Key Takeaways
- Artificial Intelligence (AI) is driving transformative growth across sectors, making it a key area for investment.
- Tech giants are investing heavily to lead in AI, proving it’s a lasting shift, not a bubble.
- AI stocks are seen as undervalued with high future potential, offering investors an attractive opportunity for significant long-term returns.
- Savvy investors should look past the obvious names to discover long-term winners.
- Firms supplying AI’s essential infrastructure and data will generate huge wealth alongside the prominent leaders
- Some key AI companies whose stocks are a must to buy include Nvidia, Amazon, Meta, ASML, S&P Global, and Palantir Technologies.
AI Stocks: The Future of Wealth in Your Portfolio
Artificial intelligence is reshaping the global economy at an unprecedented pace, creating vast opportunities for investors willing to embrace this technological revolution. AI-powered innovations are driving breakthroughs across multiple sectors, fueling strong demand for AI chips, software, and cloud infrastructure. Investing in AI shares allows investors to tap into this explosive growth as businesses accelerate AI adoption to improve efficiency, decision-making, and product development.
What makes AI stocks especially attractive is that many are still undervalued relative to their massive future potential. For investors seeking exposure to cutting-edge innovation and substantial returns, AI shares offer a compelling, forward-looking investment opportunity. Here are a few AI companies whose stocks are a must buy.
Nvidia: The Obvious Choice For Any Investor
Nvidia is widely recognized for leading the AI chip market, but the company’s true value runs much deeper. It has quietly transformed into a full-stack AI computing powerhouse, far more than just a GPU manufacturer. Nvidia is now laying the groundwork for some of the most transformative technologies of the future, including humanoid robots, agentic AI systems, and autonomous vehicles. These innovations position Nvidia at the center of long-term growth in the AI-driven economy, making it a compelling investment opportunity.
Pros
- Dominant AI chip market position
- Expanding into $375B robotics market
- Full-stack AI platform approach
Cons
- High valuation and volatility
- Increasing competition from AMD/Intel
- Regulatory risks in China
Over the past five years, Nvidia stock has soared between approximately 2,100% and 2,900%, depending on the exact timeframe and source. For instance, from January 2020 to January 2025, Nvidia rose around 2,108% — a more than 21x return. Nvidia has delivered extraordinary growth, rewarding long-term shareholders with some of the best returns seen in the entire S&P 500.
Amazon: Offers Dependable Profit Growth
Amazon is another stock that an investor should consider. Its extensive use of AI-powered automation, with 750,000 robots already deployed in fulfillment centers, is a key driver for reducing fulfillment costs by up to 50%. This efficiency gain has the potential to significantly boost Amazon’s profit margins from the current 11.8% to Apple-like levels above 31%, presenting a compelling case for long-term investment growth.
Pros
- Massive margin expansion potential
- Leading AWS cloud AI services
- Proven automation implementation
Cons
- High upfront automation costs
- Regulatory scrutiny on market power
- Competitive pressure in cloud services
Stock performance of Amazon shares during the last five years. Source: Trading View
Over the past five years, Amazon’s stock has shown strong upward momentum, reflecting the company’s robust growth and market leadership. Despite occasional market volatility, the stock has consistently delivered significant long-term gains. For investors, this track record underscores Amazon’s resilience and potential for continued value appreciation.
Meta : A Trillion-Dollar Digital Future
Meta, another company whose stock should be under the radar. The company is investing billions in AI talent to drive its ambitious vision for the metaverse. It is developing cutting-edge AI agents capable of creating virtual worlds on demand. While the exact market size is still emerging, analysts forecast that the AI-powered metaverse could evolve into a multitrillion-dollar industry by 2035. This represents a massive growth opportunity that investors can tap into by owning Meta shares.
Pros
- Multitrillion-dollar metaverse potential
- Massive AI talent investments
- Strong advertising revenue base
Cons
- Unproven metaverse monetization and failed pilot
- Heavy R&D spending drag
- Privacy and regulatory challenges
Meta Platforms has demonstrated strong growth, with its stock price increasing by approximately 180% over the past five years. This performance significantly outpaced the S&P 500’s return of about 84% during the same period. Notably, the stock experienced a remarkable 194% gain in 2023, reflecting investor confidence in the company’s strategic initiatives.
ASML: Drives Unstoppable Tech Growth
The fourth stock an investor should keep an eye on is the giant ASML Holding N.V., a Dutch multinational with a virtual monopoly. ASML is the only company in the world that manufactures extreme ultraviolet (EUV) lithography machines, which are essential for producing the nanoscale transistors used in cutting-edge AI chips. Industry leaders like Nvidia, AMD, and Intel rely on ASML’s technology to build their most advanced semiconductors. Basically, this company manufactures the massive machines that are used to create the chips that we use in our cellphones and other devices. Companies like Nvidia, Samsung, and related ones depend on their super-expensive machines.
With a decade-long technological lead and a substantial backlog of orders, ASML effectively controls a critical chokepoint in the AI hardware supply chain, making it a powerful, long-term play for AI-focused investors.
Pros
- Virtual monopoly in EUV lithography
- 10-year technology lead
- Multibillion euro backlog
Cons
- Cyclical semiconductor exposure
- Geopolitical tensions impact
- High customer concentration risk
Over the past five years, ASML’s stock has delivered impressive growth.. The company’s market dominance has been reflected in its share price, which has seen a steady upward trajectory. The stock has outperformed many of its peers, attracting long-term investors.
S&P Global Is A Silent But Essential Force On Wall Street
While S&P Global doesn’t build AI models, it plays a critical role by supplying the high-quality financial data that powers them. Through its integration with Microsoft Copilot, the company delivers 160 years of financial intelligence directly into the workflows of traders and analysts.
As hedge funds and investment banks race to develop AI-driven trading platforms, S&P Global benefits across the board, earning revenue regardless of who leads the AI revolution in finance. This unique positioning makes it a stable and strategic pick for investors seeking exposure to AI’s growing impact on the financial sector.
Pros
- Irreplaceable financial data moat
- Recurring subscription revenue
- AI-agnostic data monetization
Cons
- Slower growth than pure AI plays
- Dependent on the financial sector’s health
- Potential data regulation impact
Over the past five years, S&P Global has delivered a strong total return of approximately 80%–86%, reflecting consistent performance and investor confidence. Despite market volatility, the stock has shown resilience, rebounding sharply in 2023 with gains of over 30% after a dip in 2022. This steady upward trend has been fueled by the company’s leadership in financial data services and its strategic integration of AI tools.
Invest Where AI’s Real Profits Are Made
Indeed, the AI boom is real, and smart investors should focus on owning the infrastructure rather than gambling on individual players. These six companies offer exposure to every layer of the AI economy — from chips and data to platforms and automation.
Instead of chasing the latest AI start-up, investors can own these core enablers directly or through tech-focused ETFs like the Vanguard Information Technology ETF (VGT). Throughout history, it’s often the enablers, and not the front-runners, who reap the biggest rewards. In the AI boom, companies building the foundation — like chipmakers, data providers, and cloud platforms — are essential to the entire ecosystem. Backing these core players will certainly offer a more dependable path to long-term gains than betting on individual breakthroughs.
Read more: Struggling Fitness Firm Bets $500M on AI Crypto Tokens – Can FET Save TRNR?
