Artificial intelligence (AI) has the chance to become one of the biggest and most impactful technological innovations of our time. The applications of the technology are still in the very early innings, as is the buildout of the infrastructure needed to test large language models (LLMs) and run AI inference.
Let’s look at three stocks set to be AI winners that you can buy and hold onto for the next decade.
Image source: Getty Images.
1. Nvidia
Nvidia (NASDAQ: NVDA) has been one of the biggest AI winners thus far, but that doesn’t mean it won’t continue to be a long-term winner. The company’s graphic processing units (GPUs) have become the backbone of the infrastructure buildout to help power AI applications. As companies rush to create their own AI applications, demand for Nvidia’s chips has been through the roof.
To maintain its lead in the space, Nvidia has sped up its innovation cycle, and it is looking to introduce new chip architecture on an accelerated schedule. At the same time, the company’s Compute Unified Device Architecture (CUDA) software platform is a differentiator for the company and has helped it create a wide moat. The software platform is generally what developers are taught on to program GPUs, helping make Nvidia’s chips and software platform the industry standard.
NVDA PE Ratio (Forward 1y) Chart
Despite the stock’s strong performance, Nvidia still trades at an attractive valuation, with a forward price-to-earnings (P/E) ratio of under 30 based on 2025 analyst estimates. Given its growth potential, that is a bargain.
2. Alphabet
Don’t let the slide in Alphabet’s (NASDAQ: GOOGL) (NASDAQ: GOOG) stock following its second-quarter results fool you. The company posted strong results that show it is set to become an AI winner.
The company’s cloud computing segment, Google Cloud, is making great strides, seeing Q2 revenue growth of 29% to $10.4 billion, as the segment benefits from developers using its AI infrastructure and generative AI solutions. Importantly, though, this is a very fixed-cost business where the company has just gained the necessary scale….
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