AI Stocks to Watch in August: Nvidia, Palantir, Alphabet, and More

Nvidia leads AI infrastructure with 92% GPU market share, while Palantir Technologies' Artificial Intelligence Platform (AIP) integrates data from multiple sources into an "ontology" for clear and actionable results. Alphabet's search and Google Cloud businesses have gained momentum with AI, with search revenue increasing 12% and Cloud revenue jumping 32%. These AI leaders have significant growth opportunities, making them top stock buys in August.

Nvidia's shares hit an all-time high on June 25, surpassing the previous record set in January, according to Bloomberg [1]. The company's market capitalization reached approximately $3.75 trillion, making it the world's most valuable company, ahead of Microsoft [1]. This significant increase was driven by robust earnings results and strong potential for future growth.

Nvidia's stock price has risen 14% this year, following a 170% increase in 2023 [1]. The company's fiscal year 2025 revenue grew by 114% year over year, with CEO Jensen Huang highlighting AI and robotics as key growth areas [1]. Nvidia's AI chips and related products, such as software and cloud services, are increasingly in demand, with the company no longer identifying itself as a "chip company" but rather as a provider of AI infrastructure [1].

While Nvidia faces restrictions on selling advanced semiconductors in China, it has major customers like Microsoft, Meta, Alphabet, and Amazon that are aggressively building AI infrastructure [1]. The demand for AI workloads is soaring, and Nvidia is well-positioned to meet this demand with its AI chips and related products.

Nvidia's dominance in the AI infrastructure market is evident, with the company holding a 92% GPU market share [2]. This market share is expected to continue growing as AI spending by big tech companies is projected to rise by another 70% over the next three years [2]. Key players such as Alphabet and Amazon have increased their capital expenditure budgets for AI, with Alphabet planning to spend $85 billion in 2025 and Amazon $118 billion [2]. These investments are likely to drive further demand for Nvidia's GPUs and related products.

Other companies are also poised to benefit from the AI spending spree. Marvell Technology, Micron Technology, and Taiwan Semiconductor Manufacturing (TSMC) are among the semiconductor stocks expected to see significant revenue growth over the next three years [2]. Marvell's custom AI chips, Micron's high-bandwidth memory chips, and TSMC's leading-edge chip fabrication services are all well-positioned to capitalize on the continued increase in AI spending by big tech companies.

In conclusion, Nvidia's leadership in AI infrastructure, driven by its strong market share in GPUs and robust earnings results, makes it a top stock buy in August. The company's strategic focus on AI and robotics, along with its growing customer base, positions it well for future growth. However, investors should also consider other semiconductor stocks that stand to benefit from the AI spending boom.

References:
[1] https://www.pymnts.com/artificial-intelligence-2/2025/nvidia-shares-hit-all-time-high-as-companies-add-ai-infrastructure/
[2] https://finance.yahoo.com/news/big-tech-track-spend-over-083500292.html