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2 Artificial Intelligence (AI) Stocks to Buy and Hold for the Next 20 Years
METAMeta Platforms(META) The Motley Fool·2025-06-08 09:40

Core Viewpoint - The article emphasizes the transformative impact of artificial intelligence (AI) across industries, projecting a contribution of nearly 20trilliontotheglobaleconomyoverthenextfiveyears,withsignificantinvestmentopportunitiesincompanieslikeNvidiaandMetaPlatformsoverthenexttwodecades[1].Group1:Nvidia−Nvidiaholdsadominantpositioninthegraphicsprocessingunit(GPU)market,essentialforAIworkloads,indicatingsubstantialgrowthpotentialdespiterecentstockpriceincreases[2].−CEOJensenHuangpredictsaglobalincreaseinAIinfrastructure,withNvidia′sproductsexpectedtoenhanceAIcomputingcapabilitiessignificantlyoverthenextdecade[3].−Nvidia′srecentquarterlyreportshowsa6920 trillion to the global economy over the next five years, with significant investment opportunities in companies like Nvidia and Meta Platforms over the next two decades [1]. Group 1: Nvidia - Nvidia holds a dominant position in the graphics processing unit (GPU) market, essential for AI workloads, indicating substantial growth potential despite recent stock price increases [2]. - CEO Jensen Huang predicts a global increase in AI infrastructure, with Nvidia's products expected to enhance AI computing capabilities significantly over the next decade [3]. - Nvidia's recent quarterly report shows a 69% year-over-year revenue growth, with nearly 100 AI factories under development, doubling the number from the previous year [4][5]. - The company is well-positioned with its comprehensive solutions, and its networking revenue surged by 64% in the last quarter, reflecting high demand for data processing and AI workloads [5]. - Nvidia's trailing 12-month revenue exceeds 148 billion, with a growth rate of over 50% year-over-year, suggesting a vast long-term opportunity [6][7]. - The company is crucial in fulfilling the demand for AI, and its competitive advantages are expected to sustain long-term growth [8]. Group 2: Meta Platforms - Meta Platforms is positioned as a potential long-term beneficiary of AI, as advancements may lead to increased user engagement on social media platforms [9]. - The company plans to invest at least $64 billion in capital expenditures by 2025, primarily for data centers, indicating confidence in future returns from AI investments [10]. - Meta's revenue grew by 22% in 2024, with a continued momentum of 16% year-over-year growth in Q1 2025, driven by AI-enhanced ad targeting [11]. - The launch of AI-powered devices, such as Meta AI glasses, is expected to tap into a significant market, with sales of Ray-Ban AI glasses tripling over the past year [12]. - With over 3.4 billion daily users across its apps, Meta has a substantial audience to leverage AI technology for business growth, and its current valuation suggests potential for healthy stock price gains [13].