<div id="readability-page-1">Companies are investing significant sums in AI, and it's not slowing down. Consulting firm McKinsey estimates data center spending for AI workloads will reach $5.2 trillion by 2030. What makes this opportunity unique for investors is that it doesn't involve high risk. The most dominant and profitable companies in the world are leading the AI revolution. These companies are the driving force behind the trillions of dollars that are expected to be invested in data centers to enable AI adoption across the economy. Here are two AI stocks that are solid buy-and-hold investments. <div><img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MzE5MTAvYWktY29tcHV0ZXItY2hpcC5qcGcmdz03MDA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="393" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MzE5MTAvYWktY29tcHV0ZXItY2hpcC5qcGcmdz03MDA"/>Image source: Getty Images. </div> <h2>1. Oracle</h2> Businesses are increasingly turning to cloud services to put their cloud-stored data to use by incorporating AI and potentially gain an advantage. This is a huge opportunity for Oracle (ORCL 3.33%), which already leads in database management services. Businesses have relied on Oracle's database and software for years. Over the last year, it generated $12 billion in net profit on $59 billion in revenue. It has reported consistent but low (single-digit) revenue growth over the last 10 years, but Oracle's cloud infrastructure business is exploding right now. In the last quarter, Oracle's remaining performance obligations (contracted revenues not yet realized) jumped 359% year over year to reach $455 billion. That is three times what it reported in the previous quarter! Demand should keep growing. One advantage of Oracle's versatile cloud offering is that it enables businesses to use top large language models, such as Google's Gemini or xAI's Grok, on data stored with any of the top cloud platforms, like Amazon Web Services or Microsoft Azure. The company's multicloud database revenue grew 1,529% last quarter. Management expects to sign several more deals in the next few months that will take its remaining performance obligations to over $500 billion. The stock has nearly doubled year to date, but it's not too late to buy shares. These impressive numbers clearly show that the new industrial revolution driven by AI is still in the early innings, and that spells more upside for long-term investors in Oracle. <h2>2. Broadcom</h2> Investors interested in buying shares of Oracle or other leading cloud service providers should also consider Broadcom (AVGO 1.19%). This leading semiconductor company supplies a lot of the components needed for high-performance computing in data centers, which are the backbone of cloud computing. Broadcom is one of the most valuable companies in the world, with a current market cap of $1.7 trillion. It has consistently reported double-digit revenue and earnings growth for several years, which reflects a wide competitive moat in supplying networking, software, and specialized chips for smartphones, wireless products, and electronic devices in industrial markets. AI data centers are driving strong demand for Broadcom's custom AI accelerators. Revenue from AI products grew 63% year over year last quarter, making up 33% of the company's total. Management also doesn't see this level of demand slowing in the near term, with next quarter's AI chip revenue expected to be up 66% year over year. Continued advancement in AI will require more networking bandwidth and processing power in data centers, which plays to Broadcom's strengths. The company's consolidated backlog of orders hit a record $110 billion, indicating robust demand for Broadcom's networking and semiconductors for AI. Broadcom is a highly profitable business, which reflects management's investment in markets that generate high margins. It paid a quarterly dividend of $0.59 per share last quarter out of adjusted earnings of $1.69. The stock is up 56% year to date. It could be volatile after this sharp run, but it should continue to hit new highs over the next five years. Spending on AI data centers is only going to keep growing, which points to more gains for Broadcom shareholders. </div>

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The article discusses two AI stocks, Oracle and Broadcom, as solid long-term investments. Oracle is benefiting from a surge in demand for cloud services, reporting a 359% increase in remaining performance obligations and a 1,529% growth in multicloud database revenue. Broadcom, a leading semiconductor company, is seeing strong demand for its AI products, with a 63% revenue growth year-over-year. Both companies are positioned well to capitalize on the growing AI data center market, making them attractive options for investors.

Buy and Hold: 2 Artificial Intelligence (AI) Stocks Built for the Long Haul