Invest in these Two Artificial Intelligence Shares for Long-Term Holding Throughout the Coming Decade
In 2024, artificial intelligence (AI) emerged as a significant investing theme, signifying more than just a fleeting trend. With time required for AI development and implementation in the real world, we're still in the beginning stages of this growth narrative. Last year saw a focus on building out AI infrastructure, an investment that continues into 2025.
As we progress, businesses will increasingly adopt AI to enhance operations. This is already happening with the growth of agentic AI, software capable of analyzing problems, devising solutions, and implementing them. Analysts estimate that the $200 billion AI market could surpass $1 trillion by the decade's end, promising substantial revenue growth opportunities for tech players.
Taking advantage of this long-term investing opportunity requires selecting stocks poised for success at each stage of AI growth. Two such stocks worth considering for a decade-long investment strategy are Meta Platforms (META) and Amazon (AMZN).
1. Meta Platforms (META)
Meta Platforms has made no secret of its commitment to AI, naming it its largest investment area for 2024. In its latest earnings call, the company pledged to boost spending on AI infrastructure this year. After launching its first AI assistant, Meta AI, the tool witnessed rapid adoption with more than 500 million monthly active users.
Meta's large language model, Llama, powers Meta AI, and the company has opted to make the technology open source. This decision could help Meta establish industry-leading standards, potentially positioning them as a future AI leader. Increased usage of Meta's assistants or products could encourage more time spent on the apps, ultimately leading to increased advertising revenue from advertisers.
2. Amazon (AMZN)
Amazon is excelling in AI development, improving operational efficiency across e-commerce and offering AI tools through its AWS cloud computing unit. Amazon leverages AI in its e-commerce business, helping cut costs by optimizing inventory management and delivery routes.
The company has also introduced AI shopping assistants, like the Rufus shopping assistant, designed to save users time. Additionally, AWS is a leading cloud service provider, driving a $110 billion revenue run rate in 2024, thanks to its AI capabilities.
AWS offers various AI products and services at multiple price points, including Amazon's own AI chips and premium graphics processing units (GPUs) from vendors like Nvidia. Its Amazon Bedrock service allows customers to build AI agents, positioning Amazon as a strong player in the next wave of AI growth.
With both Meta Platforms and Amazon making significant strides in AI development and leveraging their capabilities to drive future growth, these stocks make worthwhile additions to any long-term growth portfolio.
In the realm of finance, investing in tech companies with strong AI capabilities, such as Meta Platforms (META) and Amazon (AMZN), is becoming increasingly attractive. According to analyst predictions, the AI market, currently valued at $200 billion, could surpass $1 trillion by the end of the decade.
Furthermore, Meta Platforms, with its commitment to AI as its largest investment area for 2024, has seen rapid adoption of its AI assistant, Meta AI, which now boasts over 500 million monthly active users. Amazon, on the other hand, is excelling in AI development, using it to optimize inventory management, delivery routes, and introduce AI shopping assistants in its e-commerce business.
