Artificial intelligence (AI) is taking over Wall Street. Significant advances in technology have brought leaders to the forefront, enabling them to achieve excellent financial results.
And the good news is that it’s not too late, far from it, to make money from it. Artificial intelligence will continue to be a major tailwind in the next decade and beyond, and choosing the right stocks can help you achieve superior returns.
With that as a backdrop, let’s consider two attractive AI stocks that could beat broader stocks by 2035: Microsoft(NASDAQ:MSFT) And Meta Platforms(NASDAQ:META).
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Microsoft is one of the best AI plays for at least two reasons. First, years ago he had the foresight to partner with OpenAI, the undisputed leader in the field of generative artificial intelligence. The move has clearly been a lucrative one for Microsoft, which now owns a 27% stake in OpenAI.
company it also owns the intellectual property rights to use OpenAI models, which continue to be among the market leaders until 2032. OpenAI has committed to purchasing $250 billion worth of services from Microsoft. cloud computing segment, Azure.
This brings us to the second reason why Microsoft is one of the most attractive AI stocks: The company has established itself as a leader in cloud computing and has followed suit. Amazon.
This business is booming for Microsoft, and things have only gotten better over the last few years thanks to the growing list of AI services it offers, which includes access to OpenAI’s market-leading models.
It also benefits from long-standing partnerships with businesses to which it has offered the Microsoft Office suite for decades. There is a level of familiarity with the company’s products and brand trust that is difficult to imitate. These competitive advantages are one of the reasons why Microsoft continues to make significant progress in cloud computing.
How might things evolve for the company over the next decade? It needs to continue to capitalize on these rapidly growing markets, as many believe we are still in the early stages of cloud adoption and AI growth.
In addition to its brand name and deep corporate relationships, the company also benefits from high switching costs in the Azure segment. This ensures it performs well in the long run.
Finally, Microsoft is an excellent dividend stock that has increased its payouts by almost 153% over the last decade. It is an excellent choice for AI investors as well as those looking for growth and income.
Shares of Meta Platforms fell after reporting third-quarter results. Investors were concerned about lower-than-expected profit figures and the company’s decision to increase capital expenditures (capex). But in my opinion, none of these issues are a reason to sell the stock.
The disappointing net income was due to tax expense incurred as a result of a new law in the United States. Additional capex could actually be a good thing, as it could put Meta Platforms in a great position to benefit from breakthroughs in artificial intelligence.
That’s one of the reasons why it’s a great AI stock. And management isn’t just waiting for future breakthroughs. The company is already reaping the rewards of its work in this area, thanks to artificial intelligence algorithms that increase interaction across its websites and applications.
Meta generates most of its revenue from advertising. Demand for ads on the company’s platforms may increase as it attracts more users, or as users spend more time in the apps, or, as it now appears, both.
In the third quarter, the number of monthly active users increased by 8% year on year to 3.54 billion. During this period, time spent on Facebook increased by 5%. Meanwhile, it also improved ad conversion thanks to artificial intelligence. The result: Revenue rose 26% year over year to $51.2 billion in the third quarter.
Despite the recent decline in commodity shares, the company’s work in artificial intelligence will continue to have a significant impact on its entire business, increasing revenue and profit, making it an attractive opportunity for investors looking to capitalize on this fast-growing field.
Before buying shares in Microsoft, consider:
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Prosper Junior Bakiny It has positions on Amazon and Meta Platforms. The Motley Fool has positions in and recommends Amazon, Meta Platforms, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a feature disclosure policy.
