3 Top Artificial Intelligence Stocks to Buy in March

Even as fourth-quarter earnings season winds down and the war in the Middle East rages on, investors remain focused on artificial intelligence (AI). The technology continues to capture investors’ attention, as they work to determine which stocks will be long-term winners and losers amid this major technological shift.

Here are three AI stocks to buy this month that look like long-term winners.

Image source: Getty Images.

Nvidia

Spending on AI infrastructure is booming, which greatly benefits Nvidia (NVDA +0.64%). The company has created a powerful ecosystem around its graphics processing units (GPUs), which is why they have become the go-to chips to power AI workloads.

Its wide moat is the result of its CUDA software platform, which today is where most foundational AI code has been written and optimized for its chips. Its NVLink interconnect system is also a big differentiator, helping its chips act as one powerful unit.

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NASDAQ: NVDA

Nvidia

Today’s Change

(0.64%) $1.18

Current Price

$185.94

Key Data Points

Market Cap

$4.5T

Day’s Range

$184.45 - $187.62

52wk Range

$86.62 - $212.19

Volume

4.6M

Avg Vol

177M

Gross Margin

71.07%

Dividend Yield

0.02%

The company has been growing rapidly, with a 73% revenue increase last quarter. With the five largest hyperscalers set to spend $700 billion on AI data centers this year, there are no signs of this growth slowing down. Demand for its chips remains strong, and as long as the AI race continues, Nvidia will find itself in a great position.

Alphabet

With the most complete AI stack of any company, Alphabet (GOOGL +0.56%) (GOOG +0.48%) is among the best AI stocks to own for the long haul. Alphabet’s biggest advantage in the AI race is that it is the only company that has developed both a top-tier large language model (LLM) in Gemini and world-class AI chips, with its tensor processing units (TPUs).

It developed its TPUs over a decade ago and has long used them to run much of its internal workloads. By not being reliant on Nvidia, like most competitors, it has a huge cost advantage in both LLM training and inference.

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NASDAQ: GOOG

Alphabet

Today’s Change

(0.48%) $1.49

Current Price

$308.42

Key Data Points

Market Cap

$3.7T

Day’s Range

$305.84 - $311.07

52wk Range

$142.66 - $350.15

Volume

13M

Avg Vol

22M

Gross Margin

59.68%

Dividend Yield

0.34%

And its Gemini model is widely considered one of the best LLMs in the market today. Given its structural cost advantage, the company is spending aggressively on AI infrastructure, which should only help create a virtuous cycle and expand its advantage over time.

At the same time, Alphabet has embedded its Gemini model throughout its ecosystem, including Google Search, to help drive growth. Features like AI Overviews and AI Mode are helping increase queries and fuel search revenue growth.

The company has a huge distribution advantage when it comes to search and AI discovery. It owns both the world’s leading web browser in Chrome and the No. 1 smartphone operating system in Android, while it also has a search revenue-sharing deal with Apple to be the default search engine on its devices.

Throw in Alphabet’s rapidly growing cloud computing business and its robotaxi business Waymo, and this is a top AI stock to buy.

Meta Platforms

Few companies have been able to embrace AI and use it to their advantage to grow their core businesses as effectively as Meta Platforms (META +0.14%). Despite already being one of the world’s largest digital advertising platforms, the company was able to raise its revenue by 24% last quarter while forecasting its revenue growth to accelerate in the first quarter. That’s impressive.

The growth is being powered by AI, with Meta using the technology to improve its recommendation algorithm and keep users on its sites longer. As they spend more time scrolling through Facebook and Instagram posts, they are then fed more ads.

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NASDAQ: META

Meta Platforms

Today’s Change

(0.14%) $0.88

Current Price

$654.95

Key Data Points

Market Cap

$1.7T

Day’s Range

$648.41 - $659.15

52wk Range

$479.80 - $796.25

Volume

781K

Avg Vol

15M

Gross Margin

82.00%

Dividend Yield

0.32%

At the same time, the company is using AI to improve ad targeting and performance, helping advertisers generate better returns on their spending. The combination of higher engagement and stronger ad performance is driving both increased ad demand and pricing, creating a powerful tailwind for the company.

Throw in the fact that Meta is just starting to serve ads on its popular messaging platform WhatsApp and its new social media site Threads, and the company has a long runway of growth.