Got $3,000? Here Are 2 Artificial Intelligence (AI) Stocks Worth Buying and Keeping for the Long Haul

We may be witnessing the beginning of a significant technological revolution with the rapid evolution of artificial intelligence (AI). The future remains uncertain as to what innovative companies, products, or services will emerge from this wave. Still, given that the AI sector is projected to expand 25 times between 2023 and 2023, according to a United Nations Trade and Development report, it's impossible to ignore its potential.

Astute investors are already thinking about how to capitalize on this trend. Fortunately, you don't need an exhaustive search to find promising opportunities. If you have $3,000 available for investment, here are two leading AI-related stocks to consider buying and holding for years to come.

Leading players in the digital era

Among the most successful companies in history are Alphabet ( GOOG 1.27%) ( GOOGL 1.23%) and Meta Platforms ( META -0.26%). Both rose to prominence as the internet became a fundamental part of everyday life. Without question, these are two of the most compelling AI stocks for investors to evaluate.

Alphabet and Meta both have significant advantages. Their well-established business models already reach enormous user bases. Alphabet, for instance, operates six different products, each with more than 2 billion users. In June, Meta's suite of apps attracted 3.48 billion daily active users.

My perspective is that the best approach is to seek out companies using AI to enhance their current offerings. In doing so, they can upgrade user experiences with this new technology rather than reinventing the wheel. Both Alphabet and Meta excel at this strategy.

Alphabet's Gemini model is now a core part of its suite of products and tools. Despite investor concerns that chatbots might disrupt Search, the AI Mode feature has already attracted over 100 million monthly active users in the United States and India combined.

Meta leverages AI to improve the quality of its content recommendations. This strategy is proving effective, resulting in a 6% increase in time spent on Instagram during the most recent quarter.

Both companies generate most of their income through digital advertising. They are applying AI to assist clients in designing more innovative, engaging, and successful ad campaigns. Mark Zuckerberg, Meta's CEO and founder, has highlighted the potential of enhancing the advertising experience.

"If we can realize this vision, the productivity gains from AI will, in my view, make advertising account for a much larger portion of global GDP than it does now," he stated during Meta's Q1 2025 earnings call. This could mean significantly higher future revenues.

In my view, AI will only strengthen the already impressive economic moats that Alphabet and Meta have built. It appears highly improbable that these giants will be overtaken anytime soon. As they continue advancing their AI capabilities, it becomes even more difficult for competitors to challenge their dominance.

Ample financial resources

Companies across the board are pouring vast sums into AI development, and Alphabet and Meta are no exception. Their combined capital expenditures are projected to reach $154 billion in 2025, with further increases expected in the coming years. These figures are substantial by any measure.

Though the results of these AI investments remain unpredictable, which is a primary concern for the market, both Alphabet and Meta are financially robust enough to take these risks. Alphabet finished the second quarter with $95 billion in cash and marketable securities, while Meta held $47 billion. Their consistently high profits each quarter ensure they have the means to innovate aggressively and remain leaders in the AI landscape.

Lowest valuations among the "Magnificent Seven"

What makes these two companies particularly appealing is that investors can add AI exposure to their portfolios without paying inflated prices. Although there is plenty of excitement surrounding this sector, Alphabet and Meta currently offer the most attractive price-to-earnings ratios among all the "Magnificent Seven" tech giants.

With a $3,000 investment, you could purchase roughly six shares of Alphabet or two shares of Meta. These may be the only AI-focused stocks you need to own.