Top 3 AI Stocks to Buy and Hold Long-Term

Key Points

• Arm expects to hold the largest share of data center CPUs by 2030.

• IREN has the potential to grow into a global data center powerhouse.

• Nvidia’s Jensen Huang has a knack for finding big opportunities in computing.

Morgan Stanley anticipates that global data center construction costs will reach nearly $3 trillion through 2028, driven by increased enterprise spending on AI automation. This trend positions Arm Holdings (NASDAQ: ARM), IREN (NASDAQ: IREN), and Nvidia (NASDAQ: NVDA) as key players in the evolving data center landscape.

Arm Holdings reported a record revenue of $1.49 billion in the last quarter, a 20% year-over-year increase. The company aims to dominate the data center CPU market by 2030, supported by rising demand for energy-efficient chips. Meanwhile, IREN is set to launch 480 megawatts of new capacity and aims for $4.4 billion in annualized revenue by 2026. IREN has signed long-term contracts with major clients like Microsoft and Nvidia, indicating strong growth potential.

Nvidia’s data center revenue almost doubled last quarter, with forecasts predicting it could reach $20 billion this year from its new Vera CPU line. The company’s market valuation is currently at 22 times its projected earnings, making it an appealing investment in the competitive chip industry.