5 Artificial Intelligence Stocks You Can Buy and Hold for the Next Decade

Core Viewpoint - Artificial intelligence (AI) is a transformative technology still in its early stages, presenting significant investment opportunities in leading companies within the sector. Group 1: Nvidia - Nvidia is the leader in AI hardware, holding a 92% market share in GPUs as of Q1 [2] - The company has established a robust ecosystem by providing its CUDA software for free to research labs and universities, fostering a generation of developers [3] - Nvidia's annual release of new chips and its strong software performance ensure its continued leadership in AI infrastructure [4] Group 2: Taiwan Semiconductor Manufacturing - Taiwan Semiconductor Manufacturing (TSMC) plays a crucial role in the AI boom by manufacturing advanced chips for major players like Nvidia, with high-performance computing now accounting for 60% of its revenue, up from 52% a year ago [5] - TSMC's revenue is significantly driven by chips built on 7-nanometer and smaller nodes, which made up nearly three-quarters of its revenue last quarter [6] - As AI expands into new markets, TSMC's position in the semiconductor supply chain positions it as a long-term winner [7] Group 3: Alphabet - Alphabet has successfully integrated AI into its core business, with Google Search traffic benefiting from AI Overviews, leading to a 12% increase in search revenue last quarter [8] - The company's cloud computing segment, Google Cloud, saw a 32% revenue increase last quarter, driven by the adoption of its Vertex platform for AI applications [9] - Alphabet's investment in data center infrastructure and custom AI chips positions it as a long-term AI winner [10] Group 4: Meta Platforms - Meta Platforms is leveraging AI to enhance user engagement on its social media platforms, leading to increased advertising opportunities and higher returns for advertisers [12] - The company is focusing on monetizing its platforms like WhatsApp and Threads, which have significant user bases but are just beginning to run ads [13] - CEO Mark Zuckerberg's ambition to develop "personal superintelligence" indicates a long-term commitment to AI, making Meta a stock to consider for investors [14] Group 5: Microsoft - Microsoft's cloud computing unit, Azure, has experienced consistent revenue growth of 30% or more for eight consecutive quarters, with AI contributing nearly half of that growth [15] - The integration of AI across Microsoft's product lines, including Microsoft 365 AI Copilot and GitHub Copilot, is driving enterprise customer adoption [16] - Microsoft's significant stake in OpenAI, which entitles it to 49% of OpenAI Global's profits up to a tenfold return, further enhances its position in the AI landscape [17]