2 artificial intelligence (AI) stocks you can buy and hold for the next decade

Artificial Intelligence (AI) stocks took a hit over the summer. The VanEck Semiconductor ETFwhich is full of semiconductor stocks that are tied to the AI ​​sector, has fallen as much as 25% from its all-time high set in July.

However, I remain optimistic about AI. Investors have only seen the early stages of how this technology will reshape the world, and further innovations will take years and even decades to emerge.

That’s a strong case for owning AI stocks for the long haul — here are two that I find particularly compelling.

Image source: Getty Images.

The cutting edge leader in data analytics

At the top of my list is Palantir TECHNOLOGY (PLTR 1.00%).

The company, which provides big data solutions based on artificial intelligence, is very good. Earlier this month, it was announced that Palantir would be joining S&P 500 index. That news sent the stock soaring, already up 113% year-to-date.

Behind this excellent performance are the company’s sterling fundamentals. Still a young company, Palantir is primarily focused on growing its customer base and revenue. As of the second quarter, its quarterly revenue rose to $678 million, up 27 percent from a year earlier.

Similarly, Palantir’s US customer base is growing very rapidly. The company reported 295 US commercial customers last quarter, up 83% from last year. Additionally, Palantir is attracting larger clients as it closed 27 deals worth more than $10 million each during the period.

Needless to say, Palantir is riding the wave of AI momentum. As CEO Alex Karp noted in his most recent shareholder letter, “Our growth in the commercial and government markets has been driven by an unrelenting wave of demand from customers for artificial intelligence systems that go beyond just the performative and academic.” .

In short, the company has caught the wave and is riding it well. Investors looking for an AI stock to buy and hold for the long term should strongly consider Palantir.

The foundation of AI innovation

Next on my list of AI actions is Nvidia (NVDA -1.59%).

Having said that, Nvidia it is a stock i want to buy and YOU for the next decade or more. This is important because I have made no secret of my opinion that the stock has become very expensive.

However, I still see it as a strong buy because AI is a long-term trend that will unfold over many years. In the same mode The internet continues to evolve, AI has a long way ahead from her.

This is great news for Nvidia, in particular, as its product is the core solution when it comes to building the “brains” of various AI models. It makes graphics processing units (GPUs) the most favored by AI developers

Strong demand for AI-capable GPUs means Nvidia can charge top dollar for its products, including the H100 and the soon-to-debut Blackwell chip.

It’s important to remember why Nvidia stock is up more than 600% over the past two years: The company’s revenue and profits are exploding.

Data by YCharts.

In the most recent quarter (ended July 28), revenue was $30.0 billion, up 122% year-over-year. In the last 12 months, the company generated sales of $96.3 billion, up from $25.7 billion less than two years ago. Profits rose similarly.

The company’s dominant position in AI has driven its stock price to new heights, but even after its incredible two years of earnings, Nvidia remains an AI stock I want to own for the next decade and beyond.