October is more than halfway over, but there’s still time for Canadian investors to snap up some top-notch U.S. stocks.

For those wanting to bet on artificial intelligence (AI), Intel (NASDAQ: INTC) and International Business Machines (NYSE: IBM) fit the bill.

For consumer goods stocks that offer long-term potential, Nike (NYSE: NKE) and Walmart (NYSE: WMT) are great choices.

And for something different, Reddit (NYSE: RDDT) looks interesting for investors with more appetite for risk.

Here’s why I think these five stocks are the best of the bunch in October.

1. Intel

Intel’s turnaround is still a work in progress, but a series of deals and developments have pushed the stock up about 90% so far this year. CEO Lip-Bu Tan, who took over in March, has been slashing costs and refocusing the company on its best opportunities. Regaining leadership in the PC and server CPU markets after years of market share losses is an imperative, as is justifying the massive expense associated with Intel’s manufacturing efforts by winning external foundry customers.

Tan has proven to be quite the dealmaker. The U.S. government took a nearly 10% stake in the company in exchange for grant money that had yet to be delivered, Softbank invested $2 billion, and Nvidia took a US$5 billion stake and partnered with Intel on custom PC and server chips. Pairing Intel and Nvidia technology in PCs and servers could help the company win back market share from AMD.

While Intel still needs to deliver results, market sentiment has certainly shifted in a positive direction, and recent news that Microsoft has reportedly chosen Intel to manufacture a custom AI chip has added fuel to the fire. Intel’s turnaround is going to take time, but the pieces are falling into place. For patient investors, now is a great time to buy the stock.

2. International Business Machines

It’s taken a while, but IBM has settled into a successful AI strategy that’s helping to accelerate its revenue growth. The company’s pairing of consulting services with an enterprise AI software platform, along with a focus on small, specialized, and cheap AI models tuned for specific tasks, has proven to be a winner.

IBM has booked more than US$7.5 billion worth of generative AI-related business so far, with much of that total coming from the consulting business. In the second quarter alone, IBM booked more than $1 billion of generative AI-related consulting business. By offering solutions that combine AI implementation and other services with its AI software platform, IBM is winning over enterprises as they race to deploy AI.

IBM expects to increase revenue by at least 5% this year, adjusted for currency. That growth will come despite weakness in discretionary projects tied to the state of the economy. By leaning into AI, IBM is building a powerful growth engine that can offset sluggish spending in other areas. And because IBM’s AI business is focused on delivering results for its clients in the form of reduced costs or greater efficiency, the business can continue to grow even if the AI boom cools off. For investors looking for a low-risk way to bet on AI, IBM stock is the answer.

3. Nike

Unforced errors have put footwear giant Nike in an uncomfortable position. The company has lost ground in sports to upstarts like On Holding, and its aggressive push toward direct-to-consumer sales has weakened the brand and hurt relationships with retailers. The stock has been a disaster, down more than 60% from its all-time high.

While attempting to stage a comeback against the backdrop of an uncertain macroeconomic environment will only make things more difficult, green shoots are starting to appear. Wholesale revenue rose by 7% in the company’s latest quarter, and the Nike brand managed to grow in North America. Nike is refocusing on key sports as well as the North American market, and rebuilding wholesale relationships, and progress is clearly being made.

At the same time, Nike CEO Elliott Hill was careful to note that Nike’s progress “will not be linear as dimensions of our business recover on different timelines.” Investors shouldn’t expect miracles in the next few quarters, but for those willing to buy and hold for at least a few years, Nike is positioning itself for a return to consistent growth. With the stock carving out new multiyear lows, now is a great time to bet on an eventual comeback.

4. Walmart

Inflation, tariffs, and souring consumer sentiment have created plenty of uncertainty for the retail industry. For investors looking for a relatively safe bet no matter what happens to the economy, Walmart is a great choice.

Walmart’s massive scale gives it unparalleled leverage with suppliers, allowing it to keep prices as low as possible and win over consumers struggling with strained household budgets. Walmart grew revenue by nearly 5% year over year in its latest quarter while gross margin remained steady and adjusted operating margin rose. The company’s bet on technology is also paying off, with global e-commerce sales rising by 25%.

Walmart is diving headfirst into the future with its partnership with OpenAI that will enable customers to purchase products from Walmart directly within ChatGPT. While the interplay between AI and commerce is still evolving, getting its products in front of hundreds of millions of ChatGPT users could drive meaningful revenue growth. Walmart isn’t immune to economic conditions, but the company is better positioned than most retailers to ride out the storm.

5. Reddit

Where people on the internet get information, including recommendations that lead to purchases, is changing. Search engines used to be the only game in town. Then came social media sites like Meta Platforms‘ Facebook and Instagram, which are full of lucrative ads. AI chatbots like ChatGPT are pulling more people away from search engines, and even Alphabet has resorted to inserting AI Overviews at the top of Google search results.

What makes Reddit unique is that it benefits almost no matter what. Plenty of people go directly to Reddit for information; those who search on Google often find Reddit threads among the top results. And AI chatbots and Google’s AI overviews often use Reddit threads as key sources. As the old and the new battle each other, Reddit stands above the fray.

Reddit’s ad revenue is soaring as more people turn to the social media site. Ad revenue jumped by 84% year over year in the second quarter, driven by a 21% rise in daily active unique users and improved monetization. Depending on Google and AI chatbots for traffic does pose a risk, and it could create volatility in traffic and revenue. But there’s no real alternative to the rich source of information Reddit provides. For investors who can handle a riskier stock, Reddit is great choice.

The post Hey, Canada! Here Are 5 Top U.S. Stocks to Buy in October appeared first on The Motley Fool Canada.

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Fool contributor Timothy Green has positions in Intel. The Motley Fool recommends Intel. The Motley Fool has a disclosure policy.