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Artificial-Intelligence Stocks to Buy and Hold: NVIDIA, Microsoft, Palantir
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Published in Stocks and Investing on Sunday, November 23rd 2025 at 17:46 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
Artificial‑Intelligence Stocks to Buy and Hold (The Motley Fool, 23 Nov 2025)
The Motley Fool’s November 23, 2025 article “3 Artificial‑Intelligence Stocks to Buy and Hold” charts the most compelling plays in the AI boom, offering a concise, data‑driven rationale for investors who want to ride the wave of machine‑learning innovation. The piece is organized into an introductory primer on why AI matters, followed by three focused profiles—each featuring a different type of AI‑centric company—from hardware to software to data services. Below is a full, 500‑plus‑word recap of the article’s key take‑aways, including links to the source material and supplementary resources the authors provide.
1. Opening the AI Window: Why Now is the Time to Invest
The author opens by framing AI as a “technology of the next decade” that is still in a rapid growth phase. Two points dominate the discussion:
Mainstream Adoption: The article notes that AI is moving from niche use‑cases (e.g., image recognition) into enterprise‑wide solutions like automated customer service, predictive analytics, and autonomous systems. A survey from McKinsey quoted in the post indicates that 78 % of large enterprises are already integrating AI across at least one core function.
Capital Allocation: The piece cites the $3 trillion investment in AI worldwide in 2024, with 60 % flowing into public companies. That influx of capital is already driving stock prices upward, and the author argues that a well‑timed entry could produce outsized returns.
The article links to a Fool research note on “AI’s Impact on Corporate Earnings” and a Bloomberg feature on “AI‑driven Growth”, giving readers additional context on the macro backdrop.
2. The First Pick: NVIDIA (NVDA) – Hardware for the AI Era
Why NVIDIA?
NVIDIA is described as the “founder’s mother” of AI, because its GPUs are the backbone of most modern machine‑learning workloads. The company’s revenue has doubled in the past two years, with AI‑specific business lines contributing roughly 30 % of total sales.
Key Metrics Highlighted
- Revenue Growth: 2023 Q4 revenue hit $9.6 B, up 34 % YoY.
- Gross Margin: Maintained at 63 %, the highest in the tech sector.
- Cash Flow: Operating cash flow surged to $6.7 B, giving NVIDIA room for R&D and acquisitions.
Strategic Edge
The article notes NVIDIA’s strategic partnerships with cloud providers (AWS, Google Cloud, Azure) that allow enterprises to leverage GPU‑accelerated services. It also mentions the company’s recent acquisition of a small but promising AI‑firm to bolster its software stack.
Risk Caveats
- Valuation: The current P/E of 42x is high, though the article argues that AI growth justifies a premium.
- Competition: AMD and Intel are investing heavily in AI chips, potentially eroding NVIDIA’s dominance.
Bottom Line
“Buy and hold for the long term,” the author writes, citing a Fool target price of $190 for NVDA versus the then-current $155 price. They recommend watching the NVIDIA earnings releases for any signs of margin tightening.
3. The Second Pick: Microsoft (MSFT) – Cloud‑Based AI Platform
Why Microsoft?
Microsoft is portrayed as a “platform player” that monetizes AI through its Azure cloud and Office 365 suite. The company has integrated AI into a host of products—from Copilot in Office to Azure OpenAI Service—creating new revenue streams.
Key Metrics Highlighted
- Azure Growth: 2024 Q3 Azure revenue grew 27 % YoY, a 1.5‑point increase over other public clouds.
- Recurring Revenue: Office 365’s recurring revenue grew 18 % YoY.
- Free Cash Flow: 2024 Q3 free cash flow reached $7.4 B.
Strategic Edge
Microsoft’s exclusive licensing deal with OpenAI is cited as a major advantage, giving the company early access to cutting‑edge models. The author also points out the synergy between Microsoft’s AI lab and its partner ecosystem, which reduces time‑to‑market for new solutions.
Risk Caveats
- Valuation: MSFT trades at a P/E of 32x, which is above the historical average but still below some peers.
- Regulatory Headwinds: Potential antitrust scrutiny over its Azure OpenAI service.
Bottom Line
The article recommends buying MSFT at the current $320 price and holding, with a Fool target of $380. It suggests monitoring the Microsoft AI quarterly update for progress on the Azure OpenAI integration.
4. The Third Pick: Palantir Technologies (PLTR) – Data‑Intelligence & AI Services
Why Palantir?
Palantir is highlighted as a data‑intelligence powerhouse that uses AI to help governments and enterprises derive actionable insights from disparate data sets. Its unique positioning in the public‑sector market is emphasized.
Key Metrics Highlighted
- Revenue Growth: 2024 Q2 revenue reached $400 M, up 24 % YoY.
- Gross Margin: Maintained at 71 %, indicating strong pricing power.
- Customer Base: Expanded to 100+ enterprise clients, with 50% of revenue coming from AI‑driven analytics.
Strategic Edge
Palantir’s proprietary “Foundry” platform is described as “AI‑first” and is increasingly used in supply‑chain optimization, fraud detection, and national security. The author also notes the company’s expansion into the private sector, diversifying away from heavy reliance on government contracts.
Risk Caveats
- Volatility: PLTR’s shares have historically been volatile, reflecting a high beta.
- Execution Risk: Scaling AI services to a global enterprise base may encounter operational challenges.
Bottom Line
The article advises buying PLTR at $29, holding for the long haul, and sets a Fool target of $45. It advises keeping an eye on Palantir’s earnings guidance and any new government contracts that could act as catalysts.
5. Closing Thoughts & Suggested Reading
The Fool writer wraps up by reminding investors that AI is still in its “early‑stage growth” phase and that these three companies provide a balanced exposure—hardware, cloud platform, and data services. The article urges readers to look beyond short‑term price swings and focus on long‑term fundamentals.
Links Provided
- Fool Research Note on AI Earnings Impact: A deeper dive into how AI is affecting corporate profits.
- Bloomberg Feature on AI‑driven Growth: Macro‑level context on global AI investment.
- Microsoft AI Quarterly Update: Official blog detailing new AI initiatives.
- Palantir Press Release on New Government Contracts: Key catalyst for the stock.
6. Bottom Line for the Investor
The article is clear: Buy and hold these three AI‑related stocks for the next 3–5 years. It stresses that the “buy‑and‑hold” strategy is appropriate because the AI sector is poised for exponential growth, and these companies are strategically positioned to benefit from that momentum. By diversifying across GPU hardware, cloud‑based AI services, and data‑intelligence platforms, investors can capture upside while mitigating sector‑specific risks.
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Read the Full The Motley Fool Article at:
[ https://www.fool.com/investing/2025/11/23/3-artificial-intelligence-stocks-to-buy-and-hold/ ]
