Recent tariffs and trade restrictions under President Donald Trump’s administration have temporarily cooled the artificial intelligence (AI)- fueled bull market, with the benchmark S&P 500 retreating 3.6% since the start of the year. Despite this short-term volatility, however, the AI market is on track to reach an eye-catching $1.8 trillion in total value by 2030, according to industry analysts.
Fueling this expansion, U.S. and Chinese tech giants are accelerating their AI development timelines and pouring hundreds of billions into infrastructure. This next-generation infrastructure is expected to revolutionize nearly everything, from healthcare diagnostics to autonomous transportation and personalized education.
Image source: Getty Images.
As someone focused on multidecade-long growth horizons, I’m strategically positioning my portfolio to capitalize on this technological inflection point. Specifically, I plan to accumulate shares in three companies with unmatched AI capabilities, established moats, and financial strength to weather this short-term volatility. Read on to find out more about these three incredible tech giants.
Nvidia (NASDAQ: NVDA) has established a dominant position as the leader in AI hardware and software, with CEO Jensen Huang recently declaring that the “vast majority” of AI inference runs on their platforms. Despite being down 12.3% year to date, Nvidia shares now trade at 26.2 times forward earnings, a historically low multiple that creates an attractive entry point for this wide-moat business. The company roadmap includes Blackwell Ultra arriving later this year, followed by Vera Rubin in 2026 and Rubin Ultra in 2027, providing a clear growth trajectory.
What truly separates Nvidia from competitors is not just superior graphics processing unit (GPU) hardware but also its proprietary Compute Unified Device Architecture (CUDA) software platform, which creates significant switching costs for AI developers.
While several tech giants are investing in custom chips and Advanced Micro Devices (AMD) is developing competing GPUs, Nvidia’s unified hardware and software ecosystem and expansion into new AI domains position it to maintain market leadership for years to come. This combination of technical leadership, ecosystem lock-in, and strategic expansion into emerging areas makes Nvidia an essential infrastructure provider for the entire AI revolution.
Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) has evolved into a technology powerhouse, with business lines spanning from advertising to cloud computing and AI. Despite being down 12.7% year to date, the search titan’s stock trades at just 18.6 times forward earnings, offering compelling value in the ultra-high-growth tech sector. While Google Search remains the primary revenue driver, Alphabet is investing heavily in AI to improve its search capabilities and bolster its competitive positions in cloud computing, agentic AI, and robotics.
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The company’s strategic focus centers on preserving its dominant advertising business while expanding its Google Cloud Platform (GCP), which stands to benefit substantially from increased workload migration and AI deployment over the next five years. Moreover, Alphabet’s deep cash reserves enable continued investment in both established business lines and emerging technologies like advanced robotics.
Though regulatory scrutiny remains a concern regarding its search dominance, the company’s diverse capabilities across digital advertising, cloud infrastructure, and AI development position it as a cornerstone technology investment with multiple growth vectors beyond its core search business. So, if you’re building an AI-themed portfolio, Alphabet scans as an essential stock to own.
Microsoft (NASDAQ: MSFT) is a leader in cloud infrastructure and AI, driven by its Azure platform and strategic partnership with OpenAI. Following a 7.2% year-to-date decline, the tech giant’s shares trade at 26.1 times forward earnings, presenting an attractive entry point into this high-growth sector. Microsoft stock, after all, was trading at over 35 times forward earnings around this time last year.
Azure, now a $75 billion business with 30% growth in fiscal 2024, is central to Microsoft’s strategy, powering hybrid cloud environments and advancing AI and Internet of Things (IoT) innovations. Meanwhile, the company’s stronghold in operating systems and productivity software ensures stable cash flow, funding continuous investment in cloud and AI product offerings.
With cloud adoption accelerating and AI integration expanding across its product suite, Microsoft is exceptionally well positioned for sustained growth. As a result, this tech stock represents a core play in both cloud infrastructure and large-scale AI deployment, making it a cornerstone holding for AI investors.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. George Budwell has positions in Microsoft and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
3 Essential AI Infrastructure Stocks to Buy Right Now was originally published by The Motley Fool
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