AI Stock Trade Ideas: Amazon, Alphabet Top Picks Amid Strong Earnings
The AI stock trade ideas for August 3, 2026, are out, and they include long positions on Amazon (AMZN), Alphabet (GOOGL), Microsoft (MSFT), and AMD. AMZN is a top pick after its Q2 earnings showed AWS revenue growing 37% year-over-year, with the company raising full-year capital expenditures to $220 billion. This has investors reading it as forward confidence rather than a red flag.
GOOGL also made the list, following Google Cloud's Q2 revenue growth of 64%, which was well above expectations and the strongest print in years. The stock initially dipped on Alphabet's capex boost to $205 billion but recovered sharply, closing up 6.7% Friday.
Micron (MU) is a short candidate due to its bear market status, with the company facing competition from China's CXMT, which launched an $8.5 billion IPO to fund HBM manufacturing capacity. The stock fell 5.9% Friday and is down 20% over the past month.
AMD options play ahead of tonight's earnings report, with consensus expecting EPS of $1.62 and revenue of $11.2 billion with 56% non-GAAP gross margins. A beat-and-raise could produce a quick recovery toward $515-540.