Key Points Nvidia delivers AI computing solutions across top industries, generating billions in profits. Microsoft experiences strong demand for AI services within its cloud business. These 10 stocks could create the next generation of millionaires › The technology sector has produced some of the largest stock market winners over recent decades, with artificial intelligence (AI) offering substantial rewards for investors holding the right stocks. With $3, 000 to invest now, the following companies are well-positioned to provide excellent long-term returns, as demonstrated over the past decade. Allocating funds equally among these stocks balances exposure across both hardware and software in the AI market. 1. Nvidia Nvidia’s (NASDAQ: NVDA) graphics processing units (GPUs) provide critical computing power to train AI models that understand and respond to human language. Its GPUs are industry-leading, and current explosive demand presents a strong buying opportunity despite a recent stock dip. Nvidia’s data center revenue more than doubled last year, now representing nearly 90% of its business. Investors anticipate a 54% revenue increase this fiscal year driven by Nvidia’s new Blackwell computing system. Blackwell offers significant performance gains over the prior Hopper chip generation for AI workloads. AI models from OpenAI, xAI, and others are becoming more sophisticated, able to solve complex problems and engage in logical human conversations. These next-generation AI models will require up to 100 times more computational power per task, benefiting Nvidia. Although some customers like OpenAI are developing custom AI chips, posing a risk, this concern is likely overstated. Nvidia’s GPUs serve diverse computing needs beyond specific workloads. For example, Mayo Clinic uses Nvidia’s DGX platform to build a cutting-edge digital pathology lab, accelerating healthcare diagnosis and treatment. Nvidia’s solutions span multiple industries, providing a competitive advantage reflected in its strong profit margin. Last year, Nvidia earned $73 billion in net income on $130 billion revenue. Analysts forecast Nvidia’s earnings to grow at an annualized 35% over the coming years, making the stock attractively valued at about 26 times this year’s earnings estimate. 2. Microsoft Microsoft (NASDAQ: MSFT) is a leading provider of cloud and AI services as companies increasingly adopt these technologies to boost productivity. With over 1 billion Windows devices, Microsoft’s strong brand supports its momentum. Last quarter, Microsoft’s revenue grew 15% year-over-year (constant currency), with earnings rising 19%.

Cloud segment growth led this, notably Microsoft Azure’s 35% annual increase. AI has become essential for large businesses, contributing nearly half of Azure’s growth last quarter—more than double AI’s revenue contribution from just a year ago. Microsoft witnessed accelerating AI demand, with companies like Abercrombie & Fitch, Coca-Cola, and ServiceNow expanding their Azure usage. Microsoft’s stock pulled back earlier in the year as earnings growth fell short of high expectations tied to its premium valuation. Still, large data center operators like Microsoft remain excellently positioned to serve growing AI demand long-term, leveraging vast resources that strengthen competitive moats. Microsoft reported hundreds of thousands of enterprise customers now use its Copilot AI assistant—tripling year-over-year—with new Copilot enterprise deals steadily increasing in size. Financially solid, Microsoft generated $96 billion net income on $270 billion revenue over the past year. Analysts project 12% annualized earnings growth, supporting comparable shareholder returns. Don’t Miss This Second Chance at a Potentially Lucrative Opportunity Feel like you missed out on the best stocks?Our expert analysts occasionally issue “Double Down” stock recommendations for companies likely to surge. If you fear missing your chance, now is an ideal time to buy before it’s too late. Historical returns demonstrate this: - Nvidia: a $1, 000 investment in 2009 would now be worth $302, 503. * - Apple: a $1, 000 investment in 2008 would now be $37, 640. * - Netflix: a $1, 000 investment in 2004 would now be $614, 911. * Currently, “Double Down” alerts have been issued for three exceptional companies, available through Stock Advisor, with few opportunities like this anticipated soon. See the 3 stocks » *Returns as of May 5, 2025 John Ballard holds Nvidia shares. The Motley Fool holds and recommends Microsoft, Nvidia, and ServiceNow. The Motley Fool recommends certain Microsoft options. See The Motley Fool’s disclosure policy. Got $3, 000?2 Artificial Intelligence (AI) Stocks to Buy and Hold for the Long Term was originally published by The Motley Fool