5 Best AI Stocks for Future Growth

Published Date : 19/07/2025 

Nvidia, TSMC, ASML, Meta, and Alphabet are leading the AI revolution. Discover why these stocks are worth holding for the next decade. 

Artificial intelligence (AI) isn't just a technology trend; it's transforming the world we live in. Investing in leading AI companies for the long haul could be a smart move. Let's look at five AI stocks you can buy and hold for the next decade.

When it comes to AI infrastructure, Nvidia (NASDAQ: NVDA) is the clear leader. Its graphic processing units (GPUs) are the main chips used to train and run AI workloads. The company had an over 90% market share in the GPU market in Q1, while its data center revenue has jumped more than 9x over the past two years. That kind of growth from a $4.17 trillion company is almost unheard of.

The company's wide moat comes from its CUDA software platform, which it pushed into universities and research labs long before AI became mainstream. As a result, CUDA became the primary platform on which developers learned to program GPUs, and a plethora of libraries and tools were built on top of its software to help optimize the performance of its chips for AI. Outside of AI, Nvidia's auto segment is also seeing strong growth. Revenue hit $567 million last quarter, with the company projecting $5 billion for the year. With the advent of autonomous driving, this could become another big growth leg for the company in the future.

Today, most chipmakers don't manufacture their own chips; they just design them. That is where Taiwan Semiconductor Manufacturing (NYSE: TSM) steps in. It is the world's leading semiconductor contract manufacturer, making chips for leading chip designers like Nvidia, Advanced Micro Devices, Apple, and Broadcom. Manufacturing advanced chips isn't an easy process, as it requires both scale and technological expertise. Foundries are constantly racing to shrink node sizes, as the more transistors that can be packed onto a chip, the better a chip's performance and power efficiency.

TSMC has a wide lead in advanced node manufacturing. Chips built on 7nm and smaller nodes made up 73% of revenue last quarter, while 3nm chips alone accounted for 22%. Apple has already locked in future supply for its 2nm line. As rivals have struggled, TSMC has become a vital partner to leading chip designers. This has given it pricing power, as chip designers work closely with the company to secure future capacity to meet growing demand for advanced chips.

ASML Holding (NASDAQ: ASML) is another essential player in the AI infrastructure. The company is the world leader in photolithography systems, which are critical for manufacturing advanced semiconductors. ASML's extreme ultraviolet (EUV) lithography systems are used by TSMC and other leading foundries to produce the most advanced chips. The company's technology is essential for the continued miniaturization of chips, which is crucial for the advancement of AI and other high-performance computing applications.

Meta Platforms (NASDAQ: META) is investing heavily in AI and is well-positioned for an AI world. The company is leveraging AI to enhance its social media platforms, improve content recommendation algorithms, and develop new AR/VR applications. Meta's AI research division, FAIR (Facebook AI Research), is at the forefront of AI research, contributing to advancements in natural language processing, computer vision, and reinforcement learning.

Alphabet (NASDAQ: GOOGL), the parent company of Google, should not be overlooked for what the company is doing in AI. Google has been a pioneer in AI research and development, with significant investments in areas such as machine learning, natural language processing, and autonomous driving. Google's AI-powered services, such as Google Assistant and Google Translate, are already widely used and continue to improve. The company's deep pockets and broad ecosystem make it a strong long-term play in the AI space.

These five companies—Nvidia, TSMC, ASML, Meta, and Alphabet—are at the forefront of the AI revolution. Each offers unique strengths and growth opportunities, making them compelling investments for the next decade. 

Frequently Asked Questions (FAQS): 

Q: What is the primary role of Nvidia in the AI market?

A: Nvidia is a leader in AI infrastructure, particularly in the design and production of graphic processing units (GPUs) used for training and running AI workloads. Its CUDA software platform and strong market share make it a dominant force in the industry.

Q: Why is TSMC crucial for the AI industry?

A: TSMC is the world's leading semiconductor contract manufacturer, producing advanced chips for leading chip designers like Nvidia, AMD, and Apple. Its expertise in advanced node manufacturing and strong partnerships with these companies make it a vital player in the AI ecosystem.

Q: What is ASML's contribution to AI technology?

A: ASML is the world leader in photolithography systems, which are essential for manufacturing advanced semiconductors. Its EUV lithography systems are used by leading foundries to produce the most advanced chips, which are crucial for AI and high-performance computing.

Q: How is Meta investing in AI?

A: Meta is heavily investing in AI to enhance its social media platforms, improve content recommendation algorithms, and develop new AR/VR applications. Its AI research division, FAIR, is at the forefront of AI research, contributing to advancements in various AI fields.

Q: What makes Alphabet a strong AI play?

A: Alphabet, through its subsidiary Google, has been a pioneer in AI research and development. It has significant investments in areas such as machine learning, natural language processing, and autonomous driving. Google's AI-powered services, like Google Assistant and Google Translate, are widely used and continuously improving. 

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