Top Stocks to Invest Your Capital in During the AI Growth Wave

When building a diversified portfolio with $2,000, identifying companies with both scale and innovation momentum becomes essential. In the current market environment, two mega-cap technology firms stand out as compelling stocks to invest in: Microsoft (NASDAQ: MSFT) and Alphabet (NASDAQ: GOOG/GOOGL). Both businesses command billions of daily users, generate substantial cash flows, and maintain significant competitive advantages in the artificial intelligence space. Rather than chasing speculative opportunities, investors can focus on these established enterprises that are leveraging AI to enhance profitability and market position.

Why These Stocks Worth Including in Your Portfolio

The investment thesis for both companies centers on a similar theme: they serve massive audiences globally, which creates natural advantages for monetizing new technologies like AI. Microsoft commands 900 million active users engaging with its AI features across multiple product lines, while Alphabet’s ecosystem touches 2 billion users through Search, Gmail, and YouTube. This scale matters because it provides both companies with enormous data sets to improve their AI systems and multiple platforms to deploy new features. Additionally, both firms are generating higher revenues from individual users as they introduce more sophisticated AI capabilities, signaling customer willingness to pay premium prices for enhanced services.

Microsoft: Copilot’s Revenue Expansion Story

Microsoft has emerged as a clear beneficiary of enterprise AI adoption. Its Copilot assistant has reached 150 million monthly active users, a remarkable milestone that underscores mainstream acceptance of AI-powered productivity tools. Within its Microsoft 365 product line—which includes Office, Teams, and other workplace applications—the company is witnessing accelerating revenue gains. The 17% year-over-year growth in Microsoft 365 and related productivity software revenues demonstrates that businesses are prioritizing these enhanced tools.

More importantly, the company’s revenue per user metric reveals deeper spending patterns. As customers gain exposure to AI-powered features, they are extending usage and deploying these tools across more departments and functions. This expansion within existing accounts represents highly profitable growth compared to acquiring new customers. Microsoft’s Azure cloud division adds another dimension to the investment case, with $400 billion in future service commitments already secured from enterprise clients. While the company invests aggressively in AI infrastructure to meet rising demand, these investments position it to capture significant profitability gains down the road. Over five years, Microsoft’s net income has nearly doubled to $105 billion, reflecting strong execution and operational leverage.

Alphabet’s Dominance in AI-Powered Digital Advertising

Alphabet benefits from a similar structural advantage in digital advertising, a sector undergoing profound transformation through AI integration. Google’s search engine remains the gateway for billions of queries daily, and the introduction of AI-powered search results has increased question volume from users seeking more sophisticated answers. Higher search volume naturally translates to increased advertising inventory and impression opportunities.

The financial results confirm this dynamic. Year-over-year advertising revenue across Search, YouTube, and other services expanded 14% in Q3 2025, compared to 12% in Q3 2024 and 11% in Q3 2023. This accelerating trend line demonstrates that AI features are meaningfully contributing to ad revenue expansion. Alphabet’s net income has more than doubled to $124 billion over three years, reflecting how strongly AI-driven services are flowing through to the bottom line.

The long-term market opportunity is equally compelling. Industry research suggests the digital advertising market will roughly double to $1.1 trillion by 2030. As the market expands and AI capabilities improve ad targeting and relevance, Alphabet’s competitive position should enable it to capture a disproportionate share of this growth. The company’s AI infrastructure investments are simultaneously its competitive moat—rivals lack the engineering talent and computational resources to match Google’s capabilities in algorithm optimization and personalization.

Building Long-Term Wealth Through Strategic Stock Selection

For investors seeking to deploy $2,000 thoughtfully, concentrating capital in stocks to invest in that combine user scale, AI innovation, and proven profitability offers a balanced approach. Microsoft and Alphabet both satisfy these criteria. Neither represents a speculative bet; rather, both represent mature technology leaders that have demonstrated ability to grow earnings faster than their revenue expansion. History suggests that such qualities—paired with competitive advantages in AI—create sustained returns for patient investors.

The key insight is that investor returns ultimately derive from company earnings growth and valuation expansion. Both Microsoft and Alphabet are enhancing earnings through AI-driven revenue acceleration while simultaneously reinforcing competitive moats that make it harder for competitors to capture share. For those building wealth through disciplined capital allocation rather than market timing, these characteristics merit serious consideration.