Don't let the so-called "SaaSpocalypse" scare you away from the tremendous investing opportunity created by artificial intelligence (AI). Sure, many SaaS stocks have taken a beating. However, several AI leaders are arguably poised to become de facto utilities in the global economy.
Some businesses will no doubt be disrupted by AI. Others, though, are setting the stage for this disruption with their technologies. Here are three AI stocks you can buy and hold for the next decade.
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1. Alphabet
A strong case could be made that Alphabet (GOOG 1.54%) (GOOGL 1.70%) is the most complete AI stock on the market. There are a few areas within AI where the company isn't a leader.
Alphabet's Google Cloud is the fastest-growing of the big three cloud service providers. Its revenue skyrocketed 48% year over year in the fourth quarter of 2025 and ended the year with an annual run rate of over $70 billion.
NASDAQ: GOOGL
Key Data Points
While Google Cloud uses AI chips from both of the other two companies on our list, the cloud unit also offers customers its own custom AI accelerators. Google Cloud's Ironwood Tensor Processing Units (TPUs) are especially attractive because they're specifically designed for inference. Look for Google Cloud to increasingly use its in-house AI chips over the next several years.
Meanwhile, Google Gemini consistently ranks among the most powerful AI models. Future versions of Gemini and its descendants should keep Google at the forefront of the AI world.
Importantly, Alphabet is also a major player in the devices that deliver AI. Its Android operating system powers billions of smartphones. Google is in the race to compete in the smart glasses market (and could offer the best software around).
2. Nvidia
While Alphabet might be the most complete AI company, Nvidia (NVDA 1.21%) could be the most crucial. Without the company's GPUs, the AI market wouldn't exist as we know it.
Could Nvidia's dominance evaporate over the next decade? Anything is possible, but I wouldn't bet on it. My optimism about Nvidia isn't based on its current market position, by the way. Instead, it's based on two factors that make it likely that the company will preserve its top status.
NASDAQ: NVDA
Key Data Points
First, Nvidia's CUDA (Compute Unified Device Architecture) software is the standard for AI processing. Leading AI frameworks such as PyTorch and TensorFlow are tightly integrated with CUDA. It's costly for developers who have built AI applications using CUDA to switch to rival hardware.
Second, Nvidia continues to innovate rapidly. In the past, the company rolled out major new products every two years. It's now on a one-year cycle. Nvidia's financial strength also enables it to invest more in research and development than most competitors.
3. Advanced Micro Devices
Nvidia is the biggest GPU stock, but it isn't the only one. Advanced Micro Devices (AMD 3.13%) is the most formidable direct rival. Like Nvidia, AMD should have staying power.
To be sure, AMD remains a distant No. 2 for now. However, its stock has outperformed Nvidia's over the last 12 months. AMD could also have more room to run than Nvidia does, simply because its market cap is less than one-tenth that of its gigantic foe.
NASDAQ: AMD
Key Data Points
Perhaps the most compelling example of AMD's AI credibility is the company's partnership with ChatGPT creator OpenAI. By the end of the decade, OpenAI will deploy 6 gigawatts of AMD GPUs. The AI model leader also holds warrants that give it a 10% stake in AMD.
AMD could even have an advantage over Nvidia in edge AI. The company's 2022 acquisition of Xilinx gave it a strong position in adaptive computing chips critical to running AI on local devices.
