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

Artificial Intelligence (AI) has emerged as a transformative force, reshaping industries and driving innovation. As AI continues to advance, investors are seeking long-term opportunities in the sector. This article explores two AI stocks that offer compelling prospects for the next decade.
Nvidia (NVDA) is a dominant player in the AI chip market, with an estimated 70% to 95% market share. Its graphics processing units (GPUs) are the backbone of AI development, powering both training and running AI models. Nvidia's leading position in AI chips positions it well for long-term growth, as demand for AI-driven products and services continues to rise.
Despite its high forward P/E ratio of 44, Nvidia's stock has actually increased in value since 2021, indicating it could be trading at one of its best values in years. Nvidia's dominance in AI chips and its strong fundamentals make it an attractive long-term investment.
Intel (INTC) is another AI stock worth considering. Intel is transitioning its business to a foundry model, focusing on AI chip manufacturing. By building chip manufacturing plants throughout the U.S., Intel aims to become the nation's go-to chip manufacturer, profiting from the entire AI market's growth. This strategic move positions Intel uniquely in the AI market and offers significant growth potential.
With a forward P/E of 28, Intel is potentially one of the best-valued AI stocks, suggesting now is an excellent time for a long-term investment. Intel's lower forward P/E compared to Nvidia indicates it may be relatively undervalued, despite its stock growth.

While AI stocks like Nvidia and Intel offer compelling long-term prospects, it's essential to maintain a balanced investment portfolio. The author's core investment values emphasize a focus on sectors that generate stable profits and cash flows, such as utilities, renewable energy, and the REIT sector. These sectors offer consistent, inflation-protected income, making them particularly suitable for retirement portfolios.
Investors should consider income-focused strategies, known as the Income Method, which prioritize investments that provide consistent, stable yields. This approach is well-suited for long-term investors seeking to secure steady returns.

In conclusion, Nvidia and Intel are two AI stocks that offer compelling long-term prospects. Their dominance in AI chips and strategic positioning in the market make them attractive investments for the next decade. However, it's crucial to maintain a balanced investment portfolio, focusing on sectors that generate stable profits and cash flows. By employing an income-focused strategy, investors can secure steady returns and build a robust retirement portfolio.