3 Artificial Intelligence Stocks You Can Buy and Hold for the Next Decade

2 months ago 18

Manali Pradhan, The Motley Fool

Tue, Apr 15, 2025, 5:30 AM 5 min read

The planetary equity markets are highly volatile these days, triggered chiefly by ongoing geopolitical uncertainty and commercialized wars. Artificial quality (AI) stocks are besides suffering, with galore seeing important corrections successful valuations. Yet the semipermanent maturation communicative of respective of these AI-powered stocks, particularly those with scalable cutting-edge technologies, is intact.

Investors tin payment from this marketplace uncertainty by picking tiny stakes successful high-quality, fundamentally beardown AI stocks with sustainable competitory advantages, specified arsenic Meta Platforms (NASDAQ: META), Broadcom (NASDAQ: AVGO), and Palantir Technologies (NASDAQ: PLTR). Here's wherefore buying and holding these stocks implicit the adjacent decennary tin beryllium a astute determination for retail investors.

Meta Platforms' extended idiosyncratic basal exceeds 3.3 cardinal regular progressive users crossed its Family of Apps -- including Facebook, Instagram, WhatsApp, Threads, and Messenger -- granting it unmatched dominance successful the planetary integer advertizing landscape.

Meta's monolithic idiosyncratic basal gives it entree to immense amounts of personalized data. The institution analyzes this information with precocious AI algorithms to amended contented recommendations connected its societal media platforms, which helps boost idiosyncratic engagement. This translates into improved advertisement targeting and higher instrumentality connected concern for advertisers connected its platforms. As much applicable contented and products go disposable connected Meta's platforms, it attracts adjacent much customers. This beardown web effect results successful a sticky idiosyncratic basal and an advertiser basal for Meta.

Meta developed a multifaceted AI strategy, which includes investing successful AI applications, AI models, and AI infrastructure. The company's personalized AI assistant, Meta AI, reaches 700 cardinal monthly users. The institution besides focuses connected processing an open-source Llama exemplary bid -- an inaugural to assistance gully developers and enterprises to its ecosystem. Meta besides planned for $60 cardinal to $65 cardinal superior expenditures successful 2025, of which a important information is for expanding information halfway capacity.

Yet Meta trades astatine lone 22.3 times earnings, beneath its five-year humanities mean of 25.3 times. Meanwhile, RBC Capital analysts estimation that the company's net volition turn annually by 15% to 20% implicit the agelong word erstwhile Meta has completed its existent investments successful AI initiatives.

Against this backdrop, the existent valuation retreat offers an charismatic introduction constituent into a institution poised to payment from AI's semipermanent maturation imaginable successful the coming decades.