Buying and holding great companies for the long run is a tried-and-tested way of making money in the stock market, as investors can not only benefit from secular growth opportunities by following this philosophy but also take advantage of the power of compounding.

Artificial intelligence (AI) has emerged as the next big growth opportunity for investors. Bloomberg estimates that the generative AI market, which was worth $40 billion in 2022, could generate a whopping $1.3 trillion of annual revenue in 2032. The AI market is set to clock a compound annual growth rate of 42% during this period.

As such, now would be a good time for investors to invest in companies that could gain a lot from this lucrative opportunity in the long run. Buying AI stocks as a part of a diversified portfolio could even help investors become millionaires. For instance, a $10,000 investment made in Nvidia -- a pioneer in AI hardware -- a decade ago is now worth $1.68 million.

Continue reading

Source Fool.com