2 Top Artificial Intelligence (AI) Stocks to Buy Right Now
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By John Ballard – Feb 8, 2026 at 3:35PM ESTKey PointsMicrosoft reports strong revenue growth from AI-powered products like Microsoft 365 Copilot.Nvidia's innovation in the AI market is relentless.These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: MSFTMicrosoftMarket Cap$3.0TToday's Changeangle-down(2.00%) $7.86Current Price$401.53Price as of February 6, 2026 at 3:58 PM ETThese companies are trading at valuations that undervalue their prospects.Leading artificial intelligence (AI) companies continue to report robust growth as they enter the new year. That's a sign this investment cycle may have longer to run than some investors expect. Morgan Stanley estimates that AI productivity gains will account for 20% of economic growth next year. Investing in proven winners that are delivering profitable growth and trading at reasonable valuations is all you need to profit handsomely from this opportunity. Here are two top AI stocks that fit the bill. Image source: Getty Images. Microsoft Microsoft's (MSFT +2.00%) recent dip is a great buying opportunity. Some analysts on Wall Street might be uncertain about the company's aggressive capital spending plans, but the software leader is quietly positioning itself for long-term leadership in AI software. The company is using its $77 billion in trailing-12-month free cash flow to invest in data centers, software development, and chips. This is positioning Microsoft for long-term growth. Notably, Microsoft is demonstrating it can turn those investments into revenue growth. For example, Microsoft 365 Copilot paid seats surged 160% year over year last quarter, indicating businesses are paying extra to give their employees access to AI features. ExpandNASDAQ: MSFTMicrosoftToday's Change(2.00%) $7.86Current Price$401.53Key Data PointsMarket Cap$3.0TDay's Range$392.92 - $401.7952wk Range$344.79 - $555.45Volume2.3MAvg Vol30MGross Margin68.59%Dividend Yield0.85% Microsoft is positioning for AI to spread across the economy and drive growth. On the company's recent earnings call, CEO Satya Nadella said, "Our [total addressable market] will grow substantially across every layer of the tech stack as this diffusion accelerates and spreads." These developments make the stock a solid investment. The valuation looks reasonable, with the shares sitting at a forward price-to-earnings (P/E) multiple of 25. Analysts expect the company's earnings to grow at an annualized rate of 14%. Nvidia Microsoft is a solid stock to profit from demand for AI software, but Nvidia (NVDA +8.01%) supplies the powerful graphics processing units (GPUs) that enable AI. The company has led the GPU market for about 20 years, putting it in a lucrative position amid the AI infrastructure boom. ExpandNASDAQ: NVDANvidiaToday's Change(8.01%) $13.77Current Price$185.65Key Data PointsMarket Cap$4.5TDay's Range$174.62 - $187.0052wk Range$86.62 - $212.19Volume8.9MAvg Vol183MGross Margin70.05%Dividend Yield0.02% There are only two leading suppliers of general-purpose GPUs. This allows Nvidia to price its products to benefit shareholders with high margins. Coincidentally, it generated $77 billion in trailing-12-month free cash flow (same as Microsoft), but Nvidia is growing much faster, with total revenue surging 62% year over year last quarter. Nvidia's main competitive edge in the AI chip market is innovation. Its growing free cash flow is funneling more resources into research and development, solidifying its lead. Nvidia is now offering complete systems -- like miniature AI supercomputers -- for hyperscalers, combining hardware, networking, and software into a single platform. Its upcoming Rubin platform will feature six new chips and reduce the cost of using AI for enterprises. Nvidia's dominance is undervalued. It has a long history of growth and innovation, and investors can buy the stock at a forward P/E of 24. This is a steal, given that analysts are modeling its earnings to grow at a compound annual rate of 37% over the next several years.Read NextFeb 8, 2026 •By John Ballard2 Artificial Intelligence (AI) Stocks That Could Help Make You a FortuneFeb 8, 2026 •By Keithen Drury1 Reason Microsoft Stock Could Outperform the Market in 2026Feb 8, 2026 •By Trevor JennewineNvidia CEO Jensen Huang Has Good News for Investors. Here Are 5 AI Stocks to Buy Now.Feb 7, 2026 •By Geoffrey Seiler2 Artificial Intelligence Stocks You Can Buy and Hold for the Next DecadeFeb 7, 2026 •By David Jagielski, CPA2 Unstoppable Stocks That Can Be Great Options for Any InvestorFeb 6, 2026 •By Justin PopeShould You Forget IonQ and Buy These 2 Tech Stocks Instead?About the AuthorJohn Ballard has been a contributing writer at The Motley Fool since 2016, covering consumer goods and technology stocks. He holds a bachelor’s degree in business administration with a focus in real estate finance from the University of Arkansas at Little Rock.TMFRazorbackStocks MentionedMicrosoftNASDAQ: MSFT$401.53 (+2.00%) $+7.86NvidiaNASDAQ: NVDA$185.65 (+8.01%) $+13.77*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.