Artificial intelligence (AI) is changing the world we live in, and over the next decade, the world could look like a very different place than it does today. Technology is advancing rapidly, and with that comes a lot of uncertainty. The leaders of today are not guaranteed to be the leaders of tomorrow, but some companies are well positioned to continue to lead the charge.
Let’s look at two monster growth stocks to hold for the next decade in these uncertain times.
Alphabet: The complete AI play
Today’s Change
(-1.19%) $-4.61
Current Price
$383.05
Key Data Points
Market Cap
$4.6T
Day’s Range
$381.78 – $388.75
52wk Range
$162.00 – $408.61
Volume
749.2K
Avg Vol
28.6M
Gross Margin
60.43%
Dividend Yield
0.22%
In the age of AI, Alphabet (GOOGL 1.19%) (GOOG 1.04%) continues to be one of the best-positioned companies to lead long-term. The company has several advantages that should endure.
The first is its chip business, which gives it a structural cost advantage. By developing its tensor processing units (TPUs) over a decade ago and designing its hardware and software ecosystem around them, the company has a huge head start in this area. This allows it to build its AI models at a much lower cost than competitors and to run inference much more cheaply. Meanwhile, its chips have become so well established that it’s even letting select customers start to order TPUs directly from its co-developer partner Broadcom, creating another high-margin revenue stream.
Next, when it comes to AI, Alphabet has a huge distribution and surface advantage. This distribution edge comes from the company owning both the world’s most popular browser, Chrome, and smartphone operating system, Android, both of which have nearly 70% global market share. Meanwhile, its search revenue-sharing deal with Apple, which makes Apple the default search engine on its devices, covers much of the rest. This essentially makes it the gateway to the internet. It then has a multitude of surfaces, like Google search, its Gemini app, Google Maps, etc., in which to embed its AI model.
Importantly, Alphabet also has a monetization advantage. It operates the world’s largest ad network, serving everything from global brands to local merchants and service providers. It also has strong retail and brand connections through Google Shopping. With its newest Gemini 3.5 model, the company has also realized that it doesn’t need the smartest AI model to win the consumer market; it needs one that is fast and cost effective, and can be scaled across its various products to drive growth.
With the best AI stack of any company, and the only one with world-class chips and AI models, Alphabet is set to win multiple ways from AI. That makes it a stock you want to own over the next decade.
Image source: Getty Images.
Taiwan Semiconductor Manufacturing: The AI chip arms dealer
Taiwan Semiconductor Manufacturing
Today’s Change
(-0.69%) $-2.82
Current Price
$404.33
Key Data Points
Market Cap
$2.1T
Day’s Range
$402.95 – $410.61
52wk Range
$190.56 – $421.97
Volume
314.2K
Avg Vol
13.7M
Gross Margin
60.72%
Dividend Yield
0.82%
The AI infrastructure market is booming, but it’s also shifting rapidly. Nvidia has long dominated the AI model training market with its graphics processing units (GPUs). However, AMD has struck some large GPU deals for inference, which is expected to become the larger market. At the same time, hyperscalers (owners of large data centers) are looking to follow in Alphabet’s footsteps and design their own custom AI accelerators to help lessen costs. With the rise of agentic AI, there is suddenly a huge demand for high-performance server central processing units (CPUs), with the GPU-to-CPU ratio in the data center expected to significantly shrink.
While this muddies the picture of which semiconductor companies will eventually come out on top, it’s all good news for Taiwan Semiconductor Manufacturing (TSM 0.69%), as it makes the chips for all the leading chip designers. With a near monopoly on the manufacturing of advanced logic chips, TSMC has had strong pricing power, but with multiple customers competing for capacity, the company is in an even stronger position moving forward.
As essentially the arms dealer in the AI infrastructure race, TSMC is a stock you want to own for the long term, as it doesn’t matter which company or technology prevails. While it has its own competitors, they have struggled with yields, and none have the scale or shown the technological expertise to challenge it.
