Top 3 AI Stocks to Invest in Right Now

October 18, 2026 | Investing & Technology

Artificial intelligence has already created trillions of dollars in stock market value. But with some of the biggest AI companies now worth several trillion dollars each, investors are increasingly asking an important question: Where will the next wave of AI investment opportunities come from?

Nvidia and Microsoft might be the most obvious names, but they aren’t the only companies positioned to benefit from the AI revolution.

In fact, some of the most interesting opportunities may come from businesses supplying the infrastructure that makes artificial intelligence possible.

Recent market volatility has also created new opportunities for long-term investors. The Nasdaq fell 4.5% during the week ending October 16, as concerns about AI spending, rising borrowing costs, and stretched valuations weighed on technology stocks.

Here are three AI stocks worth considering right now, including two companies that are significantly smaller than the trillion-dollar technology giants.

1. Alphabet (GOOGL): The AI Giant With Multiple Ways to Win

Market capitalization: Approximately $4.17 trillion

<escape>Google’s parent company, Alphabet, has something that many emerging AI businesses lack: enormous existing revenue streams, an established customer base, and the resources to develop its own artificial intelligence technology.</escape>

While much of the attention surrounding AI has focused on ChatGPT and Nvidia, Google has been quietly building one of the industry’s most comprehensive AI ecosystems.

Its Gemini AI models compete directly with other leading AI systems. Google also develops its own Tensor Processing Units (TPUs), specialized chips designed to accelerate artificial intelligence workloads.

And perhaps most importantly, Google operates one of the world’s largest cloud computing businesses.

In the second quarter of 2026, Google Cloud revenue surged 82% year over year to $24.8 billion.

That is extraordinary growth for a business already generating tens of billions of dollars in quarterly revenue.

Alphabet’s total quarterly revenue increased 24% to nearly $120 billion, demonstrating that its traditional businesses continue to perform while its AI operations expand.

Why the Stock Could Keep Climbing

Alphabet has several potential advantages:

• Google Cloud: Businesses increasingly need computing power to train and operate AI models.
• Gemini: Google’s AI technology is being integrated across its products and services.
• Custom AI chips: Google’s TPUs could provide an alternative to Nvidia’s expensive GPUs.
• Search and advertising: Google has opportunities to incorporate AI into its enormously profitable advertising ecosystem.

Unlike smaller AI startups, Alphabet doesn’t need to find an entirely new business model to justify its existence.

The biggest risk: AI-powered search alternatives could disrupt Google’s core advertising business. Meanwhile, its enormous infrastructure investments must eventually generate sufficient financial returns.

Still, for investors seeking an established company with substantial exposure to AI growth, Alphabet deserves serious consideration.

2. Vertiv Holdings (VRT): The Company Keeping AI Data Centers Running

Market capitalization: Approximately $79 billion

Everyone knows artificial intelligence requires powerful computer chips.

But those chips have two major problems: They consume enormous amounts of electricity, and they generate tremendous heat.

That’s where Vertiv comes in.

Vertiv manufactures critical infrastructure used in data centers, including electrical power systems, cooling equipment, and technologies that help keep computing facilities operating reliably.

As companies build increasingly powerful AI data centers, demand for sophisticated cooling and electrical infrastructure has grown dramatically.

And Vertiv is already benefiting.

During the second quarter of 2026, the company reported:

• $3.27 billion in revenue, up 24% year over year.
• 51% growth in adjusted operating profit.
• $925 million in adjusted free cash flow, more than triple the previous year’s level.

Vertiv also reported that it had achieved a net cash position, an important distinction at a time when heavily indebted AI infrastructure companies are facing increasing scrutiny.

Why Vertiv Could Be a Major AI Winner

Vertiv offers investors a different way to participate in artificial intelligence.

Instead of betting on which AI chatbot or semiconductor manufacturer will dominate the industry, investors are betting that increasingly powerful computing facilities will need more electricity and better cooling.

Even if the leading AI models change, the underlying infrastructure requirements aren’t going away.

The shift toward liquid cooling is particularly interesting. As AI processors become more powerful, traditional air cooling becomes increasingly difficult to use efficiently in high-density installations.

Vertiv already supplies liquid-cooling systems, positioning it to benefit from this technological transition.

The biggest risk: Vertiv remains highly dependent on continued data-center investment. If major technology companies reduce their capital spending, orders could slow. Its stock also carries a substantial valuation, so strong business performance does not guarantee strong investment returns.

Nevertheless, Vertiv is one of the more compelling ways to invest in AI infrastructure without purchasing another trillion-dollar technology company.

3. Credo Technology (CRDO): A Smaller AI Stock With Explosive Growth

Market capitalization: Approximately $32 billion

Credo Technology might be the least recognizable name on this list, but its products solve one of artificial intelligence’s biggest technical challenges.

Modern AI data centers contain thousands of processors that must constantly exchange enormous amounts of information.

Connecting those processors efficiently is critical.

Credo develops high-speed connectivity technologies, including active electrical cables, optical connectivity products, and semiconductor components that help data move quickly and efficiently within large computing systems.

As AI clusters expand, the amount of communication required between processors grows dramatically.

That’s creating substantial demand for technologies like Credo’s.

And the company’s recent financial results have been remarkable.

For its first quarter of fiscal 2027, reported in September 2026, Credo announced:

• $479 million in quarterly revenue, an increase of nearly 115% year over year.
• $129.4 million in GAAP net income.
• 64.5% GAAP gross profit margin.
• Revenue guidance of $525 million to $535 million for the following quarter.

Those numbers demonstrate that Credo is not simply an early-stage company promising future AI-related revenue. It is already generating significant sales and profits.

Why Credo Has So Much Potential

As artificial intelligence models become more sophisticated, simply adding more powerful chips isn’t enough.

Those chips must communicate efficiently, and connectivity can become a major bottleneck.

Credo’s technologies are designed to address that challenge while reducing power consumption.

This gives the company exposure to an important part of AI infrastructure that receives considerably less attention than GPUs.

At roughly $32 billion in market value, Credo is also substantially smaller than Nvidia, Alphabet, or Microsoft.

That doesn’t automatically mean greater upside, but it does leave a different potential growth trajectory than investors might expect from a multi-trillion-dollar company.

The biggest risk: Credo trades at a premium valuation, and its customer concentration is significant. Four customers accounted for approximately 84% of revenue in its latest reported quarter. Losing a major customer or experiencing slower demand growth could produce substantial stock volatility.

Credo is therefore the most speculative pick on this list, despite its impressive recent profitability.

Which AI Stock Is the Best Investment Right Now?

All three companies offer exposure to artificial intelligence, but they represent different investment opportunities.

For investors prioritizing established businesses and financial resources, Alphabet may be the most balanced choice.

Vertiv offers substantial exposure to the physical infrastructure behind the AI boom, with an established business already generating significant cash flow.

Credo provides a more aggressive opportunity for investors willing to accept greater volatility in exchange for exposure to a rapidly growing segment of AI hardware.

The Bottom Line

Artificial intelligence could remain one of the defining investment trends o