Top AI Stocks for Long-Term Investment

Published Date : 7/10/2025 

Nvidia and Alphabet are leading the AI race with their innovative technologies and strategic investments. Both companies are well-positioned to dominate the AI market for years to come. 

Artificial intelligence (AI) is expected to remain one of the most significant investment themes for the next decade. The megacap tech companies that have already been benefiting from AI are likely to be some of the biggest winners. Two stocks that stand out as particularly good investments to buy now and hold for the next decade are Nvidia (NASDAQ: NVDA) and Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG).

In sports, the greats often dominate because they see how a play is developing before anyone else. The same can be said for Nvidia, which anticipated the direction that the AI market would take long before its competitors. That's why, after creating its CUDA software platform, which allowed developers to easily program its graphics processing units (GPUs) for specific uses, Nvidia gave the software away for free and pushed it into universities and research labs where early AI development was taking place.

This prescient move led to most of the early AI code being written for Nvidia chips. It would be costly and time-consuming to rewrite this code, and since most developers in the field are already fluent in CUDA, they tend to want to keep using it. This has helped Nvidia take and maintain its dominant position in the GPU space, where it now controls over a 90% market share.

The company didn't stop there: Its proprietary NVLink interconnect—a protocol that includes both hardware and software—allows multiple chips to function as one massive unit. This provides better performance, which further serves to hold competitors at bay. Now, Nvidia is going on offense again. It recently committed to invest up to $100 billion in OpenAI, which effectively secures a massive long-term customer for its high-end chips while giving it greater insight into what the most advanced AI models will need next. The companies will work together at the chips, software, and systems levels to help shape where AI heads next. This makes Nvidia a stock worth owning for the next decade.

A year ago, investors worried that AI would threaten Google's dominant search business as people shifted to querying chatbots. However, Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) is now being viewed as one of the world's top AI companies. Its Gemini large language models compete at the top tier with OpenAI's offerings, and the Gemini app has become one of the most downloaded. Meanwhile, the company has embedded Gemini through its search engine. Its new AI mode allows users to quickly toggle between traditional search and an AI chatbot, while AI-powered features such as AI Overviews, Circle to Search, and Lens have driven more queries.

Alphabet's strategic investments and innovations in AI have not only solidified its position in the market but also opened up new revenue streams. The company's ability to integrate AI seamlessly into its existing products and services has made it a formidable player in the AI space. As AI continues to evolve, Alphabet is well-positioned to capitalize on new opportunities and maintain its leadership role.

Investing in Nvidia and Alphabet is a bet on the future of AI. Both companies have a proven track record of innovation and a strong foothold in the market. Their strategic investments and collaborations ensure that they will continue to drive the development of AI technologies and stay ahead of the competition. For investors looking to capitalize on the AI revolution, these two stocks are excellent choices to consider. 

Frequently Asked Questions (FAQS): 

Q: What is CUDA and why is it important for Nvidia?

A: CUDA is a parallel computing platform and application programming interface (API) model created by Nvidia. It allows developers to use Nvidia GPUs for general-purpose processing. CUDA is important for Nvidia because it has become the standard for AI development, making it costly and time-consuming for developers to switch to other platforms.

Q: What is NVLink and how does it benefit Nvidia?

A: NVLink is a high-speed interconnect technology developed by Nvidia. It allows multiple GPUs to communicate with each other directly, improving performance and efficiency. NVLink benefits Nvidia by providing better performance and scalability, which helps the company maintain its competitive edge in the AI market.

Q: Why is Alphabet considered a top AI company?

A: Alphabet is considered a top AI company due to its advanced large language models like Gemini, which compete with the best in the industry. The company has also integrated AI into its search engine and other products, driving more user engagement and queries. Additionally, Alphabet's strategic investments in AI research and development have solidified its position as a leader in the field.

Q: What is the significance of Nvidia's investment in OpenAI?

A: Nvidia's investment in OpenAI is significant because it secures a long-term customer for its high-end chips and provides valuable insights into the future needs of advanced AI models. This strategic partnership allows both companies to collaborate on chip, software, and systems development, ensuring that Nvidia remains at the forefront of AI technology.

Q: How does Alphabet's AI mode work in its search engine?

A: Alphabet's AI mode in its search engine allows users to quickly toggle between traditional search and an AI chatbot. This feature enhances user experience by providing more interactive and contextually relevant search results. AI-powered features like AI Overviews, Circle to Search, and Lens have also been integrated to drive more queries and improve search efficiency. 

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