AI Stocks to Watch: Nvidia, Micron, and Amazon Lead the Charge

The AI investing landscape has seen significant changes in late July and early August, with several winners and losers emerging. Despite earnings season not being over yet, there are many stocks worth considering right now.

Nvidia is one of the top picks, as it has a major catalyst arriving in the latter half of August. The company's fiscal second quarter results will be released at the end of August, and several indications suggest it could be a blowout quarter. Many AI hyperscalers have raised spending guidance, and Nvidia's chief competitor, AMD, reported a blowout quarter.

Nvidia trades for a reasonable price tag of 24 times forward earnings, making it hard to find a stock growing as fast at that cheap of a price. The market isn't highly valuing the company heading into earnings, which could be a recipe for the stock to explode higher after its report.

Micron is another solid stock to consider, having tripled in value this year but still being off its all-time high due to skepticism about the longevity of the memory chip price boom. However, Micron's management team believes that prices will persist beyond 2027, as it will be mid-2027 before more production capacity is available.

Amazon is also seeing significant growth in cloud computing thanks to AI workloads, with AWS revenue exploding 37% higher and operating income rising 64% in Q2. The company's CEO sees a future where this business could achieve a $1 trillion annual run rate, making it an attractive buy at today's levels.