3 Unstoppable Artificial Intelligence (AI) Stocks to Buy Right Now

Amid increasing warnings of an AI bubble, the article highlights Amazon, EPAM Systems, and ASML as companies well-positioned to thrive due to their fundamental strengths and strategic roles in the AI ecosystem. Amazon's rapidly expanding AWS AI services, backed by its profitable retail segment and attractive valuation, and EPAM Systems' successful workforce diversification and growing AI consulting demand, evidenced by 13-15% projected full-year growth, demonstrate resilience. Similarly, ASML, a critical supplier for advanced semiconductor manufacturing, forecasts strong 2026 sales driven by AI chip demand, solidifying its long-term growth prospects despite its premium valuation.

Analysis

The market is exhibiting increasing warnings of an AI bubble, yet select companies are identified as resilient due to strong fundamentals and strategic AI positioning. Amazon (AMZN) is highlighted for its robust AWS AI services, which are a multi-billion dollar business experiencing triple-digit growth, contributing to AWS's overall 17% year-over-year revenue increase last quarter. Despite significant capital expenditures exceeding $100 billion this year for AI data centers, impacting free cash flow, its retail segment's improved profitability, with North America operating margin up 190 basis points to 7.5%, provides substantial support.

EPAM Systems (EPAM) demonstrates a strong turnaround, achieving its third consecutive quarter of sequential revenue growth, with sales climbing 18% year-over-year, and forecasting 13-15% growth for the full year. This recovery follows successful workforce diversification away from geopolitical hotspots and strategic pivot towards AI consulting, addressing client demand for AI readiness. While higher developer costs have compressed margins, the company anticipates a reversal as it moves into higher-end AI services and leverages AI for internal productivity gains.

ASML (ASML) maintains a critical position in the semiconductor industry, manufacturing essential equipment for advanced AI chip production. Management's updated guidance for 2026 sales to exceed 2025 levels, despite ongoing pressure in the Chinese market, underscores strong demand for its EUV machines, supported by robust performance from major foundries like TSMC. Although trading at a premium 34 times 2026 earnings expectations, ASML is well-positioned for substantial EPS growth from 2027 onwards, driven by long-term AI-fueled semiconductor demand.

Key Decisions for Investors

• Investors should monitor Amazon's capital expenditure efficiency and its impact on free cash flow, while recognizing the long-term growth potential of its high-growth AWS AI services and the stabilizing profitability of its retail segment.
• Consider EPAM Systems for its attractive valuation (12.5x 2026 earnings) and strong projected double-digit EPS growth, contingent on successful margin expansion from higher-end AI consulting and productivity improvements.
• Evaluate ASML as a long-term strategic holding due to its indispensable role in advanced semiconductor manufacturing for AI, despite its current premium valuation, anticipating significant EPS growth post-2026 as China headwinds subside.
• Given the increasing 'AI bubble' warnings, investors should prioritize companies with strong underlying business fundamentals, clear competitive advantages, and attractive valuations, rather than speculative plays.