Investors can make the AI boom a success by simply owning these winners for the next decade.
All the aggressive investments in chips and data centers you’ve read and heard about are intended to set the stage for what’s to come. Research conducted by Roots Analysis estimates that artificial intelligence (AI) The market could grow from just over $270 billion today to over $5.2 trillion over the next decade.
Chances are that some of the biggest AI winners will be companies that have yet to come into existence, are still private, or are relatively unknown. That said, investors are starting to get a good sense of the highs AI Actions now have the most brilliant decade ahead of them.
Investors can also have their piece of the pie and eat it. Be sure to keep an eye out for the next big thing. But in the meantime, it’s wise to look to the confirmed winners. Here are five top AI stocks to buy and hold by 2035 and potentially beyond.
Image source: Nvidia
1.Nvidia
It is wise to start with Nvidia (NVDA +1.09%). It dominates the market for accelerator chips, which work like clusters to train AI models in data centers. We could think of Nvidia as the company providing the raw computing power for AI, like the power of a car engine. Analyst study estimates Nvidia’s GPU market share in data centers as high as 92%, although company may soon face more competition.
Today’s change
(1.09%) $2.05
Current price
$190.66
Key Data Points
Market capitalization
$4.6 billion
Daily scope
$189.63 -$192.69
52 week range
$86.62 -$212.19
Volume
5.5 million
Average flight
189M
Gross margin
70.05%
Dividend yield
0.02%
from Nvidia CUDA programming established a competitive gap. Virtually all AI hyperscalers have already invested substantially in building their infrastructure with Nvidia GPUs. So far, hyperscalers have largely avoided having to shut down Nvidia in the midst of this meteoric AI arms race. Nvidia’s order backlog, estimated at $500 billion, is a testament to the company’s continued momentum. In all, invest in Nvidia continues to look like a central player in AI.
2. Alphabet
Google’s parent company, Alphabet (GOOGLE 0.20%)(GOOG 0.23%)has huge AI benefits. Its diverse consumer products and services reach billions of Internet users worldwide. Its ecosystem includes Google apps, YouTube and software for Android smartphones. It also operates Google Cloud and the first autonomous ride-sharing service. Finally, Alphabet owns about 7% of SpaceX, so this is a clever way to invest in Starlinkits satellite Internet business.
If that wasn’t enough, Alphabet has become a potential competitor to Nvidia in the AI chip space. He successfully designed a custom chip called the Tensor Processing Unit (TPU) and then trained his own AI model, Gemini, on it. The company has since considered selling them to other AI companies. It’s hard to find a more comprehensive AI and technology juggernaut on the market, which makes invest in Alphabet obvious for the next decade.
3.Microsoft
Most investors already know Microsoft (MSFT 0.06%). The long-standing tech giant remains a key player in the future of AI, for two main reasons. First, it operates Azure, the world’s second-largest cloud services company. It also owns about 27% of OpenAI, the creator of the leading AI application, ChatGPT. So if you want invest in OpenAIwhich is not currently public, this is one way to do it.
Today’s change
(-0.06%) $-0.31
Current price
$487.71
Key Data Points
Market capitalization
$3.6 billion
Daily scope
$485.96 -$488.12
52 week range
$344.79 -$555.45
Volume
8.8 million
Average flight
23M
Gross margin
68.76%
Dividend yield
0.70%
Microsoft’s Azure business is poised to grow as demand for AI moves through the cloud. With Microsoft, investors also get some peace of mind. The company has a mature, but extensive, software business focused on the Windows operating system and Microsoft 365 software. Investors also receive a dividend that Microsoft has increased for 23 consecutive years. If you value stability, Microsoft might be the stock for you.
4. Amazon
If it wasn’t obvious before, these tech giants are also offering ways to invest in some of these emerging AI companies that aren’t yet publicly traded. Amazon (AMZN +0.06%) is the last example on this list. The e-commerce giant also operates the world’s leading cloud services business, Amazon Web Services (AWS). Amazon works closely with Anthropic, a competitor to OpenAI.
Amazon has an $8 billion stake in the company. Therefore, owning Amazon stock is an easy way to invest in Anthropic. Amazon’s existing cloud, e-commerce and digital advertising businesses can drive long-term growth as these trends he has a lot of life left in them. Amazon arguably doesn’t need AI to be a winning investment over the next decade. It’s simply icing on the cake, and Anthropic’s partnership and participation adds a nice icing on the cake.
5. Palantir Technologies
It’s still very early for AI software, but Palantir Technologies (PLTR 2.81%) already stands out. The company specializes in developing custom software applications on its proprietary platforms, and its growth has continued to accelerate since the launch of its AI-focused platform, AIP, in mid-2023. Palantir wins government and corporate contracts in a big way.
Today’s change
(-2.81%) $-5.46
Current price
$188.71
Key Data Points
Market capitalization
450 billion dollars
Daily scope
$188.62 -$196.35
52 week range
$63.40 -$207.52
Volume
26M
Average flight
48M
Gross margin
80.81%
The main concern of the stock is its excessive valuation, which could limit the future rise of the stock. Fortunately, Palantir still has less than 1,000 customers, so there are a great track for customer acquisition over the next decade, likely fueling Palantir’s remarkable growth for some time to come. Investors should consider snacking on stocks, saving money if stocks fall. If so, long-term investors should welcome this buying opportunity with open arms.