Got $3,000? 4 Artificial Intelligence (AI) Stocks to Buy and Hold for the Long Term

Core Insights - AI investments are expected to continue benefiting investors through 2030 and beyond, indicating a long-term growth trajectory for the sector [1] - The integration of AI into daily work and life is still in its early stages, presenting significant opportunities for stocks that can capitalize on this technology [2] Company Summaries - Alphabet: Outperformed expectations in 2025 with its generative AI strategy, particularly through the integration of Gemini into its search engine, solidifying its leadership in the search market. The company has a market cap of $4.1 trillion and a gross margin of 59.18% [3][5] - Nvidia: Despite concerns about future dominance, Nvidia's GPUs used in AI have short life spans, creating a recurring revenue stream. The company has a market cap of $4.5 trillion and a gross margin of 70.05% [6][8] - Taiwan Semiconductor Manufacturing (TSMC): TSMC is crucial for AI workloads, launching a 2nm chip node in 2026 that promises 25% to 30% less power consumption compared to 3nm chips. The company is positioned to meet the growing demand for efficient AI computing [9][10] - Microsoft: Instead of developing its own AI model, Microsoft has partnered with leading companies like OpenAI, enhancing its Azure cloud platform for AI product development. The company has a market cap of $3.4 trillion and a gross margin of 68.76% [11][13] Investment Outlook - All four companies are considered strong buy-and-hold investments for the long term, with expectations of strong growth in 2026 and beyond. They are anticipated to outperform the S&P 500, making them core positions for AI investors [14]