Digital Realty offers sensible AI infrastructure exposure with solid growth and a reasonable valuation, but its risk-reward profile is slightly less attractive than the top three.
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I Ranked 10 AI Stocks for July — Only 3 Are Buys
Jul 4, 2026
The creator ranks 10 AI-related stocks, focusing on the full AI stack from chips to software, and identifies only three as current buys. The analysis considers valuation, growth, upside, risk, and Wall Street expectations, noting that the AI trade is becoming bifurcated with some stocks soaring while others lag. The creator emphasizes that not all AI stocks are good buys, even if they are good businesses, due to high valuations.
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Arista Networks is a high-quality AI infrastructure company with solid growth, but its high valuation multiples and thin margin of safety prevent it from being a top buy.
Alphabet is mentioned as a surprise inclusion in the creator's ranking of AI stocks.
Taiwan Semiconductor is a crucial AI chip company but is currently overvalued, trading above its historical average and fair value.
Vertiv (VRT) is a strong AI infrastructure business, but its valuation is too high after an 85% year-to-date move, offering insufficient margin of safety.
The creator suggests Amazon, like Microsoft, is hesitant to share actual AI revenues, implying that AI is losing money for the company.
The creator implies Google, like Meta and Microsoft, may be conflating growth from other businesses with AI-driven growth and potentially losing money on AI.
The creator doubts Microsoft's AI revenue claims, suggesting they are afraid to disclose actual AI revenues because they are negative.
The creator questions if AI is truly driving Meta's revenue growth, suggesting that other businesses are the main drivers and AI is losing money.
Palantir is noted as an AI stock that is still down heavily year-to-date.
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