3 No-Brainer Artificial Intelligence (AI) Stocks to Buy Right Now

Source The Motley Fool

Tariff uncertainty and escalating trade tensions between the United States and China have begun weighing on the broader stock market. The technology-leaning Nasdaq Composite index was roughly 20% off its high as of Tuesday afternoon as the market turns away from various AI stocks that have performed well since 2023.

In these situations, it helps to maintain a long-term investing mindset. The market occasionally experiences downturns, and history has shown that investing in high-quality stocks during these moments tends to pay off in the long run.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

There's little doubt that artificial intelligence (AI) is here to stay, and now could be a great chance to add some of the top AI stocks while they trade at a discount. Here are three that have outstanding growth prospects and trade at compelling prices. These are the no-brainers to consider buying now.

1. Taiwan Semiconductor Manufacturing

Trade tensions have clouded the technology sector's near-term outlook, but Taiwan Semiconductor Manufacturing (NYSE: TSM) could thrive, regardless of how things ultimately unfold. This leading semiconductor manufacturer captured a staggering 67% of global foundry revenue in Q4 2024. In other words, AI investments would likely need to slow dramatically everywhere for TSMC's business to stumble.

That doesn't seem likely, at least thus far. TSMC noted on its Q1 earnings call that its AI customers have not changed their behavior amid tariffs and reiterated expectations for mid-20% revenue growth this year. Barring a slowdown in broader semiconductor spending, analysts estimate TSMC will grow earnings by nearly 21% annually over the next three to five years.

One thing to look out for is TSMC's risk due to its geopolitical exposure to China's tensions with Taiwan. The stock price might already reflect those risks, though. TSMC trades at a price-to-earnings (P/E) ratio of 21, a bargain for such a critical AI company with such high anticipated earnings growth. It could be a good idea to buy if you're comfortable with the geopolitical situation.

2. Amazon

Tariffs will likely be a near-term headache for Amazon (NASDAQ: AMZN). The e-commerce giant relies heavily on Chinese suppliers, and tariffs could raise prices to a point where consumers stop shopping. Assuming the U.S. and China eventually resolve their trade dispute, the tariff noise could be a distraction from Amazon's AI opportunity.

Amazon's cloud platform, AWS, will benefit immensely as AI drives increased cloud usage over the coming years. Not only is AWS the world's leading cloud platform, but it also generates the majority of Amazon's profits despite representing only a fraction of the company's total sales.

Prolonged tariffs on Chinese goods would hurt Amazon, but they shouldn't stop AWS from driving earnings higher over time. Analysts estimate that Amazon will grow its earnings by an average of 20% annually over the long term. It's more than enough growth to justify buying Amazon stock at just 31 times earnings amid this tariff drama.

3. The Trade Desk

As the economy becomes increasingly digital, so is advertising. The Trade Desk (NASDAQ: TTD) has ridden this trend, spending years as a top growth stock. The company's independent technology platform utilizes AI and data analytics to sell ads targeted to their ideal audience across websites, music and video platforms, and internet-connected TVs. It has profitably grown as an alternative to closed-loop digital ad ecosystems, like Alphabet's Google and Meta Platforms, which offer less control to advertisers.

The Trade Desk sits nearly 64% off its highs today after missing its Q4 revenue guidance for the first time. The underwhelming quarter was due to the company transitioning its customers to a new AI-powered platform, so this doesn't seem like a long-term concern. However, since the stock traded at such a high valuation at the time, the unexpected miss caused a dramatic sell-off.

Considering this decline has been the worst in The Trade Desk's history, you could argue the market overreacted. The Trade Desk is trading at its lowest enterprise value-to-sales ratio (9.4) since 2019. Meanwhile, the company is already comfortably profitable, and analysts estimate earnings will grow by almost 23% annually for the next three to five years. It may be time to add shares before the stock starts regaining Wall Street's trust.

Should you invest $1,000 in Amazon right now?

Before you buy stock in Amazon, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Amazon wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $561,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $606,106!*

Now, it’s worth noting Stock Advisor’s total average return is 811% — a market-crushing outperformance compared to 153% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 21, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Taiwan Semiconductor Manufacturing, and The Trade Desk. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Gold price shows signs of bullish exhaustion amid positive turnaround in risk sentimentGold price (XAU/USD) attracted dip-buyers in Asia on Wednesday, stalling its retreat from the $3,500 peak hit the day before.
Author  FXStreet
Yesterday 06: 55
Gold price (XAU/USD) attracted dip-buyers in Asia on Wednesday, stalling its retreat from the $3,500 peak hit the day before.
placeholder
Gold price falls further as Trump softens tone on PowellGold price (XAU/USD) is facing profit-taking pressure and nosedives on Wednesday towards $3,300 at the time of writing. The profit taking picked up on comments from United States (US) President Donald Trump, who did a 180-degree turn on his stance on China and the Federal Reserve (Fed).
Author  FXStreet
Yesterday 09: 41
Gold price (XAU/USD) is facing profit-taking pressure and nosedives on Wednesday towards $3,300 at the time of writing. The profit taking picked up on comments from United States (US) President Donald Trump, who did a 180-degree turn on his stance on China and the Federal Reserve (Fed).
placeholder
Gold sinks as risk appetite improves on Trump-Powell calm, China tariff relief hopesGold prices plunged more than 2.50% on Wednesday as risk appetite improved due to a possible de-escalation of US-China tensions and US President Donald Trump's statement that he doesn’t plan to fire Federal Reserve (Fed) Chair Jerome Powell.
Author  FXStreet
10 hours ago
Gold prices plunged more than 2.50% on Wednesday as risk appetite improved due to a possible de-escalation of US-China tensions and US President Donald Trump's statement that he doesn’t plan to fire Federal Reserve (Fed) Chair Jerome Powell.
placeholder
Bitcoin Price Stabilizes After Surge — Is It Gearing Up for Another Leg Up?Bitcoin price is moving higher above the $93,200 zone. BTC is consolidating gains and might continue higher above the $94,000 zone in the near term.
Author  NewsBTC
8 hours ago
Bitcoin price is moving higher above the $93,200 zone. BTC is consolidating gains and might continue higher above the $94,000 zone in the near term.
placeholder
Gold price bulls could regain control amid fading US-China trade deal optimismGold price (XAU/USD) attracts fresh buyers during the Asian session on Thursday, reversing the previous day's heavy losses and snapping a two-day losing streak to the $3,260 area or the weekly low.
Author  FXStreet
6 hours ago
Gold price (XAU/USD) attracts fresh buyers during the Asian session on Thursday, reversing the previous day's heavy losses and snapping a two-day losing streak to the $3,260 area or the weekly low.
goTop
quote