Two AI Stocks to Hold for the Next Decade

Artificial intelligence (AI) is rapidly transforming industries and economies worldwide. According to estimates, AI adoption is growing at an annual rate of 20%, with organizations witnessing a 3.7x return on each dollar spent on AI. Goldman Sachs projects that AI will boost the global economy by 15% over the next decade. This makes investing in solid AI stocks a promising strategy for long-term gains. Here’s a closer look at two top AI stocks that could deliver significant returns over the next 10 years.

1. Nvidia

Nvidia has emerged as a leading player in the AI revolution, with its graphics cards in high demand from cloud service providers and governments. This demand has driven significant revenue and earnings growth, making Nvidia stock a standout performer. Despite its current market cap of $3.5 trillion, Nvidia’s future prospects remain bright.

Nvidia’s dominant position in the AI chip market, with a 92% market share in data center GPUs, suggests it will continue to lead the field. The company has secured 70% of Taiwan Semiconductor Manufacturing’s advanced chip packaging capacity for 2025, ensuring a steady supply of cutting-edge chips. The global AI chip market is projected to reach $846 billion by 2035, providing ample room for growth.

Additionally, Nvidia is expanding into emerging areas such as enterprise AI applications, automotive, digital twins, and cloud gaming. For example, its automotive revenue is expected to triple to $5 billion this year, driven by partnerships in self-driving and autonomous technologies. With multiple growth engines and a forward earnings multiple of 34, Nvidia remains a strong buy-and-hold option.

2. Palantir Technologies

Palantir Technologies has seen significant market traction, with AI driving substantial revenue growth. The company forecasts a 36% revenue increase to $3.9 billion this year, up from 29% last year. While concerns over its high valuation persist, Palantir’s leading position in the AI software platforms market justifies its premium.

The global AI software platforms market is expected to generate $153 billion in revenue by 2028, with potential for even greater growth. Palantir’s ability to deliver productivity gains to customers positions it for long-term success. The company’s remaining deal value of $6 billion, up 45% year over year, further supports its growth trajectory.

Despite its high trailing earnings multiple of 596, Palantir’s strong market position and expanding customer base make it a compelling long-term investment. Investors should consider accumulating the stock during dips to benefit from the AI software market’s significant growth potential.

Investing in Nvidia and Palantir Technologies could be a profitable move over the next decade, given their robust market positions and diverse growth opportunities. These companies are well-positioned to capitalize on the AI revolution and deliver substantial returns to investors.