In this article, we will list the 5 Best Stocks to Buy with “Wide Moats”. Please visit 7 Best Stocks to Buy with “Wide Moats” if you’d like to see an extended list.
For this article, we reviewed U.S.-listed companies widely recognized for durable competitive advantages, using sources such as Morningstar’s economic moat ratings, the wide-moat index holdings, and company-specific moat commentary. We prioritized stocks with clear, long-term advantages such as switching costs, network effects, intangible assets, cost advantages, or entrenched market infrastructure.
From that pool, we selected the stocks that most closely fit the “wide moat” definition while also offering enough business relevance and investor visibility for a broad stock-market audience. Then we ranked them in descending order of open short interest, sourced from stockanalysis.com.
5. Visa Inc. (NYSE:V)
Short Percentage of Float: 1.36%
Visa Inc. (NYSE:V) is one of the best stocks to buy with wide moats.
The latest moat-relevant update came on May 5, 2026, when Visa Inc. (NYSE:V) expanded its Agentic Ready program to issuers in Canada, extending a global effort meant to prepare banks and payment partners for AI agent-initiated commerce. The program lets participants test agent-led payments in controlled environments with live cards and merchants, while validating payment flows, including card enrollment, tokenization, authentication, and authorization.
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The update fits Visa’s wide-moat profile because its advantage is rooted in its trusted payment infrastructure and network effects. Morningstar uses Visa as an example of network effects, where more card users make the network more attractive to merchants, which in turn makes it more useful to consumers. Visa’s latest results also showed that the existing network is still growing: on April 28, the company reported fiscal second-quarter net revenue of $11.2 billion, up 17%, with payments volume up 9%, cross-border volume up 12%, and processed transactions up 9%.
Visa Inc. (NYSE:V) operates a global digital payments network that connects consumers, merchants, financial institutions, businesses, strategic partners, and governments across more than 200 countries and territories.
4. NVIDIA Corporation (NASDAQ:NVDA)
Short Percentage of Float: 1.22%
NVIDIA Corporation (NASDAQ:NVDA) is one of the best stocks to buy with wide moats.
The latest moat-relevant update came on May 7, 2026, when NVIDIA Corporation (NASDAQ:NVDA) and IREN announced a strategic partnership to accelerate the deployment of up to 5 gigawatts of NVIDIA DSX-aligned AI infrastructure across IREN’s global data-center pipeline. The companies said future deployments are expected to focus on IREN’s 2-gigawatt Sweetwater campus in Texas, which is planned as a flagship deployment for NVIDIA’s DSX architecture. As part of the deal, IREN also issued NVIDIA a five-year right to purchase up to 30 million shares at $70 per share, giving NVIDIA the right to invest up to $2.1 billion, subject to conditions.
The update fits the wide-moat angle because NVIDIA’s advantage increasingly extends beyond selling GPUs to encompass a broader AI infrastructure stack. The companies framed DSX around accelerated compute, AI factories, networking, software, power, and operations, which reinforces NVIDIA’s role as an architecture provider rather than just a component supplier. Morningstar also assigns NVIDIA a wide economic moat, citing its leadership across GPUs, hardware, software, and networking tools needed for AI workloads.
NVIDIA Corporation (NASDAQ:NVDA) develops graphics processors, accelerated computing platforms, AI infrastructure, networking products, software, and related technologies for data centers, gaming, professional visualization, automotive, robotics, and other markets.
3. Meta Platforms, Inc. (NASDAQ:META)
Short Percentage of Float: 1.21%
Meta Platforms, Inc. (NASDAQ:META) is one of the best stocks to buy with wide moats.
The latest moat-relevant update came on May 5, 2026, when Reuters reported that Meta Platforms, Inc. (NASDAQ:META) argued against a potential EU order that would require it to give rival AI chatbots free access to WhatsApp. The dispute followed Meta’s January policy allowing only Meta AI on WhatsApp, later amended in March to let rivals use the messaging app for a fee. While regulatory pressure is a risk, the case also highlights why WhatsApp is strategically important: access to Meta’s messaging network has become valuable enough for AI companies and regulators to fight over.
That fits the wide-moat case because Meta’s advantage is built on network effects, user data, and advertising technology across its Family of Apps. Morningstar says Meta merits a wide economic moat because of intangible assets and the network effect around Facebook, Instagram, WhatsApp, and Messenger. The moat also showed up in first-quarter results reported on April 29, when revenue rose 33% to $56.31 billion, ad impressions increased 19%, and average Family daily active people reached 3.56 billion in March.
Meta Platforms, Inc. (NASDAQ:META) operates Facebook, Instagram, Messenger, WhatsApp, Threads, advertising technology, AI products, virtual and augmented reality platforms, and related digital services.
2. Microsoft Corporation (NASDAQ:MSFT)
Short Percentage of Float: 1.12%
Microsoft Corporation (NASDAQ:MSFT) is one of the best stocks to buy with wide moats.
The latest moat-relevant update came on April 29, 2026, when Microsoft Corporation (NASDAQ:MSFT) reported fiscal third-quarter results that showed how deeply its cloud and productivity franchises remain embedded in enterprise spending. Microsoft Cloud revenue rose 29% to $54.5 billion, while commercial remaining performance obligation jumped 99% to $627 billion, pointing to a large base of contracted future revenue. Azure and other cloud services revenue increased 40%, while Microsoft 365 Commercial cloud revenue rose 19%.
The results fit the wide-moat case because Microsoft’s advantage is not tied to one product line. Morningstar has described Microsoft’s moat as primarily driven by switching costs, with network effects and cost advantage as secondary sources, helped by the breadth and integration of its applications. That showed up again in the quarter, as Microsoft said paid Microsoft 365 Copilot seats were now over 20 million, with ARPU growth led by both E5 and Microsoft 365 Copilot.
Microsoft Corporation (NASDAQ:MSFT) develops software, cloud infrastructure, productivity tools, operating systems, business applications, gaming products, and AI services for consumers, enterprises, developers, and public-sector customers.
1. S&P Global Inc. (NYSE:SPGI)
Short Percentage of Float: 1.03%
S&P Global Inc. (NYSE:SPGI) is one of the best stocks to buy with wide moats.
The latest moat-relevant update came on May 7, 2026, when S&P Global Inc. (NYSE:SPGI) filed the Form 10 registration statement for the planned separation of its Mobility division into an independent public company, Mobility Global Inc. The company said it expects to complete the separation in mid-2026, subject to customary approvals. Mobility Global includes automotive data and intelligence brands such as CARFAX, Polk Automotive Solutions, automotiveMastermind, and Market Scan.
The separation fits the wide-moat angle because it leaves S&P Global’s core story more tightly centered on financial data, ratings, benchmarks, indices, and commodity intelligence. Morningstar says S&P Global has a wide economic moat based on intangible assets and network effects, with embedded benchmarks across credit ratings, financial indexes, and commodity price reporting. Morningstar also notes that its ratings, indexes, and energy segments are relatively insulated from AI disruption, while existing Market Intelligence customers face switching costs.
That durability also showed up in first-quarter results reported on April 28, 2026, when revenue rose 10% to $4.171 billion, adjusted diluted EPS increased 14% to $4.97, and adjusted operating margin expanded 100 basis points to 51.8%.
S&P Global Inc. (NYSE:SPGI) provides credit ratings, benchmarks, indices, market intelligence, commodity data, analytics, and financial information services for businesses, governments, investors, and institutions.
While we acknowledge the potential of SPGI 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 SPGI and that has 100x upside potential, check out our report about the cheapest AI stock.
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