3 AI Stocks That Still Look Like Long-Term Winners

When it comes to investing in artificial intelligence (AI) stocks, the choices can be overwhelming. However, three prominent technology companies stand out for their potential to remain long-term winners: Palantir Technologies, Apple, and Alphabet.

These stocks represent a mix of both high-performing and challenged companies. Palantir has been a leader in AI, while Apple and Alphabet face concerns about their AI capabilities. Here’s a closer look at each company and why they can still deliver strong returns.

1. Palantir Technologies: AI Stock Continues to Defy Gravity

Palantir Technologies has seen a remarkable 2,100% gain since 2023, making it one of the market's biggest winners in AI. The company is a leader in developing AI software on its proprietary platforms for government and enterprise customers. Since launching AIP, its AI-focused platform, in mid-2023, Palantir's growth has accelerated.

With fewer than 500 commercial customers in the United States, a tiny fraction of the country's 20,000 large corporations, Palantir has significant room for expansion. Additionally, its close military ties and government contracts, which accounted for 55% of revenue in Q1 2025, position it well in a geopolitically active environment.

Despite its impressive gains, Palantir's stock has a forward P/E ratio of 245, which is high for a business expected to compound earnings at an annualized rate of 31%. However, given its growth momentum in both government and commercial sectors, Palantir appears poised to continue winning. Investors might want to wait for dips to buy the stock at a more reasonable valuation.

2. Apple: Slow Start in AI, but a Strong Foundation

Apple’s wide-moat ecosystem, spanning over 2.35 billion active iOS devices, should have made it a natural leader in consumer-facing AI. However, Apple has struggled to launch notable AI features smoothly, and the underwhelming rollout of Apple Intelligence, its first AI attempt, led to a reorganization of its AI team.

The good news is that Apple’s iOS remains one of the stickiest consumer ecosystems, giving the company time to figure out AI. Users are deeply committed to the Apple ecosystem, which includes phones, computers, tablets, and watches that sync and work together seamlessly. While failure to innovate in AI could eventually erode Apple’s user base, it’s unlikely to happen overnight.

Apple is a financial juggernaut with one of the world’s most influential brands. Although it may not deliver the same returns as in the past at a $3 trillion market cap, the stock should have a relatively high floor due to its massive stock buybacks, growing dividend, and sticky business model. It’s worth betting that Apple will overcome its AI challenges.

3. Alphabet: AI Opportunity or Threat?

Google's parent company, Alphabet, faces pressure from multiple directions. AI models are siphoning traffic away from traditional search engines, and U.S. regulators have pursued litigation against Alphabet for anti-competitive practices. Despite these challenges, Alphabet trades at a P/E ratio of just 19 today.

AI, however, is more of an opportunity than a threat for Alphabet. The company has integrated AI summaries into its search results, successfully monetizing them. Despite concerns, Google’s ad revenue grew by 10% in Q1 2025. Google Cloud is also growing in size and profitability due to increased demand for cloud services driven by AI.

Alphabet’s autonomous ride-hailing business, Waymo, is expanding its footprint across the United States and could become a significant part of the company’s business. When you consider all these factors, it’s clear that Alphabet will continue to be a prominent force in the AI and technology space. With the stock trading near its lowest valuation in a decade, it’s an attractive long-term investment.

In conclusion, while each of these companies faces unique challenges, their strong foundations and strategic positions in the AI market make them compelling long-term investments.