Artificial intelligence (AI) stands at the forefront of a technological revolution with considerable investment activity and a promise of substantial economic transformation. Companies from nascent startups to expansive global corporations are deepening their commitments to AI research and building infrastructure to sustain competitive edges in this rapidly evolving field. This widespread institutional backing is likely to accelerate both development and adoption of AI technologies, thereby fostering an environment conducive to steady growth for AI-oriented enterprises over the next decade.
While not all entities involved in AI will yield favorable investment outcomes, selecting firms with durable competitive advantages and strong financial bases offers a means to capitalize on AI’s unfolding opportunities. For investors with $2,000 available to allocate, three stocks stand out as candidates to buy and hold for an extended period, reflecting diverse strategies and market positions within the AI space.
Alphabet Inc.
Alphabet, the parent company of Google, exhibits a comprehensive AI ecosystem characterized by advanced infrastructure and a wide moat stemming from dominant positions in search and cloud computing. The company’s end-to-end AI framework includes proprietary AI processors known as Tensor Processing Units (TPUs), foundational model development under the Gemini project, extensive offerings on the Google Cloud platform, and numerous consumer-facing services such as Google Search, YouTube, and the Android operating system.
TPUs represent application-specific integrated circuits designed explicitly for neural network computations, offering efficiency in AI training and inference over the more general graphics processing units (GPUs) typically used in AI tasks. Utilizing its own silicon enables Alphabet to reduce dependency on external chip manufacturers, thereby controlling costs and production scales. This internal capability also extends to offering TPUs as a service through Google Cloud, placing Alphabet distinctively in the AI hardware market as both a producer and consumer.
The company benefits from vast data generated through user interactions with Google Search and YouTube, which feeds continual refinement and training of its AI models, reinforcing its market advantages. AI capabilities are also enhancing Google Search's effectiveness and optimizing its advertising revenues, which constitute over half of Alphabet's total income. The firm's positioning as the default search engine on a diverse range of devices facilitates broad deployment of AI functionalities to a substantial user base.
Beyond core business operations, Alphabet is investing in emerging AI applications such as Waymo's autonomous driving technology and AI-driven healthcare research via its subsidiary Verily. Financially, Alphabet remains a strong performer, reporting a 33% increase in net income in the most recent quarter and generating significant cash flows that are reinvested in AI infrastructure and research development. Given these attributes, Alphabet presents a robust, enduring option for investors aiming for long-term exposure to AI.
SoundHound Inc.
SoundHound specializes in voice and conversational artificial intelligence tailored for application across various industries. Its technology distinguishes itself by integrating speech recognition and intent processing into a single step, resulting in quicker and more accurate user interactions compared to traditional two-step processes.
Initially focused on automotive clients, including a partnership with Stellantis, SoundHound has expanded its reach into sectors like quick-service restaurants, partnering with brands such as Chipotle Mexican Grill, Five Guys, White Castle, and Jersey Mike’s. In such applications, its platform automates tasks like phone and drive-thru order processing, accommodates complex menu modifications, and handles customer service inquiries, reducing reliance on any single client or sector.
The company also extends its AI solutions to customer service platforms in healthcare, financial services, and insurance. Revenue streams include subscription models, commissions from voice-enabled commerce, and technology licensing. Despite a notable revenue increase of 68% year-over-year in the third quarter of 2025, amounting to $42 million, SoundHound has yet to achieve annual profitability and continues to operate at a substantial GAAP net loss. These financial realities contribute to volatility in its stock performance.
To bolster its market standing, SoundHound has pursued strategic acquisitions of AI-focused enterprises like Amelia and Interactions, enhancing its product offerings and customer base. The company reported a significant contractual backlog valued at approximately $1.2 billion at the close of 2024, underscoring potential future revenue. A key differentiator for SoundHound lies in its provision of white-label AI solutions, contrasting with big tech firms whose voice AI products are generally tied to their own ecosystems. This approach allows clients to maintain brand autonomy and data privacy, positioning SoundHound uniquely in certain market niches. For investors comfortable with higher risk in exchange for potential growth in a focused AI player, SoundHound merits consideration for at least a modest long-term position.
Amplitude Inc.
Amplitude operates a digital analytics platform aimed at helping businesses interpret user interaction with their software products to enhance experiences and drive revenue growth. The company has integrated AI deeply into its product suite, introducing AI agents that analyze data automatically, detect trends or problems such as declining conversion rates, formulate hypotheses, and recommend or execute operational improvements.
Its AI feedback tool consolidates customer input from diverse channels—calls, reviews, support tickets—enabling rapid synthesis of themes and linking feedback to user behavior for actionable insights. The firm follows a freemium tiered software-as-a-service model, designed to attract customers initially with free access and expand revenue as clients adopt advanced functionalities. Its clientele spans over 4,500 entities across various sectors, including Walmart, Atlassian, Shopify, DoorDash, and Coinbase, reflecting a mix of established and emerging digital businesses.
Amplitude has recovered from pandemic-related headwinds, recording solid revenue and annual recurring revenue growth, including a 16% year-over-year rise in ARR to $347 million and a 37% increase in remaining performance obligations to $391.9 million in the third quarter of 2025. While still posting a GAAP net loss, the company is cash-flow positive and expects to reach non-GAAP operating income for the full year. The generation of $3.4 million in free cash flow during the most recent quarter supports the company’s trajectory toward profitability.
As AI continues to be a transformative force in product analytics and customer engagement, Amplitude’s advanced AI platform may offer sustained value, making it an appealing option for investors looking to participate in AI’s evolution through a software-centric business model over the next decade.
Conclusion
These three companies illustrate varied approaches to capitalizing on the AI revolution. Alphabet represents a dominant technology conglomerate with substantial resources and broad AI integration, SoundHound focuses on niche AI voice solutions with customizable deployment, and Amplitude delivers AI-enhanced analytics to optimize digital product performance. While each presents unique investment opportunities, prospective investors should consider their differing stages of profitability, market strategies, and risk profiles in aligning choices with long-term objectives.