The market has been experiencing a significant recovery since the announcement of a ceasefire in the Iran war last week. The S&P 500 has bounced back and is nearly unchanged year-to-date, largely due to declining oil prices and the resulting economic optimism.
Artificial intelligence (AI) stocks constitute a substantial part of the weighted index, with rising prices in this sector contributing to the market’s recovery. Oil impacts multiple industries, and for AI, this is evident in the energy required to run data centers, as well as how energy costs influence commerce and inflation overall.
As AI stocks see an uptick, notable companies like Alphabet (GOOG-0.21%), Nvidia (NVDA+2.59%), and Amazon (AMZN+2.05%) are prime stocks to consider purchasing.
1. Alphabet
As the parent company of Google, Alphabet has emerged as a leader in AI. The company adeptly turned a major challenge into a competitive advantage. In response to the rise of ChatGPT, which posed a threat to Google’s search dominance, Alphabet developed its own language model, Gemini, now with 750 million monthly active users. Additionally, AI features have been integrated into standard Google searches, making it a fully AI-driven search engine.
Today’s Change
(-0.21%) $-0.67
Current Price
$315.70
Gemini also enhances Alphabet’s advertising capabilities, allowing marketers to create targeted campaigns using advanced analytics. Furthermore, it enables cloud clients to develop their own AI applications using Gemini. The cloud business has been thriving, with sales up 48% year-over-year in the fourth quarter of 2025, and cloud backlogs increasing 55% to $240 billion. As demand for AI grows, Alphabet is well-positioned for long-term success.
2. Nvidia
Nvidia stands as a prominent player in the AI sector, though recent market performance has been lackluster. Concerns have arisen regarding hyperscalers overspending without a clear path to profitability. However, Nvidia’s management expresses confidence in continued spending and predicts significant opportunities ahead. CEO Jensen Huang sees a potential $1 trillion market through 2027, with accelerating sales growth suggesting robust growth prospects for the company.
Today’s Change
(2.59%) $4.76
Current Price
$188.67
Nvidia continues to release innovative products at a rapid pace, recently introducing its new Vera Rubin line of chips, which outperform the previous Blackwell models. Despite being approximately 11% below its peak valuation, this could be an optimal moment to invest in Nvidia before its stock potentially surges again.
3. Amazon
As the largest cloud provider globally, Amazon commands roughly one-third of the market, giving it crucial advantages in AI development. The company plans to invest aggressively in AI, with projections of spending $200 billion by 2026. CEO Andy Jassy emphasized that Amazon is “monetizing capacity as fast as we can install it.”
Today’s Change
(2.05%) $4.78
Current Price
$238.43
Amazon Web Services (AWS) grew 24% year-over-year in the fourth quarter, achieving a $142 billion run rate. This business is integral to AI, providing development services to a vast clientele that continues to expand, evidenced by partnerships with names like Visa, Lyft, and the U.S. Air Force. Additionally, Amazon’s chip division is competing with Nvidia, with notable growth reaching a $10 billion run rate in the fourth quarter. As Amazon’s stock rises alongside the market, many believe it presents a compelling growth opportunity.
