3 AI Stocks to Buy and Hold Forever: Nvidia, Intel, and Applied Digital

Artificial Intelligence (AI) has emerged as a transformative force in the tech industry, driving innovation and growth across various sectors. As AI continues to gain traction, investors are increasingly focusing on AI stocks as a promising investment opportunity. In this article, we will explore three AI stocks that have the potential to deliver long-term growth and are worth considering for a buy-and-hold strategy: Nvidia, Intel, and Applied Digital.

1. Nvidia (NVDA)
Nvidia is a leading manufacturer of graphics processing units (GPUs), which are essential for training and deploying AI models. The company's dominance in the AI chipset market, with an estimated market share of 70% to 95%, positions it well for the growing demand for AI hardware. Nvidia's meteoric stock growth and high forward P/E ratio of 44 indicate that the company is well-positioned for long-term investment. However, it's essential to approach Nvidia's stock with a long-term mindset, as some of its projected financial growth may already be priced into its shares.



Nvidia's strong performance and market share in AI chips can drive demand for its products, leading to increased revenue and growth for the company. This, in turn, can positively impact other AI-related stocks and sectors, as Nvidia's success often signals a thriving AI market. For instance, Nvidia's stock has soared more than 210% since last June, reflecting the growing demand for AI hardware and the company's leading market share in AI GPUs.



2. Intel (INTC)
Intel is transitioning its business to a foundry model, focusing on chip manufacturing. This shift positions Intel to become a significant player in the AI infrastructure market, as it aims to manufacture chips for various AI applications. Intel's lower forward P/E ratio of 28 compared to its peers suggests that it is one of the best-valued stocks in AI. The company's plans to build chip manufacturing plants throughout the U.S. could create a virtuous cycle, driving demand for AI chips and fostering growth in the AI market.



Intel's success in this endeavor can have a substantial impact on other AI-related stocks and sectors. For example, Intel's plans to become the U.S.'s go-to chip manufacturer, profiting from the entire AI market's growth, can drive investment and innovation in AI technologies, benefiting other AI-related companies and sectors.



3. Applied Digital (APLD)
Applied Digital is capitalizing on the surging power demands of AI by securing up to 600 megawatts of power capacity in North Dakota. With electricity costs running 24% below the national average, Applied Digital is well-positioned to capitalize on the AI computing boom. The company's strategic pivot is well-timed, as data center power consumption is projected to surge 125% by 2030. Applied Digital's forward P/E ratio of 28 indicates that it is one of the best-valued stocks in AI, making it an attractive long-term investment opportunity.



Applied Digital's first-mover advantage in securing abundant, low-cost energy positions it to capitalize on the AI computing boom. The company's strategic pivot and strong partnerships with Nvidia and Related Companies highlight its potential for long-term growth and success in the AI market.

In conclusion, Nvidia, Intel, and Applied Digital are three AI stocks that have the potential to deliver long-term growth and are worth considering for a buy-and-hold strategy. Their strong performance, market dominance, and strategic positioning in the AI ecosystem make them attractive investment opportunities for long-term investors. However, it's essential to approach these stocks with a long-term mindset and monitor their progress and the broader AI market to make informed investment decisions.