<p>The biggest trend driving the market right now is artificial intelligence (AI), and with the game-changing technology still in its early innings, there's no reason to think this won't continue over the next decade.</p>
<p>Let's look at two leading AI stocks to buy and hold for the next decade.</p>
<div><img alt="Artist rendering of AI chip." width="880" height="495" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NDg4NDMvZ2V0dHlpbWFnZXMtMTQwMjQ1Mjg3Ni5qcGcmdz0zODQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NDg4NDMvZ2V0dHlpbWFnZXMtMTQwMjQ1Mjg3Ni5qcGcmdz0zODQw"/>
<p>Image source: Getty Images.</p>
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<h2>1. Nvidia</h2>
<p>The biggest AI winner thus far has been <strong>Nvidia</strong> <span class="ticker-mention inline-flex items-center font-bold">(NVDA <span class="ml-1 text-green-900">+2.18%</span>)</span>, and the company is still one of the best positioned to benefit over the next decade. The company's graphics processing units (GPUs) have become the backbone of AI infrastructure, holding an approximate 90% share in the space. However, Nvidia isn't sitting still, as seen by two recent important acquisitions. </p>
<p>Its recent acquisition of SchedMD, the developer of Slurm, only widens its software moat. Slurm is an open-source software platform that's used to orchestrate AI chips, and while Nvidia will keep it open source, by controlling the platform, it can ensure that its chips will be managed the most efficiently using the platform. </p><div><div id="foolcom_sidebar_top_container"></div></div>
<section><div><div><div><small><div>Expand</div></small></div><div><img alt="Nvidia Stock Quote" width="64" height="64" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL05WREEucG5nJnc9MTI4?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL05WREEucG5nJnc9MTI4"/></div><div><h2>NASDAQ: NVDA</h2><div>Nvidia</div></div></div><div><div><div>Today's Change</div><div>(2.18%) $4.07</div><div>Current Price</div><div>$190.57</div></div><div></div></div></div><div><div></div><div><h3>Key Data Points</h3><div><div>Market Cap</div><div>$4.5T</div><div>Day's Range</div><div>$189.57 - $191.86</div><div>52wk Range</div><div>$86.62 - $212.19</div><div>Volume</div><div>810K</div><div>Avg Vol</div><div>185M</div><div>Gross Margin</div><div>70.05%</div><div>Dividend Yield</div><div>0.02%</div></div></div></div></section>
<p>The company also made a smart deal for Groq, where it signed a technology license and will bring on the bulk of its employees. Groq was founded by the makers of <strong>Alphabet'</strong>s popular Tensor Processing Units (TPUs) and has developed a chip designed specifically for AI inference called language processing units (LPUs). Nvidia will be able to tightly integrate these chips with its software and networking system to better take on the inference market, where cost-per inference becomes a much more important factor. </p><div><div><div>Advertisement</div><div><div></div></div></div></div>
<p>Nvidia's position in the AI data center market stems from the ecosystem it has built around its chips. Its CUDA software platform is where all early AI foundational code was written, and today, the libraries and tools built on top of CUDA to optimize its chips for AI workloads create a huge moat, especially when it comes to large language model (LLM) training. In addition, its proprietary NVLink interconnect system enables its chips to function as a single, powerful unit, discouraging the mixing and matching of chips in AI clusters.</p><div><div id="in_line_article_pitch_container"></div></div>
<p>Overall, Nvidia is set to continue to reap the rewards from the ongoing AI race and data center buildout that is likely to continue well into the future.</p>
<h2>2. Taiwan Semiconductor Manufacturing</h2>
<p>Another company uniquely positioned to benefit from the ongoing AI data center buildout is <strong>Taiwan Semiconductor Manufacturing</strong> <span class="ticker-mention inline-flex items-center font-bold">(TSM <span class="ml-1 text-green-900">+3.92%</span>)</span>. TSMC is the largest semiconductor manufacturer in the world and has a tight grip on making advanced chips, like GPUs.</p>
<p>Making advanced chips is a difficult process, and Nvidia's competitors have struggled to manufacture advanced chips with high yields at scale. In fact, Reuters recently reported that Nvidia decided, after testing, not to go forward with using Intel's 18A production process. Rival <strong>Samsung</strong>, meanwhile, after struggling with yields, has turned its focus more toward high-bandwidth memory chips, a market that TSMC does not participate in directly. </p>
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<section><div><div><div><small><div>Expand</div></small></div><div><img alt="Taiwan Semiconductor Manufacturing Stock Quote" width="64" height="64" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL1RTTS5wbmcmdz0xMjg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL1RTTS5wbmcmdz0xMjg"/></div><div><h2>NYSE: TSM</h2><div>Taiwan Semiconductor Manufacturing</div></div></div><div><div><div>Today's Change</div><div>(3.92%) $11.92</div><div>Current Price</div><div>$315.81</div></div><div></div></div></div><div><div></div><div><h3>Key Data Points</h3><div><div>Market Cap</div><div>$1.6T</div><div>Day's Range</div><div>$311.83 - $316.62</div><div>52wk Range</div><div>$134.25 - $316.62</div><div>Volume</div><div>122K</div><div>Avg Vol</div><div>13M</div><div>Gross Margin</div><div>57.75%</div><div>Dividend Yield</div><div>1.01%</div></div></div></div></section>
<p>This has made TSMC arguably one of the most important companies in the AI value chain, as without it, chip designers like Nvidia would not be able to produce their chips at scale. As such, TSMC has become a valued partner, working closely with advanced chipmakers to help them shrink the nodes of their chips and increase capacity to meet soaring demand.</p>
<p>The company sees AI chip demand increasing at an over 40% compound annual growth rate (CAGR) over the next few years, and it has also been raising prices for its services. This includes a nice price hike scheduled for 2026. </p>
<p>Overall, TSMC is one of the best-positioned companies to benefit from the ongoing AI infrastructure buildout. Meanwhile, it is set to win no matter which chipmakers gain share over the next decade.</p><div id="article_pitch_container"></div><div id="promobox_container"></div>

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<p>The article discusses two leading AI stocks to buy and hold for the next decade: Nvidia and Taiwan Semiconductor Manufacturing (TSMC). Nvidia, a major player in AI infrastructure with a 90% market share in GPUs, is expanding its capabilities through acquisitions and its CUDA software platform. TSMC, the largest semiconductor manufacturer, is crucial for producing advanced chips and is expected to benefit from a 40% CAGR in AI chip demand. Both companies are well-positioned to capitalize on the ongoing AI data center buildout.</p>

- The article discusses the ongoing impact of artificial intelligence (AI) on the market, particularly highlighting Nvidia and Taiwan Semiconductor Manufacturing (TSMC) as key investment opportunities for the next decade.  
- Nvidia leads with its dominant position in AI infrastructure, controlling 90% of the GPU market and strengthening its capabilities through strategic acquisitions.  
- TSMC, the largest semiconductor manufacturer, plays a crucial role in producing advanced chips, with expectations for a significant increase in AI chip demand and planned price hikes to enhance profitability.

2 Artificial Intelligence Stocks You Can Buy and Hold for the Next Decade