Big Tech is on track to spend between $635 billion and $665 billion on AI and data centers this year, and the final week of July brings a wave of megacap earnings that will test whether that spending is paying off. For investors who buy individual stocks, this is a moment to focus on quality. The best stocks to buy right now include Nvidia, Alphabet, Microsoft, Amazon, Eli Lilly, JPMorgan Chase, and Vistra, picked for durable profits, a strong position in their market, and a clear reason to own them today. We screened the largest US-listed companies and kept the seven below.
How We Picked These Stocks
Thousands of companies trade on US exchanges, so we filtered hard. Each pick had to be profitable, hold a leading position in a market that is still growing, and generate real free cash flow, which is the money left over after a company pays for its operations and equipment. We favored names with a durable edge and a clear catalyst on the calendar. We also wanted balance, so the list reaches beyond technology into healthcare, banking, and power. The result is seven large companies that can fund their own growth without leaning on debt.
The List
Nvidia (NASDAQ:NVDA)
Nvidia designs the chips that train and run nearly every large artificial intelligence model, and demand from cloud companies still outruns supply. Its report at the end of August will show whether the record spending plans from cloud buyers are still landing in its order book.
Why it made the list: Nvidia sells the most advanced AI accelerators on the market, and the largest cloud providers keep raising how much they plan to spend on them. That spending lands directly in Nvidia's results.
The bull case: Each new chip generation arrives faster than the last, and Nvidia now sells full systems, not just chips. That widens its lead and its profit margins.
The risk: Expectations are high. Any sign that cloud companies are slowing their orders can hit the stock hard.
Key number: The data center segment now generates more than 80% of Nvidia's total revenue.
Alphabet (NASDAQ:GOOGL)
Alphabet owns Google Search, YouTube, and Google Cloud, and it trades at a lower earnings multiple than most of its megacap peers. The P/E ratio, or price-to-earnings ratio, compares the share price to yearly profit per share, and a lower number can signal a cheaper stock.
Why it made the list: Search and YouTube throw off enormous cash, and Alphabet is pouring that cash into AI and its cloud business. Google Cloud has crossed into steady profitability.
The bull case: Alphabet builds its own AI chips and models, so it controls its costs better than rivals that rent everything. Its cloud unit is still growing revenue at a fast clip.
The risk: Regulators in the US and Europe continue to challenge Google's search and ad business, and an AI shift in how people search could pressure its core.
Key number: Google Cloud has turned the corner to a full-year operating profit while still growing revenue at a double-digit pace.
Microsoft (NASDAQ:MSFT)
Microsoft reports its fiscal fourth quarter in the final week of July, one of the most watched reads on AI demand all year. Its cloud platform Azure and its Office and Windows franchises produce some of the steadiest profits in technology.
Why it made the list: Microsoft sells software that businesses cannot easily drop, and it is folding AI features into every product. That gives it a built-in way to raise prices.
The bull case: Azure keeps taking cloud market share, and Microsoft's stake in the AI race runs through both its own tools and its partnerships. A wide moat backs the growth.
The risk: The heavy spending on AI data centers weighs on near-term profit, and investors have grown impatient about when that spending pays off.
Key number: Microsoft Cloud now clears roughly $40 billion in revenue per quarter.
Amazon (NASDAQ:AMZN)
Amazon runs the largest US online store and the largest cloud platform, Amazon Web Services. Its profit engine keeps strengthening as AWS rides the AI buildout and the retail side gets leaner.
Why it made the list: AWS produces the bulk of Amazon's operating profit and is a prime beneficiary of the AI buildout. The retail side has gotten far more efficient as Amazon trims its cost to ship each order.
The bull case: Advertising has quietly become a high-margin business worth tens of billions a year. Add AWS growth and improving retail margins, and profit can climb for years.
The risk: Amazon spends heavily on warehouses and data centers, so a misstep in that spending or a slowdown in cloud growth would sting.
Key number: AWS generates the majority of Amazon's total operating profit.
Eli Lilly (NYSE:LLY)
Eli Lilly makes Mounjaro and Zepbound, two of the fastest-selling weight-loss and diabetes drugs ever launched. It is the one healthcare name on this list, and it adds growth that has nothing to do with the AI trade.
Why it made the list: Demand for Lilly's obesity drugs still outstrips what it can make, and all three major US pharmacy managers now cover its full obesity lineup, as we reported when CVS reversed course.
The bull case: An oral weight-loss pill could reach far more patients than injections, and Lilly is racing to bring one to market. That would open a much larger group of buyers.
The risk: Competition from Novo Nordisk and new entrants could squeeze prices, and any trial setback on the pill would hurt.
Key number: Revenue has been growing at a double-digit pace, led by its obesity and diabetes franchise.
JPMorgan Chase (NYSE:JPM)
JPMorgan Chase is the largest US bank by assets, and it kicks off the mid-July bank earnings season that sets the tone for the group. It offers the list a profitable business that gains when interest rates stay higher for longer.
Why it made the list: JPMorgan earns money across lending, trading, and wealth management, so no single business has to carry it. Its scale and balance sheet let it take share when smaller banks pull back.
The bull case: With the Fed holding rates in the mid-3% range, banks keep earning healthy interest income. JPMorgan also returns billions to shareholders through dividends and buybacks.
The risk: A bank's fortunes track the economy. A recession or a jump in loan defaults would cut into profit.
Key number: JPMorgan earned record profit over the past year across its lending and trading businesses.
Vistra (NYSE:VST)
Vistra is an independent power producer that sells electricity from a fleet of nuclear and natural gas plants. Power demand from data centers keeps climbing, and Vistra owns the always-on capacity to meet it.
Why it made the list: AI data centers need round-the-clock electricity, and Vistra owns the kind of always-on nuclear and gas capacity that can supply it. That demand is the strongest tailwind US power has seen in two decades, a theme we cover in our best energy stocks guide.
The bull case: Tight power supply and rising demand push electricity prices higher, which flows straight to Vistra's bottom line. Its nuclear fleet earns extra credits on top.
The risk: Power prices swing with weather and fuel costs, so earnings are less predictable than a software company's.
Key number: Vistra runs one of the largest competitive power fleets in the country, including a sizable nuclear arm.
What Is Driving the Market Right Now
Two forces set the tone this summer. First, the Federal Reserve meets July 28 and 29, with rates sitting in the mid-3% range, and investors want to know whether another cut is coming. Higher-for-longer rates make future profits worth less today, which weighs most on fast-growing technology stocks. Second, the final week of July delivers a run of megacap earnings that will show whether the enormous AI spending is turning into real returns.
That backdrop is why this list mixes themes. Four picks ride the AI and data center buildout, the same force behind the surge in AI stocks and semiconductors. The other three, Lilly, JPMorgan, and Vistra, give the list ballast in healthcare, banking, and power. When one theme cools, the others can hold the line. For investors who want a single list of strong businesses across the market, that spread matters more than chasing any one trend.
What to watch:
- The Fed on July 28 and 29: The rate decision and Chair Powell's tone could move the growth names in either direction.
- Megacap earnings in late July: Microsoft, Alphabet, and Amazon report in the final week of the month, with Nvidia to follow in late August.
- Bank earnings in mid-July: JPMorgan opens the season and sets the read on lending and consumer health.
- Lilly's oral pill: New trial data on the obesity pill could move the stock sharply in either direction.
Bottom Line
This list is built for investors who want to own large, profitable companies across the market. Each pick leads its market and funds its own growth. The four tech names offer the most upside if the AI buildout keeps going, while Lilly, JPMorgan, and Vistra spread the risk across other corners of the economy. Buy the businesses you understand, and size each position to your own comfort.
Frequently Asked Questions
What are the best stocks to buy right now?
Seven large, profitable companies stand out today: Nvidia, Alphabet, Microsoft, Amazon, Eli Lilly, JPMorgan Chase, and Vistra. The four technology names benefit from heavy AI and data center spending, while Eli Lilly, JPMorgan, and Vistra add exposure to healthcare, banking, and power. All seven generate strong free cash flow and lead their markets.
Is now a good time to buy stocks?
Owning strong companies over the long run tends to reward patience more than trying to time the market. With megacap earnings and a Fed meeting both landing in late July, volatility is likely, which can create entry points in quality names. No one can call the exact bottom, so many investors buy in stages rather than all at once.
What is the safest stock on this list?
JPMorgan Chase and Eli Lilly carry the steadiest businesses. JPMorgan is the largest US bank with a strong balance sheet, and Eli Lilly sells drugs that patients keep refilling. The technology names offer more upside but also swing more when the market moves.
How many stocks should I own?
Many financial educators suggest holding at least 15 to 20 stocks across different sectors to spread risk, so a single bad pick does not sink your portfolio. A list like this one can serve as a starting point across technology, healthcare, banking, and power. How much you put into each is a personal decision based on your goals and timeline.
Why is Vistra on a best stocks list?
Vistra is an independent power producer that benefits from rising electricity demand tied to AI data centers. It owns nuclear and natural gas plants that can supply round-the-clock power, the kind data centers need. That demand is the strongest tailwind US power has seen in two decades.
