Three AI Stocks to Buy and Hold Long-Term with $3,000#

1. Broadcom (AVGO)#

Broadcom is a leading semiconductor company crafting AI chips for data centers, competing with Nvidia. Its customizable AI accelerators are used by hyperscalers like Alphabet, Meta Platforms, and reportedly OpenAI.

• Why Invest?
  • Market Growth: The global semiconductor market grew 19.7% in 2024 and is projected to rise 11.2% in 2025, driven by AI demand.
  • AI Revenue Surge: In Q2 2025, Broadcom’s revenue increased 20% year-over-year to $15 billion, with AI revenue up 46$4.4 billion. CEO Hock Tan projects $5.1 billion in AI revenue for Q3.
  • Customer Base: Broadcom expects three hyperscaler clients to deploy 1 million AI accelerators by 2027.
• Valuation: Trades at a forward P/E ratio of 38, typical for AI stocks but justified by its momentum and earnings growth.
• Risks: High valuation and competition in the semiconductor space.

Key Data (June 25, 2025): See the finance card above for Broadcom’s current price ($265.20) and metrics.

2. Alphabet (GOOGL)#

Alphabet, the tech giant behind Google, integrates AI across its ecosystem, including Google Search AI overviews, Google Workspace tools, Gemini chatbot, and Waymo’s self-driving cars.

• Why Invest?
  • Diversified Portfolio: Beyond Search, Alphabet owns Android, YouTube, and Google Cloud, reducing reliance on any single revenue stream.
  • Affordable Valuation: Alphabet has the lowest forward P/E ratio among the “Magnificent Seven” tech giants, making it a value play.
  • AI Innovation: AI enhancements in Search and Workspace demonstrate Alphabet’s ability to evolve.
• Challenges:
  • Antitrust Risks: A 2024 antitrust ruling found Alphabet monopolized digital advertising; penalties are pending.
  • Workforce Cuts: Recent buyouts in search, advertising, research, and engineering units signal cost-cutting.
  • AI Threat: Concerns persist that AI could disrupt Google Search’s dominance.
• Outlook: Alphabet’s diversified businesses and AI integration make it a resilient long-term investment.

Key Data (June 25, 2025): See the finance card above for Alphabet’s current price ($167.84) and metrics.

3. ASML (ASML)#

ASML dominates the semiconductor industry by manufacturing extreme ultraviolet (EUV) lithography machines, essential for producing high-performance microchips used in AI and electronics.

• Why Invest?
  • Market Leadership: ASML holds over 90% of the lithography market, creating a wide moat.
  • AI-Driven Demand: Growth in AI and semiconductors fuels demand for ASML’s machines, sold to clients like Taiwan Semiconductor, Intel, and Samsung.
  • Financials: In Q1 2025, ASML sold 77 lithography machines (73 new, 4 used) for €7.7 billion in revenue with a 54% gross margin.
• Risks:
  • Revenue Volatility: ASML’s business depends on high-cost machine sales ($400 million+ for High NA machines), leading to fluctuating revenue.
  • Geopolitical Risks: Trade restrictions to China could impact sales.
• Outlook: ASML’s critical role in chip production positions it to benefit from AI market growth.

Key Data (June 25, 2025): See the finance card above for ASML’s current price ($821.74) and metrics.

Investment Strategy#

• Allocation: Split $3,000 equally (~$1,000 per stock) to diversify across semiconductors (Broadcom, ASML) and software/services (Alphabet).
• Long-Term Focus: Hold for 5–10 years to capture AI market growth, projected to reach trillions.
• Alternatives: The Motley Fool’s Stock Advisor recommends 10 stocks with high growth potential (793% average return vs. S&P 500’s 173% as of June 23, 2025), though Broadcom was not included.

Conclusion#

Broadcom, Alphabet, and ASML offer exposure to different facets of the AI boom—chips, software/services, and infrastructure. With strong fundamentals and market positions, these stocks are compelling long-term investments for a $3,000 portfolio. Investors should monitor valuation risks, competitive pressures, and regulatory challenges, particularly for Alphabet and ASML, while capitalizing on the semiconductor surge driven by AI.