5 BEST AI Stocks for the Next 5 Years

Of course, everyone wants to find the next Nvidia, and I understand why. Nvidia has been one of the biggest winners of the AI revolution. After all, they essentially started the AI craze a few years back. But here's the thing. You don't have to own Nvidia to make money from AI over the next few years. Although I own the name, and I will continue to do so moving forward. However, some of the biggest opportunities may come from companies solving the problems that Nvidia's success has created. Because as AI continues growing, we're going to need a lot more than just GPUs. We're going to need more computing power, more custom AI chips, faster networking, more data centers, and technology that allows thousands of GPUs to communicate with each other. And that's why today I'm breaking down five of my favorite AI stocks to consider owning over the course of the next 5 years. And none of them are named Nvidia. We're talking about companies that could benefit from AI spending well beyond 2026. But I want to make something very clear. A great AI company does not automatically make a great investment at any price. Some of these stocks have already seen enormous runs. And with valuations elevated across parts of the AI sector, I'm going to discuss not just what makes each of these businesses attractive, but what evaluations looks like. What are some of my personal price targets, but make sure you definitely stick around for the final name on today's list. It's a higher risk name, but the upside is sizable and a name I want to continue building in my portfolio. So before we dive in, you know what I like to ask? It's just a simple smash of that like button down below. Subscribe to the channel. It helps a ton. And let me know in the comment section down below just one of your favorite AI stocks over the course of the next few years. I don't need five, just one of your favorites. Let me know down in the comments. And with that being said, let's dive in. When it comes to AI, the thing that I continue to say is the fact that there's many different ways to invest in artificial intelligence. I shared with you a few months back in one of my videos my AI infrastructure stack. It contains AI applications and services, cloud platforms, and AI deployment, AI compute and custom silicon, networking, high-speed connectivity, power, cooling, physical infrastructure, and many more. Every layer needs to work together. And as AI clusters become larger, the bottlenecks become more complicated. It isn't just about how fast an individual GPU is or how much process information a CPU can do. It's about how efficiently an entire system can operate. And that's where today's five companies come into play. I'm going to start with one that could become a much more significant competitor in AI computing and one of my absolute favorite stocks moving forward with stock number one being Advanced Micro Devices, Stock Ticker AMD. And I think AMD as one of the most interesting companies and opportunities in the entire AI industry over the next 5 years plus because Nvidia is the dominant player in AI GPUs. There's no question about that. The AI computing market could grow so substantially that AMD can become much larger company simply by capturing a meaningful share of additional demand. It doesn't need Nvidia to fail in order for their market share to increase. And this is why I think AMD deserves serious consideration on your list. They have GPUs. They dominate in CPUs. They have networking software and their Helios full rack scale computing platform to take on the likes of Nvidia. And that's important because the next phase of AI isn't just about selling individual chips. It's about delivering complete computing systems. Customers want performance. They want efficiency. They want software compatibility. And they want alternatives when one supplier controls so much of the market. But you would never invest in a stock just because I covered it. At least I wouldn't hope you would. You should always perform your own due diligence and look at the latest earnings report. See what management is saying. Understand valuation. And one of the best ways I analyze all of this is with the help of investing.com and more specifically their investing pro dashboard. I have investing pro as a bookmark on my iPad so I can check stocks at any time, even when I'm on the road. And a great place to find potential ideas is within their props AI feature where you can explore a number of different investing strategies. But for this video, I focused on Tech Titans as you could see on your screen. This strategy uses an AI rating system trained on more than 50 financial signals to identify tech stocks that may be positioned to outperform. So instead of just guessing which next big tech names deserve a deeper look, I can start with a data-driven short list and add that whole list to my watch list in just one click. And as you can see the stocks within Tech Titans to your right at the top of the list is AMD. And looking at performance specifically for Tech Titan strategy, it has returned near 30% on an annual basis, over 3,300% since inception 13 years ago. We are going to use Investing Pro Platform throughout today's video. So, you're going to see plenty of it. But make sure for yourself you give it a try because right now you can get up to 55% off during the current flash sale plus an additional 15% off when you use my special link in the pin comment down below or by using the QR code on your screen. Jumping now into Investing Pro, we can see AMD shares have climbed an impressive 180% the past 12 months and the company briefly touched above a $1 trillion market cap, but now it just sits slightly under that. And over the next 5 years, this is a company that I believe can reach a $3 trillion market cap and will easily reach a $1,000 per share price in 2027. Again, this is not meant to be financial advice, and I'm not saying this stock is a cheap buy right now. It's had a huge run, especially of late, with the stock up nearly 25% in the past month alone. Take a look here at analyst estimates for the next few years. Earnings are expected to double again next year. And looking out into 2027, shares currently trade at a forward PE of 38.7 times. At face value, not cheap based on that alone. But when we take growth into that equation, from that perspective, the stock has a PEG ratio that sits well below one, which is very intriguing for me. Again, this is a stock that I own, so I don't need to get aggressive and chase, but on pullbacks, I will be looking to buy further. And here's my thesis on what has me upbeat on AMD over the course of the next five years and beyond. I expect the AI market to become much more competitive. Companies like Microsoft and Meta, Amazon, and other hyperscalers aren't going to want to rely exclusively on one supplier. And that creates an opportunity for the likes of AMD. But AMD doesn't need to replace Nvidia. As I mentioned earlier, it needs to become a credible, scalable alternative in a market that continues expanding. And there's another opportunity that sometimes gets overlooked. server CPUs. Not every workload requires an AI GPU. Traditional CPUs still play an essential role in running cloud infrastructure and supporting AI systems. AMD's strong CPU business gives it another way to participate in data center growth. So with AMD, they are focused on competing in the AI computing space. But this next company is benefiting from an entirely different trend. And that's a move towards custom AI chips. with stock number two being Broadcom, stock ticker AVGO, the custom AI chip powerhouse. And if I were putting together a five-year AI portfolio, Broadcom would be extremely difficult to leave out that list because Broadcom has positions itself in the intersection of two massive opportunities, custom AI accelerators and AI networking. And these are two areas that I believe could become even more important over the next 5 years. Hyperscalers are spending billions on AI computing. But when they are spending that much money, they prefer chips that can do exactly what they want them to do, what works for their specific business. Enter custom silicon and the likes of Broadcom. You can purchase general GPUs from the likes of a Nvidia or AMD. But what if you're running enormous amounts of very specific workloads? What if you could develop a chip optimized for your own AI models and infrastructure? potentially that can improve performance per dollar or energy efficiency for certain applications. That's the opportunity behind custom AI accelerators often called ASIC's or what I like to say AS6. And Broadcom helps major technology companies design and develop these specialized chips. And I want to make something very clear. Custom chips don't necessarily replace Nvidia or the likes of AMD across every workload. Different applications have different computing requirements, but the broader AI market can support multiple architectures, and that's why Broadcom's position is so interesting. Jumping back over to Investing Pro, we can see that Broadcom shares have been stuck in the mud for much of the past year, up only 2%, and they currently sport a market cap of 1.7 trillion. With AMD, I mentioned we could be more patient on, but with Broadcom, the valuation actually looks quite compelling because we have the classic example of a stock price that's seemingly not going anywhere, as you just saw. Yet, company financials continue to climb higher, revenues higher, cash flow higher, operating income higher. But just for a second, I want to jump back to that chart I showed you with Investing Pro and look at the right side of your screen. Broadcom is a stock currently trading around 370 a share. But when you open the investing models, you can see that all 14 being used point to a fair value of nearly 470 for the stock right now. Meaning those are pointing to a value of the stock that's roughly 30% higher. And on top of that, analysts, well, they have a 12-month price target of 531. Plenty of upside from the current price point. Take a look here at analyst estimates for the next few years. We'll transition to valuation. Earnings are expected to grow 70% this year and another 70% the following year. Assuming the average FY2027 EPS target of $19.39 per share, shares of Broadcom currently trade at a forward PE of 18.6 times. And with the growth we just mentioned, that peg is well below one. The growth you are getting with some of the names is just insane. And the stock prices will eventually follow that earnings growth. In the meantime, I like to refer to that as the accumulation phase. For management, they've already given very bullish revenue targets, not just for next year, but the following year as well, showing how big of an opportunity lies in the custom silicon space. But there's another reason I like Broadcom. The company has a large infrastructure software business as well. That gives it a source of revenue and cash flow outside of its semiconductor operations. It doesn't eliminate the company's risk, but it creates a broader business model than just a pure play AI chip company. And over the next 5 years, I would be watching three things. First is the continued adoption of the custom AI accelerators. Second is going to be the need for faster networking as AI clusters continue to grow. And third would be Broadcom's ability to translate its growing revenue into free cash flow. Because ultimately revenues growth, that's exciting, but cash flow is what creates lasting shareholder value. Of the five companies, Broadcom is one of my strongest long-term conviction plays because it combines exposure to custom AI computing, networking, and an established software business. Now, Broadcom is just one of the leaders in the custom AI chip space. But there's another company that's trying to capture a much larger share of that same opportunity, and it just delivered a very interesting long-term outlook with stock number three being Marll Technology, stock ticker MRVL. And this is one of the most interesting AI companies to watch over the next five years because Marll has been making a major transition. Historically, investors associated Marll with a variety of semiconductor products used in things like networking, storage, and communications. But today, the company's growth is increasingly being driven by AI data centers. And there are two enormous opportunities here. Custom AI silicon and high-speed connectivity. Now, this might sound similar to Broadcom, and that's because there is some overlap, but here's what I find particular interesting when it comes to Marll. Looking at their latest earnings in its fiscal second quarter of 2027, Marll reported total revenue of 2.7 billion. That was 37% year-over-year growth. Their data center revenue came in at 2.2 billion. That was 46% year-over-year growth. Data center revenue accounted for approximately 79% of quarter revenue for the entire company. Now look at that. Nearly 80% of Marll's revenue is coming from data centers. And the data center segment is growing faster than the overall business. This tells me that Marll is becoming increasingly dependent on and increasingly exposed to the AI infrastructure opportunity. And I believe that could create significant upside for the company. But here's where things get really interesting. Just last week, Marll raised its fiscal 2028 revenue outlook to approximately $20 billion during their latest investor day. The company also projected that custom chip revenue could reach approximately $12 billion in fiscal 2029 and management outlined an even more ambitious longerterm revenue opportunity extending into fiscal 2031. Those projections are great and all and encouraging, but they depend on successful product development, customer demand, manufacturing capacity, and actual deployments. Still, I think the scale of opportunity is worth paying attention to. All right, jumping back to Investing Pro, we can see the stock for Marll has had an incredible run the past 12 months, increasing more than 200%. And the company currently sports a market cap of 241 billion, making it actually the second smallest company on today's list. The thing with the first two companies is the fact that they have market caps near or above $1 trillion. Still plenty of upside in my opinion, but the opportunity for a company like Marll has huge upside. Jumping back to Investing Pro, we can see that the investing models currently give the stock a value of $280, which is about where shares trade right now, but the 12-month price target of analysts is closer to $340 per share, giving us a decent size upside. This is definitely a name like AMD where we want to use patience rather than jumping right in because of the move they've seen just in the past month alone. In fact, I believe this is a $400 stock over the course of the next two years. And let me show you why. As you can see on your screen, earnings are expected to grow 48% this year. And it it grows faster next year to more than 70%. Not just one, but each of the next two years is what we expect. 70% growth. Quite impressive. So using next year's expectations, we are looking at a multiple of 37.8 times, but a stock growing 70% each of the next two years, I like that PEG ratio. So let me touch on just a few reasons on why I like Marll for the next 5 years. Because hyperscalers increasingly want chips designed around their specific workloads, very similar to what we just talked about when it comes to Broadcom, both helping companies develop custom silicon. But Marll also participates in networking and connectivity required to support those systems. In other words, the company can potentially benefit from both processing and the movement of data. And that's important because as AI clusters grow larger, communication between those processors becomes increasingly challenging. Marll has also expanded its optical connectivity capabilities, including through its acquisition of celestial AI. that could become particularly important as data centers look for more efficient ways to connect enormous numbers of accelerators. Now, the first three companies have something in common. They're primarily supplying technology that helps power AI. But the next company is a little bit different because AI is just a piece a large growing piece of the entire business. And no, it's not a semiconductor company. It also operates one of the largest cloud platforms in the world. Stock number four is Amazon. stock ticker AMZN, the AI cloud powerhouse. I think Amazon is one of the most interesting ways to invest in artificial intelligence over the next few years because Amazon has several different opportunities to benefit. Most investors know Amazon for e-commerce. But the business I want to focus on is Amazon Web Services or AWS. And here's why. Not every company building AI applications is going to construct its own data center. Not every company is going to purchase thousands of GPUs. And not every business has the technical expertise to build and operate large-scale computing infrastructure. Instead, many companies will rent computing capacity from cloud providers. And that's where AWS comes in. Amazon's latest financial results, they were quite impressive. The company reported AWS revenue, not talking about full company, but AWS revenue of 42.2 billion. That grew nearly 40%. AWS operating income that was at 16.6 billion. That was up from 10.2 2 billion. That's an incredibly profitable business at the operating level. And this is why I think Amazon is different from some of the more speculative AI investments. And to put it frank, this is not only one of my largest holdings, but one of my favorite stocks for the long term. And if you want to keep up with my entire portfolio, get my market analysis, option trade alerts, be sure to join my private investing community, the Stock Investors Edge, check out that link down in the description below. But getting back to Amazon, the thing with Amazon is the fact that the company isn't waiting for AI to become a business. It's already running a massive cloud computing platform itself. And AI could become another major growth driver. But there's another part of this story that I think is particularly important. Tranium. Remember with Broadcom and Marll? We just talked about some hyperscalers building their own custom chips. Well, Amazon is one of those companies developing its own custom AI accelerator. And guess the company helping Marll. And this creates an interesting dynamic. Amazon can purchase GPUs from the companies like Nvidia or AMD, but it can also offer customers computing solutions built around its own custom silicon. That gives AWS much more flexibility and potentially over time it could help Amazon optimize its infrastructure cost. Now, this doesn't mean Tranium will replace Nvidia or AMD by any means, but it does mean Amazon has multiple ways to compete in AI computing. And Amazon has another advantage. Its enormous retail, advertising, and logistics businesses provide additional opportunities to use AI internally. Think about inventory management. Or how about delivery routing, product recommendations, advertising optimization, customer service. All of these are areas that could potentially benefit from improvements in artificial intelligence. So, if Amazon isn't simply selling AI services to customers, it's also deploying AI through its own operations. And over the course of the past 12 months, shares of Amazon have had a decent run, up about 20%, sitting at a market cap of $2.8 trillion, making it the largest name on today's list. But the crazy part of all this, I still feel like it has so much to unlock. Whether it's AI, whether it's cloud, whether it's retail, or the most underrated piece of the business, advertising. I like diversified businesses where management teams have many different levers that they can pull and businesses are not overly reliant on just one area. Again, Amazon is one of my favorite companies in general to invest in right now because of how diversified they are. But jumping back over to Investing Pro and on the right, we can see what models are calculating in terms of value, which is currently sitting at $285. And then analysts, well, they have a 12-month price target of 331, both above today's price of around 260. And looking at the earnings tab, we can see that analysts are expecting the company to grow their earnings by 26% next year. And the stock currently trades at an earnings multiple of 25 times. Giving us a PEG ratio slightly below one, which is what we like to see. This is a stock I think that we can nibble at around here, but on any meaningful pullbacks is when I'm going to get much more aggressive in my buying. Now, we've talked about companies building AI chips, custom chips, regular chips. We've talked about the company operating enormous AI data centers. But there's another problem that emerges as those data centers grow. How do you move all the data? And that brings us to the stock with the most upside on today's list. A stock currently in my portfolio and a stock I will be building a bigger position in. Stock number five is going to be Credo Technology. Stock ticker CRDO. Solving AI's connectivity bottleneck. Like I said, the stock easily has the biggest potential upside of the five on today's list, but also comes with the most risk. So know that before getting involved that it won't be a smooth ride. But I think the opportunity is fascinating because CTO is solving a problem that becomes increasingly important as AI infrastructure scales. Connectivity. Let me explain. Imagine you have an AI data center filled with thousands of powerful processors, Nvidia chips, AMD GPUs. Those processors need to exchange enormous amounts of information. And they need to do it quickly, reliably, and efficiently. Because if your processors are so fast and powerful, but they can't move the data fast enough, you're spending a lot of money for nothing. You're wasting some extremely expensive computing capacity. And that's where Credo comes in. Crito develops high-speed connectivity solutions. One of its major product categories is active electrical cables or AECs. These cables use electronics to help maintain signal integrity and enable high-speed data transmission. And that's particularly valuable as data centers become more complex. Jumping back over to Investing Pro, you can see the volatility right there in the stock chart. Yet, it's been as high as 309 and as low as 86. That is a wild swing in the stock price. Looking at the investing models they show to your right, you can see a value near 230. And analysts believe the stock is headed to 280 in the next 12 months. For me, I'm a little more bullish as I expect a threehandle in front of this stock in the year 2027. And no, I'm not talking about $30 a share, but rather $30 plus per share. So, why do I like Credo for the next 5 years at least? My thesis is pretty straightforward. If AI infrastructure continues expanding, which I believe it will, and data centers require increasingly sophisticated connectivity, Credo could become a much larger business. And it doesn't necessarily matter whether Nvidia, AMD wins the particular GPU contract. The broader AI ecosystem still needs to move data. Now that doesn't mean Credo benefits equally from every architecture. Different AI systems use different connectivity technologies and that's an important risk. But I think Credo has positioned itself in a very attractive part of the AI infrastructure market. And as bullish as I may seem, as I mentioned, this is a higher risk position. So position sizing matters. But if you don't mind that, this is one of my favorite higher risk AI infrastructure opportunities for the next 5 years plus. Now, let's put all five companies together because here's what I find interesting. These aren't five identical investments. Each one gives us exposure to a different part of the AI opportunity. Now, these companies do though have overlap. Broadcom and Marll, they compete in certain areas. Marll and Credo both have exposure to connectivity and all five ultimately depend to varying degrees on continued demand for AI infrastructure. So, owning all five doesn't automatically mean you're diversified. But before I get the answer, yes, I do own all five. and I will be looking to build bigger positions in all five names. Again, you can get all of those trade alerts for when that happens when you join my private investing community. That link is in the description below. Now, the other question I might get is which one of these is my favorite. Again, I like all of them. And if I had to separate these companies into categories, here's how I approach it. Amazon would be my choice for a more diversified business with multiple revenue drivers. Broadcom would be one of my highest conviction choices for direct AI infrastructure exposure. AMD, they offer a compelling opportunity to gain share in the AI computing space. Marll provides substantial exposure to growth of custom silicon and connectivity. And then there's Credo. That's the higher risk opportunity that could benefit from increasingly complex AI connectivity requirements. But here's the most important part. My favorite company at today's price may not be the company with the greatest long-term growth potential. Those are two different questions and the price you pay matters enormously and what fits better for your portfolio may differ from mine. So there you have it. Five of my favorite stocks to consider for the next 5 years in the AI space. AMD, Broadcom, Marll, Amazon, and Credo Technology. Now, I could have easily just included Nvidia and taken up one of those five spots. Nvidia remains one of the most important companies in the AI revolution, a top 10 position in my portfolio. But I wanted to look beyond the obvious choice because I believe the next phase of AI growth will create opportunities across multiple layers of the industry from computing to custom silicon, cloud infrastructure to networking and connectivity. And I believe these five companies are positioned to participate in that growth. But remember, a great company doesn't automatically make a great investment at any price. I'm going to remain patient. I'm going to focus on earnings growth and cash flow. And if we get any meaningful pullback on some of these stocks, I want to be prepared. Now, let me know in the comments. If you could only choose one of these five AI stocks for the next 5 years, which one would it be? AMD, Broadcom, Marll, Amazon, or Credo? Drop your ticker down below. Again, make sure you smash that like button down below. Help the channel. Join my private investing community, and I'll see you in the next one. Take care. >> [music]