The Best Stocks to Buy With $5,000 In July
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With the year half over, it's that one theme has dominated the market: artificial intelligence. AI remains the prevailing theme because AI hyperscalers continue to invest substantial amounts of money...
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July 1, 2025
05:15 AM
The Motley Fool
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With the year half over, it's that one theme has dominated the market: artificial intelligence
AI remains the prevailing theme because AI hyperscalers continue to invest substantial amounts of money in it
These piles of money are mostly being invested in data centers, which can take years to be built and become operational
As a result, there are still years of growth in the AI pipeline, which makes in these companies today a great idea
If you've got $5,000 (or really any amount), that sum of money into this group seems a wise idea
Image source: Getty Images
Nvidia Nvidia (NVDA -2. 82%) is a key supplier in the AI arms race, as its graphics cessing units (GPUs) have become the predominant computing unit used for AI computing
It's still experiencing impressive growth, with revenue rising 69% year over year during Q1 FY2026 (ending April 28) and jecting 50% revenue growth to $45 billion in Q2
This growth is expected to persist for years to come, as the various data centers being built will need to be outfitted with Nvidia GPUs
Furthermore, many of the GPUs deployed over the past few years are starting to wear out, which will require the purchase of even more GPUs
Nvidia's growth is far from over, and it will continue to be a top AI stock pick, considering that its GPUs are the industry standard for running AI workloads
Taiwan Semiconductor Nvidia can't fabricate its own chips, so it outsources that work to Taiwan Semiconductor (TSM -0. 71%), the world's leading chip foundry
TSMC serves as the go-to chip manufacturer for nearly every major company, having solidified its position with cutting-edge nology, consistent dery, and industry-leading yields
Management jects massive growth over the next five years thanks to AI chips
They ject a 45% compounded annual growth rate (CAGR) for the next five years, which contributes to the company's overall revenue CAGR of nearly 20% over that same time span
That growth is an excellent reason to own Taiwan Semiconductor, and I think it's one of the best buys right now
Amazon Amazon (AMZN 0. 89%) may not be the first company you think of when hearing AI, but its cloud computing wing is powering many AI workloads right now
Its Amazon Web Services (AWS) is the industry leader in cloud computing, offering clients access to the best computing hardware available
This allows start-ups or companies that don't require a massive data center filled with GPUs to access these cutting-edge devices for training or running their AI models
AWS is the main part of Amazon's investment thesis for me, as it accounted for 63% of Amazon's operating fits during Q1, despite making up only 19% of revenue
This makes Amazon a cloud computing stock, not a commerce stock, in my eyes
With cloud computing growth expected to persist for many years, it's a great investment to make now
Alphabet Alphabet (GOOG -0. 27%) (NASDAQ: GOOGL) also has a strong cloud computing unit in Google Cloud, and is dering solid growth from its legacy es
However, it is getting no respect from the and currently trades at a dirt cheap price tag of 17. 8 times forward earnings
GOOGL PE Ratio (Forward) data by YCharts Considering that the broader market, as measured by the S&P 500 (SNPINDEX: ^GSPC), trades at 22. 8 times forward earnings, Alphabet's stock is trading at a significant discount
With Alphabet dering market-beating growth and trading at a relatively low price tag, I think it's an excellent stock to consider now, and it helps balance out some of the more expensively valued stocks on this list
Meta Platforms Meta Platforms (META -2. 57%) is ly better known by its former name, Facebook
It's the parent company of social media sites Facebook, Threads, Instagram, and WhatsApp, and gets nearly all of its revenue from ads on its platforms
Meta is working on integrating its AI nology to enhance the advertising experience for both advertisers and users of its platform
This could result in increased revenue for the company, allowing it to continue its impressive 16% revenue growth and 27% operating fit growth that it posted in Q1
Those are stellar growth figures, and if Meta can der results that again in Q2, it will maintain its as one of the top stocks to buy right now
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors
Keithen Drury has positions in Alphabet, Amazon, Meta Platforms, Nvidia, and Taiwan Semiconductor Manufacturing
The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Nvidia, and Taiwan Semiconductor Manufacturing
The Motley Fool has a disclosure policy.
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