3 Essential AI Infrastructure Stocks to Buy Right Now

George Budwell, The Motley Fool

Sun, Mar 23, 2025, 11:00 AM 4 min read

Recent tariffs and trade restrictions under President Donald Trump's administration have temporarily cooled the artificial intelligence (AI)- fueled bull market, with the benchmark S&P 500 retreating 3.6% since the start of the year. Despite this short-term volatility, however, the AI market is on track to reach an eye-catching $1.8 trillion in total value by 2030, according to industry analysts.

Fueling this expansion, U.S. and Chinese tech giants are accelerating their AI development timelines and pouring hundreds of billions into infrastructure. This next-generation infrastructure is expected to revolutionize nearly everything, from healthcare diagnostics to autonomous transportation and personalized education.

As someone focused on multidecade-long growth horizons, I'm strategically positioning my portfolio to capitalize on this technological inflection point. Specifically, I plan to accumulate shares in three companies with unmatched AI capabilities, established moats, and financial strength to weather this short-term volatility. Read on to find out more about these three incredible tech giants.

Nvidia (NASDAQ: NVDA) has established a dominant position as the leader in AI hardware and software, with CEO Jensen Huang recently declaring that the "vast majority" of AI inference runs on their platforms. Despite being down 12.3% year to date, Nvidia shares now trade at 26.2 times forward earnings, a historically low multiple that creates an attractive entry point for this wide-moat business. The company roadmap includes Blackwell Ultra arriving later this year, followed by Vera Rubin in 2026 and Rubin Ultra in 2027, providing a clear growth trajectory.

What truly separates Nvidia from competitors is not just superior graphics processing unit (GPU) hardware but also its proprietary Compute Unified Device Architecture (CUDA) software platform, which creates significant switching costs for AI developers.

While several tech giants are investing in custom chips and Advanced Micro Devices (AMD) is developing competing GPUs, Nvidia's unified hardware and software ecosystem and expansion into new AI domains position it to maintain market leadership for years to come. This combination of technical leadership, ecosystem lock-in, and strategic expansion into emerging areas makes Nvidia an essential infrastructure provider for the entire AI revolution.

Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) has evolved into a technology powerhouse, with business lines spanning from advertising to cloud computing and AI. Despite being down 12.7% year to date, the search titan's stock trades at just 18.6 times forward earnings, offering compelling value in the ultra-high-growth tech sector. While Google Search remains the primary revenue driver, Alphabet is investing heavily in AI to improve its search capabilities and bolster its competitive positions in cloud computing, agentic AI, and robotics.