2 Must-Have Stocks to Buy and Hold Forever

The article highlights Ferrari (RACE) and Advanced Micro Devices (AMD) as compelling long-term investment opportunities. Ferrari maintains strong pricing power and high margins in the ultra-luxury automotive sector, with a recent stock dip following 2030 guidance seen as a temporary overreaction. AMD is rapidly emerging as a key player in artificial intelligence, evidenced by a significant deal with OpenAI projected to generate tens of billions in incremental revenue from 2026, prompting analysts to significantly raise its fair value and revenue forecasts. Both companies exhibit distinct competitive advantages positioning them for sustained growth.

Analysis

Ferrari (RACE) and Advanced Micro Devices (AMD) are highlighted as compelling long-term investment opportunities, each leveraging distinct competitive advantages. Ferrari maintains a robust ultra-luxury automotive business characterized by controlled supply, strong brand power, and superior operating margins, which are expanding while competitors' margins stagnate. AMD is rapidly solidifying its position in artificial intelligence, evidenced by a significant partnership with OpenAI.

Ferrari's business model, which sees approximately 70% of vehicles sold to existing clients and an 88% volume growth over the past decade through horizontal expansion, underpins its high profitability. The recent stock decline, its largest since IPO, was a knee-jerk reaction to 2030 top-line guidance slightly below analyst estimates, despite a 2025 guidance raise, and is viewed as a potential buying opportunity given the company's fundamental soundness.

AMD's strategic shift into AI is validated by its agreement to supply AI gear for OpenAI's infrastructure, projected to generate tens of billions in annual incremental revenue from late 2026. This deal has prompted Morningstar to significantly raise AMD's fair value to $210 per share and double its AI GPU revenue estimates, projecting $42.2 billion by 2029, underscoring its emerging leadership in the AI sector.

Key Decisions for Investors

• Investors should consider Ferrari's recent stock dip as a potential entry point, given its strong fundamentals, expanding margins, and long-term brand power, despite its premium valuation.
• Monitor AMD's execution on the OpenAI deal and subsequent AI revenue growth, as this partnership significantly de-risks its AI strategy and validates its long-term potential in the sector.
• Evaluate both companies as buy-and-hold candidates for long-term portfolio allocation, recognizing Ferrari's established luxury market dominance and AMD's high-growth AI trajectory.