It's probably safe to say that artificial intelligence (AI) is here to stay. Investments in AI infrastructure continue to soar, and companies are racing to develop and implement AI in nearly every facet of their business models.
Researchers believe that over time, artificial intelligence will impact many of the world's jobs and create trillions of dollars in economic growth. Some of the top AI stocks have already generated impressive returns for investors since the AI market rally began in 2023.
However, given the long-term growth likely ahead, it would be wise to view price declines as opportunities to buy into companies leading the AI wave. Here are five no-brainer AI winners that investors should buy on the dip and hold for the next five years and beyond.
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1. Palantir Technologies
AI is ultimately software, and Palantir Technologies (PLTR +0.14%) is among the best at helping its government and corporate customers wield AI's potential. Palantir develops custom AI software on its proprietary platforms, which can perform a range of tasks, from identifying fraud to optimizing supply chains to supporting military missions. Palantir's revenue growth has continued to accelerate since last summer, following the launch of its Artificial Intelligence Platform (AIP).
NASDAQ: PLTR
Key Data Points
Almost any company large enough to invest in AI software is a potential Palantir client. There are over 20,000 large companies in the United States alone, and Palantir still has just 622 commercial customers. The stock's valuation is extremely rich at the moment, making it an obvious candidate to revisit when the price drops.
2. Arm Holdings
On the hardware side of AI are semiconductors (chips), also known as the building blocks of technology. Arm Holdings (ARM 8.19%) designs proprietary processing chip architectures and generates revenue from licensing fees and royalties. Arm's customers include the leading AI chip companies, such as Nvidia. To date, customers have shipped over 310 billion Arm-based chips, and Arm continues to increase its market share.
Arm is highly profitable, as it has almost zero expenses outside of research and development. Global chip demand is increasing over time as AI, cloud computing, autonomous vehicles, and other emerging technologies require more processing power. Analysts estimate that Arm will grow earnings by an average of 22% annually over the long term, an impressive pace. However, its steep forward price-to-earnings (P/E) ratio of 85 means investors should probably wait to buy for now.
3. Apple
Electronics giant Apple (AAPL 1.65%) has a massive AI opportunity in front of it. The company's iOS ecosystem boasts over 2.3 billion active users across smartphones, computers, and wearable devices. Unfortunately, Apple has gotten off to a slow start with AI, reportedly going back to the drawing board to fix its Siri voice assistant product. Despite the struggles, Apple likely has time to figure things out thanks to its famously sticky ecosystem.
NASDAQ: AAPL
Key Data Points
In the meantime, Apple is still poised to enjoy double-digit annualized earnings growth, partly due to its massive stock buyback programs, which steadily reduce the share count and increase earnings per share. There's a reason it's one of Warren Buffett's favorite stocks. Apple stock still has long-term upside, but it would be best to buy once its valuation falls from its current P/E ratio of 30 times 2025 earnings estimates.
4. Meta Platforms
Social media juggernaut Meta Platforms (META +0.20%) is leveraging AI in many ways. It developed and open-sourced its Llama AI model, accumulating over 1.2 billion downloads. It is also building a consumer ecosystem with Meta-branded headsets and smart glasses, an effort to break free from the control that smartphone makers have had over its apps.
AI is also helping to enhance Meta's core business, which is advertising to the 3.4 billion people using its apps each day. Meta has integrated AI into its ads business to increase monetization. Eventually, AI could automate ads, likely boosting profit margins for a company that was exceptionally lucrative to begin with. The stock's P/E ratio (28) has drifted higher since 2023, but anticipated mid-teens annualized earnings growth makes Meta a table-pounding buy on pullbacks.
5. Broadcom
Semiconductor giant Broadcom (AVGO 1.42%) is experiencing increased growth due to surging demand for its AI networking chips, as well as its custom accelerator chips (XPUs). The company's AI-related semiconductor revenue grew by 46% year over year in the second quarter of 2025 and could add billions of dollars in incremental revenue over the coming years. Investors may also like that Broadcom isn't a pure AI investment. Infrastructure software for enterprises has become a significant portion of Broadcom's business, accounting for approximately 40% of its revenue.
NASDAQ: AVGO
Key Data Points
Additionally, the stock offers a rising dividend that management has increased for 15 consecutive years. Analysts anticipate 25% annualized earnings growth over the next three to five years, making Broadcom a solid buy at 41 times 2025 earnings estimates and a no-brainer if the stock drops further.
