Got 10 Years and $1000? Here Are 3 AI Stocks to Consider

Investing with a longer time horizon empowers investors to zoom out and focus on the big picture. As the world of artificial intelligence (AI) evolves, certain companies are emerging as strong contenders for success over the next decade.

Recent developments in the AI sector, particularly surrounding the controversy involving DeepSeek, a Chinese AI firm, have caused many investors to pause and rethink their strategies. This highlights the volatility of the AI industry and suggests that investors should be prepared for unexpected challenges in the coming years.

Long-term investors in AI stocks should take a broad view of the current landscape. Here, we outline three AI stocks that have significant potential for growth. Each of these companies stands out as a leader in the AI space and can be acquired for a total investment of just $1,000.

1. Palantir Technologies

With competition heating up and the entry of lower-cost AI models into the market, the true value in AI may lie in developing specialized applications atop generalized AI systems. In this context, Palantir Technologies (PLTR) becomes a potentially lucrative long-term player. The company specializes in creating and implementing custom AI software for government and enterprise clients. While its roots extend back over a decade, Palantir has accelerated its growth dramatically in recent years, particularly following the introduction of its AIP platform for enterprises in mid-2023.

Palantir provides AI application deployment solutions across numerous sectors, and its adaptable software capabilities broaden the potential customer base among large enterprises. With $2.87 billion in highly profitable revenue last year from just 711 clients, the firm's positioning is promising, especially when considering that around 20,000 large businesses operate across the United States. As AI technology matures and becomes more affordable, Palantir could feasibly expand its reach to include medium and small enterprises.

Given its recent successes, Palantir’s stock is currently priced at a premium, and investors may want to approach with caution. A gradual investment strategy, such as purchasing a share to start and adding more during price dips, could be prudent. Although it may take some time for Palantir to achieve consistent growth, it remains a solid choice over the next ten years.

2. Apple

Apple (AAPL) holds a unique position in the market, adeptly poised to integrate AI technology into consumer products. With over 2.35 billion active iOS devices worldwide, Apple has a vast ecosystem to effectively distribute AI products and services. Recently, Apple launched Apple Intelligence, a suite of AI features and tools for iOS users, although initial feedback has been mixed.

This lukewarm reception does not eliminate the potential for growth in user interest as AI becomes a more integral part of daily technology. The broader acceptance of AI among the general public will be crucial for justifying substantial investments in the technology.

Although Apple's growth has shown signs of stagnation in recent years, raising questions about its market valuation, strategies like dollar-cost averaging over an extended period may help investors manage any short-term market fluctuations. Despite current challenges, Apple's capabilities to deliver AI solutions within its iOS ecosystem offer promise for the future.

3. Meta Platforms

Social media giant Meta Platforms (META) is actively engaging with AI technology as a means to diversify its business beyond the ecosystems owned by Apple and Alphabet (Google). One notable development is Meta's open-source AI model, Llama, which aims to cultivate a robust developer community. Currently, Meta's AI products boast more than 700 million monthly active users and the company is experimenting with innovative personal devices like smart glasses and headsets.

Meta's AI initiatives have the potential to nurture growth across both consumer-facing applications and enterprise solutions. Enhancing their core digital advertising business and exploring new services, such as AI agents for customer support roles, positions Meta for future expansion.

Following a challenging period in 2022—where the stock price fell below $100 due to changes in tracking policies implemented by Apple—Meta's stock has experienced a remarkable recovery and has climbed above $700. This resurgence is attributed to a steady increase in social media user engagement and strong advertising revenues. Investing in Meta now not only capitalizes on its current strengths but also bets on the extensive returns that could flow from its AI developments in the coming years.

In summary, while the AI landscape may present uncertainties ahead, understanding the long-term potential of these companies can empower informed investment decisions. Each of these AI stocks offers a unique opportunity for those looking to invest $1,000 over the next decade.

Investing, AI, Stocks