Three Artificial Intelligence (AI) Stock Still Looks Like a Long-Term Winner

When considering whether to invest in a company over the long term, stocks often fall into two groups.

The first involves stocks from companies that did well. For them, it's about whether they can continue to perform at a high level. The other consists of potential challenges that could thwart defective stocks, companies facing adversity, or investors.

Palantir Technologies (NASDAQ: PLTR), apple (NASDAQ: AAPL)and alphabet (NASDAQ: GOOG)(NASDAQ: Google) These are three famous technology stocks that represent the combinations of both groups. Palantir is one of the biggest winners in the market in AI (AI), and investors think Apple and Alphabet are losing their advantage.

There's a reason why skinny jeans of each name and all three can still be long-term winners.

Palantir Technologies has been making fierce profits of 2,100% and continues to be even higher since 2023. The company has become a leader in AI software development with its own platform for government and corporate customers. Also, since launching AIP, an AI-focused platform, Palantir's growth has continued to accelerate in mid-2023.

The company still has fewer than 500 commercial customers in the US, a small portion of the country's 20,000 large companies. Secondly, at a time when the US is involved in many geopolitical conflicts, we consider the close military relationships of Palantia (which accounted for 55% of revenue in the first quarter of 2025), making it easy to imagine a long-standing fast growth.

Despite its best efforts, Palantir's business is not meeting the stock price. The stock has surged to a forward P/E ratio of 245, to say the least, due to the business that is expected to combine at an annual return rate of 31% over the long term. With both the government and commercial customers, the growth momentum seems to be poised to keep winning. That said, investors will probably want to wait for some important dips to buy the stock at a more reasonable valuation.

AI looks like an Apple layup, with a wide ecosystem spanning over 2.35 billion active iOS devices worldwide. All Apple needs to do is integrate AI capabilities into the iOS platform, and if not a leader, it will soon become one of the consumer AI companies.

However, Apple has struggled to smoothly launch prominent AI features, and the overwhelming deployment of Apple Intelligence, the first attempt at AI, forced the company to reorganize its AI team.

Fortunately, Apple's iOS is one of the most attractive consumer ecosystems where Apple buys time to get things under control. People buy Apple products and use them for several years. Devices can be monitored, synced and run together, whether they are monitored, or not. People get used to iOS and develop commitments to the ecosystem. Users may eventually leave Apple if AI doesn't understand it, but it's unlikely that Apple's user base will burst all night.

Ultimately, Apple is a giant and a financial juggernaut with one of the world's most influential brands. Apple has not been able to offer the same type of return at a market capitalization of $3 trillion in the past, but stocks should have relatively high floors based on the company's large stock buybacks, growth and sticky business model. It is worthy of a leap of faith for Apple to resolve AI frustration.

Google's parent company, Alphabet, faces pressure from several directions. AI models have become popular enough to start sucking up traffic from traditional search engines like Google. At the same time, US regulators have successfully pursued litigation against the alphabet due to anti-competitive practices.

Adversity is one of the most prominent tech stocks in the world trading at today's P/E ratio. However, AI is definitely more of an opportunity than a threat. Alphabet was able to integrate AI summaries into search results and successfully monetize them. Despite all the concerns about AI, Google's ad revenues rose 10% in the first quarter of 2025.

If that's not enough, Waymo, Alphabet's autonomous riding business, continues to expand its footprint across the US and could ultimately become an important part of Alphabet's business.

Putting it all together, the tech giant seems to remain a prominent force across AI and technology. This can be done easily when stocks have approached the lowest valuation in the last decade.

Consider this before purchasing stocks at Palantir Technologies.

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Suzanne Frey, an executive at Alphabet, is a member of the board of directors of Motley Fool. Justin Pope is not in a position with any of the stocks mentioned. Motley Fool has locations for Alphabet, Apple and Palantir Technologies, and is recommended. Motley Fools have a disclosure policy.

Three Artificial Intelligence (AI) Stocks that appear to be 3 Long-Term Winners were originally published by The Motley Fool