3 AI Stocks to Buy in 2026 and Hold for the Next Decade

As artificial intelligence reshapes global industries, investors seeking long-term growth must balance innovation, risk, and income. The AI-driven future demands strategic diversification across companies with distinct risk profiles: high-floor security, high-growth potential, and dividend stability. Alphabet (GOOGL), Tesla (TSLA), and IBM (IBM) emerge as compelling candidates for such a portfolio, each offering unique advantages in the evolving AI landscape.

1. Alphabet: High-Floor Security in AI Innovation

Alphabet's dominance in AI is underpinned by its robust financials and strategic infrastructure investments. In Q3 2025, the company reported revenue exceeding $100 billion, with Google Cloud growing 32% year-over-year to $13.6 billion, driven by demand for its Gemini AI model and $106 billion in backlogs. Despite a 22.78% decline in Q4 2025 earnings per share (EPS) to $2.17, Alphabet's forward price/earnings ratio of 24.94 suggests a discounted valuation compared to peers.

The company's commitment to AI leadership is evident in its $85 billion capital expenditure plan over five years, four times its previous rate, to expand AI infrastructure. By December 2025, Alphabet's generative AI models (Gemini, Imagen, Veo) generated over 200% year-over-year revenue growth, while AI Overviews and AI Mode features boosted search query volume. These innovations, coupled with Alphabet's vast data ecosystem and market position, position it as a high-floor security-offering downside protection and long-term value.

2. Tesla: High-Growth Potential in Disruptive AI

Tesla's AI ambitions, though volatile, present a high-reward opportunity. The company's Q4 2025 EPS of $0.40 reflects a 48.89% year-over-year increase, driven by production efficiency and energy storage growth. While vehicle deliveries face headwinds-Q4 2025 projections are tempered by expiring EV tax credits and declining Cybertruck demand-Tesla's robotaxi service and Optimus projects remain transformative. By December 2025, driverless tests had begun in Austin and San Francisco, signaling progress toward autonomous mobility.

Tesla's energy division, with gross margins exceeding 30% and 12.5 GWh of storage deployed in Q3 2025, underscores its diversification into profit centers beyond vehicles. However, its stock remains speculative, with analysts projecting a wide range of price targets. For investors with a high-risk tolerance, Tesla embodies the disruptive potential of AI in transportation and energy.

3. IBM: Dividend Stability in Enterprise AI

IBM offers a counterbalance to Alphabet and Tesla's volatility with its dividend stability and earnings consistency. In Q4 2025, the company reported an EPS of $2.65, a 65.63% year-over-year increase, driven by strong demand for hybrid cloud and AI solutions. IBM's projected 2025 dividend yield of 2.5% appeals to income-focused investors, while its focus on enterprise clients and recurring revenue streams ensures long-term stability.

The company's strategic pivot to AI and cloud computing has bolstered its valuation, with Q3 2025 revenue reaching $16.33 billion and adjusted EPS of $2.65. Despite a 7% post-earnings stock decline, IBM raised its full-year revenue growth guidance to over 5%, reflecting confidence in its hybrid cloud and Watson AI platforms. For investors prioritizing income and resilience, IBM provides a reliable anchor in an AI-driven portfolio.

Conclusion: Balancing Innovation, Reward, and Income

A diversified AI portfolio requires complementary risk profiles. Alphabet's high-floor security ensures resilience amid market fluctuations, Tesla's high-growth potential capitalizes on disruptive innovation, and IBM's dividend stability provides consistent income. Together, these three stocks offer a strategic approach to navigating the AI revolution: leveraging Alphabet's foundational strength, Tesla's visionary bets, and IBM's enterprise expertise. As AI continues to redefine industries, this trio exemplifies how investors can balance the pursuit of innovation with the need for long-term financial security.