Two Top AI Stocks Worth Holding Through 2031

The artificial intelligence revolution is creating unprecedented wealth-building opportunities for investors. According to Gartner, AI spending is projected to reach $2.5 trillion in 2026—a remarkable 44% increase year over year—with expectations climbing to $3.3 trillion by 2027. This explosive growth is not just hype; it reflects real business transformation happening across enterprises globally. Within this dynamic landscape, Microsoft and Oracle stand out as two technology leaders uniquely positioned to capture and sustain this AI-driven value creation over the coming five years.

The AI Investment Opportunity Reshaping Tech

Both Microsoft and Oracle are benefiting from AI adoption, but through distinctly different business models. Microsoft is converting AI into revenue by embedding intelligent features across its widely-used productivity ecosystem, while Oracle is capitalizing on the infrastructure requirements that power AI development and deployment. Understanding how each company monetizes AI is essential for investors evaluating long-term portfolio additions in this sector.

The cloud infrastructure market—a critical enabler for AI training, testing, and deployment—is itself experiencing explosive growth. This $159 billion market is anticipated to expand approximately 13% annually through 2034, according to Fortune Business Insights. Both companies are well-entrenched in this space, though they approach it with different competitive advantages.

Microsoft: Embedding AI Into Workplace Productivity

Microsoft has transformed from a software giant into an AI powerhouse by integrating its Copilot AI assistants throughout its productivity suite. In the most recent quarterly reporting period, the company achieved 18% year-over-year revenue growth, with AI features driving particularly strong demand. The Azure enterprise AI platform is expanding rapidly, allowing organizations to build proprietary AI applications while leveraging Microsoft’s robust cloud infrastructure.

Microsoft’s family of Copilot tools—embedded in Microsoft 365 and other enterprise solutions—is reshaping how workers interact with everyday tasks. This integration creates a powerful flywheel: as adoption spreads, network effects strengthen customer lock-in, supporting sustained pricing power and growth.

The company’s investments in data center expansion reflect confidence in long-term AI demand. While these capital expenditures may temporarily pressure margins, Microsoft’s operational muscle tells the real story. The company generated $147 billion in cash flow from operations over the trailing twelve months, providing substantial firepower to fund innovation and maintain competitive advantage. At a forward price-to-earnings multiple of 27, the stock reflects reasonable valuation given analyst expectations for 13% annualized earnings growth. This growth trajectory suggests the stock could perform in line with the underlying business expansion over a multi-year holding period.

Oracle: Capitalizing on AI Infrastructure Demand

Oracle’s trajectory in cloud infrastructure presents a different but equally compelling investment thesis. Enterprises racing to develop and train AI models urgently need access to specialized servers and processors. Oracle’s advanced database technologies, proprietary chip designs, and sophisticated AI training capabilities make it an attractive partner for this mission-critical work.

The proof point is striking: Oracle’s cloud infrastructure business posted 68% year-over-year revenue growth in its most recent quarter. While this segment currently represents only 25% of total company revenue, the rapid expansion signals that Oracle is gaining meaningful market share in a high-growth category. The company’s multicloud offering—allowing enterprises to run Oracle databases across multiple cloud providers—represents a critical differentiator in competitive negotiations.

Customer demand for this flexibility is evident in the numbers: multicloud revenue surged 817% year over year in the recent quarter. This figure demonstrates that Oracle’s approach of providing optionality, rather than forcing vendor lock-in, resonates with enterprise priorities. As AI infrastructure spending accelerates, this positioning becomes increasingly valuable.

Oracle’s forward price-to-earnings multiple of 24 appears attractive relative to analyst expectations for 22% annualized earnings growth. These financial metrics suggest potential for investors to significantly multiply their capital over a five-year investment horizon.

Why These AI Stocks Merit Long-Term Consideration

Both companies have moved beyond speculation into proven AI monetization. Microsoft’s approach through productivity enhancement and Azure’s enterprise AI capabilities, combined with Oracle’s critical role in AI infrastructure provisioning, creates two distinct pathways to participate in the AI transformation.

Historical perspective reinforces the opportunity cost of missing major technology shifts. Netflix and Nvidia appeared on “best ideas” lists years ago; early investors captured extraordinary returns. While past performance offers no guarantees, it underscores the importance of identifying companies with genuine competitive moats in transformative technology cycles.

The next five years will determine which technology companies emerge as the enduring beneficiaries of AI investment. Microsoft and Oracle, with their proven ability to monetize advanced technology at scale, deserve serious consideration for long-term investors seeking exposure to AI stocks positioned to capitalize on industry adoption curves.