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A study by Motley Fool reveals investors are optimistic about long-term returns from artificial intelligence companies.
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Nvidia and Alphabet are likely to gain from AI advancements for years ahead.
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The AI market is boosting revenue, with both companies also developing new AI-based ventures.
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Concerns about an AI bubble have been rising recently. Is the industry at risk of a crash similar to the dot-com bubble at the beginning of the 21st century?
Interestingly, 93% of investors holding AI stocks aren’t overly worried about that. According to research for The Motley Fool’s 2026 AI Investor Outlook Report, these investors are confident that AI companies will produce substantial long-term gains, viewing the industry’s growth as a consistent trend.
Nvidia and Alphabet, for instance, are two companies that are expected to benefit from AI in the long haul. They both seem well-positioned to thrive as this transformative technology changes the landscape.
Nvidia’s CEO, Jensen Huang, shared an optimistic perspective during a recent earnings call, downplaying the idea of an AI bubble. He noted that current computing infrastructures, mainly dependent on CPUs, are not adequately prepared for AI and require updates, driving demand for Nvidia’s products. Notably, during the third fiscal quarter of 2026, the company’s revenue surged by 62% year over year to reach a remarkable $57 billion.
Huang emphasized that artificial intelligence is spawning innovative technologies, including agent AI and self-driving vehicles, which he believes will lead to revolutionary applications and services in the future. Nvidia is strategically advancing technologies, especially for autonomous vehicles, partnering with companies like Uber to launch self-driving cars by 2027.
While Nvidia leads in semiconductor production essential for AI, Alphabet is making strides to democratize AI technology.
Initially, generative AI seemed to pose a threat to Alphabet’s key revenue source—Google Search. Yet, the company has managed to maintain its leading position in search, largely because of its unique AI initiatives.
As Alphabet CEO Sundar Pichai noted in a quarterly earnings call, user engagement in search has increased as people discover the new capabilities of their AI tools.
Consequently, Google Search revenue rose to $56.6 billion in the third quarter, a jump from $49.4 billion a year prior, and overall revenue climbed 16% to $102.3 billion.
Alphabet is also expanding its AI efforts into its self-driving car division, Waymo, gradually ramping up its driverless ride-hailing services in the U.S., with plans for launches in London and Tokyo.
Investing in both Alphabet and Nvidia seems wise for anyone looking to leverage various sectors of the AI industry, as both companies appear poised for significant growth in the coming decade and beyond.
Before diving into Nvidia stock, there are a few things to consider:
According to research from Motley Fool’s Stock Advisor, analysts have highlighted 10 stocks that might be better investment choices right now, and Nvidia isn’t among them. These ten stocks are believed to hold promise for impressive returns in the future.
It’s kind of interesting to note that investing in Netflix a while back would have turned $1,000 into a whopping $488,653 by now! In contrast, a similar investment in Nvidia from 2005 would be roughly $1,148,034 today.
Overall, the average return of the Stock Advisor stands at an impressive 971%, significantly higher than the S&P 500’s 196%. So, if you’re looking to make informed investment decisions, you might want to join a community of retail investors.
Despite some apprehensions regarding an AI bubble, a substantial majority of AI investors remain bullish about their long-term prospects. They suggest considering these two stocks for anyone looking to invest for the next decade.
