This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
In the grand scheme of things, modern technology is only now beginning to hit its stride. The internet is only a few decades old.
Technological innovation has accelerated significantly since the early 2000s, with the internet playing a pivotal role in paving the way for cloud computing. Now, artificial intelligence (AI) is emerging as the next growth frontier for investors. The companies leading the way have grown to immense size and scale, garnering the nickname the "Magnificent Seven."
The exciting part is that it appears there is still a massive runway ahead for future innovation and the continuation of ongoing trends. Three companies stand out to me. They have become juggernauts and could be unstoppable technology leaders well into the future.
Here are the three monster stocks you should consider investing in for the long term.
Today's AI chip leader is a heavy favorite for the future, too
Nvidia (NASDAQ: NVDA) has had a huge impact since the push to build artificial intelligence infrastructure went into overdrive in late 2022. Companies continue to race to build massive data centers with thousands of the company's GPU accelerator chips. It started with Nvidia's Hopper microarchitecture and has since evolved into Blackwell. According to IoT Analytics Research, Nvidia owns an estimated 92% of the AI data center GPU market.
While data center spending continues to rip and roar in 2025, it's wise to think about AI's next innings. There is a good chance that computing resources will expand beyond data centers to localized areas where they can power new technologies, such as humanoid robotics or autonomous vehicles. Nvidia already has its eyes on these opportunities, fleshing out an ecosystem of hardware and developer tools that will entice companies to build on its platform.
Many of the companies building all these data centers continue to struggle with capacity constraints, so it doesn't seem that Nvidia's business will slow anytime soon. The stock's price-to-earnings (P/E) ratio is 47 today. That may seem like a lot, but considering analysts estimate Nvidia will grow earnings by nearly 29% annualized over the long term, the reigning AI leader should continue to deliver for investors over the coming years.
AI could take this cloud giant's profits to new heights
Amazon (NASDAQ: AMZN) isn't necessarily known as an AI company, but it's poised to be arguably the biggest beneficiary of AI innovation. That's for two reasons. First, Amazon operates the world's leading cloud platform, Amazon Web Services (AWS). AI technology primarily runs on the cloud, so AI applications are directly driving growth in Amazon's cloud business. AWS also happens to be the company's most profitable business unit.
The less obvious opportunity is how AI may shape Amazon's core e-commerce business over the next decade and beyond. Humanoid robotics and smart drones could be game changers for Amazon's fulfillment network, enabling automated order picking at distribution centers and potentially even autonomous deliveries. The company is already working to train robots to deliver packages.
Amazon's e-commerce sales are already massive, reaching a whopping $387 billion in North America alone last year. Each basis point of margin improvement would be tremendous for the company's bottom line. Today, the stock's P/E ratio is 35, a reasonable price tag for a business that Wall Street expects will grow earnings by over 15% annually over the long term.
This social media behemoth continues to create new growth opportunities
Meta Platforms (NASDAQ: META) continues to win in social media. Over 3.4 billion people log into its social media apps each day, including Facebook, Instagram, WhatsApp, and Threads. Meta Platforms generated $41.3 billion in advertising revenue last quarter, and remarkably, Meta isn't fully monetizing its apps. The company recently announced it will begin placing ads in status updates and channel pages on WhatsApp, its popular messenger app with over 3 billion monthly users.
It's likely to continue growing Meta's core advertising business, which generates the immense cash profits CEO Mark Zuckerberg is using to continue building out AI hardware and software. The company recently announced a massive $14.3 billion investment for a 49% stake in Scale AI, a company that helps prepare data for AI model training. Additionally, Meta is unveiling new smart glasses through partnerships with Oakley and Prada, adding to the company's existing lineup alongside Ray-Ban.
Meta's social media dominance makes the stock a strong buy at 27 times earnings, and an anticipated 18% annualized earnings growth rate. Investors should look for AI to play an increasingly meaningful role in Meta's success as these investments, new products, and strategic decisions begin to bear fruit.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
