Artificial intelligence (AI) will create new industries, new products, and a new way of life over the next decade and beyond. Surely, new companies will emerge, and investors will benefit from their success.
But you don't need to sit around and wait for the opportunity to knock on your door. Instead, there are several AI companies already here, already leading their markets, and poised to deliver outstanding returns over the coming years.
Here are five AI stocks to buy and hold for the next 10 years.
Image source: Netflix.
1. Netflix
Investors may not classify Netflix (NFLX +0.12%) as an obvious AI company, but the streaming giant certainly fits the description. Netflix leverages the data its 325 million subscribers generate, feeding it into its algorithms to suggest the ideal binge-worthy show for you or to present ads for products that will appeal to you most.
NASDAQ: NFLX
Key Data Points
The company has a pending agreement to acquire Warner Bros. studios, HBO, and HBO Max from Warner Bros. Discovery for $82.7 billion. The deal's hefty price tag has dragged Netflix stock down to its lowest valuation since early 2023. It's a fantastic buying opportunity. Netflix would arguably become the most powerful media company on the planet if the acquisition closes, fueling years of growth.
2. Nvidia
The AI boom centers around Nvidia (NVDA 1.48%), whose GPU chips are the foundational building block of almost every AI model on the market today. Nvidia's high-end chips, coupled with its CUDA programming, have dug a wide competitive moat, which is why the company continues to run circles around its competitors.
Nvidia must continue to fend off its rivals, but the company will soon launch its Rubin chip platform. Rubin will shine in inference-intensive applications, such as AI agents that use long prompt threads, which can strain GPU memory. Nvidia's lopsided market share in AI chips won't likely crumble easily, making the stock a no-brainer as AI continues to drive chip demand for the foreseeable future.
3. Alphabet
AI is already taking tech giant Alphabet (GOOG 1.42%)(GOOGL 1.43%) to new heights. The Google parent company recently turned in a stunning fourth-quarter earnings report, featuring rapid growth across established businesses such as Google Search and Google Cloud, which powers AI, as well as emerging technologies such as its Waymo autonomous ride-share subsidiary.
NASDAQ: GOOGL
Key Data Points
Alphabet may have the most complete AI stack of any company, meaning it has coveted first-party data to develop and train AI models, owns the chips and cloud infrastructure to train and run them, and has a massive user base to sell those AI products and services to. Alphabet's recent momentum has elevated its valuation, but the stock should remain a long-term winner as the company continues to grow.
4. Amazon
It's rare for Amazon (AMZN 1.43%) to be unpopular on Wall Street. However, Amazon stock has fallen nearly 20% from its high amid investor concerns about the company's massive $200 billion spending plans for 2026. However, these investments signal that management understands the tremendous opportunity Amazon has to cement its competitive advantages and secure years of future growth.
Amazon's AWS is the world's leading cloud services business. AI should continue to drive cloud services growth as adoption spreads. Meanwhile, AI will pave the way for humanoid robotics, which could dramatically lower costs throughout Amazon's e-commerce supply chain. Few companies can match Amazon's size and financial prowess, and investors could enjoy the fruits of these AI investments for years to come.
5. Palantir Technologies
AI will change the software landscape. Thus far, Palantir Technologies (PLTR +1.45%) has stood out as a potential glimpse into the industry's future. Palantir develops custom AI software applications that ingest and analyze data for a uniquely broad range of use cases. It has worked closely with the government for years, and is now seeing explosive growth among commercial customers.
NASDAQ: PLTR
Key Data Points
Palantir has continually delivered jaw-dropping business results, and the stock has risen accordingly. As a result, shares carry a steep valuation, even after a recent tumble. Fortunately, long-term investors can be a bit more forgiving with their entry point because Palantir will likely grow into that valuation and beyond if the business continues on its current trajectory.
