Alphabet is a very profitable leader in artificial intelligence thanks to its Google Gemini.
Micron’s memory chips are in such demand that management says they are “beyond sold out.”
Big box retailer Costco has more than 81 million paid members and impressive renewal rates.
10 stocks we like more than Alphabet ›
If you have $1,000 to invest right now, you may be looking at the wide range of stocks available and wondering where the best place to invest is. Despite some very recent volatility, the technology sector is typically a good place for investors to earn the best returns, and two great companies to consider now are Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL) and Micron technology(NASDAQ:MU).
If technology isn’t your thing, that’s okay: Wholesale Costco(NASDAQ: COST) It is a fantastic company that is also worth a $1,000 investment. Here’s why these stocks deserve to be on your buy list.
Image source: Getty Images.
There are many reasons to buy Alphabet right now, and one of the biggest is the company’s position in the artificial intelligence (AI) race. The company’s Google Gemini is the second most popular chatbot, behind OpenAI’s ChatGPT, with 650 million monthly active users, up from 400 million six months earlier.
Management took a big step toward expanding its AI position with its recently announced collaboration with Applein which Gemini will become the underlying AI model for a new version of Apple’s Siri. This will potentially put Gemini in the hands of millions more and give Alphabet roughly $1 billion annually from Apple.
And while there are plenty of AI stocks to choose from today, not all of them are as profitable as Alphabet. The company earned $97.7 billion in net income and generated about $50 billion in free cash flow in the first nine months of 2025. And with the rapid expansion of Google Gemini users and its new collaboration with Apple, now could be a good time to buy shares.
Chatbots are not the only AI game; Hardware stocks can also be great investments. Ask Micron shareholders. Shares have soared 269% in the past 12 months as the company’s dynamic random access memory (DRAM) and NAND flash memory come off the shelves.
Micron’s sales rose 56% in the first quarter (ended Nov. 27) to $13.6 billion, and adjusted earnings per share rose 167% to $4.78. The proliferation of AI data centers is causing a huge increase in demand for memory, prompting management to say last month that the company is “beyond exhausted.”
Hardware demand may be cyclical, but Micron is capitalizing on a significant trend right now, as the world’s largest technology companies are expected to spend between $3 and $4 trillion on data centers by 2030. This means Micron likely has many more years of impressive growth ahead of it.
AI isn’t the only game on Wall Street, and investors would do well to consider Costco stock right now as the company continues to grow. It ended the first quarter with an impressive 81.4 million paid members, up 5.2% from the prior-year quarter.
Sales also rose 8% to $67.3 billion, beating Wall Street’s consensus estimate of $67.1 billion. Some investors are concerned that the company’s membership renewal rates have slowed a bit, but considering the rate in North America is still an impressive 92.2%, I think those concerns are overblown.
There is some economic uncertainty right now, with layoffs rising to a four-year high last year and hiring slowing. But Costco customers see their memberships as a way to save money, so they’re likely to stay if the economy slows.
Since each of these companies is growing at a healthy pace and expanding within their receptive niches, now could be a good time to buy some of their shares.
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Chris Neiger has positions at Apple. The Motley Fool positions and recommends Alphabet, Apple, Costco Wholesale, and Micron Technology. The Motley Fool has a disclosure policy.
The Best Stocks to Invest $1,000 in Right Now was originally published by The Motley Fool
