The rapid rise of the artificial intelligence (AI) sector over the last few years has spurred concerns of an AI bubble. Could the industry be on course toward the kind of crash that ended the dot-com bubble near the start of the 21st century?
That's not a major concern for 93% of investors who own AI stocks and AI ETFs, according to a survey conducted for The Motley Fool's 2026 AI Investor Outlook Report. These investors are confident that artificial intelligence companies will deliver strong returns over the long haul, and see the industry's growth as a secular trend.
Two businesses poised for further long-term gains thanks to AI are Nvidia (NVDA 2.72%) and Alphabet (GOOGL +1.18%)(GOOG +1.15%). Both are capable of thriving over the next decade as this transformative technology reshapes industries.
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How Nvidia is capitalizing on the AI tide
Nvidia CEO Jensen Huang shares a positive perspective on AI. "There's been a lot of talk about an AI bubble," he said during the company's most recent earnings call. "From our vantage point, we see something very different."
He went on to explain that cloud computing systems and data centers built primarily around CPUs rather than GPUs and other accelerators are not equipped to handle AI, requiring upgrades in tech infrastructure. This is driving more demand for Nvidia's products. For example, in its fiscal 2026 third quarter, which ended Oct. 26, the company's revenues rose 62% year over year to a record $57 billion.
NASDAQ: NVDA
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In addition, artificial intelligence is ushering in new technologies, such as agentic AI and autonomous vehicles. These emerging fields, according to Huang, "will be revolutionary, giving rise to new applications, companies, products, and services."
Nvidia is positioning itself to take advantage of these trends for years to come. For instance, it has developed specialized tech for self-driving cars, and is partnering with ride-hailing company Uber in its efforts to launch a fleet of autonomous vehicles by 2027.
AI's benefits to Alphabet
While Nvidia is a leader in semiconductor chips, providing the computational power used to support AI systems, Google parent Alphabet is delivering artificial intelligence to the masses.
When generative AI first came on the scene, it appeared that it would threaten Alphabet's key moneymaker: Google Search. However, the company's own AI efforts have thus far enabled it to maintain its search engine leadership.
"As people learn what they can do with our new AI experiences, they are increasingly coming back to search more," said Alphabet CEO Sundar Pichai on the Q3 earnings call.
As a result, Google Search revenues hit $56.6 billion in Q3, up from $49.4 billion in the prior-year period, helping total revenue to grow by a strong 16% to $102.3 billion.
NASDAQ: GOOGL
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Alphabet's AI efforts extend to its other businesses, such as its self-driving car subsidiary, Waymo. It has gradually been expanding its driverless ride-share business in the U.S., and plans to roll it out in London this year, following its Tokyo debut in 2025.
Investing in Alphabet and Nvidia is a prudent strategy to gain exposure to different areas of the AI industry, and both companies look poised to deliver business growth over the next decade and beyond.
