AI Stocks to Buy and Hold
Source: fool.com
AI Investment Opportunities
Sustained growth is important for long-term stock holdings. The artificial intelligence (AI) industry is expected to grow significantly. Market Research Future estimates the global AI industry will grow to over $2 trillion by 2035.
Nvidia
Nvidia has benefited from AI investment. Its GPU accelerator chips are used for building data centers to train and operate AI models. Data center spending is strong. CEO Jensen Huang discussed new products, including an AI supercomputer and software for humanoid robotics. Huang believes AI is an infrastructure opportunity. Nvidia is helping lay the foundation for AI technologies.
Palantir Technologies
Palantir Technologies is a popular AI stock. Palantir develops custom software applications on its platforms. Its growth has increased since launching its AI-focused AIP platform. The company's Rule of 40 score in Q1 2025 was 83. Palantir's software can guide military missions, optimize supply chains, and manage scheduling for hospitals. The company started in government, but the private sector will likely contribute to growth. Palantir has 622 commercial customers and customer acquisition could sustain growth. Palantir is expensive, but could be a long-term winner.
Arm Holdings
Arm Holdings designs and licenses semiconductor chip architecture, including chips used in data centers, smartphones, and vehicles. Approximately 47% of the world's chips use Arm-based designs. Growth in AI, smart manufacturing, and robotics will help the semiconductor market. Roots Analysis estimates the semiconductor market will grow to over $1 trillion by 2035. Arm Holdings will benefit from this growth. Arm Holdings stock is expensive, but analysts believe the company will grow earnings. Investors should buy more when it dips.