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3 Top Artificial Intelligence (AI) Stocks Ready for a Bull Run

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Key Points

  • Nvidia remains the king of AI infrastructure, with plenty of growth still ahead.

  • Taiwan Semiconductor is another great way to play the AI infrastructure buildout.

  • Despite some naysayers, Alphabet is proving that AI is a growth driver for the company.

Artificial intelligence (AI) is reshaping nearly every industry, and the companies powering that transformation are seeing strong growth. As such, this remains a great area to invest in for the long haul. Let’s look at three top AI stocks that are not only leading today but are positioned well for the next leg higher.

Nvidia

Nvidia(NASDAQ: NVDA) remains the backbone of the AI data center buildout. Its graphics processing units (GPUs) accounted for a staggering 92% of the GPU market in Q1, and the company isn’t slowing down. It has accelerated its product development cycle, and will now look to introduce a new chip every year to help ensure its lead.

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The company’s real edge, however, isn’t just its chips, it’s its software platform CUDA. Nvidia offered its CUDA software platform for free years before AI went mainstream, pushing its use at universities and research institutions. That early move led to an entire generation of developers being trained on its platform, creating a flywheel effect as tools and frameworks got built on top of CUDA to improve its chip performance.

That strategy has paid off in a big way, as CUDA is now the foundation for AI development. While rivals scramble to catch up in hardware, they’re years behind on software. Meanwhile, Nvidia continues expanding into new verticals. Its automotive business, which supports autonomous driving and robotaxis, could be its next big growth driver. The company also just got a boost after the Trump administration signaled that it will allow H20 chip sales in China, adding another growth catalyst.

Despite its massive run, Nvidia still looks attractive with a PEG (price/earnings-to-growth) ratio of under 0.9, with PEGs below 1 considered undervalued. When you combine a dominant market position with explosive growth and a deep moat, Nvidia’s long-term outlook remains extremely compelling.

Image source: Getty Images.

Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing(NYSE: TSM) is the world’s most advanced foundry, and the go-to partner for top chip designers, including Nvidia. Unlike chip designers, TSMC wins no matter who dominates, as it manufactures the cutting-edge chips that power nearly all of them. That makes it one of the best ways to play the ongoing AI infrastructure boom.

Its dominance in advanced nodes gives it unmatched scale and pricing power. Chips made on 7-nanometer and smaller nodes now represent nearly three-quarters of revenue, with 3nm alone hitting 24% last quarter. Apple has reportedly locked up much of TSMC’s future 2nm supply, and the company is working with its top customers to increase its capacity to meet their rising chip demand. This gives it great visibility into future growth.

TSMC’s strength was on full display in Q2, with revenue jumping 44% in Q1 to $30.1 billion, driven by demand in high-performance computing. With the company predicting that AI chip demand is set to grow at a 40% compound annual growth rate (CAGR) through 2028, it’s hard to see this momentum slowing. Best of all, the stock is still trading at an attractive valuation, with a forward price-to-earnings (P/E) ratio of about 24 based on 2025 analyst estimates and a PEG of 0.6.

Alphabet

Alphabet(NASDAQ: GOOGL)(NASDAQ: GOOG) is proving the skeptics wrong. Search is not only surviving AI, it’s thriving because of it. The company’s AI Overviews are already used by over 2 billion people monthly, and global search queries are rising as a result. Last quarter, its search revenue accelerated to 12% growth, while its new AI Mode and Gemini app are just getting started.

Its cloud computing segment is also booming. Google Cloud revenue surged 32% to $13.6 billion in Q2, while segment profit more than doubled to $2.8 billion. Alphabet’s custom AI chips, including its new Ironwood chip, are proving cost-efficient and gaining strong acceptance. Capacity constraints remain a bottleneck; however, that is a good problem to have and why Alphabet will increase its capital expenditures to a whopping $85 billion this year.

At the same time, Waymo, Alphabet’s robotaxi unit, is scaling quickly. Meanwhile, YouTube remains a solid growth driver with Shorts helping push ad revenue up 13% to $9.8 billion in Q2. AI tools like Veo 3 are also making it easier for creators to produce video content, adding another tailwind.

Alphabet’s AI push is driving top-line growth across each of its major business segments. The company is still posting double-digit revenue and earnings growth, yet trades at under 19.5 times forward earnings with a PEG of 0.8. That’s a cheap valuation for one of the most powerful companies on the planet.

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Geoffrey Seiler has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Apple, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.



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National Research Platform to Democratize AI Computing for Higher Ed

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As higher education adapts to artificial intelligence’s impact, colleges and universities face the challenge of affording the computing power necessary to implement AI changes. The National Research Platform (NRP), a federally funded pilot program, is trying to solve that by pooling infrastructure across institutions.

Running large language models or training machine learning systems requires powerful graphics processing units (GPUs) and maintenance by skilled staff, Frank Würthwein, NRP’s executive director and director of the San Diego Supercomputer Center, said. The demand has left institutions either reliant on temporary donations and collaborations with tech companies, or unable to participate at all.

“The moment Google no longer gives it for free, they’re basically stuck,” Würthwein said.


Cloud services like Amazon Web Services and Azure offer these tools, he said, but at a price not every school can afford.

Traditionally, universities have tried to own their own research computing resources, like the supercomputer center at the University of California, San Diego (UCSD). But individual universities are not large enough to make the cost of obtaining and maintaining those resources cost-effective.

“Almost nobody has the scale to amortize the staff appropriately,” he said.

Even UCSD has struggled to keep its campus cluster affordable. For Würthwein, scaling up is the answer.

“If I serve a million students, I can provide [AI] services for no more than $10 a year per student,” he said. “To me, that’s free, because if you think about in San Diego, $10 is about a beer.”

A NATIONAL APPROACH

NRP adds another option for acquiring AI computing resources through cross-institutional pooling. Built on the earlier Pacific Research Platform, the NRP organizes a distributed computing system called the Nautilus Hypercluster, in which participating institutions contribute access to servers and GPUs they already own.

Würthwein said that while not every college has spare high-end hardware, many research institutions do, and even smaller campuses often have at least a few machines purchased through grants. These can be federated into NRP’s pool, with NRP providing system management, training and support. He said NRP employs a small, skilled staff that automates basic operations, monitors security and provides example curricula to partner institutions so that campuses don’t need local teams for those tasks.

The result is a distributed cloud supercomputer running on community contributions. According to a March 2025 slide presentation by Seungmin Kim, a researcher from the Yonsei University College of Medicine in Korea, the cluster now includes more than 1,400 GPUs, quadruple the initial National Science Foundation-funded purchase, thanks to contributions from participating campuses.

Since the project’s official launch in March 2023, NRP has onboarded more than 50 colleges and 84 geographic sites, according to Würthwein. NRP’s pilot goal is to reach 100 institutions, but he is already planning for 1,000 colleges after that, which would provide AI access to 1 million students.

To reach these goals, Würthwein said, NRP tries to reach both IT staff who manage infrastructure and faculty who manage curriculum. Regional research and education networks, such as California’s CENIC, connect NRP with campus CIOs, while the Academic Data Science Alliance connects with leaders on the teaching side.

WHAT STUDENTS AND FACULTY SEE

From the user side, the system looks like a one-stop cloud environment. Platforms like JupyterHub and GitLab are preconfigured and ready to use. The platform also hosts collaboration tools for storage, chats and video meetings that are similar to commercial offerings.

Würthwein said the infrastructure is designed so students can log in and run assignments and personalized learning tools that would normally require expensive computing resources.

“At some point … education will be considered subpar if it doesn’t provide that,” he said. “Institutions who have not transitioned to provide education like this, in this individualized fashion for every student, will fundamentally offer a worse product.”

For faculty, the same infrastructure supports research. Classroom usage tends to leave servers idle outside of peak times, leaving capacity for faculty projects. NRP’s model expects institutions to own enough resources to cover classroom needs, but anything unused can be pooled nationally. This could allow even teaching-focused colleges with modest resources to offer AI research experiences previously out of reach.

According to Kim’s presentation, researchers have used the platform to predict the efficiency of gene editing without lab experimentation and to map and detect wildfire patterns.

The system has already enabled collaboration beyond its San Diego campus. At Sonoma State University, faculty are working with a local vineyard to pair the system with drones, robotics and AI to enable vineyard management, Würthwein said. Making AI for classroom applications, enhancing research and enabling industry collaboration at more higher-education institutions is the overall goal.

“To me, that is the perfect trifecta of positive effects,” he said. “This is ultimately what we’re trying to achieve.”





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Lenovo research shows that AI investments in healthcare industry soar by 169%

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Research from Lenovo reveals that 96% of retail sector AI deployments are meeting or exceeding expectations – outpacing other industries. While finance and healthcare are investing heavily, their results show mixed returns, highlighting sharp differences in how AI is being applied across sectors.

Lenovo research has demonstrated a huge rise in AI investments across the retail, healthcare and financial services sectors.

The CIO Playbook 2025, Lenovo’s study of EMEA IT leaders in partnership with IDC, uncovers sharply different attitudes, investment strategies, and outcomes across the Healthcare, Retail, and, Banking, Financial Services & Insurance (BFSI) industries.

Caution Pays Off for EMEA BFSI and Retail sectors

Of all the sectors analysed, BFSI stands out for its caution. Potentially reflecting the highly regulated nature of the industry, only 7% of organisations have adopted AI, and just 38% of AI budgets allocated to Generative AI (GenAI) in 2025 – the lowest across all sectors surveyed.

While the industry is taking a necessarily measured approach to innovation, the strategy appears to be paying dividends: BFSI companies reported the highest rate of AI projects exceeding expectations (33%), suggesting that when AI is deployed, it’s well-aligned with specific needs and workloads.

A similar pattern is visible in Retail, where 61% of organisations are still in the pilot phase. Despite below-average projected spending growth (97%), the sector reported a remarkable 96% of AI deployments to date either meeting or exceeding expectations, the highest combined satisfaction score among all industries surveyed.

Healthcare: Rapid Investment, Uneven Results

In contrast, the healthcare sector is moving quickly to catch up, planning a 169% increase in AI spending over 2025, the largest increase of any industry. But spend doesn’t directly translate to success. Healthcare currently has the lowest AI adoption rate and the highest proportion of organisations reporting that AI fell short of expectations.

This disconnect suggests that, while the industry is investing heavily, it may lack the internal expertise or strategy needed to implement AI effectively and may require stronger external support and guidance to ensure success.

One Technology, Many Journeys

“These findings confirm that there’s no one-size-fits-all approach to AI,” said Simone Larsson, Head of Enterprise AI, Lenovo. “Whether businesses are looking to take a bold leap with AI, or a more measured step-by-step approach, every industry faces unique challenges and opportunities. Regardless of these factors, identification of business challenges and opportunity areas followed by the development of a robust plan provides a foundation on which to build a successful AI deployment.”

The CIO Playbook 2025 is designed to help IT leaders benchmark their progress and learn from peers across industries and geographies. The report provides actionable insights on AI strategy, infrastructure, and transformation priorities in 2025 and beyond. The full CIO Playbook 2025 report for EMEA can be downloaded here.

Europe and Middle East CIO Playbook 2025, It’s Time for AI-nomics features research from IDC, commissioned by Lenovo, which surveyed 620 IT decision-makers in nine markets, [Denmark, Eastern Europe, France, Germany, Italy, Middle East, Netherlands, Spain and United Kingdom]. Fieldwork was conducted in November 2024.

Explore the full EMEA Lenovo AInomics Report here.

 





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Augment Raises $85 Million for AI Teammate for Logistics

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Augment raised $85 million in a Series A funding round to accelerate the development of its artificial intelligence teammate for logistics, Augie.

The company will use the new capital to hire more than 50 engineers to “push the frontier of agentic AI” and to expand Augie into more logistics workflows for shippers, brokers, carriers and distributors, according to a Sept. 4 press release.

Augie performs tasks in quoting, dispatch, tracking, appointment scheduling, document collection and billing, the release said. It understands the context of every shipment and acts across email, phone, TMS, portals and chat.

“Logistics runs on millions of decisions—under pressure, across fragmented systems and with too many tabs open,” Augment co-founder and CEO Harish Abbott said in the release. “Augie doesn’t just assist. It takes ownership.”

Augment launched out of stealth five months ago, and the Series A funding brings its total capital raised to $110 million, according to the release.

When announcing the company’s launch in a March 18 blog post, Abbott said Augie does all the tedious work so that staff can focus on more important tasks.

“What exactly does Augie do?” Abbott said in the post. “Augie can read/write documents, respond to emails, make calls and receive calls, log into systems, do data entry and document uploads.”

Augie is now used by dozens of third-party logistics providers and shippers and supports more than $35 billion in freight under management, per the Sept. 4 press release.

Customers have reported a 40% reduction in invoice delays, an eight-day acceleration in billing cycles, 5% or greater gross margin recovery per load and, across all customers, millions of dollars in track and trace payroll savings, the release said.

Jacob Effron, managing director at Redpoint Ventures, which led the funding round, said in the release that Augment is “creating the system of work the logistics industry has always needed.”

“Customers consistently highlight Augment’s speed, deeply collaborative approach and transformative impact on productivity,” Effron said.

In another development in the space, Authentica said Tuesday (Sept. 9) that it launched an AI platform designed to deliver real-time supply chain visibility and automate compliance.

In May, AI logistics software startup Pallet raised $27 million in a Series B funding round.

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