2 AI Stocks to Buy in January and Hold for 20 Years
Facilitating Nvidia's steady innovation is its financial fortitude. It's one of the most profitable companies in the world, with net profits of $99 billion over the last four reported quarters on $187 billion in revenue.
In a world where AI is increasingly driving everything, Nvidia looks likely to remain a solid investment for the next 20 years. It is investing in solutions that will underpin the future economy, such as robots, autonomous vehicles, and AI agents. Analysts expect the company to experience 37% annualized earnings growth over the next few years, pointing to substantial returns ahead for shareholders.
Alphabet
Alphabet(NASDAQ: GOOG)(NASDAQ: GOOGL) delivered market-beating returns for investors over the last decade, driven by strong growth in advertising through Google Search and YouTube. The stock climbed 700%, but the next decade could see more returns as demand for AI and cloud computing takes off.
The stock rocketed to new highs in 2025 as investors started to recognize Google as a leader in AI, but that was likely just the beginning. Google Gemini is one of the most capable AI models, and it's being layered into all of Alphabet's services, including enterprise tools in Google Cloud. Revenue from its cloud segment increased 34% year over year in the third quarter.
Alphabet just surpassed $100 billion in quarterly revenue for the first time, as AI features are driving Google Search usage higher. The Gemini app has over 650 million monthly active users, making it the second-most-used AI model behind ChatGPT.
The company is benefiting from profitable revenue streams across its diverse business lines, including online advertising, subscription services (e.g., YouTube TV and Google One), and cloud services. This will support the hiring of top AI engineers and an expanding base of data centers that will help it maintain its leadership in AI.
The company was on course to spend more than $91 billion on capital expenditures in 2025, and plans a significant increase from that in 2026. It can cover those outlays through its operating cash flow, which totaled $151 billion over the last four reported quarters. These investments are strengthening its competitive position, paving the way for compounding returns for investors over the long term.
Should you buy stock in Alphabet right now?
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John Ballard has positions in Nvidia. The Motley Fool has positions in and recommends Alphabet and Nvidia. The Motley Fool has a disclosure policy.
2 AI Stocks to Buy in January and Hold for 20 Years was originally published by The Motley Fool
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