Top Stock Picks for Investing $50,000 at This Moment

If you’re planning to invest a substantial amount in the stock market right now—such as $50,000—it’s wise to focus on industry leaders that offer strong growth prospects while still being reasonably priced.

Here are two standout stocks that meet these criteria.

Amazon

Amazon ( AMZN -0.61%) shares have underperformed in recent years, but that trend may be about to reverse. Following significant investments in logistics and automation, Amazon is beginning to realize notable operating efficiencies in its e-commerce division. This was evident last quarter, as operating income in its North America segment soared 47% despite revenue rising only 11%.

This improvement is largely due to Amazon’s growing reliance on artificial intelligence (AI) and robotics. The company now operates over a million robots in its fulfillment centers, all orchestrated by its DeepFleet AI system. These robots are capable of more than just moving packages—some can identify damaged products or even perform self-repairs. Management also leverages AI to optimize inventory placement across fulfillment centers and to streamline delivery routes.

Amazon’s digital advertising arm is another factor boosting its operating leverage, as it boasts much higher gross margins compared to the rest of its e-commerce business. The company has enhanced its sponsored ad offerings with AI-driven targeting and performance, attracting more advertisers and fueling rapid growth. Last quarter, this segment’s revenue climbed 23% to $15.7 billion, making it one of Amazon’s fastest-expanding businesses.

Amazon’s most profitable division is its cloud computing arm, Amazon Web Services (AWS). Last quarter, AWS revenue grew 17.5% to nearly $31 billion, with operating income exceeding $10 billion. AWS benefits from customers building their own AI applications and models on its infrastructure. The company also develops its own AI chips to help lower costs and has invested in the AI startup Anthropic.

Among Amazon’s newer ventures is Project Kuiper, its ambitious satellite broadband initiative aimed at delivering fast, global internet access. Competing with Elon Musk’s Starlink, this project could become a significant growth engine for the company.

With a forward price-to-earnings (P/E) ratio of 28.5 based on next year’s projected earnings, Amazon is trading at one of its most attractive valuations in recent memory—lower than traditional retailers like Walmart and Costco. This makes it a compelling long-term investment at current prices.

 

Alphabet

Alphabet ( GOOGL 0.82%) ( GOOG 0.86%) is another top-tier company with strong growth potential and an appealing valuation. While search remains its foundation, Alphabet is rapidly transforming this core business by integrating AI to reshape the search experience.

Alphabet has rolled out AI-powered features for smartphones—such as Circle to Search and Lens—that extend search capabilities beyond simple text queries. Now, users can snap a photo or highlight part of an image to find similar products, which directly supports Alphabet’s vast advertising network.

Additionally, the company is increasing user engagement with AI Overviews and a new AI Mode, which combine conventional search results with chatbot-style responses. These enhancements are driving more searches and, in turn, higher ad revenue.

YouTube remains a leading global platform for social media and entertainment. Alphabet is focusing on short-form video content to better compete with TikTok and accelerate growth. Its AI video creation tools, like Veo 3, are trained on YouTube’s own content, demonstrating the interconnectedness of its ecosystem.

Google Cloud has emerged as Alphabet’s primary growth engine, with revenue for the segment jumping 32% last quarter to $13.6 billion and operating income more than doubling. Although it ranks third in market share, Google Cloud arguably offers the most comprehensive technology stack among cloud providers. This includes its advanced Gemini large language model (LLM), high-performance tensor processing units (TPUs), and a robust software suite led by Vertex AI. This vertical integration gives Google Cloud a cost advantage that could help it capture more market share.

Alphabet is also making headway with emerging ventures like its Waymo autonomous taxi service and quantum computing, both of which have the potential to become major businesses in the future.

Despite all these growth drivers, Alphabet remains one of the more affordable large-cap AI stocks, trading at under 23.5 times the consensus earnings estimates for 2026. This makes it a strong candidate for a long-term investment.