3 Artificial Intelligence (AI) Stocks to Buy With $500 and Hold Forever

If you’re investing for the future, artificial intelligence (AI) is important to have investments in. Admittedly, there’s a lot of hype right now, but this potential multitrillion-dollar market opportunity isn’t worth skipping over.

Unfortunately, some of the hottest AI stocks today, like Nvidia and Microsoft, trade at lofty prices, making it hard for investors to accumulate shares. The good news is that some lower-priced stocks have big-time long-term growth potential.

You can buy these three AI stocks for just $500 and hold them indefinitely.

1. Palantir Technologies

Palantir Technologies (NYSE: PLTR) stock has blossomed, soaring over 205% over the past year. Despite that, it carries a reasonable valuation if you plan on buying and holding.

The software company operates three proprietary platforms, Gotham, Foundry, and AIP, on which customers can build and deploy custom software that analyzes data and integrates artificial intelligence (AI) into a company’s operations. You could think of Palantir as a central operating system that ultimately weaves itself into every aspect of a customer’s business.

Palantir does a lot of business with the United States government, including military and defense. However, the company’s growth in the private sector is what’s driving investors’ demand for shares.

The company just wrapped up 2023 earnings. Its revenue from U.S. commercial customers grew 70% year over year in Q4 and 12% over the prior quarter. Its AIP platform is in high demand as corporations look for ways to utilize AI in their businesses.

The long-term outlook is very bright for Palantir. The business is now consistently profitable, and analysts believe earnings per share will grow at a blistering 47% annualized rate. The stock is a bit expensive at a forward P/E of 75, but that growth is fast enough to grow into and beyond the stock’s current valuation.

2. Advanced Micro Devices

It’s become clear that Nvidia is today’s dominant vendor of AI chips. However, Advanced Micro…