2 Artificial Intelligence Stocks You Can Buy and Hold for the Next Decade

Big Tech is projected to increase AI-related data center capital expenditures to $200 billion in 2025, an 80%+ rise from 2023, signaling a significant market opportunity. Micron Technology is positioned to benefit from this surge, particularly in the high-bandwidth memory (HBM) market, which is expected to grow 600% to over $25 billion by 2025, with analysts forecasting substantial EPS growth for the company. Concurrently, CrowdStrike, a cloud-based cybersecurity leader utilizing AI, is poised for continued growth in its expanding addressable market despite a recent service outage that caused a stock dip, potentially presenting a long-term investment opportunity.

Analysis

Big Tech is projected to significantly ramp up AI-related capital expenditures, allocating $200 billion in 2025 for data centers and other AI infrastructure, marking an increase of over 80% from 2023. This substantial investment signals a robust and expanding market opportunity for companies providing essential AI components and services, underpinning a generally bullish outlook.

Micron Technology (MU) is strategically positioned to capitalize on this surge, particularly within the high-bandwidth memory (HBM) segment, which is forecast to grow 600% from $4 billion in 2023 to over $25 billion by 2025. The company anticipates "multiple billions" in HBM sales for fiscal 2025, supported by strong fiscal 2024 DRAM revenue growth of 60% year-over-year and total sales growth of 62% year-over-year. Analysts project a significant EPS ramp to nearly $9 in fiscal 2025, indicating a strong upcycle despite historical cyclicality.

CrowdStrike (CRWD), a leader in cloud-based AI cybersecurity, is also poised for continued growth, with its addressable market expected to expand from $100 billion to $225 billion by 2028. Despite a recent service outage that impacted its reputation and stock valuation, the company maintains strong underlying financials, including a 32% free-cash-flow margin and GAAP operating profitability. The post-incident stock dip could represent a strategic entry point for long-term investors, balancing short-term risks with significant market potential.

Key Decisions for Investors

• Investors should consider Micron (MU) for direct exposure to the rapidly expanding AI data center infrastructure market, given its strong HBM positioning and robust analyst growth projections.
• CrowdStrike (CRWD) may offer a long-term investment opportunity for those willing to navigate short-term reputational risks, as its strong financial performance and expanding AI cybersecurity market potential could drive future growth.
• Evaluate companies poised to benefit from the projected $200 billion in Big Tech AI-related capital expenditures for 2025, focusing on those with clear competitive advantages and strong fundamental metrics.