In the years ahead, artificial intelligence (AI) is likely to have a profound impact on the world. From revolutionising healthcare through personalised medicine to transforming transportation through autonomous vehicles, AI’s influence will touch nearly every facet of our lives.
Looking for AI stocks to buy for the long term? Here are three companies that are poised to capitalise on the AI revolution.
1. An Under-The-Radar AI Stock – Amazon
One stock that doesn’t get enough recognition as an AI play is Amazon (AMAZON:NASDAQ). Originally an e-commerce business, it’s a major player in the cloud computing space today.
In Amazon’s recent 2024 letter to shareholders, the company said that it is investing ‘deeply and broadly’ in AI to make customers’ lives better and easier. It noted that currently, there are more than 1,000 generative AI applications being built across the company to enhance shopping, coding, personal assistants, video and music streaming, advertising, healthcare, reading, and home devices.
On top of this, Amazon offers model-building and inference services in Amazon SageMaker and Amazon Bedrock, its own frontier models in Amazon Nova, and high-powered ‘Trainium’ AI chips. So overall, it’s very active on the AI front.
It’s worth pointing out that tariffs and a potential consumer slowdown are some risks to the investment case in the short term. Taking a five-year view, however, it’s likely that Amazon will see material growth.
And after a recent dip in the share price, now could be a good time to take a look at the stock. At present, it trades on a forward-looking price-to-earnings (P/E) ratio of about 30 – a historically low valuation.
- Buy Amazon Shares on eToro
2. Physical AI Is The Next Chapter – Nvidia
Chip designer Nvidia (NVDA:NASDAQ) has had a lot of success in AI to date. Thanks to its high-powered AI chips, its revenues and earnings have exploded to the upside over the last two years and so has its share price.
This company may just be getting started, however. Looking ahead, there could be a lot more to come from Nvidia as the AI industry continues to evolve. CEO Jensen Huang believes that the next chapter of AI is physical AI – robotics and autonomous vehicles (AVs). According to Huang, robotics will be the “largest technology industry the world has even seen” while AVs will be the first “multi-trillion dollar” robotics industry.
Nvidia looks interesting today because its valuation has come down significantly recently. Currently, it is trading on a forward-looking P/E of just 25. That looks low relative to the company’s rate of growth. This financial year (ending 31 January 2026), Nvidia’s revenue and earnings are projected to grow 53% and 48% respectively (meaning the price-to-earnings-to-growth or ‘PEG’ ratio is only 0.52).
Now, while there is plenty of long-term potential here, the chip industry is cyclical. So, Nvidia’s sales may not rise in a straight line in the years ahead. Those with a long-time mindset could be rewarded, however. I wouldn’t be surprised if Nvidia’s market cap is significantly higher by 2030.
- Trade Nvidia on forex.com here
3. AI-Based Cybersecurity – Palo Alto Networks
While AI is going to have many benefits for society, it will also introduce new challenges. One major challenge is likely to be increasingly sophisticated cyberattacks. This brings me to Palo Alto Networks (PANW:NASDAQ). It’s the world’s largest cybersecurity company by revenue and market cap.
In recent years, Palo Alto Networks has been strategically positioning itself for the age of artificial intelligence. Not only has it integrated AI into its own products, but it has also been pivoting to a ‘platformisation’ model, where it provides comprehensive cyber protection to its customers via several different platforms. The company refers to this platformisation model as its ‘Next-Generation Security’ business. And it’s having a lot of success with it at present – for the most recent quarter annual recurring revenue (ARR) for this segment of the business rose 37% year over year to $4.8 billion.
It’s worth noting that Palo Alto Networks is facing plenty of competition. To prevent rivals such as CrowdStrike and Zscaler from capturing market share, it will need to keep innovating.
I see a lot of potential in this stock, however. In the AI era, the cybersecurity industry is set for strong growth.
- Trade Palo Alto Networks on Interactive Brokers
Edward Sheldon owns shares in Amazon, Nvidia, and CrowdStrike
Based in London, Edward is a distinguished investment writer with an extensive client portfolio comprising a diverse array of prominent financial services firms across the globe. With over 15 years of hands-on experience in private wealth management and institutional asset management, both in the UK and Australia, he possesses a profound understanding of the finance industry.
Before establishing himself as a writer, Edward earned a Commerce degree from the prestigious University of Melbourne. Complementing his academic background, he holds the esteemed Investment Management Certificate (IMC) and is a proud holder of the Chartered Financial Analyst (CFA) qualification.
Widely recognized as a sought-after investment expert, Edward’s insightful perspectives and analyses have been featured on sites such as BlackRock, Credit Suisse, WisdomTree, Motley Fool, eToro, and CMC Markets, among others.
You can contact Ed at edward@goodmoneyguide.com
