2 AI Stocks to Buy in January and Hold for 20 Years

Core Insights - Artificial intelligence (AI) is identified as the next major technological shift, comparable to the internet, presenting a generational investment opportunity with potential operating efficiencies worth up to $40 trillion for the global economy [1][2]. Nvidia - Nvidia has emerged as a leading stock for capitalizing on the AI trend, with its high-end graphics processing units (GPUs) being essential for cloud infrastructure providers [4]. - The company's data center revenue increased by 66% year over year, reaching $51 billion, reflecting a shift from traditional computing to accelerated computing reliant on GPUs [5]. - Capital spending on AI infrastructure is projected to grow from $600 billion in 2026 to at least $3 trillion by 2030, indicating significant growth potential for Nvidia [6]. - Nvidia's innovation pace has accelerated, with plans to launch new GPU architectures annually, including the Vera Rubin chips in 2026, which promise substantial performance improvements [8]. - The company reported net profits of $99 billion on $187 billion in revenue over the last four quarters, showcasing its financial strength [9]. - Analysts forecast a 37% annualized earnings growth for Nvidia over the next few years, suggesting strong returns for shareholders [10]. Alphabet - Alphabet has delivered strong market-beating returns over the past decade, primarily driven by growth in advertising through Google Search and YouTube, with a stock increase of 700% [11]. - The company is expected to see further returns as demand for AI and cloud computing rises, with its cloud segment revenue increasing by 34% year over year [15]. - Alphabet's Gemini AI model is integrated into its services, contributing to a significant increase in Google Search usage and achieving over 650 million monthly active users [15][16]. - The company surpassed $100 billion in quarterly revenue for the first time, supported by diverse revenue streams from online advertising, subscription services, and cloud services [16]. - Alphabet plans to spend over $91 billion on capital expenditures in 2025, with a significant increase expected in 2026, funded by an operating cash flow of $151 billion over the last four quarters [17].