2 AI Stocks to Buy and Hold for the Next Decade
While AI chip makers are the most obvious beneficiaries of the AI revolution, AI is acting as a tailwind for countless other companies as well. Arista Networks (NYSE: ANET) and Oracle (NYSE: ORCL) are benefiting in different ways, and both stocks look like great buy-and-hold opportunities.
As powerful AI chips fill data centers, fast and efficient networking becomes critical. Unlike many other types of workloads, AI workloads require powerful processing and involve extreme amounts of data. Particularly for AI-training jobs, that data must move quickly between nodes. Stringing together thousands of powerful GPUs won't get you very far if those GPUs are hobbled by data-throughput issues.
Arista Networks has emerged as a critical networking provider for cloud giants scaling up their AI capacities. and Meta Platforms combined accounted for 39% of the company's revenue in fiscal 2023. While this customer concentration is a risk, it's also a sign that Arista is leading the way in the AI networking market.
Source Fool.com