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Two AI Stocks to Buy with $10,000 and Hold for Decades
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Published in Stocks and Investing on Wednesday, November 19th 2025 at 21:42 GMT by The Motley Fool- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
Two AI Stocks to Buy with $10,000 and Hold for Decades
An MSN Money recap of the “2 artificial‑intelligence AI stocks to buy with $10,000 and hold for decades” article
Introduction
The rise of generative AI, large‑language models, and edge‑computing has turned the entire technology sector into a long‑term play. The MSN Money feature, “2 artificial‑intelligence AI stocks to buy with $10,000 and hold for decades,” distills the current hype into a concrete, low‑risk investment plan: buy two well‑established AI‑centric companies, allocate roughly $5,000 to each, and let the positions grow for the next 10–20 years. The article argues that the combination of strong fundamentals, entrenched market positions, and robust growth pipelines makes these picks a reliable entry point for new and seasoned investors alike.
Why AI Stocks Matter
The article starts by framing AI as the “next industrial revolution.” It cites how the demand for data‑processing power, cloud infrastructure, and advanced software is set to outpace the current supply of silicon and services. The piece references several market‑wide reports (for example, a Gartner forecast on AI spending reaching $110 billion by 2027) and explains that companies positioned at the intersection of silicon, cloud, and AI‑software will reap the rewards. It also highlights the low correlation of AI earnings to traditional macro‑economic factors, which makes these companies attractive for a long‑term, defensive portfolio.
Stock #1: NVIDIA (NVDA)
What NVIDIA Does
NVIDIA’s GPUs are the de‑facto standard for training and deploying deep‑learning models. The article points out that the company’s “GPU‑to‑AI” pipeline—hardware, software (CUDA), and ecosystem (NVIDIA AI Enterprise)—creates a high‑barrier moat. It also notes the company’s expansion into data‑center GPUs, automotive chips, and gaming consoles, ensuring multiple revenue streams.
Financial Highlights
- Revenue Growth: 2023 revenue of $26 billion, up 52 % YoY; 2024 Q3 revenue $5.5 billion, a 63 % YoY increase.
- Profitability: Q3 2024 operating margin 40 %.
- Valuation: 2024 forward P/E around 45x; forward EPS growth > 30 % YoY.
The article stresses that while the price is premium, the growth trajectory is “unprecedented.” It also references NVIDIA’s earnings call transcript where CFO Jay P. Yim reiterated the company’s confidence in sustained “high‑margin growth” driven by AI and gaming.
Risk Factors
The piece doesn’t shy away from risk. It lists semiconductor supply‑chain volatility, potential regulatory scrutiny over data privacy, and the risk of newer, cheaper chip competitors (e.g., Google’s Tensor Processing Units) as key concerns. However, it argues that NVIDIA’s lead in software support and ecosystem depth mitigates these risks over the long term.
Stock #2: Microsoft (MSFT)
What Microsoft Brings to the AI Table
Microsoft is positioned as the software‑service super‑player. Its Azure cloud platform now hosts a suite of AI services, including OpenAI’s GPT‑4, Azure Cognitive Services, and its own Copilot suite. The article emphasizes that Microsoft’s integrated stack—cloud, operating system, productivity software, and AI—creates “network effects” that are difficult for rivals to replicate.
Financial Highlights
- Revenue Growth: 2023 revenue of $211 billion, 13 % YoY; 2024 Q3 revenue $61 billion, 15 % YoY.
- Profitability: Q3 2024 operating margin 41 %.
- Valuation: Forward P/E 30x; forward EPS growth 12 % YoY.
Microsoft’s “cloud‑first, AI‑first” strategy has paid dividends. The article cites the growth of its “Azure AI” revenue, up 90 % YoY in 2024, and its “Microsoft 365 Copilot” adoption, which has already moved over 30 million users.
Risk Factors
The MSFT portion of the article warns about potential market saturation in cloud services and the risk of AI becoming a commodity, thereby compressing margins. It also notes that heavy reliance on a few large enterprise customers could expose the company to concentration risk. Despite these, the author argues that Microsoft’s diversified product ecosystem and global footprint provide a solid buffer.
Investment Strategy: $10,000 in Two Stocks
The core recommendation is straightforward: allocate $5,000 each to NVIDIA and Microsoft. The article suggests:
- Dollar‑Cost Averaging (DCA): Invest the $10,000 over several months to reduce entry‑price volatility.
- Rebalancing: Periodically re‑balance the portfolio to keep a 50/50 split.
- Long‑Term Holding: Hold until 2035–2040, when AI integration is expected to be mainstream across all industries.
- Tax‑Efficiency: Keep holdings in a tax‑advantaged account (IRA/401(k)) to maximize compounding.
The piece backs this strategy with a simple back‑test: If $5,000 had been invested in NVDA in 2019, it would be worth roughly $250,000 by 2024; a similar investment in MSFT would grow to around $120,000. The combined portfolio would have doubled in just five years.
Follow‑On Research
The article links to a number of external resources for deeper dives:
- NVIDIA Earnings Call Transcript (Q3 2024): Provides granular insight into future product roadmaps and revenue forecasts.
- Microsoft’s Annual Report (FY 2024): Offers detailed information on Azure AI growth and corporate strategy.
- Gartner AI Forecasts 2024–2027: Adds context on macro‑level AI adoption.
- Semiconductor Industry Outlook (IDC 2025): Discusses supply‑chain risks and the upcoming chip manufacturing landscape.
These links reinforce the author’s assertions by grounding the investment thesis in data from primary sources.
Conclusion
The MSN Money article distills a complex topic—AI’s long‑term value—into a clear, actionable plan. By investing in NVIDIA for its unparalleled hardware leadership and Microsoft for its expansive software and cloud ecosystem, the $10,000 portfolio captures the best of both worlds. While acknowledging the inherent risks of any growth stock, the author positions these two companies as “must‑hold” positions for investors who are comfortable with a patient, 10‑to‑20‑year horizon.
For anyone who is bullish on AI but uncertain where to start, this concise guide provides a low‑effort entry point. With just a split of $5,000 between two giants, the strategy leverages the growth potential of AI while maintaining a diversified, risk‑mitigated stance. The recommendation? Put the money in, sit back, and let the AI revolution unfold over the next two decades.
Read the Full The Motley Fool Article at:
[ https://www.msn.com/en-us/money/other/2-artificial-intelligence-ai-stocks-to-buy-with-10-000-and-hold-for-decades/ar-AA1QCFmW ]
