Some of the artificial intelligence (AI) stocks that are sizzling hot right now potentially won't even exist in 10 years. Others will still be around, but only as a shadow of their former selves. That's simply the way things often unfold in fast-changing markets.
Are there any AI stocks you can buy and hold for the next decade that are safe bets to remain winners? Here are three that I think pass the test.
Image source: Getty Images.
1. Alphabet
Multiple challenges have arisen for Google's parent, Alphabet (GOOG +2.50%) (GOOGL +2.37%), over the years. Companies have tried to dethrone Google Search with rival search engines. TikTok's success raised questions about YouTube's dominance. Regulators have threatened harsh penalties. Some believed that generative AI presented an existential threat to Google Search.
But today, Alphabet stands larger than it's ever been. It sits atop a massive cash stockpile. The company's revenue and profits are soaring. CEO Sundar Pichai noted in Alphabet's third-quarter update that "every major part of our business" delivered double-digit growth in the quarter.
NASDAQ: GOOGL
Key Data Points
I expect Alphabet to remain resilient over the next 10 years. The keys to the company's success will, as they have been in the past, be its ability to adapt rapidly to changes and capitalize on significant market opportunities.
Three of those opportunities loom especially large over the next decade, in my opinion. Agentic AI is perhaps the most important one in the near term, with Google Cloud poised to be a big winner. The robotaxi market is gaining momentum. Alphabet's Waymo unit is leading the way. Quantum computing could be a game changer within the next 10 years. Google's Quantum AI is well-positioned to help usher in a new era of technology.
2. Amazon
Few companies have made themselves as indispensable to consumers' everyday lives as Amazon (AMZN +0.26%) has. Millions of people shop online using the company's e-commerce platform or in person at its Whole Foods grocery stores, read books on its devices, protect their homes with its security systems, and watch programs on its streaming services.
Even if you don't do any of those things, you probably interact with Amazon in other ways regularly. Amazon Web Services (AWS) ranks as the world's largest cloud service provider. Its customers include ESPN, Facebook and Instagram parent Meta Platforms (META 1.81%), Netflix (NFLX +0.02%), Vanguard, and X (formerly Twitter).
NASDAQ: AMZN
Key Data Points
I suspect Amazon will be even more firmly entrenched in everyday life 10 years from now. Like Alphabet, Amazon is likely to be a key beneficiary of the adoption of agentic AI. The company should also continue to grow its e-commerce business.
The most exciting aspect of buying and holding Amazon stock over the next decade, however, is the potential for the company to expand into new markets. We'll soon see one example, as Amazon starts providing satellite internet service. I wouldn't be surprised if the company becomes a major player in personal robots within the next 10 years, either.
3. Microsoft
Microsoft (MSFT +1.01%) was the technology giant that seemed to be left behind for a long time. Its stock languished throughout the first decade of this century and well into the second decade. That isn't the case now, and I don't expect it will be going forward.
In some ways, Microsoft occupies the position with many businesses that IBM (IBM 1.90%) did in its heyday. Companies around the world use Microsoft's operating system, productivity applications, software development tools, database server, cloud services, and AI capabilities.
NASDAQ: MSFT
Key Data Points
However, I think Microsoft is adapting to change more effectively than IBM did in the 1980s. The company's response to the early success of OpenAI's ChatGPT by integrating generative AI throughout its products and services was a brilliant move. I'm confident that Microsoft will successfully navigate future changes in the AI landscape.
I also predict that the company will be one of the giants of quantum computing in 10 years. Microsoft's topological superconductor technology has the potential to enable the scaling of quantum systems more effectively than other approaches. I wouldn't buy and hold Microsoft stock solely because of its quantum computing investments, but it's a nice lottery ticket that could pay off handsomely.
