The following tech companies built successful businesses long before the AI boom.
Now is the perfect time to invest in technology stocks. There are two reasons. First, we are at the beginning of a promising new sector growth story. That is artificial intelligence (AI). JPMorgan Chase CEO Jamie Dimon even said that AI has the potential to transform the world in the same way the steam engine or the internet did. And analysts predict that the AI market could grow from $200 billion to more than $1 trillion between today and 2030 alone.
Second, some of these players are currently trading at reasonable valuations given their long-term prospects. This gives investors the opportunity to participate in this exciting growth story at a fair price.
So, if you have $50,000 to invest and are looking to buy growth stocks, you might want to consider investing in companies operating in the AI space, from those who design AI products to those who use AI products or sell AI services to others. It’s a good idea to pick up people in technology. I would like to spread this investment across multiple players and, of course, ensure that this is done within a diversified portfolio. It is always best to invest in several sectors in case you find yourself in difficult situations.
To make this bet safer, I favor companies that don’t rely on AI and have already built profitable businesses before this boom. With all that in mind, here are the best stocks to invest $50,000 in right now.
Image source: Getty Images.
Amazon
Amazon (AMZN 2.50%) may be the safest of all AI investments thanks to its diversification across high-growth industries. The company is a leader in e-commerce and cloud computing through its Amazon Web Services (AWS) business. These two key areas have helped Amazon generate billions of dollars in revenue and profits in recent years. And today, Amazon’s investments in AI are making that return even stronger.
The market giant is benefiting from AI in two ways. First, Amazon uses this technology to improve its own efficiency in e-commerce. For example, you choose the fastest delivery route for your package. This should reduce Amazon’s costs and, in turn, increase profits. Second, AWS is fully committed to AI, offering a wide range of products and services to meet almost any need for customers launching AI projects. AWS recently reached $105 billion in annual revenue thanks to its focus on AI.
Amazon stock currently trades at 39 times forward earnings. While this is not cheap, it is still a very reasonable amount considering the company’s strong position in the market.
oracle
Oracle (ORCL 2.40%) is a promising AI powerhouse. Originally known for its database software, Oracle has recently shifted to prioritizing cloud infrastructure. It was a worthwhile bet, as the company is on track with demand and revenue.
For example, in the most recent quarter, cloud infrastructure revenue increased 45% to $2.2 billion, and total remaining performance obligations (RPO), representing contract balances, increased 53% to $99 billion. All of this gives investors reason to be optimistic about future growth.
Another positive is that Oracle has signed multi-cloud agreements with market giants AWS, Microsoft, and Alphabet’s Google Cloud. These enable customers to use Oracle’s database technology through these cloud providers. That’s why Oracle provides ease of access and additional types of flexibility to customers, including Oracle Alloy, which allows partners to customize their cloud experience.
Oracle stock currently trades at 26 times forward earnings estimates, higher than it has been in the past, but it’s a trade that takes Oracle’s AI growth into account.
meta platform
You can use Meta Platform (META 2.26%) services every day if you want to send a message to a friend on WhatsApp or Messenger or post something on Instagram or Facebook. Meta owns these top social media apps, and the company generates billions of dollars in revenue thanks to advertisers on these platforms.
We expect this to continue as the meta has a strong moat, or competitive advantage. It is very difficult for users to switch to other platforms knowing that many of their contacts may not follow them. After all, around 3.2 billion people around the world use at least one Meta app every day.
But the meta doesn’t stop there. The company has made AI its biggest investment area this year and has already launched its first virtual assistant. In fact, the company aims to create AI tools for professional and leisure purposes, tailored to the needs of any meta user. This may be just the beginning, as Meta is considering a wide range of AI products and services with the aim of becoming a leader in this space.
All of this makes the stock look particularly cheap at just 26 times forward earnings estimates.
Nvidia
This article cannot be complete without mentioning the current star of the AI market: Nvidia (NVDA 1.69%). Some investors are concerned about investing in the chip designer, as profits and stock prices have risen significantly in recent years. Profits have increased by triple digits every quarter, reaching billions of dollars, and the stock price has risen more than 400% over the past three years.
So the worry is that Nvidia’s strongest wave of growth may be over and rivals may be ahead of the pack. I don’t expect Nvidia to record this much revenue or share results nonstop. But I think the growth opportunity is not over yet, and a new wave of growth may be just around the corner. It’s important to remember that Nvidia is the market leader and can maintain that position by focusing on innovation.
The company is now planning to launch a new architecture, Blackwell, a platform that could drive growth and lead to better market share in the future.
That’s why Nvidia’s valuation of 42 times forward earnings looks fair, and why this winning stock is worth picking up at this level.
John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a member of the Motley Fool’s board of directors. Randi Zuckerberg is a former head of market development and spokesperson at Facebook, sister of Meta Platforms CEO Mark Zuckerberg, and a member of the Motley Fool’s board of directors. Suzanne Frey, an Alphabet executive, is a member of the Motley Fool’s board of directors. Adria Cimino has held positions at Amazon and Oracle. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, and Oracle. The Motley Fool recommends the following options: A long January 2026 $395 call on Microsoft and a short January 2026 $405 call on Microsoft. The Motley Fool has a disclosure policy.
