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4 Artificial Intelligence Stocks You Can Buy and Hold for the Next Decade

4 Artificial Intelligence Stocks You Can Buy and Hold for the Next Decade

Author:
foolstock
Published:
2025-09-08 23:30:00
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AI revolution accelerates—these four stocks position you for the decade ahead.

Long-term plays in machine intelligence

Forget quarterly earnings drama. These companies build foundational AI tech that outlasts market cycles. They're not just riding the wave—they're building the ocean.

Infrastructure giants betting big

From chipmakers to cloud platforms, the real money in AI flows to the picks-and-shovels players. They power the entire ecosystem while startups burn VC cash chasing the next chatbot.

Regulatory moats and real revenue

These aren't speculative gambles. We're talking established players with patent portfolios thicker than a finance bro's Rolex collection. They've already survived multiple tech winters.

Because in the end, the house always wins—and these companies own the casino.

A processor with the letters "AI" on it.

Image source: Getty Images.

1. Nvidia

(NVDA 0.77%) is one of the leading AI semiconductor companies, with its processors in an estimated 70% to 95% of AI data centers. This strong position has led to impressive results for the company and resulted in its share price gaining over 1,100% over the past three years.

Nvidia's AI ride isn't over yet, as the company's latest Q2 results indicate. Data center sales spiked 56% to $41 billion as tech giants continue to invest in AI infrastructure. Profitability remains very high at the company, too, with non-GAAP earnings per share increasing 54% in Q2 to $1.05.

And more growth could be on the way. CEO Jensen Huang says AI data center spending could reach $3 trillion to $4 trillion by the end of the decade, which WOULD be a boon to Nvidia's top and bottom lines.

2. Microsoft

(MSFT 0.61%) was an early adopter of AI chatbots and partnered with OpenAI years ago. That wise positioning gave Microsoft the ability to integrate the bot into its suite of online services and help it outpace rivals, including.

But Microsoft's real long-term AI opportunities may come from its cloud computing platform, Azure. Microsoft is the second-largest cloud company afterand has 20% of the market. Azure and other cloud sales growth spiked 39% in Q4 (which ended June 30), and Azure sales for fiscal 2025 reached $75 billion -- a 34% jump from the previous year.

Microsoft's strong position in AI cloud computing services will become increasingly important in the coming years as global AI cloud revenue will grow into an estimated $2 trillion market by 2030.

3. Taiwan Semiconductor Manufacturing

(TSM 1.44%), also called TSMC, may not be on your AI investing radar as much as some of the other companies on this list, but it should be. The company is the go-to manufacturer for most AI processors and holds an estimated 90% of the advanced processor market.

Nearly every major tech company needs advanced processors these days, which has resulted in impressive financial results for the company. TSMC's Q2 sales jumped 39% to $31 billion, and earnings ROSE 67% to $2.47 per American depository receipt (ADR).

In addition to its leadership in AI chip manufacturing, another appealing aspect of TSMC is its valuation. Even with its share price rising nearly 200% over the past three years, Taiwan Semiconductor stock trades at just 26 times earnings -- roughly in line with the S&P 500 and far below fellow chip manufacturer's lofty P/E of 88.

4. Broadcom

(AVGO 3.05%) is another major player in the AI space with its application-specific integrated circuits (ASICs), many of which are used in AI data center infrastructure. Alphabet,, and others buy custom chips from Broadcom, and the company's recently reported Q3 results show the strength of this demand.

Broadcom's AI revenue surged 63% in Q3 to $5.2 billion, and management estimated it will "accelerate" to more than $6 billion in Q4. Non-GAAP earnings per share also jumped 36% to $1.69 in the quarter. The company also revealed on its earnings call that it has a new customer -- largely believed to be OpenAI -- that has placed an order of custom processors worth $10 billion.

That's notable because Broadcom said before this development that AI revenue would increase by up to 60% in 2026, but now says it could "improve significantly from what we had indicated last quarter." CEO Hock Tan didn't provide a specific percentage, but he noted on the earnings call that it will be a "fairly material improvement."

No matter which AI stock you choose, the key to benefiting from the AI boom is patience. These companies are shaping the future of their industries, and holding their shares for years -- not just months -- could make all the difference. A long-term horizon, potentially a decade or more, may be the wisest way to capture their full potential.

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