Finding top artificial intelligence (AI) stocks to buy right now is not a simple endeavor. Many AI stocks have boomed amid the release of a vastly improved version of ChatGPT in early 2023. Due to that growth, stocks like Nvidia and Palantir experienced outsized increases over a short period.

Those increases may leave investors wondering what to buy now. Fortunately, even if finding the “best” AI stocks is elusive, we can assume AI will probably drive stock gains for years to come, meaning investors have not missed out. Under current conditions, these two stocks are likely to become leaders in AI and bring their shareholders significant gains.

Qualcomm

Amid the AI-driven gains in many stocks, investors seem to have forgotten about Qualcomm (QCOM -0.81%). Indeed, the smartphone chipset leader has suffered as the 5G upgrade cycle has run its course.

Additionally, Apple has worked for years to develop a 5G modem chipset that can run its iPhone. After years of throwing in the towel and extending its contract with Qualcomm, Apple appears ready to end the supply agreement after 2026.

Nonetheless, Qualcomm has advanced AI in its chipsets beginning with the Snapdragon 8 Gen 3, which incorporates AI capabilities into smartphones. That and the upcoming Snapdragon 8 Gen 4 could lead to another upgrade cycle.

Moreover, Qualcomm has prepared for years for the day when smartphone chipsets will become a less reliable revenue source. To that end, it has built businesses in the Internet of Things, automotive, and, more recently, entered the PC business.

These moves have helped growth turn positive again as the $39 billion in revenue generated in fiscal 2024 (ended Sept. 29) rose 9% compared to year-ago levels. During that time, Qualcomm curtailed increases in costs and expenses, allowing net income of $10 billion in the fiscal year to rise by 40% yearly.

For now, analysts forecast that revenue growth will stay in the 9% range for fiscal 2025. However, with the stock selling at a P/E ratio of just 17, investors may be overreacting to its slower growth rate, especially considering AMD‘s earnings multiple of 109. Also, Apple sells at 42 times earnings, and even its primary manufacturer, Taiwan Semiconductor Manufacturing, trades at a 31 P/E ratio. This implies Qualcomm stock could rise from multiple expansion alone.

Also, given that Qualcomm anticipates lost business from Apple, the company has figured that into its fiscal 2025 estimates. Such an assumption likely sets up Qualcomm stock to surprise to the upside, meaning investors should profit as the company continues its growth.

Alphabet

Another tech company underappreciated for its AI is Google’s parent company Alphabet (GOOGL -1.45%) (GOOG -1.55%). This might seem surprising for a company that has incorporated AI in its applications since 2001.

Still, the emergence of ChatGPT presents Google Search with its most serious competitive threat in years. Also, the release of its own generative AI product, Google Gemini, has not stemmed fears that the lost search business will hamper its lucrative advertising business.

However, investors should not ignore Alphabet’s vast resources and innovation. Currently, it holds a staggering $93 billion in liquidity. That is down from $111 billion at the end of 2023, but the Google parent now funds a dividend and has made significant investments in research and development, setting the stage for a possible resurgence.

That investment not only includes AI but also spending on a technology that could supercharge AI, quantum computing. To this end, Alphabet just released its Willow quantum computing chip.

Quantum computing could redefine the computing industry. Instead of holding a zero or one value like a traditional data bit, qubits, or quantum bits, process zeroes and ones simultaneously, exponentially increasing computing speeds. Willow is so fast that it performed a computation in under five minutes that a traditional computer could not perform in the entire history of the universe.

Additionally, Willow made breakthroughs in addressing the error-prone nature of quantum chips. Instead of error rates rising as the number of qubits increases, Willow can reduce errors as the number of qubits grows. This addresses a key obstacle to making quantum computing technology viable.

Also, for all the worries about the company, Alphabet generated $62 billion in free cash flow in the first nine months of 2024 alone. That cash gives the company considerable flexibility to continue innovating.

Furthermore, Alphabet’s P/E ratio of 25 gives it the lowest earnings multiple of the “Magnificent Seven” stocks. That valuation is less likely to stay at that level as more investors recognize the company’s ability to move beyond Google Search.