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2 AI Stocks Make Excellent Long-Term Plays to Buy in January
Yahoo Finance· 2026-01-23 19:25
Group 1 - Real wealth building is a long-term endeavor, with artificial intelligence (AI) identified as a foundational technology reshaping business operations and growth [1][2] - AI has the potential to revolutionize every industry, enhance productivity, and introduce new products over the next few decades, driven by AI chips, large-language models, self-driving vehicles, AI agents, and humanoid robots [2] - Companies specializing in AI products and services are expected to dominate the market in the coming years [2] Group 2 - Nvidia is recognized as the leader in AI chips, with a significant revenue surge of 62% year over year, driven by high demand from big tech companies [5][6] - Nvidia's net income increased by 65%, indicating its ability to expand profit margins while gaining market share, with net profit margins above 55% [6][7] - Nvidia's competitive advantage lies in its unmatched graphics processing units (GPUs) and proprietary platform software ecosystem, making it a key player in the AI boom [7] Group 3 - Both Nvidia and Alphabet are positioned to outperform the S&P 500, with Nvidia's AI chips experiencing soaring revenue growth and Alphabet leveraging AI to expand market share [8]