5 Artificial Intelligence (AI) Stocks to Buy and Hold for the Next Decade

Motley Fool

Key Points

The best investing strategies involve buying great companies and holding them over long periods to let them be, which has yielded impressive returns if you picked the right businesses.

Among the top performers over the past decade have been Nvidia (NASDAQ: NVDA), Taiwan Semiconductor Manufacturing (NYSE: TSM), Amazon (NASDAQ: AMZN), Meta Platforms (NASDAQ: META), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). I removed Nvidia from the chart below because it's up over 30,000% in the past decade, which skews the graph, but the other four have also done phenomenally well.

The "worst" performer of the remaining four has been Alphabet, with its stock rising nearly five times in value.

These five stocks have had a strong run over the past decade, but I still believe they are excellent picks for the next decade, mainly due to the proliferation of artificial intelligence (AI). They are at the top of my list right now, and I think buying shares with the mindset of holding for the next decade is a wise investment strategy.

Two people looking at a phone — Image source: Getty Images.

Nvidia and Taiwan Semiconductor are providing AI computing power

All five of these stocks are benefiting in various ways from the AI race.

Nvidia makes graphics processing units (GPUs), which are currently the most popular computing hardware for running and training AI models. It owns this market, and its dominance has allowed it to become the world's largest company.

There's still a huge AI computing demand that hasn't been met, which bodes well for Nvidia's future. Because of this, it remains one of the best stocks to buy and hold over the next decade.

Taiwan Semiconductor (TSMC for short) is a manufacturer that produces chips for many of the major players in AI, including Nvidia. These companies don't have chip production capabilities, so they farm that work out to TSMC, which has earned its reputation for being the best foundry in the world through continuous innovation and impressive yields. There are few challengers to its supremacy, and this position will help it continue to be a market-crushing stock for the foreseeable future.

Nvidia and Taiwan Semiconductor are seeing huge growth right now because they're providing the computing power necessary for AI. The next three are also benefiting and will likely see even more success over the next decade.

More AI applications will rise over the next few years

At first glance, Amazon doesn't seem like much of an AI company. However, it has large exposure through its cloud computing wing, Amazon Web Services (AWS), which is the largest cloud computing provider.

It's seeing strong demand for increased computing capacity for AI workloads. With this demand expected to rapidly increase over the next decade, this bodes well for AWS, which makes up the majority of Amazon's profits, helping drive the stock to new heights.

Meta Platforms is developing its own in-house generative AI model, Llama. It has several uses for it, but the biggest is maintaining its role at the top of the social media world.

Meta owns two of the biggest social media platforms, Facebook and Instagram, which generate most of their money through ad revenue. The company has integrated AI tools into its ad services and has already seen an uptick in interaction and conversion rates. This effect will become even greater as generative AI technologies improve, making Meta a strong stock pick for the next decade.

Lastly is Alphabet. Many think Alphabet will be displaced by AI because it gets the majority of its revenue through Google Search, which is seen as a target for AI disruption. However, that hasn't happened yet, and Google Search continues to get larger, with revenue rising 12% in the second quarter.

Part of its success can be attributed to the rise of its Search Overviews, which are a hybrid between a traditional search engine and generative AI. This feature has become popular and could be enough to keep Google on top in search, allowing it to achieve new heights over the next decade.

Should you invest $1,000 in Nvidia right now?

Before you buy stock in Nvidia, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $668,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,106,071!*

Now, it’s worth noting Stock Advisor’s total average return is 1,070% — a market-crushing outperformance compared to 184% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

*Stock Advisor returns as of August 13, 2025

Keithen Drury has positions in Alphabet, Amazon, Meta Platforms, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

5 Artificial Intelligence (AI) Stocks to Buy and Hold for the Next Decade was originally published by The Motley Fool

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Cathie Wood buys $12 million of tumbling AI stock

TheStreet

Cathie Wood buys $12 million of tumbling AI stock originally appeared on TheStreet.

Cathie Wood, head of Ark Investment Management, targets tech companies she believes will lead the next wave of innovation.

But she’s not a passive investor. She frequently adjusts her positions, buying more when stock prices fall and trimming when they rally, balancing short-term gains and her long-term vision.

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Related: Cathie Wood's net worth: The Ark Invest CEO's wealth & income

That’s what she just did, buying shares of a popular tech stock that has tumbled 36% after earnings.

Wood’s funds have experienced a volatile ride this year, swinging from sharp losses to strong gains.

In January and February, the Ark funds rallied as investors bet on the Trump administration's potential deregulation that could benefit Wood’s tech bets. But the momentum faded in March and April, with the funds trailing the market as top holdings — especially Tesla, Wood’s biggest position — slid amid growing concerns over the macroeconomy and trade policies.

Now, the Ark funds are making a strong comeback. As of Aug. 15, the flagship Ark Innovation ETF (ARKK) is up 33.7% year-to-date, far outpacing the S&P 500’s 9.7% gain.

Wood's remarkable return of 153% in 2020 helped build her reputation and attract loyal investors. Her strategy can lead to sharp gains during bull markets but also painful losses, like in 2022, when ARKK dropped more than 60%.

Those swings have weighed on her long-term results. As of Aug. 15, the Ark Innovation ETF has delivered a five-year annualized return of negative 1.4%, while the S&P 500 has an annualized return of 15.6% over the same period.

Cathie Wood’s investment strategy explained

Wood’s investment strategy is straightforward: Her Ark ETFs typically buy shares in emerging high-tech companies in fields such as artificial intelligence, blockchain, biomedical technology, and robotics.

She says these companies have the potential to reshape industries, but their volatility leads to major fluctuations in Ark funds' values.

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Over the 10 years ending in 2024, the Ark Innovation ETF wiped out $7 billion in investor wealth, according to an analysis by Morningstar’s analyst Amy Arnott. That made it the third-biggest wealth destroyer among mutual funds and ETFs in Arnott’s ranking.

Still, Wood has been bullish on the market. In a letter to investors published in late April, she dismissed predictions of a recession dragging into 2026 and struck an optimistic tone for tech stocks.

"During the current turbulent transition in the U.S., we think consumers and businesses are likely to accelerate the shift to technologically enabled innovation platforms including artificial intelligence, robotics, energy storage, blockchain technology, and multiomics sequencing," she said.

Many investors share this optimism. Over the past five days through Aug. 14, the Ark Innovation ETF attracted $5.52 billion in net inflows, according to data from ETF research firm VettaFi. That’s almost 70% of the fund’s $8 billion assets at the end of July.

Cathie Wood buys $12 million of CoreWeave stock

On Aug. 15, Wood’s Ark Next Generation Internet ETF (ARKW) bought 120,229 shares of CoreWeave Inc. (CRWV) worth roughly $12 million.

The purchase came after CoreWeave tumbled 20.8% on Aug. 13 and another 15.5% on Aug. 14, following earnings that showed a larger-than-expected loss as the company increased spending to meet surging demand.

Related: Cathie Wood sells $28 million of popular AI stock

CoreWeave is a cloud infrastructure company specializing in GPU-accelerated computing for artificial intelligence and machine learning workloads. The company is backed by Nvidia (NVDA) , now the AI chipmaker’s largest holding.

On Aug. 12, CoreWeave posted a second-quarter loss of 60 cents per share, much wider than Wall Street analysts' forecast of a loss of 45 cents. Still, revenue jumped 207% from a year earlier to $1.21 billion, topping estimates.

Operating expenses in Q2 nearly quadrupled, rising 276% to $1.19 billion. “We are scaling rapidly as we look to meet the unprecedented demand for AI,” said Michael Intrator, co-founder and CEO of CoreWeave.

CFO Nitin Agrawal said during the earnings call that the company is "still operating in a structurally supply-constrained environment, where demand far outstrips supply for our products and services."

In Q2, CoreWeave’s operating margin fell to 2% from 20% a year ago. Agrawal cautioned that the company will "incur some costs prior to revenue generation," which will have a short-term impact on margins.

For the current quarter, the company expects revenue between $1.26 billion and $1.30 billion, slightly above the $1.25 billion analysts had forecast.

Despite the recent drop, CoreWeave stock is still up 156% since its March debut.

While Wood is buying, Morgan Stanley, JPMorgan Chase, and Goldman Sachs are arranging sales of up to $10 billion of CoreWeave stock as the IPO lock-up ends.

Related: Warren Buffett buys battered UnitedHealth, sells more Apple stock

Cathie Wood buys $12 million of tumbling AI stock first appeared on TheStreet on Aug 16, 2025

This story was originally reported by TheStreet on Aug 16, 2025, where it first appeared.

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Russia stocks lower at close of trade; MOEX Russia Index unchanged

Investing.com

Investing.com – Russia stocks were lower after the close on Saturday, as in the sectors led shares .

At the close in Moscow, the MOEX Russia Index unchanged 0.00% to hit a new 3-months high.

The best performers of the session on the MOEX Russia Index were GDR ROS AGRO PLC ORD SHS (MCX:AGRODR), which unchanged 0.00% or 0.00 points to trade at 1,083.80 at the close. Meanwhile, ADS Ozon Holdings PLC ORD SHS (MCX:OZONDR) unchanged 0.00% or 0.00 points to end at 4,455.00 and Surgutneftegas PJSC Pref (MCX:SNGS_p) was down 0.44% or 0.20 points to 45.24 in late trade.

The worst performers of the session were Unipro PJSC (MCX:UPRO), which fell 3.51% or 0.06 points to trade at 1.76 at the close. Magnitogorskiy Metallurgicheskiy Kombinat PAO (MCX:MAGN) declined 3.16% or 1.14 points to end at 34.84 and Novolipetsk Steel (MCX:NLMK) was down 3.10% or 4.10 points to 128.02.

Falling stocks outnumbered advancing ones on the Moscow Stock Exchange by 131 to 13 and 5 ended unchanged.

Shares in GDR ROS AGRO PLC ORD SHS (MCX:AGRODR) unchanged to 52-week lows; unchanged 0.00% or 0.00 to 1,083.80. Shares in ADS Ozon Holdings PLC ORD SHS (MCX:OZONDR) unchanged to 52-week highs; unchanged 0.00% or 0.00 to 4,455.00.

The Russian Volatility Index – RVI, which measures the implied volatility of MOEX Russia Index options, was unchanged 0.00% to 46.49 a new 3-months high.

Gold Futures for December delivery was down 0.02% or 0.60 to $3,382.60 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in September fell 1.81% or 1.16 to hit $62.80 a barrel, while the October Brent oil contract fell 1.48% or 0.99 to trade at $65.85 a barrel.

USD/RUB was up 0.50% to 80.15, while EUR/RUB rose 0.93% to 93.76.

The US Dollar Index Futures was down 0.40% at 97.71.

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This Under-the-Radar AI Stock Could Double Your Money by 2028

Motley Fool

Palantir Technologies Inc. Class A Common Stock

Key Points

Artificial intelligence (AI) has been a major market driver for nearly three years already, but interest hasn't abated. AI is changing how people do nearly everything, speeding up processes and making many actions cheaper and easier.

Many popular AI stocks continue to climb, including Nvidia and Palantir Technologies, up 36% and 147% respectively. But there are also smaller stocks that offer incredible opportunities, perhaps even more compelling than the stocks that have already caught market attention.

Consider Upstart Holdings (NASDAQ: UPST). The AI-based lending platform was a market favorite before its business seemed to implode, and investors have lost interest in it. It's up only 4% year to date, despite an outstanding second-quarter report. But as the business rebounds, Upstart stock could soar a lot higher.

A better way to lend money

Upstart's platform uses AI and machine learning to evaluate credit risk. It uses millions of data points and many different criteria and offers nearly instant approvals -- a modern version of the traditional credit score, which has a limited scope. It says that its model approves more loans without adding risk to the lender, which puts more money to work for lenders and gives borrowers greater financial freedom.

Although it was growing by leaps and bounds when interest rates were at zero, the good times came to an end when interest rates were raised, since it was more challenging to identify good borrowers when default rates were climbing.

Although interest rates have started to come down, management says its return to growth is unrelated to the decline. It's leaned into its business over the past few years, rolling out new products, expanding the platform, and improving its algorithms.

There was major progress in the second quarter. Revenue more than doubled from last year, and transaction volume was up 159%. It also returned to positive net income on a generally accepted accounting principles (GAAP) basis a quarter earlier than expected, with $5.4 million in the second quarter.

A huge opportunity

The credit evaluation industry is huge, but it's been dominated by a small number of leaders for several decades. Upstart says that $25 trillion is originated in loans globally among all categories, including personal, home, credit card, and more. It claims that at least $1 trillion goes to whoever originates and services the credit.

Upstart offers a better and cheaper experience for everyone involved along the service line, which is how it has entered this space and captured market share. Since it started, customer acquisition costs have been halved despite sales growing fivefold, it has reduced its workforce by 66%, and it approves loans at 36% lower rates.

As it continues to train its models with more data points, they're improving, offering an even better value proposition. And as it continues to enter new categories, the opportunity expands. Originations from its newest product, a home equity line of credit, increased ninefold from last year in the second quarter.

A better entry point

Upstart stock had risen to astronomical valuations before it plunged, but the price is looking reasonable today. It trades at a forward, 1-year P/E ratio of 25 and a price-to-sales ratio of 7. That gives it room to expand as the market gains more confidence in its chances.

The market found what to worry about in the second quarter update despite the strong performance, including Upstart holding too many loans on its books, the health of its funding pipeline, and an outlook that included a lowering of full-year net interest income. But if you can zoom out and focus on the bigger picture, Upstart could be a lot bigger and more profitable over the next three years.

It's hard to come up with a potential growth rate over the next three years because the business is in flux. Last year at this time, revenue decreased 6% from the year before. But interest rates are likely to keep coming down, and Upstart's improvements make it likely that it will get more business as they do. If it can manage a compound annual growth rate of 30% over the next three years, revenue would more than double, and keeping the price-to-sales ratio constant, so would the stock.

Should you buy stock in Upstart right now?

Before you buy stock in Upstart, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Upstart wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

*Stock Advisor returns as of August 13, 2025

Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia, Palantir Technologies, and Upstart. The Motley Fool has a disclosure policy.

This Under-the-Radar AI Stock Could Double Your Money by 2028 was originally published by The Motley Fool

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If I Could Only Buy and Hold a Single Stock, This Would Be It

Motley Fool

Key Points

One of the golden rules of investing is to never put all your eggs in a single basket. By diversifying your portfolio across a wide range of stocks, bonds, and other assets, you reduce its volatility and help insulate yourself from market downturns. That's why it's sometimes smarter to simply invest in an S&P 500 index fund or exchange-traded fund, instead of individual stocks.

But if I could only invest in a single stock, I'd pick one with a market-leading position, a diversified business model, and a wide moat. I'd also pick one that has consistently outperformed the S&P 500. One stock checks all of those boxes: Amazon (NASDAQ: AMZN), the world's largest e-commerce and cloud infrastructure company.

Why did Amazon consistently beat the market?

Amazon went public on May 15, 1997, at a split-adjusted price of $0.075 per share. It has rallied 293,233% since then, so a $1,000 investment in its IPO would be worth $2.93 million today. That same investment in an S&P 500 index fund would have only grown to about $7,600. It also delivered market-beating gains for investors who didn't hop aboard its IPO right away. Over the past 10 years, its stock rallied more than 730% as the S&P 500 rose nearly 210%.

From 1997 to 2024, Amazon's annual revenue grew at a compound annual growth rate (CAGR) of 36%, from $148 million to $638 billion. It turned profitable on a generally accepted accounting principles (GAAP) basis in 2003, and its net income increased at a CAGR of 42%, from $35 million to $59.2 billion, over the following 21 years. Those explosive growth rates attracted a stampede of bulls and helped it consistently crush the market.

What are Amazon's core growth engines?

Amazon's growth was fueled by the expansion of its e-commerce marketplace, which grew from just 1.5 million customers at the time of its IPO to an estimated 310 million active users today. It has locked more than 240 million of those customers into its Prime subscriptions, which provide exclusive discounts, free shipping options, streaming media services, and other perks. It reinforces the stickiness of that ecosystem with its Alexa-enabled devices, and it reaches even more brick-and-mortar shoppers through its Whole Foods Market stores (which it acquired in 2017).

Amazon's advertising business sells promoted listings and display ads across its platforms. It's now the third-largest advertising platform in the U.S. after Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google and Meta Platforms' (NASDAQ: META) Facebook, and that segment generates higher-margin revenues than its core marketplace business.

However, Amazon's biggest profit engine is still Amazon Web Services (AWS), which controlled 32% of the global cloud infrastructure market in the first quarter of 2025, according to Canalys. The market's demand for its cloud-based computing and storage services is surging as more companies pivot away from on-site servers and launch more cloud, mobile, and AI services. In 2024, AWS generated 17% of Amazon's net sales but accounted for 58% of its operating profits.

Amazon's higher profits from AWS and its advertising business subsidize the ongoing expansion of its lower-margin retail business. That's why it can afford to sell its products at lower prices than many of its brick-and-mortar rivals, while retaining its Prime subscribers with loss-leading discounts and perks.

How much bigger can Amazon grow?

Amazon's growth is slowing as it matures, and its retail business faces stiff competition from superstore survivors like Walmart (NYSE: WMT), cheap cross-border e-commerce challengers like PDD's (NASDAQ: PDD) Temu, and warehouse club leaders like Costco (NASDAQ: COST). But it plans to keep expanding its marketplace into higher-growth emerging markets as it upgrades its fulfillment centers and logistics network with more AI, robotics, and automation services.

The growth of the AI market should also drive more companies to ramp up their spending on AWS, which provides the computing power, storage, and tools for creating new AI applications. Amazon will also expand its advertising business with more ads on Prime Video and Alexa. These two higher-margin businesses should drive its long-term profit growth.

From 2024 to 2027, analysts expect its revenue and earnings per share to grow at CAGRs of 10% and 19%, respectively. It might not be a bargain at 34 times next year's earnings, but it's still an easy way to profit from the growth of the e-commerce, cloud, AI, and digital advertising markets. So if you could only buy a single stock, Amazon would be a great pick.

Should you invest $1,000 in Amazon right now?

Before you buy stock in Amazon, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Amazon wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $663,630!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,115,695!*

Now, it’s worth noting Stock Advisor’s total average return is 1,071% — a market-crushing outperformance compared to 185% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

*Stock Advisor returns as of August 13, 2025

Leo Sun has positions in Amazon and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon, Costco Wholesale, Meta Platforms, and Walmart. The Motley Fool has a disclosure policy.

If I Could Only Buy and Hold a Single Stock, This Would Be It was originally published by The Motley Fool

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Is Target the next Best Buy?

Investing.com

Advanced Micro Devices

-4.81%

Tesla

+2.70%

Investing.com -- Target may be on the verge of its own turnaround story if Chief Executive Brian Cornell steps down in September and a new leader steps in.

Investors will be looking for a fresh strategy to reverse falling sales, restore customer appeal and compete more effectively with Walmart (NYSE:WMT) and Amazon (NASDAQ:AMZN).

Target is losing market share in core categories, struggling in online business and there is a consumer perceptions that its prices are higher than rivals. These are similar to what Best Buy (NYSE:BBY) faced a decade ago when many thought it was headed for “death by Amazon.”

Best Buy’s revival under Hubert Joly between 2012 and 2019 had electronics retailer refreshed its stores, invested in its staff, committed to price matching, improved its website, cut costs and closed weaker locations.

Most importantly, Joly set a clear vision for the company’s purpose and hired the right leaders to deliver it.

For Target, a new management team could take similar steps. That could mean using more private-label goods to narrow the price gap with rivals, trimming expenses to fund price cuts, improving the online shopping experience to reduce profit losses, and rethinking its store footprint. A sharper focus on returns on invested capital could help guide decisions.

"A new management, especially one with an outside perspective, could be a positive catalyst," analyst at Bernstein said.

The bigger question is whether Target should invest heavily in a Walmart-like e-commerce supply chain, which may not pay off without greater scale. Without that, online sales may continue to erode margins unless the company finds a new approach.

Better economic conditions could give Target more breathing room, but the company still needs to stop losing market share before any turnaround can take hold. For now, the outcome remains uncertain.

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What is Team Trump thinking when it comes to future of Fannie, Freddie?

Investing.com

Advanced Micro Devices

-4.81%

Investing.com -- Team Trump is exploring ways to monetize the U.S. government’s stakes in mortgage giants Fannie Mae (OTC:FNMA) and Freddie Mac (OTC:FMCC), with an initial sale of up to $30 billion possible “as soon as this winter,” according to TD Cowen.

The White House’s focus is on “the government realizing a return rather than on the GSEs raising new capital,” the analysts said, adding that under the plan, “GSEs stay in conservatorship” with “an implicit government backstop.”

TD Cowen cautioned that “having the government monetize its investments in Fannie and Freddie is more complex than it may appear.”

Key hurdles include “shareholder rights,” “control of the boards of directors,” “valuation,” “commitment fee,” and “limits on what the GSEs may do,” as well as the “potential to merge the GSEs prior to any sales.”

The bank said there is “a path” for President Donald Trump to move forward, but it would require “political risks that could impact both his popular support and GOP prospects in the midterm election.”

Despite those challenges, TD Cowen sees “reason for optimism” that the administration could begin sales, even if not by winter.

One possibility is that “Trump could just do it regardless of political and market risk,” a tactic the firm calls “the tariff approach,” akin to his trade policy decisions.

Another option could be selling a stake to “a foreign sovereign wealth fund” or transferring control of the holdings to “a newly created domestic sovereign wealth fund,” both of which TD Cowen said “could involve less market and political risk.”

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