Every decade or so, a new technology emerges that can completely transform the world. Companies well positioned to capitalize on these introductions and the scaling-up of a new technology can see tremendous growth, even if they're not the first to market. We saw that play out with the internet boom and the proliferation of smartphones over the last 30 years.
This decade's transformative technology is, without a doubt, generative artificial intelligence (AI). The growing capabilities of large language models could affect practically every industry. But three AI stocks in particular stand out as incredible opportunities for long-term investors right now.
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1. Meta Platforms
Meta Platforms (META 2.46%) may have more to gain from developing excellent generative AI models than any other company. Practically every part of its business could benefit from it, ranging from its advertising to its messaging apps and even its augmented- and virtual-reality headsets.
In the near term, the advertising business is the biggest beneficiary of Meta's AI investments. It's working on an AI agent that can develop and test ad campaigns for its Facebook and Instagram platforms to optimize advertising budgets.
That could bring in more small-business advertisers while reducing overhead costs for marketers, increasing the money available to spend on Meta's ads. And its machine learning algorithms can work in concert to optimize which ads each user sees and when, thereby maximizing the value they deliver to marketers.
NASDAQ: META
Key Data Points
Meta's AI efforts have paid off so far. Ad revenue increased 21% through the first nine months of 2025. Over the long run, generative AI could be crucial in increasing engagement, giving creators more tools to produce interesting content and personalize it for each user. It could also create better augmented-reality user interfaces, advancing the computing platform.
It's no wonder Meta is spending so much on building data centers. In its third-quarter earnings release, management told investors it would increase 2026 capital expenditures (capex) by more than $30 billion, up from 2025 levels. That would mean more than $100 billion in capex in 2026.
The growth in spending will weigh on earnings as depreciation expenses hit the income statement. Still, Meta's long-term growth potential remains intact. With a forward price-to-earnings ratio (P/E) of just 22, the stock looks like a great buy right now.
2. Salesforce
Salesforce (CRM +2.49%) is infusing its leading enterprise software suite with generative AI capabilities. That should enable it to steadily increase users and revenue per user over time. But the bigger opportunity may be in its latest product: Agentforce.
It's the company's platform for developing AI agents that can automate tasks throughout Salesforce's software by using a business' own data. Agentforce has seen strong momentum over the past year, with annual recurring revenue climbing 330% year over year in its most recent quarter.
That said, it's operating off a very small base. When combined with its Data 360 software, which provides a backbone for Agentforce, annual recurring revenue was $1.4 billion as of the end of October, up 114% year over year. Still, that represents a tiny percentage of Salesforce's overall revenue.
But the potential for Agentforce is huge. Management expects that customers who adopt it will increase their spending on Salesforce's software by 200% to 300% over the long run. At its analyst day in October, it provided multiple examples of businesses doubling their spend since adopting Agentforce, which was launched in late 2024.
NYSE: CRM
Key Data Points
As Agentforce adoption grows, management expects overall sales growth to reaccelerate, and it should produce strong operating leverage as well. It's already seeing positive signs as remaining performance obligations climbed 12% year over year in its most recent quarter.
The company expects to hit $60 billion in revenue by 2030 with an operating margin around 40%. That's up from about $41 billion this year and a 34% operating margin expected for this year.
Even if Salesforce falls short of those goals, management likely is directionally accurate. And with the stock trading for just 19 times forward earnings, that's good enough to make it a great long-term buy right now.
3. Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing (TSM 4.54%), known as TSMC, has been one of the biggest beneficiaries of the booming demand for AI chips. TSMC's leading technology has made it the go-to supplier for anyone looking to develop high-end chip designs.
Other semiconductor foundries don't have the technology or capacity to meet demand for leading-edge GPUs and custom AI accelerators. As a result, TSMC saw sales grow 35.9% in 2025, as its gross margin expanded to 59.9%. That put its total market share of the contract chip manufacturing business at 72% as of the third quarter.
Management expects those strong results to continue into 2026 and beyond. It instituted price hikes across the board for its advanced manufacturing processes (7-nanometer chips and smaller) at the start of the year, with plans for continued price hikes through 2029. Those chips accounted for roughly three-quarters of its revenue last year.
NYSE: TSM
Key Data Points
Management plans between $52 billion and $56 billion in capex this year, up from $40.9 billion last year. TSMC is usually conservative in its capex plans, ensuring ample demand before it builds out capacity. The midpoint of that guidance represents a 31% increase in spending.
That's backed up by management's guidance for five-year compound annual revenue growth of 25% between 2024 and 2029. And it's an increase from its prior guidance of 20%. That implies a 22.4% sales increase over the next four years.
With that projected performance and the company exhibiting pricing power on its advanced technology, TSMC should see strong earnings growth in the mid-20% range through the end of the decade. Meanwhile, the stock trades at just 23 times forward earnings estimates, making it another great value given its potential.
