Alphabet, Microsoft, Amazon singled out as AI stocks worth holding long-term

The investment landscape for artificial intelligence stocks has become crowded, with nearly every technology company claiming significant AI exposure. The article argues that three established tech giants—Alphabet, Microsoft, and Amazon—stand apart as genuine, credible AI investments.

Alphabet faced early concerns that AI search capabilities would cannibalize its traditional search business and threaten its dominant position. Instead, the company has successfully integrated AI overviews into its search results, turning what appeared to be a threat into a competitive advantage. During the first three months of 2024, Google Search and related revenue climbed 19%, reaching $60.4 billion（約9.7兆円）. Beyond search, Alphabet's Gemini AI chatbot is competing directly with OpenAI's ChatGPT and positioning itself as a formidable alternative. The article notes that Alphabet has multiple pathways to incorporate AI across its diverse business, making it one of the safer AI stock choices despite the stock's 90% gain over the past 12 months. Valued at 26 times trailing earnings, the analyst considers it a reasonably priced growth stock for buy-and-hold investors.

Microsoft, by contrast, faces skepticism from investors who underestimate its AI capabilities. The company is embedding its Copilot AI assistant into its widely used Office software suite, enabling users to generate forms and letters faster and create complex spreadsheet templates with less manual effort. As businesses recognize the productivity gains Copilot delivers, they are more likely to justify upgrading to Microsoft's AI-enhanced, higher-priced offerings. The analyst views this as overlooked value in the market, reflected in the stock's 23 times earnings valuation and its 21% decline over the past 12 months. The article suggests Microsoft's stock may be primed for a recovery once the market recognizes this underrated AI angle.

Amazon, the third pick, possesses multiple AI opportunities, but the article highlights a particularly underrated one: selling AI chips. CEO Andy Jassy has emphasized the strong demand for Amazon's Trainium chip and its focus on efficiency as a growth catalyst. Jassy estimates that Amazon's chip business alone could eventually generate $50 billion（約8兆円） in annual revenue. For context, Amazon generated more than $740 billion（約120兆円） in revenue over the past four quarters, so while the chip opportunity represents a significant new line of business, it would take time to mature into a major contributor. At around 30 times trailing earnings, Amazon is technically the most expensive of the three on a valuation basis, yet the analyst argues its strong fundamentals and diverse AI opportunities justify holding it as a long-term AI bet.

The investment case for these three companies rests on a single principle: they have already proven they can extract real business value from artificial intelligence, not merely rebrand existing products as AI-enabled. Alphabet faced initial market skepticism that AI search would undermine its core business, yet the 19% revenue growth in Google Search during early 2024 demonstrates the opposite—AI overviews have become a selling point rather than a threat. Microsoft and Amazon face the opposite perception: the market has underestimated their AI potential. Copilot integration into Office creates a natural path to higher-margin enterprise upgrades, and Amazon's chip business, while a small fraction of its total revenue, carries CEO-backed estimates of $50 billion（約8兆円） annual potential.

What distinguishes these three from the broader cohort of "AI stocks" is their ability to monetize AI through existing distribution channels and customer relationships. Each has a diversified revenue base that reduces the risk of any single AI bet, and each has demonstrated the operational discipline to deploy AI into products in ways customers already value—not speculative futures. The analyst notes that valuation multiples range from 23 to 30 times trailing earnings, which the analysis frames as reasonable for their scale and growth trajectory, though readers should note Amazon carries the highest multiple on this list.