Artificial intelligence (AI) investing isn't going anywhere in 2026. Although this is the fourth year of massive AI investment, many projections expect it to last until 2030, and maybe beyond that.
The reality is, we're still in the early stages of the AI build-out, and have yet to see it truly become integrated in our work and daily lives. This leaves plenty of room for stocks positioned to capitalize on this incredible technology to run.
I've got four AI stocks that look like great buy-and-hold investments for the long term, and each can deliver explosive returns.
Image source: Getty Images.
1. Alphabet
Alphabet (GOOG 1.49%) (GOOGL 1.42%) outperformed all expectations in 2025, as many expected its generative AI strategy to lose out to some of the smaller competitors. However, that didn't happen, and Gemini has emerged as a top option.
Alphabet has seamlessly integrated Gemini into its search engine, Google. Now, at the top of every search result is a generative-AI-powered summary, which has cemented Google's place at the top of the search engine hierarchy again.
NASDAQ: GOOGL
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Alphabet also has a cloud computing wing that's thriving, as it provides computing power for other companies looking to develop and employ AI technologies. Alphabet is a great company that has resisted being disrupted by AI and has instead become the disruptor.
2. Nvidia
Nvidia (NVDA 1.49%) may seem like an odd inclusion, as the expectation is for Nvidia not to be as dominant once artificial intelligence computing infrastructure has been developed. However, graphics processing units (GPUs) utilized in AI settings have notoriously short life spans, and they will need to be replaced at regular intervals. This creates a somewhat recurring revenue stream for Nvidia, which will allow it to maintain its position as a great AI stock to own for years to come.
NASDAQ: NVDA
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Furthermore, with the computing market expected to expand through at least 2030, Nvidia is still an excellent stock to own right now.
3. Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing (TSM 4.54%), also known as TSMC, is behind the chips that operate most AI workloads today. The company's foundational capabilities are second to none, and its fingerprints are on nearly every advanced technological device. There is always going to be a demand for more advanced and efficient ways to run AI workflows, and TSMC's trajectory aims to satisfy those demands.
The company is launching the 2nm (nanometer) chip node in 2026, and these devices claim to consume 25% to 30% less power when configured at the same speed as previous generation 3nm chips. Beyond 2nm, TSMC has other energy-saving technologies coming out. The pursuit of more efficient computing techniques will never cease, making TSMC a great stock to buy now and hold forever.
4. Microsoft
Microsoft (MSFT 0.48%) has taken a different path than many of its peers in the AI realm. Instead of developing its own generative AI model, the company chose to partner with several leading companies, including OpenAI (the makers of ChatGPT), xAI (the makers of Grok), and DeepSeek (a cheaper alternative from China). This has made Microsoft's cloud computing platform, Azure, a great place to develop AI products, and it's a big reason why Microsoft has done so well over the past few years.
NASDAQ: MSFT
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Furthermore, Microsoft is still integrating AI tools into its wide variety of business software. Microsoft is ingrained in the day-to-day operations of nearly every business around the world, and the integration of AI is just the next step in its dominance.
All four of these stocks are not only great buy-and-hold investments for the long term, but they are also great buys now. Each expects strong growth in 2026 and will likely be a great investment in the years beyond. I expect all of these stocks to outperform the S&P 500 (^GSPC 1.27%) over the long term, and they should make up a core position in any AI investor's portfolio.
