Key Takeaways
- 93% of investors who own AI stocks and AI ETFs are confident that artificial intelligence companies will deliver strong returns over the long haul
- Nvidia and Alphabet are two businesses poised for further long-term gains thanks to AI
- The AI sector is expected to continue growing, with emerging fields such as agentic AI and autonomous vehicles driving demand for Nvidia’s products
- Alphabet is delivering artificial intelligence to the masses, with its AI efforts enabling it to maintain its search engine leadership
- Investing in Alphabet and Nvidia is a prudent strategy to gain exposure to different areas of the AI industry
Introduction to the AI Sector
The artificial intelligence (AI) sector has experienced rapid growth over the last few years, leading to concerns of an AI bubble. However, according to a survey conducted for The Motley Fool’s 2026 AI Investor Outlook Report, 93% of investors who own AI stocks and AI ETFs are confident that artificial intelligence companies will deliver strong returns over the long haul. As Nvidia CEO Jensen Huang said, "There’s been a lot of talk about an AI bubble. From our vantage point, we see something very different." This optimism is driven by the industry’s growth, which is seen as a secular trend, and the potential for AI to reshape industries.
Nvidia’s Position in the AI Market
Nvidia is a leader in the AI sector, providing the computational power used to support AI systems. The company’s revenues rose 62% year over year to a record $57 billion in its fiscal 2026 third quarter, driven by demand for its products. As Huang explained, "cloud computing systems and data centers built primarily around CPUs rather than GPUs and other accelerators are not equipped to handle AI, requiring upgrades in tech infrastructure." This is driving more demand for Nvidia’s products, and the company is positioning itself to take advantage of emerging trends such as agentic AI and autonomous vehicles. For example, Nvidia has developed specialized tech for self-driving cars and is partnering with ride-hailing company Uber to launch a fleet of autonomous vehicles by 2027.
Alphabet’s AI Efforts
Alphabet, the parent company of Google, is also a major player in the AI sector. When generative AI first emerged, it appeared that it would threaten Alphabet’s key moneymaker: Google Search. However, the company’s own AI efforts have enabled it to maintain its search engine leadership. As Alphabet CEO Sundar Pichai said, "As people learn what they can do with our new AI experiences, they are increasingly coming back to search more." As a result, Google Search revenues hit $56.6 billion in Q3, up from $49.4 billion in the prior-year period, helping total revenue to grow by a strong 16% to $102.3 billion. Alphabet’s AI efforts extend to its other businesses, such as its self-driving car subsidiary, Waymo, which is gradually expanding its driverless ride-share business in the U.S. and plans to roll it out in London this year.
Investing in the AI Sector
Investing in Alphabet and Nvidia is a prudent strategy to gain exposure to different areas of the AI industry. Both companies look poised to deliver business growth over the next decade and beyond, driven by the continued growth of the AI sector. As Huang said, "These emerging fields, such as agentic AI and autonomous vehicles, will be revolutionary, giving rise to new applications, companies, products, and services." With their strong positions in the AI market, Nvidia and Alphabet are well-placed to take advantage of these trends and drive growth for investors. As Pichai noted, Alphabet’s AI efforts are enabling the company to maintain its search engine leadership, and the company’s other businesses, such as Waymo, are also driving growth.
Conclusion
In conclusion, the AI sector is expected to continue growing, driven by emerging fields such as agentic AI and autonomous vehicles. Nvidia and Alphabet are two businesses poised for further long-term gains thanks to AI, and investing in these companies is a prudent strategy to gain exposure to different areas of the AI industry. As the sector continues to evolve, it is likely that we will see new applications, companies, products, and services emerge, driving growth for investors. With their strong positions in the AI market, Nvidia and Alphabet are well-placed to take advantage of these trends and drive growth for investors.
https://www.fool.com/investing/2026/01/07/despite-bubble-fears-93-of-ai-investors-say-theyre/