2 Brilliant AI Stocks to Buy in January and Hold for the Long Term

Core Insights - The exponential growth of artificial intelligence (AI) is projected to significantly boost global GDP, with strong revenue growth reported by leading AI hardware and software companies [1] Company Analysis Nvidia - Nvidia is a leading supplier of graphics processing units (GPUs) and is positioned to benefit from a $1 trillion opportunity as data centers transition to AI-optimized hardware [3][5] - The company's annual revenue has quadrupled over the last three years, with expectations of reaching $129 billion for fiscal 2025, reflecting a year-over-year increase of 112% [4] - Over 80% of Nvidia's revenue is driven by demand for data center chips and networking products, with the company estimated to control over 70% of the AI chip market [4][5] - Nvidia generated $56 billion in free cash flow on $113 billion of revenue over the last four quarters, allowing it to invest heavily in GPU technology [6] Dell Technologies - Dell Technologies is experiencing a resurgence as a growth stock, with strong demand for AI-optimized servers driving growth in its infrastructure solutions group [7] - The infrastructure business reported a 34% revenue growth in Q3 compared to the previous year, with a strong AI server backlog of $4.5 billion [8] - Dell's management identifies additional service offerings as "profit pools," which are expected to enhance margins over time [8] - Analysts project earnings growth of 10% for 2025, accelerating to 20% in 2026, with potential upside from a recovery in the PC market [9][10]