In this article, we will take a look at the 5 Best S&P 500 Stocks to Buy Right Now. For deeper discussion and analysis, have a look at the 15 Best S&P 500 Stocks to Buy Right Now.
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5. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 202
Broadcom Inc. (NASDAQ:AVGO) designs, develops, and supplies various semiconductor devices and infrastructure software solutions internationally.
On April 2, Erste Group downgraded its rating on Broadcom Inc. (NASDAQ:AVGO) from ‘Buy’ to ‘Hold’. The move comes as the analyst firm projects Broadcom’s software segment to grow at a ‘strongly below-average rate’ in the long term, while expecting its goodwill amortization to hamper earnings growth.
Broadcom Inc. (NASDAQ:AVGO) exceeded estimates in both earnings and revenue in its Q1 2026 results last month. The company’s revenue for the quarter reached a record $19.3 billion, up 29% YoY, driven by a better-than-expected growth in AI semiconductors. The firm expects this growth to continue, with a target to deliver consolidated revenue of approximately $22 billion in Q2 2026, indicating a YoY increase of 47%.
Broadcom Inc. (NASDAQ:AVGO) is projecting its AI semiconductor revenue to grow by 140% YoY in the second quarter, while the infrastructure software revenue is forecasted to deliver an uptick of 9% compared to last year. The company expects its Q2 adjusted EBITDA to come in at approximately 68% of revenue, similar to the last quarter.
4. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 203
Alphabet Inc. (NASDAQ:GOOG) is a holding company with segments that include Google Services, Google Cloud, and Other Bets.
On April 2, Wells Fargo trimmed the firm’s price target on Alphabet Inc. (NASDAQ:GOOG) from $397 to $361, while keeping an ‘Overweight’ rating on the shares. The lowered target still indicates an upside potential of over 22% from the current share price.
Wells Fargo views Alphabet Inc. (NASDAQ:GOOG)’s Q1 2026 as a positive turning point for cash flow revisions. The analyst firm expects the tech company to post an increase in both revenue and operating income estimates and maintain its capital expenditures steady after a prolonged period of pressure on free cash flow forecasts. Additionally, Wells expects this uptick to be driven primarily by non-cyclical factors, particularly its cloud services platform.
Alphabet Inc. (NASDAQ:GOOG) has outlined capital expenditures in the range of $175 billion to $185 billion for FY 2026. AI momentum accelerates across search, cloud, and YouTube.
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 256
Meta Platforms, Inc. (NASDAQ:META) engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) headsets, and AI glasses. Its core business includes platforms like Facebook, Instagram, WhatsApp, and Messenger.
On April 2, Erste Group downgraded its rating on Meta Platforms, Inc. (NASDAQ:META) from ‘Buy’ to ‘Hold’.
Meta Platforms, Inc. (NASDAQ:META) has forecasted total expenses of $162 billion to $169 billion for FY 2026, driven primarily by infrastructure, compute, and cloud capacity needs. CapEx for the year is guided between $115 billion and $135 billion, with operating income expected to be above 2025 levels. While the company’s Q1 2026 revenue is projected to come between $53.5 billion and $56.5 billion, Erste Group expects the tech giant’s free cash flow to feel the weight of high investment levels and remain below historical averages in 2027.
Similarly, earlier on March 30, Morgan Stanley analyst Brian Nowak also reduced the firm’s price target on Meta Platforms, Inc. (NASDAQ:META) by $50, but maintained its ‘Overweight’ rating (read the details here).
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 312
Microsoft Corporation (NASDAQ:MSFT) is engaged in developing and marketing software, services, and hardware that deliver new opportunities, greater convenience, and enhanced value to people’s lives.
On April 1, Benchmark initiated coverage of Microsoft Corporation (NASDAQ:MSFT) with a ‘Buy’ rating and a price target of $450, reflecting an upside of more than 20% from the current levels.
Benchmark highlighted Microsoft Corporation (NASDAQ:MSFT)’s position as a leading AI orchestration platform across enterprise and consumer markets, thanks to its robust portfolio of software, collaboration tools, and cloud services. That said, the stock has declined by over 30% since hitting its all-time high in October 2025, and the analyst views this as a long-term buying opportunity for investors. The firm believes that Microsoft’s AI-related CapEx concerns are shortsighted, given the strong demand visibility, contracted hardware capacity, and the strategic positioning the company enjoys amid the AI supercycle.
Microsoft Corporation (NASDAQ:MSFT) reported a CapEx of $34.9 billion in Q1 2026, followed by $37.5 billion in the second quarter. If investment continues at this pace, the annual CapEx for FY 2026 will come out at around $140-$150 billion.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 381
Topping our list of the Best S&P 500 Stocks to Buy Now is Amazon.com, Inc. (NASDAQ:AMZN). The company provides a broad selection, value, and convenience across a range of customer experiences, including online shopping, cloud computing, streaming entertainment, consumer electronic devices, advertising, healthcare, AI services, and more.
On April 2, Wells Fargo slightly upped its price target on Amazon.com, Inc. (NASDAQ:AMZN) from $304 to $305, while maintaining an ‘Overweight’ rating on the shares. The bumped target indicates an upside potential of over 45% from the current levels.
Wells expects Amazon.com, Inc. (NASDAQ:AMZN)’s CapEx guidance for 2026 to remain stable, with accelerating AWS revenue supporting upward revisions to free cash flow, marking the first improvement in the last four quarters. Amazon remains the analyst firm’s top internet pick for this year, given its strong growth and an attractive valuation of 21 times 2027 GAAP price to earnings.
Amazon.com, Inc. (NASDAQ:AMZN) is targeting to spend about $200 billion in capital expenditures in FY 2026, with a big portion of it invested in AWS, given the high demand. The company expects its net sales for the first quarter to range between $173.5 billion and $178.5 billion.
Amazon.com, Inc. (NASDAQ:AMZN) was also recently included in our list of the 8 Best Blue Chip AI Stocks to Buy Now.
While we acknowledge the potential of AMZN as an investment, 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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