AI Stocks for the Next Decade

Sustained growth is crucial for long-term stock holdings. Here are three companies with the potential to deliver through 2035.

Artificial intelligence (AI) presents a significant growth opportunity. The global AI industry, valued at approximately $106 billion last year, is projected to exceed $2 trillion by 2035, growing over 30% annually, according to Market Research Future.

Some top AI stocks have already generated substantial returns and could continue to be winners. Here are three examples poised to reward long-term investors.

Nvidia

Nvidia has benefited from the initial AI investment cycle. Its GPU accelerator chips are a popular choice for companies constructing data centers for AI model training and operation. Data center spending remains strong.

Chip demand may shift to more specialized AI applications. CEO Jensen Huang has discussed new products, including an AI supercomputer, servers for agentic AI, and software for humanoid robotics development. Huang believes AI represents a multi-trillion-dollar infrastructure opportunity.

Nvidia's foresight has led to its dominance in AI accelerator chips, positioning it as a key player in the foundation for AI and related technologies.

Palantir Technologies

Palantir Technologies is a prominent AI stock. Palantir develops custom software applications on its platforms. Growth has accelerated since launching its AI-focused AIP platform two years ago.

The company is also growing profitably, with a Rule of 40 score of 83 in Q1 2025. Palantir's software is flexible, assisting in military missions, supply chain optimization, and hospital scheduling.

Initially focused on government contracts, which still account for over half of its business, the private sector is expected to be a key driver of growth. Palantir has 622 commercial customers, with potential for further customer acquisition among the approximately 20,000 large corporations in the United States.

While Palantir is considered expensive, it's viewed as a long-term opportunity for investors to consider.

Arm Holdings

Arm Holdings designs and licenses semiconductor chip architecture used in data centers, smartphones, and vehicles. Approximately 47% of the world's chips utilize Arm-based designs, up from 43% in 2022, indicating market share growth.

The global semiconductor market, estimated at $623 billion last year, is projected to exceed $1 trillion by 2035, according to Roots Analysis. Arm Holdings is expected to benefit from growth in AI, smart manufacturing, and robotics.

Arm Holdings' stock is expensive, which analysts consider fair due to its industry leadership and 97% gross profit margin. Earnings are projected to grow by an average of 28% annually over the long term.

Investors may consider buying more stock when it dips, allowing the company to grow.