3 Best AI Stocks for Long-Term Investment

Published Date : 09/08/2025 

Despite the recent surge in AI stock prices, these three companies—Nvidia, Amazon, and Microsoft—still offer significant long-term potential. Investing in these stocks now could yield substantial gains as AI continues to evolve. 

Excitement around artificial intelligence (AI) and its potential impact on businesses has led to soaring stock prices for many of the biggest tech companies. Nvidia, for example, has seen its stock price grow more than tenfold since the release of ChatGPT in late 2022, now topping $4 trillion in market cap.

Some investors may feel like they've missed the boat and they're too late to buy AI stocks at a good price. It's important to consider that today's AI winners might not be the biggest companies to benefit from advancements in artificial intelligence over the long run. Finding a company that's making excellent progress right now with sustainable long-term competitive advantages could end up being an even better stock to own when the dust settles.

These three companies are all well positioned to benefit from the continued growth and advancement in artificial intelligence. Their stocks are all attractive at today's prices, too, which means you can buy them now and hold them forever.

1. Nvidia (NASDAQ: NVDA)

Nvidia has been at the forefront of the AI revolution, thanks to its cutting-edge GPUs (Graphics Processing Units) that power many of the world's most advanced AI systems. The company's stock has seen a meteoric rise, driven by the growing demand for AI and machine learning applications. Nvidia's recent release of the H100 GPU and its collaboration with major cloud providers like Microsoft and Google have further solidified its position as a leader in the AI space.

2. Amazon (NASDAQ: AMZN)

Amazon is home to the largest public cloud computing platform in the world, Amazon Web Services (AWS). The segment generated $116.4 billion over the last 12 months, roughly 50% larger than its next-closest competitor, Microsoft's Azure. Some have expressed concern about AWS for a few reasons. First, it was caught flat-footed as the generative AI opportunity was getting off the ground. That led it to cede market share to Microsoft and others who were earlier to invest in the space. However, it quickly course corrected, releasing its Bedrock platform, and it's seeing triple-digit growth in AI services. As such, it's been able to maintain most of its market share in a rapidly growing market (even though overall revenue growth has slowed to the high-teens).

The second reason is that AWS saw a significant decline in operating margin in the second quarter. Management explained half of that decline was due to the timing of stock-based compensation. The rest is explained by Amazon's significant investments in capacity, as it notes the business remains capacity constrained. Over time, investors should see margin tick back up. It's worth noting AWS still commands higher margins than its smaller competitors.

3. Microsoft (NASDAQ: MSFT)

Microsoft has been a significant player in the AI space, with its Azure cloud platform and a range of AI services. The company's investment in AI research and development has paid off, as it has developed powerful tools like Azure Machine Learning and Azure Cognitive Services. Microsoft's partnership with OpenAI, the creators of ChatGPT, has further enhanced its AI capabilities. The company's strong financial performance and strategic investments make it a compelling long-term investment in the AI space.

Conclusion

Despite the recent surge in AI stock prices, Nvidia, Amazon, and Microsoft still offer significant long-term potential. These companies have the technological expertise, financial strength, and strategic vision to continue leading the AI revolution. By investing in these stocks now, you can position yourself to benefit from the ongoing advancements in artificial intelligence.

Image source: Getty Images. 

Frequently Asked Questions (FAQS): 

Q: What has driven Nvidia's stock price growth?

A: Nvidia's stock price has grown significantly due to its leading position in AI and the high demand for its GPUs, which are essential for AI and machine learning applications. The release of the H100 GPU and collaborations with major cloud providers have further boosted its stock.

Q: Why did AWS see a decline in operating margin?

A: AWS saw a decline in operating margin due to the timing of stock-based compensation and significant investments in capacity. Amazon noted that the business remains capacity constrained, but investors can expect margins to improve over time.

Q: What is Amazon's Bedrock platform?

A: Amazon's Bedrock platform is a service that provides access to a wide range of AI models and tools. It was released to help AWS catch up in the generative AI space and has seen triple-digit growth in AI services.

Q: How is Microsoft positioned in the AI market?

A: Microsoft is a significant player in the AI market with its Azure cloud platform and a range of AI services. Its partnership with OpenAI, the creators of ChatGPT, and investments in AI research and development have solidified its position as a leader in the AI space.

Q: Why should investors consider these AI stocks for the long term?

A: Investors should consider these AI stocks for the long term because they have the technological expertise, financial strength, and strategic vision to continue leading the AI revolution. Despite recent price increases, these companies still offer significant long-term potential. 

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