With the S&P 500 As the stock rises and extends its gains in this bull market, you may be wondering if it’s too late to get in on the action. But I have good news for you: If you invest for the long term – at least five years – you can find great investment opportunities in any market environment. When investing, time is on your side, giving you the chance to profit as a company evolves and delivers on various promises, from product launches to profit growth.
Today is a particularly interesting time to invest in technology as we move towards the next revolution in the field: artificial intelligence (AI). Some AI stocks have soared while others have yet to gain momentum – and both areas have players who are likely to gain in the long term. Therefore, if you have $50,000 or even a smaller amount that you do not need for everyday expenses and want to grow over time, it is a fantastic idea to invest this amount in a basket of technology stocks that are benefiting from the AI boom could benefit.
Now let’s talk about the best stocks to buy right now. The following four could all be AI winners, but also have solid businesses beyond this technology. So when you buy them, you’re not just putting your farm on a specific area, but you’re getting a fantastic combination of growth and security.
1. Super microcomputer
Super microcomputer (NASDAQ:SMCI) The stock is up a whopping 2,200% in the last three years, so you might be hesitant to jump into this story now. But this could actually be just the beginning of Supermicro’s growth story, because we are in the early stages of AI development – and Supermicro can benefit from the growth of all leading AI chip manufacturers.
The manufacturer of servers, full-rack-scale solutions and other devices required for AI integrates chips from these players into its systems – and closely follows their product development in order to be able to make these innovations immediately available to its customers.
Supermicro recently said it is seeing continued record demand for its rack-scale AI solutions, including some of these best-selling chips. And new releases, such as the upcoming launch of NvidiaThe Blackwell architecture could further boost incoming orders. All of this should translate into continued earnings growth and drive shares higher going forward.
2. Intel
Intel (NASDAQ:INTC) is the leading manufacturer of central processing units, the key components of a computer. But Intel hasn’t yet capitalized on the AI excitement. The chipmaker has fallen behind in the AI space, and that was one of the factors weighing on its shares.
But things could change for two reasons. Intel recently launched a new portfolio of AI products, including its Gaudi 3 AI accelerator, which could potentially even challenge Nvidia’s H100 chip.
Of course, Nvidia is preparing to launch its most powerful chip ever based on the aforementioned Blackwell architecture – so I don’t expect Intel to beat this market leader. But that doesn’t have to be the case. Gaudi 3’s performance and affordability could help it gain enough market share to boost Intel’s profits and ultimately its stock price over time.
And Intel’s second piece of good news? The company is opening up its manufacturing to others, which could lead to a whole new growth driver given the ongoing AI boom.
3. Amazon
Amazon (NASDAQ:AMZN) The company has a long track record of profit growth thanks to its leadership in the high-growth e-commerce and cloud computing markets. And this is likely to continue as the company has invested to maintain its leadership position in this space. In e-commerce, Amazon has redesigned its fulfillment network to make deliveries faster, a move that pleases customers and makes Amazon more cost-efficient.
When it comes to cloud computing, AI will play a big role in future growth. Amazon Web Services (AWS) is investing heavily to meet all of AI customers’ needs – from the basics like chips and software to a fully managed service that allows customers to customize popular large language models for their own use.
This should help AWS maintain its long-standing position as the world’s leading provider of cloud computing services – and grow revenue over time. This is particularly good news since AWS has historically been the driver of Amazon’s overall profits. And all of this means that Amazon stock still has plenty of room for improvement, even after recent gains.
4. Alphabet
alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) is known to help most of us on a daily basis. It is the owner of Google Search, the search engine with more than 90% share of the global search market. Alphabet’s top company has even managed to penetrate our language, and people often respond to a question with, “Let’s Google it.”
And now Alphabet’s investment in AI is likely to further strengthen the company’s leadership position in the search market. Alphabet recently launched Gemini, its most advanced AI model yet, integrating AI into all products and services – including search. This move will improve search and simplify the advertising process, which should lead to a further increase in advertising revenue. This is crucial because Alphabet generates most of its revenue from Google advertising.
Alphabet also offers investors a solid track record of earnings growth, and even during recent difficult economic times, advertising revenue has held up quite well. That makes this company one of the safest AI bets on my list and a great place to invest some of your $50,000 today.
Should you invest $1,000 in Super Micro Computer now?
Before you buy shares of Super Micro Computer, consider the following:
The Motley Fool Stock Advisor The analyst team has just identified what they think this is The 10 best stocks so investors can buy it now… and Super Micro Computer wasn’t one of them. The ten stocks that made the cut could deliver huge returns in the years to come.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Adria Cimino holds positions at Amazon. The Motley Fool has positions in and recommends Alphabet, Amazon and Nvidia. The Motley Fool recommends Intel and recommends the following options: long January 2023 calls for $57.50 on Intel, long January 2025 calls for $45 on Intel, and short May 2024 calls for $47 on Intel. The Motley Fool has a disclosure policy.
“The Best Stocks to Invest $50,000 In Now” was originally published by The Motley Fool