: 33.70%
Number of Hedge Fund Holders: 312
Microsoft Corporation (NASDAQ:MSFT) is one of the best American AI stocks to buy now. On May 6, the company said it is making significant investments in data center regions across Europe to support customers amid growing demand for cloud and AI.
In a blog post, Azure Marketing Corporate Vice President Jessica Hawk said the company has expanded into new regions and continues to build across key markets this year, adding that it is scaling capacity across both new and existing regions in Europe. These include regions in Austria, Belgium, Greece, Finland, and two regions in Denmark.
Hawk said the rapid expansion is focused on helping customers scale as demand grows. She added:
“We’re investing where customers are building and scaling critical workloads, and we’ll continue to grow our regional footprint with secure, resilient cloud and AI services—including sovereign solutions that help provide the control and deployment flexibility many organizations require. These investments go beyond expanding capacity, they deliver trusted sovereign infrastructure that supports innovation with transparency, operational control, and alignment with local regulations.”
Based on 63 analyst ratings compiled by CNN, 95% rated the stock Buy, while 5% rated it Hold. The average price target for Microsoft is $550, representing a 33.70% upside from the current price of $411.38.
Microsoft Corporation (NASDAQ:MSFT) is a technology company that creates platforms and tools powered by AI to deliver innovative solutions that meet the evolving needs of customers.
1.Amazon.com, Inc. (NASDAQ:AMZN)
Potential Upside: 15.15%
Number of Hedge Fund Holders: 381
Amazon.com, Inc. (NASDAQ:AMZN) is one of the best American AI stocks to buy now. On May 5, Amazon announced that its Amazon Business platform now offers same-day delivery of fresh, perishable groceries to business customers across the country, with the service available in more than 2,300 cities and towns across the U.S.
Amazon said the new service follows a strong customer response to Amazon’s consumer fresh grocery delivery. Amazon Business Vice President Shelley Salomon said the company is continuously innovating to make business buying simpler, faster, and more cost-effective for customers. She added:
“Our customers have been asking for an easier way to order fresh groceries alongside the everyday business essentials they rely on to run their operations. By adding fresh groceries to the already expansive selection Amazon Business offers, organizations can now combine items like copy paper and printer ink with milk, fruit, and other breakroom staples—check out with a single cart, and have everything delivered to their workplace within hours.”
On May 4, Amazon announced the launch of Amazon Supply Chain Services (ASCS), which extends its portfolio of freight, distribution, fulfillment, and parcel shipping solutions to businesses of all types and sizes.
According to 73 analyst ratings compiled by CNN, 92% rated the stock Buy, while 8% rated it Hold. The average price target for Amazon is $315, representing a 15.15% upside from the current price of $273.55.
Amazon.com, Inc. (NASDAQ:AMZN) is a global technology company operating through multiple interconnected business units. While well-known as an online retailer, it is also a major player in cloud computing, digital streaming, and artificial intelligence.
While we acknowledge the potential of AMZN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AMZN and that has 100x upside potential, check out our report about the cheapest AI stock.
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