2 Artificial Intelligence Stocks You Can Buy and Hold for the Next Decade

• Nvidia remains well positioned to benefit from the ongoing artificial intelligence (AI) infrastructure buildout.

• TSMC has become an invaluable player in the semiconductor space.

• 10 stocks we like better than Nvidia ›

The biggest trend driving the market right now is artificial intelligence (AI), and with the game-changing technology still in its early innings, there’s no reason to think this won’t continue over the next decade.

Let’s look at two leading AI stocks to buy and hold for the next decade.

The biggest AI winner thus far has been Nvidia (NASDAQ: NVDA), and the company is still one of the best positioned to benefit over the next decade. The company’s graphics processing units (GPUs) have become the backbone of AI infrastructure, holding an approximate 90% share in the space. However, Nvidia isn’t sitting still, as seen by two recent important acquisitions.

Its recent acquisition of SchedMD, the developer of Slurm, only widens its software moat. Slurm is an open-source software platform that’s used to orchestrate AI chips, and while Nvidia will keep it open source, by controlling the platform, it can ensure that its chips will be managed the most efficiently using the platform.

The company also made a smart deal for Groq, where it signed a technology license and will bring on the bulk of its employees. Groq was founded by the makers of Alphabet’s popular Tensor Processing Units (TPUs) and has developed a chip designed specifically for AI inference called language processing units (LPUs). Nvidia will be able to tightly integrate these chips with its software and networking system to better take on the inference market, where cost-per inference becomes a much more important factor.

Nvidia’s position in the AI data center market stems from the ecosystem it has built around its chips. Its CUDA software platform is where all early AI foundational code was written, and today, the libraries and tools built on top of CUDA to optimize its chips for AI workloads create a huge moat, especially when it comes to large language model (LLM) training. In addition, its proprietary NVLink interconnect system enables its chips to function as a single, powerful unit, discouraging the mixing and matching of chips in AI clusters.

Overall, Nvidia is set to continue to reap the rewards from the ongoing AI race and data center buildout that is likely to continue well into the future.

Another company uniquely positioned to benefit from the ongoing AI data center buildout is Taiwan Semiconductor Manufacturing (NYSE: TSM). TSMC is the largest semiconductor manufacturer in the world and has a tight grip on making advanced chips, like GPUs.