Artificial intelligence (AI) stood out as a major investing theme in 2024, but this isn’t just a short-term trend. AI takes time to develop and apply to the real world, and we’re still in the early days of this growth story. Last year, the focus was on building out AI infrastructure, and that continues.
As we move into the next stage of growth, companies will apply AI more and more to their businesses. We’re seeing this already with the development of agentic AI, or software that can consider a problem, find solutions, and apply them. Analysts predict that today’s $200 billion AI market will reach beyond $1 trillion by the end of the decade, suggesting significant revenue growth may be ahead for certain players in the space.
All of this means that AI represents a long-term investing opportunity — as long as you choose stocks that may benefit from every stage of this AI growth. Let’s check out two to buy and hold for the next decade.
Image source: Getty Images.
1. Meta Platforms
Meta Platforms (META 1.74%) hasn’t been shy about its AI ambitions. The company said the technology was its biggest investment area in 2024 and, in the most recent earnings call, suggested it would increase spending on AI infrastructure this year. CEO Mark Zuckerberg says he aims to design AI assistants for every user of Meta apps — that’s Facebook, Messenger, Instagram, and WhatsApp — spanning the areas of leisure and professional activities.
The company got started by launching its first assistant, Meta AI, and said adoption has been rapid. The tool now has more than 500 million monthly active users. Meta’s very own large language model, Llama, powers Meta AI, and Meta has made Llama open source — a decision that allows anyone to use and contribute to its development. This move could help Meta set the standards in this technology and potentially emerge as a leader over time.
How does all of this equal revenue growth? Meta’s launch of assistants or other products may spur users to spend more time on its apps, which should encourage advertisers — its biggest source of revenue — to increase advertising on these platforms to reach us where they know they’ll find us. And Meta’s focus on AI could lead to the development of additional revenue-generating products down the road.
Meta is an AI player that’s here to stay, and the company is already profitable and generating revenue growth through its social media business. So, the stock makes a great long-term addition to any growth portfolio.
2. Amazon
Amazon (AMZN -0.24%) is already winning in the world of AI — in two ways. First, the company applies AI to improve efficiency and the user experience across its e-commerce business. Second, it sells AI tools to customers through its Amazon Web Services (AWS) cloud computing unit.
Let’s talk about each one. I probably don’t have to tell you that Amazon is an e-commerce giant, generating billions of dollars in revenue and profit quarter after quarter. But to keep this great earnings picture going, the company has to focus on keeping costs down, and AI is helping it do just that. For example, the technology helps the company better manage inventory and determine the shortest delivery routes.
Amazon has also launched AI tools, such as the Rufus shopping assistant, for shoppers. Helping customers save time is essential, and this could keep them coming back.
Now, let’s move on to AWS, the world’s leading cloud service provider. This unit has generally been Amazon’s profit driver, and thanks to AI, this is likely to continue. AWS’ AI platform helped the cloud business reach a $110 billion revenue run rate last year.
The cloud provider is winning in AI because it offers customers a broad variety of AI products and services — across price points. Cost-conscious customers can opt for Amazon’s own AI chips, and others with bigger budgets can find premium graphics processing units (GPUs) from market leaders like Nvidia. AWS provides everything from the chip to a fully managed AI service called Amazon Bedrock.
Finally, through Bedrock, customers can even build AI agents — meaning Amazon is also setting itself up for a win in this next phase of AI growth. So, now is a great time to add Amazon to your portfolio and hang on as this long-term AI story develops.
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Adria Cimino has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy.
