Two Technology Stocks to Invest in and Keep for the Next Ten Years

The Growth of AI Infrastructure Investments

The market for artificial intelligence (AI) infrastructure is on the rise, and it could be a strong investment opportunity. Let’s take a closer look at a couple of AI stocks that investors might want to consider for the next decade.

One of the standout AI stocks right now is Broadcom (NASDAQ:AVGO). The AI infrastructure sector is experiencing a boom, and it shows no sign of slowing down anytime soon. As data center networking gains importance with the expansion of AI chip clusters, we’re also noticing a trend where companies are leaning towards creating their own AI chips to help cut costs.

If the inference market ends up outpacing training over the next ten years, AI-specific chips, or ASICs, could significantly capture more of the market. Currently, graphics processing units (GPUs) lead in powering AI workloads.

This is certainly positive news for Broadcom, which is a key player in data center networking. The company’s Tomahawk Ethernet switches are among the top solutions in AI data centers. Recently, Broadcom collaborated with Alphabet to develop an effective tensor processing unit (TPU), a crucial component as Alphabet expands its AI infrastructure and offers its chips for various AI applications. Notably, Anthropic has placed an order for $21 billion in TPUs, expected to be delivered this year for Google Cloud use. Additionally, other firms like OpenAI are also partnering with Broadcom to customize their AI chip solutions.

With its focus on networking and custom AI chips, Broadcom appears to have significant growth potential in the AI space over the next decade.

Another major player in the AI infrastructure landscape is Taiwan Semiconductor Manufacturing Company (NYSE:TSM). As one of the leading chip manufacturers worldwide, TSMC holds a near-monopoly on advanced chip production. While its competitors struggle to achieve efficiency, TSMC has become the go-to partner for tech companies, helping them ramp up production to meet the soaring demand. The company stands to benefit from the growth of both GPUs and AI ASICs.

This advantageous position also gives TSMC strong pricing power, leading to better profit margins. Reports suggest that TSMC has already communicated a four-year price increase plan to its customers. With a focus on expanding production and raising prices, TSMC looks well-positioned to thrive in the AI infrastructure market for the long term.

As you consider these AI investment opportunities, keep in mind the potential for long-term growth in this sector—there may well be significant rewards ahead.