2 Artificial Intelligence (AI) Stocks You Can Buy and Hold for the Next Decade

Artificial Intelligence (AI) stocks were battered over the summer. The VanEck Semiconductor ETF, which is chock-full of semiconductor stocks that are tied to the AI sector, fell as much as 25% from the all-time high it set in July.

Nevertheless, I remain bullish on AI. Investors have only seen the beginning stages of how this technology will reshape the world, and additional innovations will take years and even decades to emerge.

That is a strong case for owning AI stocks long term -- here are two I find particularly compelling.

The cutting-edge leader in data analytics

Topping my list is Palantir Technologies (NYSE: PLTR).

The company, which provides AI-powered big data solutions, is riding high. Earlier this month, it was announced that Palantir would join the S&P 500 index. That news spurred a rally in the stock, which has already climbed by 113% year to date.

Behind that excellent performance is the company's sterling fundamentals. Still a young company, Palantir is primarily focused on growing its customer base and revenue. As of the second quarter, its quarterly revenue increased to $678 million, up 27% from a year earlier.

Similarly, Palantir's U.S. customer count is growing very rapidly. The company reported 295 American commercial customers last quarter, up 83% year over year. Moreover, Palantir is attracting larger customers as it closed 27 deals worth more than $10 million each during the period.

Needless to say, Palantir is riding the wave of AI momentum. As CEO Alex Karp noted in his most recent shareholder letter, "Our growth across the commercial and government markets has been driven by an unrelenting wave of demand from customers for artificial intelligence systems that go beyond the merely performative and academic."

In short, the company has caught the wave and is riding it well. Investors looking for an AI stock to buy and hold for the long term should strongly consider Palantir.

The foundation of AI innovation

Next on my list of AI stocks is Nvidia (NASDAQ: NVDA).

That said, Nvidia is a stock I want to buy and hold for the next decade or longer. That's important because I've made no secret of my opinion that the stock has become very expensive.

However, I still view it as a strong buy because AI is a long-term trend that will play out over many years. In the same way the internet continues to evolve, AI has a long road ahead of it.

That's great news for Nvidia, in particular, because its product is the go-to solution when it comes to building the "brains" of various AI models. It makes the graphic processing units (GPUs) most favored by AI developers