The Five Best AI Stocks To Buy Now – Aside From Nvidia

After having written extensively about Nvidia, this post explores the best AI stocks to buy now – that are not NVDA 📈. 

No matter how one feels about artificial intelligence, the consensus is that it opens up endless possibilities.  As the set of possibilities becomes clearer, investors are well-advised to look at opportunities beyond the usual suspects Nvidia, Microsoft and Google.

The next wave of AI plays

Given the infinite number of applications for artificial intelligence, we used our proprietary research engine to single out the five best AI stocks to buy now. 

In doing so, we looked for companies with well-established business models and structural growth. Within this group, we looked for businesses that already extensively employ AI, whereby AI is already demonstrating a positive impact on topline growth and  operating margins. 

Decision-making: Businesses that embrace AI can gain a powerful edge over their competitors by making faster and better-informed decisions. 

Operating efficiency: AI helps automate repetitive tasks, freeing up employees to focus on more valuable work. Customer support is one of the most frequently mentioned AI use cases.

Data processing: AI transforms data analytics by quickly processing vast amounts of information, identifying patterns, and uncovering insights that would take humans much longer to find. By leveraging machine learning, businesses can make data-driven decisions with greater accuracy, improving efficiency and competitiveness.

If you are looking for the best AI stocks to buy now beyond Nvidia, then take a close look at these five stocks and add them to your watchlist.

Amazon (AMZN)

Amazon needs no introduction. But what many investors only partially realize is the degree to which Amazon has transformed itself by expanding into several new, massive revenue streams. In 2013, online stores accounted for 65% of its revenue, but by 2024, this share decreased to 38%. Meanwhile, Amazon Web Services (AWS), known for its higher profit margins, grew from 3% to 17% of total revenue during the same period. The third-party seller services segment more than doubled, increasing from 10% to 24%. Amazon’s advertising business has become a significant contributor, generating $46 billion in revenue in 2024.

Playing AI on all levels 

Amazon is deeply involved in AI across multiple levels, from cloud computing to consumer applications and logistics. 

At the infrastructure level, Amazon Web Services (AWS) provides powerful AI and machine learning tools, such as SageMaker, enabling businesses to build and deploy AI models at scale.

In cloud AI services, AWS offers AI-powered solutions like Amazon Bedrock for generative AI, Comprehend for natural language processing, and Rekognition for image and video analysis. 

On the consumer side, AI enhances Amazon’s voice assistant Alexa, powers personalized recommendations on its e-commerce platform, and improves Prime Video content discovery. 

In logistics and operations, Amazon deploys AI-driven robotics in warehouses, optimizes delivery routes with predictive analytics, and enhances supply chain efficiency. 

Additionally, Amazon is investing in AI chips, such as its custom Trainium and Inferentia processors, to reduce reliance on third-party chips for machine learning workloads. 

Through these AI-driven innovations, Amazon not only strengthens its core businesses but also positions itself as a key player in the AI revolution.

A powerhouse in spite of its size

Amazon growth potential is considerable. The company is projected to grow both revenue and earnings in double digits for years to come. 

And Amazon is not forgoing any margins. In fact, net cash from operations grew by 36% year-on-year in 2024. 

Though AMZN 📈 stock is not cheap at 20x free cash flow, the company is a category killer with huge growth potential. There is no government in sight that is ready to reign in the company’s reach. The potential of AI to accelerate Amazon’s  growth clearly makes it one of the  top AI stocks to buy now. 

Also Read: The Best Stocks to Own in 2025

Meta Platforms Inc. (META)

Meta Platforms develops social media, messaging, and virtual reality products, including Facebook, Instagram, WhatsApp, and Meta Quest. With a strong focus on AI, the metaverse, and digital advertising, Meta leverages cutting-edge technology to enhance user experiences and drive business growth.

Deep pockets for major AI investments

Thanks to free cash flow of close to $100bn, META invests heavily in artificial intelligence across its business model. It leverages AI in multiple ways, notably to enhance user experience, improve ad targeting, and develop new revenue streams. 

Meta has been hugely successful in leveraging AI-driven algorithms to optimize advertising, its primary revenue source. By using AI to personalize ad recommendations, Meta has been driving up advertiser spending.

Meta is also known for using machine learning to improve content discovery on Facebook, Instagram, and Threads, keeping users engaged longer.

Using AI for automation, Meta has managed to dramatically reduce costs in areas like customer support and content moderation – although the user benefit from these measures is questioned by many.

AI enhances Meta’s VR/AR projects by improving real-time translation, voice recognition, and digital avatars. AI-generated virtual worlds and digital assistants could play a key role in Meta’s long-term Metaverse strategy.

Bull run to continue making Meta a fixture on the list of best AI stocks to buy now

The market has been very bullish on META’s stock ever since Mark Zuckerberg drastically cut back on investment plans for the metaverse in late 2022. Since then, the stock’s run is nothing short of amazing having risen from $80 in November 2022 to now $700. 

With the exception of the metaverse spending spree, Mark Zuckerberg has an exceptional capital allocation record. In addition, he delivered on Meta’s “Year of Efficiency” which contributed to a near doubling in ROA within two years to 25%

The potential of AI to accelerate Meta’s growth clearly makes META stock one of the best AI stocks to buy now.

Fabrinet (FN)

Fabrinet is a leading provider of advanced precision optical and electronic manufacturing services, specializing in high-performance components for industries like AI, data centers, telecommunications, and automotive. Fabrinet sells its products to top-tier technology firms, including NVIDIA, to produce optical interconnects and high-speed networking components critical for AI infrastructure. 

Key player in the supply chain for AI infrastructure

Fabrinet clearly benefits from the surge in artificial intelligence (AI) demand. It is a leading provider of advanced optical packaging and precision manufacturing services, playing a crucial role in producing components essential for AI infrastructure, particularly in data centers. 

Strong demand translates into revenue growth

The company’s financial performance reflects this upward trajectory. In the second quarter of fiscal year 2025, revenue reached $834m, up by 17% from $713m in the same period the previous year. Net income rose by 26% to $87m over the same period. 

Fabrinet is the cheapest stock on our list of best AI stocks to buy now. Valued at a forward P/E ratio of 19.7x, the stock is inexpensive, given its projected earnings and revenue growth rate.

Service Now(NOW)

ServiceNow is a leading cloud-based platform that helps businesses automate workflows, streamline IT operations, and enhance enterprise efficiency. Using AI-powered solutions, it optimizes IT service management, customer support, HR processes, and cybersecurity. ServiceNow is among the market leaders when it comes to driving digital transformation by integrating automation, analytics, and AI to improve productivity and customer experiences.

AI powered business automation

ServiceNow’s AI-powered business automation solutions streamline enterprise workflows by using machine learning and predictive intelligence to reduce manual tasks and improve efficiency. NOW enhances IT service management, HR operations, and customer support for dozens of Fortune 500 firms by providing real-time assistance and automating complex processes. Clients benefit from increased productivity, lower cost, and better customer experiences.

Exponential growth

NOW is one of the fastest growing companies in the tech space. The company more than doubled its revenue to $11bn over the past five years. Net income jumped by a factor 12x over the same period. 

When analyzed on price to earnings, ServiceNow’s stock looks  prohibitively expensive with a forward P/E ratio of 48x.  However, given its strong growth prospects and market position, NOW has historically traded at even higher levels. Analysts currently see 19% upside for NOW’s stock. 

Adobe(ADBE)

Adobe is a global leader in creative software, digital media, and document solutions. It’s best known for products like Photoshop, Illustrator, Acrobat, and Premiere Pro. With a strong focus on AI-powered innovation, Adobe integrates generative AI through its Firefly platform to enhance creativity, automation, and digital experiences for individuals and businesses worldwide. 

AI for image creation

Adobe  successfully leverages AI to enhance its product offerings. The company has integrated generative AI capabilities into its Creative Cloud suite through its Firefly platform, enabling users to generate images, videos, and text effects with simple prompts. This integration has been well-received, with features like generative fill in Photoshop streamlining creative workflows. ​

Even though competition in the AI-driven creative tools market is intensifying, with companies like OpenAI, Meta Platforms, and various startups introducing their own AI solutions, Adobe retains a strong lead and market position. That said, it must succed in differentiating itself by leveraging proprietary data and integrating AI features seamlessly into its existing products.

Investor skepticism has brought down ADBE’s valuation

Adobe’s appearance in our list of best AI stocks to buy now is a bit of a contrarian play. Investors have shunned the stock in recent quarters for fear of Adobe being overtaken by the likes of OpenAI. This  skepticism could very well be overdone. OpenAI’s and other startup’s creatives remain sub-optimal, to put it nicely.

Adobe  retains a very strong market position and continues to grow in the double digit range. Supported by a strong cashflow, the firm aggressively buys back its stock, at a rate of 5% in 2024. 

Time to look beyond Nvidia and Microsoft

While there is undeniably some degree of hype around AI stocks, there is no question that AI presents a huge boon to many business models. A lot has been written and said about Nvidia, OpenAI and Microsoft, but the opportunities brought about by AI extend into literally every sector and industry. Our list of the 5 best AI stocks to buy now only scratches the surface. Stay tuned for more.

Important Notice

This article is not investment advice. We cannot predict whether these stocks will go up or down.

We believe the information contained in this text to be reliable but do not warrant its accuracy or completeness. Opinions, estimates, and investment strategies and views expressed in this document constitute our judgment based on current market conditions available data and are subject to change without notice. Please consider your full financial situation prior to making an investment decision.