3 Top AI Stocks to Buy in 2026 and Hold Long-Term

As the stock market enters the second half of the 2020s, artificial intelligence (AI) is poised to revolutionize industries and create significant opportunities for investors. From self-driving vehicles to humanoid robotics and quantum computing, AI is reshaping the future of technology. Investors looking to capitalize on this trend should consider three standout AI stocks: Alphabet, Tesla, and International Business Machines (IBM). Each of these companies offers unique value propositions, making them attractive options for long-term investment.

Alphabet: The AI Powerhouse

Alphabet, the parent company of Google, is a dominant player in the AI space. With its own AI models trained on first-party data and a leading cloud computing platform, Alphabet is arguably the most complete AI company. Its core digital advertising business, which includes Google and YouTube, generated $74.1 billion in revenue during the third quarter of 2025, providing robust cash flow to fund AI investments without incurring excessive debt.

Beyond its core business, Alphabet is expanding into new industries. Its autonomous ride-hailing service, Waymo, and ongoing efforts in quantum computing technology demonstrate the company's commitment to innovation. These initiatives, combined with Alphabet's strong financial performance, make it a reliable choice for buy-and-hold investors over the next three to five years.

Tesla: High Risk, High Reward

Tesla, known for its electric vehicles and energy storage systems, is making a significant push into AI and robotics. CEO Elon Musk has highlighted the potential of Tesla Optimus, a humanoid robot, which he believes could become the company's most valuable asset. While Tesla's stock has outperformed the broader market, its recent struggles in the core vehicle business raise concerns about the company's ability to deliver on Musk's ambitious promises.

The humanoid robotics market is projected to grow into a $5 trillion industry by 2050, presenting a massive opportunity for Tesla. However, investing in Tesla is a bet on Musk's leadership and execution, making it a high-risk, high-reward proposition. The recent launch of Tesla's autonomous ride-hailing service, Robotaxi, could signal a turnaround, but investors should carefully consider the risks before committing.

IBM: A Rare AI Dividend Stock

IBM stands out as a rare dividend stock in the AI space. With a long history in the tech sector, IBM has evolved to become a leader in hybrid cloud computing and quantum computing systems. The company's deep corporate relationships and consulting services help its customer base adopt and integrate AI technology, making it a key player in the AI ecosystem.

IBM's dividend, which currently yields 2.2%, has been raised for 29 consecutive years, reflecting the company's ability to grow over decades. Analysts anticipate IBM's earnings to grow at a high-single-digit annualized rate over the next three to five years. While this growth may not make investors rich overnight, it provides a steady income stream with potential for price appreciation.

Investors looking to capitalize on the AI revolution should consider these three stocks, each offering unique advantages. Alphabet's diversified business and comprehensive AI stack make it a safe investment, while Tesla's high-risk, high-reward potential could deliver significant returns. IBM's proven track record and dividend income provide a stable option in the volatile AI market.