The technology sector has consistently produced some of the biggest winners in the stock market over the past few decades. With the rise of artificial intelligence (AI), investors have a unique opportunity to capitalize on stocks that are poised for significant growth. If you're considering investing $3,000, the following companies are well-positioned to deliver excellent long-term returns, just as they have over the past decade. By diversifying your investment across these stocks, you can effectively cover both the hardware and software aspects of the AI market.
Our team of analysts has revealed the 10 best stocks to invest in right now. Here are two standout companies that deserve your attention:
Nvidia is at the forefront of AI technology, thanks to its cutting-edge graphics processing units (GPUs), which are essential for training computer models that can understand and respond to human inquiries. Known as the gold standard in GPU technology, Nvidia is experiencing an explosive demand, making its recent stock dip an attractive buying opportunity.
Last year, Nvidia's data center revenue more than doubled and now comprises nearly 90% of its overall business. Investors are optimistic about the company's new Blackwell computing system, which is projected to drive an estimated 54% revenue increase for the current fiscal year. This system is designed to provide significant performance improvements over the previous Hopper generation of chips, tailored for AI tasks.
As AI models become increasingly sophisticated—capable of solving complex problems and engaging in logical conversations—Nvidia is well-positioned to benefit from this trend. The computational power required for the next generation of AI models could increase up to 100 times per task, further solidifying Nvidia's market position. While some customers, like OpenAI, are investing in their own custom AI chips, this risk is considered manageable. Nvidia's GPUs can serve a wide range of computing purposes, providing a competitive advantage across various industries.
For instance, the Mayo Clinic is leveraging Nvidia's DGX computing platform to enhance its digital pathology lab, expediting diagnoses and treatments in healthcare. Nvidia's impressive profit margins—earning $73 billion in net income on $130 billion of revenue last year—reflect its robust market position. Analysts estimate the company's earnings will grow at an annualized rate of 35% over the next few years, making Nvidia stock an appealing investment at its current price, which is just 26 times this year's earnings estimate.
As businesses increasingly turn to the cloud and AI services to boost productivity, Microsoft stands out as a leading provider. With over 1 billion devices running Windows, Microsoft is a trusted name in software, and its latest quarterly performance indicates growing momentum.
Last quarter, Microsoft's revenue grew by 15% year over year, with earnings up 19%. This growth was particularly robust in the cloud segment, where Microsoft Azure saw an impressive 35% year-over-year increase. Significantly, AI services contributed nearly half of Azure's growth last quarter, a marked increase from just a year ago.
Major brands like Abercrombie & Fitch, Coca-Cola, and ServiceNow have recently expanded their business with Azure, highlighting the accelerating demand for cloud and AI services. Although Microsoft stock experienced a sell-off earlier this year due to earnings growth that didn't quite meet high expectations, the company remains well-positioned to meet the long-term demand for AI services.
With vast resources at its disposal, Microsoft is expanding its competitive moat in the tech sector. Hundreds of thousands of customers across various industries are now using its Copilot AI assistant, a threefold increase from last year. The size of new Copilot deals for enterprises continues to grow, making Microsoft a no-brainer tech stock to buy and hold.
Financially, Microsoft is rock-solid, generating $96 billion in net income on $270 billion in revenue over the past year. Analysts expect the company's earnings to grow at an annualized rate of 12%, suggesting comparable returns for shareholders.
Have you ever felt like you missed out on investing in the most successful stocks? If so, now is the time to pay attention. Occasionally, our expert team of analysts issues a “Double Down” stock recommendation for companies poised for significant growth. If you're concerned that you've missed your chance, now is the perfect time to invest before it's too late.
Consider the following impressive returns from previous recommendations: If you invested $1,000 in Nvidia when we doubled down in 2009, you'd now have $302,503! Similarly, a $1,000 investment in Apple from 2008 would now be worth $37,640, and an investment in Netflix from 2004 would yield an astounding $614,911!
Currently, we are issuing “Double Down” alerts for three incredible companies, available to those who join Stock Advisor. Don’t miss out on this opportunity—there may not be another chance like this anytime soon.
John Ballard holds positions in Nvidia. The Motley Fool has positions in and recommends Microsoft, Nvidia, and ServiceNow. The Motley Fool recommends long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
