Top AI Stocks to Invest in for Long-Term Growth

Key Points

• Microsoft’s revenue climbed 18% year over year to $82.9 billion for Q3 FY 2026, ending March 31, fueled by a 40% growth in Azure sales.

• Meta Platforms reported a 33% year-over-year revenue increase to $56.3 billion in Q1, supported by AI-driven engagement despite a slight decline in daily active users to 3.56 billion.

• Microsoft’s AI business has an annual revenue run rate exceeding $37 billion, up 123% year over year.

Microsoft reported an 18% increase in revenue for Q3 FY 2026, reaching $82.9 billion, driven by a 40% growth in Azure sales. Despite a 19% drop in shares over the past six months, the company plans to continue significant investments in AI, with its AI segment now generating over $37 billion annually, a 123% increase year over year. Additionally, Microsoft Cloud holds $627 billion in contracted obligations, with $156.8 billion expected to be recognized in the next 12 months, marking a 39% year-over-year increase.

Similarly, Meta Platforms saw a 33% increase in revenue to $56.3 billion in Q1, aided by AI enhancements that improved user engagement. Despite a slight decline in daily active users, partially due to external issues, the company’s AI strategies are expected to maintain substantial growth in revenue and earnings over the coming years. Currently, Meta shares are trading at 20.5 times forward earnings, below the industry average, suggesting they could be undervalued.