The Nasdaq just had its worst stretch in over a year, and the selloff hit the largest technology stocks hardest. Microsoft and Meta both trade about 30% below their 52-week highs. Yet the spending that drives this sector has not slowed. The biggest cloud companies still plan to pour roughly $830 billion into AI data centers this year. The best tech stocks to buy right now include Nvidia, Alphabet, Apple, Microsoft, Broadcom, Meta, and Oracle, chosen for their market position, revenue growth, and direct exposure to that buildout. We screened the largest US-listed technology companies and narrowed the list to these seven.
How We Picked These Stocks
More than 200 technology companies trade on US exchanges. We filtered for a market cap above $400 billion, revenue growth that outpaces the broad market, positive and improving operating margins, and a clear role in the artificial intelligence buildout that is reshaping the sector. Operating margin is the share of revenue left after the costs of running the business. We excluded companies whose growth has stalled or whose AI story is still a side project. The result is seven companies that sit at the center of how computing, advertising, and cloud software are changing.
Nvidia (NASDAQ:NVDA)
Why it made the list: Nvidia designs the graphics processors that train and run nearly every large AI model. It became the first company worth more than $5 trillion, and its data center revenue has roughly tripled over the past two years. No other chip company comes close to its share of the AI market.
The bull case: Demand for its newest chips still outruns supply. Every major cloud provider is a customer, and each new model generation locks them in deeper through Nvidia's software tools. As long as AI budgets keep growing, Nvidia collects a large piece of every dollar.
The risk: Customer concentration is high. A handful of cloud giants drive most sales, and any pause in their spending would hit Nvidia fast. Rivals and in-house chips from those same customers are circling.
Key number: Data center sales now make up the large majority of total revenue, up from a minority share three years ago.
Alphabet (NASDAQ:GOOGL)
Why it made the list: Alphabet owns Google Search, YouTube, and Google Cloud, three businesses that each generate tens of billions in revenue. Search advertising still funds the company, while cloud has turned profitable and is growing fast. Its Gemini AI models put it among the few firms building frontier systems in-house.
The bull case: Alphabet designs its own AI chips, runs its own data centers, and owns the data from billions of users. That full-stack control lets it cut costs rivals cannot. Cloud growth and AI features across its products give it two engines.
The risk: A long-running antitrust case could force changes to how Search operates. AI chat tools also threaten the classic search box that still drives most profit.
Key number: Google Cloud has swung from losses to billions in quarterly operating profit.
Apple (NASDAQ:AAPL)
Why it made the list: Apple sells more than 2 billion active devices and turns them into a fast-growing services business spanning the App Store, iCloud, and subscriptions. Services now generate high-margin recurring revenue that smooths out the iPhone cycle. The installed base is the widest moat in consumer technology.
The bull case: Services revenue keeps climbing at double-digit rates with margins above 70%. A long-awaited AI upgrade across iPhones could trigger a major replacement cycle. Apple also returns enormous cash to shareholders through buybacks.
The risk: Hardware sales depend heavily on the iPhone, and China is both a key market and a manufacturing base exposed to trade tension. Apple has been slower than peers to ship advanced AI features.
Key number: Services revenue runs at an annual pace above $100 billion.
Microsoft (NASDAQ:MSFT)
Why it made the list: Microsoft runs Azure, the second-largest cloud platform, and bundles AI tools into Office, Windows, and its developer products. Its partnership with OpenAI gave it an early lead in selling AI to businesses. Recurring software subscriptions make its revenue among the most predictable in tech.
The bull case: Azure keeps gaining share as companies move workloads to the cloud, and AI features let Microsoft charge more per user. Few firms can match its mix of growth and stability. The stock now trades well below its high.
The risk: Heavy AI spending is squeezing margins in the near term, and investors want proof those data center dollars will pay off. Cloud growth has cooled from its peak.
Key number: Azure and other cloud services account for more than half of total revenue.
Broadcom (NASDAQ:AVGO)
Why it made the list: Broadcom builds the custom chips and networking gear that move data inside AI data centers. It helps cloud giants design their own processors, a business growing faster than the rest of the company. Its software arm adds steady, high-margin revenue on top.
The bull case: As big tech firms build custom chips to cut their reliance on a single supplier, Broadcom is the partner they hire. Its AI revenue has surged, and networking demand rises with every new cluster. For a deeper look at the chip sector, see our guide to the best semiconductor stocks.
The risk: A few large customers drive the AI business, so the order pace can swing quarter to quarter. The stock carries a rich valuation that leaves little room for a miss.
Key number: AI-related revenue has more than doubled year over year.
Meta Platforms (NASDAQ:META)
Why it made the list: Meta runs Facebook, Instagram, and WhatsApp, reaching more than 3 billion people daily. AI now powers the recommendations and ad targeting that drive its profit, and that advertising machine funds everything else. The stock has fallen about 30% from its high, leaving a lower entry point.
The bull case: Better AI keeps lifting how much advertisers pay for each impression. Meta also builds open-source AI models that strengthen its platform. Its core business throws off enormous free cash flow, the cash left after operating costs and investment.
The risk: Meta is spending tens of billions on data centers and on its long-term virtual reality bet, which still loses money. Investors have grown impatient with those costs. Regulation of social media is a constant overhang.
Key number: More than 3 billion people use a Meta app every day.
Oracle (NYSE:ORCL)
Why it made the list: Oracle has turned its database business into one of the fastest-growing cloud infrastructure providers, signing huge contracts to host AI workloads. Its booked-but-not-yet-billed backlog jumped $85 billion in a single quarter, a sign of demand far beyond current revenue. That backlog gives years of visibility.
The bull case: Oracle landed multiyear deals with major AI companies that need raw computing power. As that work converts to revenue, growth accelerates. The stock pulled back even after the backlog news, as we covered when Oracle reported its quarterly results.
The risk: Building that capacity costs enormous sums up front and pressures cash flow. The contracts also lean on a small group of AI customers whose own funding could shift.
Key number: Remaining performance obligations, the value of signed contracts not yet booked, run into the hundreds of billions.
Sector Overview
Technology now makes up the largest slice of the S&P 500, and a handful of these names drive most of the index's moves. The current pullback came from worries about interest rates and the cost of the AI buildout, not from weak demand. Cloud and chip orders are still rising. The split is visible across the market, where megacaps lead one day and lag the next, a pattern we traced in our look at the narrow rally in megacap stocks.
The common thread across all seven is artificial intelligence. Nvidia and Broadcom sell the hardware. Microsoft, Alphabet, and Oracle rent the computing power. Apple and Meta put AI in front of billions of users. That spending feeds back through the whole chain, which is why these companies often rise and fall together. For investors who want the AI theme specifically, our guide to the best AI stocks goes deeper on the names collecting the biggest checks. Those weighing a simple index instead can compare the trade-offs in our piece on whether QQQ is worth buying.
What to Watch
- Quarterly earnings: The next round of results will show whether AI spending is producing the revenue investors expect, especially for Microsoft, Alphabet, and Meta.
- Interest rates: Tech valuations move with rate expectations, so each inflation report and Federal Reserve decision can swing the whole group.
- AI capacity deals: Watch for new multiyear cloud contracts, particularly at Oracle, where backlog conversion is the key question.
Bottom Line
These seven companies sit at the core of the technology sector and the AI buildout reshaping it. The recent selloff lowered prices without changing the demand story. This list suits investors who want exposure to the largest, most profitable technology businesses and can hold through the swings that come with that concentration. The summary table above shows how they compare on size, growth, and margins.
Frequently Asked Questions
What are the best tech stocks to buy right now?
The largest and best-positioned tech stocks right now include Nvidia, Alphabet, Apple, Microsoft, Broadcom, Meta, and Oracle. They were selected for their market leadership, revenue growth, profit margins, and direct role in the artificial intelligence buildout. Each sits among the most valuable companies in the world.
Are tech stocks a good investment after the recent selloff?
A pullback lowers the price you pay but does not remove the risk. The recent decline in tech stocks came mainly from interest rate worries and the cost of AI spending, while demand for cloud and chips kept growing. Lower prices can improve long-term returns, but technology stocks remain volatile and concentrated.
Is Nvidia still the best AI stock?
Nvidia remains the dominant supplier of AI chips and the largest company in the sector by market value, with data center sales that have roughly tripled in two years. Its main risks are heavy customer concentration and rising competition, including custom chips from its own biggest buyers. It is the purest large-cap bet on AI hardware.
How many tech stocks should I own?
There is no single right number, but owning several reduces the risk that one company's stumble sinks your returns. Many investors gain broad technology exposure through a single index fund like QQQ, which holds about 100 of the largest Nasdaq names. Holding the individual leaders alongside a fund is one common approach.
What is the difference between tech stocks and AI stocks?
Tech stocks cover the whole sector, including hardware, software, internet, and cloud companies. AI stocks are the subset whose growth depends directly on artificial intelligence, such as chipmakers and cloud providers. There is heavy overlap, since the largest tech companies are also the biggest players in AI.
