Predicting what will happen 20 years from now is nearly impossible. If you rewind 20 years from today, you’d be in 2006. Several unseen events occurred from 2006 to 2026, ranging from the great financial crisis to a global pandemic to the rise of generative artificial intelligence (AI). It’s anyone’s guess what will happen in the next 20 years, but I think there are a few general conclusions that investors can draw.
As we enter the age of AI, there are a handful of companies that are primed to excel, and I think the ones building the AI infrastructure are most likely to cash in.
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Two that I’m a huge fan of are Microsoft (NASDAQ: MSFT) and Amazon (NASDAQ: AMZN). Each of these companies is building a huge amount of AI infrastructure, and both look like great stocks to buy now and hold over the next 20 years.
Image source: Getty Images.
1. Amazon
Amazon is a two-faced company that will likely be just fine over the next 20 years. The primary part of Amazon that most consumers interact with is its commerce business, and buying items online is a trend that likely won’t reverse anytime soon. However, that’s not what I’m most excited about.
Instead, I’m focused on Amazon’s cloud computing platform, Amazon Web Services (AWS). AWS is increasingly becoming a popular place to run AI workflows, and investors are seeing that effect in two areas. First, its growth rate. In the first quarter, AWS’ growth rate was 28%, the best in 15 quarters.
Its custom AI chip business also grew at a triple-digit year-over-year pace, making another exciting growth wing for Amazon.
CEO Andy Jassy noted in his shareholder letter that the infrastructure Amazon is spending $200 billion on this year has a useful life of over 30 years, with computing equipment lasting about five years. If…
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