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The field of artificial intelligence (AI) is hot right now, but that doesn’t mean it’s a short-term investment opportunity. You can win even bigger by selecting quality AI players and retaining them for the long term to participate in a potential AI revolution.
This technology has the potential to transform many industries. However, these changes won’t happen overnight, so AI players can benefit every step of the way.
Two companies in particular are driving AI projects that have a significant impact on long-term AI purchases. Without the products and services of these companies, many programs may not be able to be deployed as efficiently or successfully as they are today. These companies provide chips, servers, and other behind-the-scenes elements critical to AI, and their revenues have soared in recent years.
Let’s take a closer look at two leading AI companies to buy over the next 10 years.
Image source: Getty Images.
Nvidia
Nvidia‘s (NVDA -3.24%) Graphics processing units (GPUs) play an important role in the field of AI. These power the training and inference processes that are absolutely critical when enabling AI models to perform their jobs in the process of solving complex problems. Nvidia’s GPUs are the fastest, but the company doesn’t rest on its laurels. Instead, they invest in research and development to maintain their edge.
The efforts are paying off. Nvidia aims to launch his new H200 chip in the second quarter of this year, and is preparing a new chip architecture known as Blackwell, with his B100 chip likely to launch later this year. . Currently, Nvidia has 80% of the AI chip market, and this dominance is likely to continue due to the company’s brand strength and willingness to continue to innovate.
Even better, Nvidia doesn’t just sell chips. The company offers a wide range of AI products and services available through the world’s largest cloud companies, including: AmazonAmazon Web Services (AWS) and microsoft Azure. Nvidia has built a complete platform and expertise in AI, making it the go-to provider for companies looking to develop projects in this market.
Because of this expertise, Nvidia recently reported record profits with triple-digit sales and net income increases. And despite its rapid growth, NVIDIA stock trades at just 36 times forward earnings estimates, a reasonable price given the company’s strength in this high-growth market.
super microcomputer
super microcomputer (SMCI -4.88%) is also an AI superstar behind the scenes. The company has been around for 30 years, but its AI business has only recently seen strong earnings and stock prices. Supermicro provides servers, workstations, full rack scale solutions and more to his AI customers.
A few things help Supermicro stand out. The company uses a building block architecture. This means we use common elements across platforms, allowing us to quickly assemble products for our clients. This also allows us to incorporate the latest technology into our products. Speaking of this, Supermicro works with the world’s top chip manufacturers, including Nvidia, to stay on top of upcoming chip launches and ensure the latest innovations are readily available in their products.
Supermicro also offers customers a wide selection of configurations to tailor their orders to their needs.
All of this helped Supermicro win big in the AI market. Just recently, the company reported first quarter sales of $3 billion, which is higher than its full-year sales in 2021.
Chief Executive Officer Charles Liang said the company is seeing an increase in demand as a result of acquiring a large number of customers. Liang said he expects AI growth to continue for many quarters and possibly years. If he’s right, earnings and stock performance may just be the beginning.
Super Micro trades at 54 times forward earnings. While this may not seem cheap, it’s actually a fair price for a company that plays a key role in a high-growth industry. Supermicro’s outstanding strategy could help this player continue to win over the long term.
John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a member of the Motley Fool’s board of directors. Adria Cimino has a position at his Amazon. The Motley Fool has positions in and recommends Amazon, Microsoft, and Nvidia. The Motley Fool recommends the following options: His January 2026 $395 long call on Microsoft and his January 2026 $405 short call on Microsoft. The Motley Fool has a disclosure policy.
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