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5 Best Stocks to Buy to Beat the S&P 500

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In this article, we will take a look at the 5 Best Stocks to Buy to Beat the S&P 500. For deeper discussion and analysis, read 10 Best Stocks to Buy to Beat the S&P 500.

A stock market graph. Photo by energepic.com

5. Alphabet Inc. (NASDAQ:GOOG)

YTD Return as of May 7: 24.2%

On May 7, Mizuho raised its price recommendation on Alphabet Inc. (NASDAQ:GOOG) to $460 from $420 and maintained an Outperform rating on the shares. The firm said Wall Street estimates still significantly understate Google Cloud’s revenue and operating income potential over the next two years.

During the Q1 2026 earnings call, Sundar Pichai, CEO of Alphabet Inc., said the quarter reflected strong AI-driven momentum across the company’s businesses. He noted that Alphabet’s investments in AI and its full-stack strategy continued to support performance across the portfolio. Pichai also said AI remained a major driver of Search growth, with both search usage and query volumes reaching record highs during the quarter.

Discussing cloud performance, Pichai said growing demand for the company’s AI products and infrastructure helped accelerate Google Cloud growth. Cloud revenue increased 63% and surpassed $20 billion for the first time. He also noted that the company’s backlog nearly doubled from the prior quarter to more than $460 billion.

Pichai highlighted continued expansion across products and models, saying total paid subscriptions reached 350 million. He added that Alphabet’s first-party models were processing more than 16 billion tokens per minute through direct API usage by customers, up from 10 billion in the previous quarter.

Alphabet Inc. (NASDAQ:GOOG) is a holding company with segments that include Google Services, Google Cloud, and Other Bets. Google Services includes products and platforms such as Search, YouTube, Android, Chrome, Google Maps, Google Play, devices, and advertising services.

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

The best part? You can discover everything about this company and its groundbreaking technology right now.

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