AI Insights
3 Artificial Intelligence (AI) Stocks That Still Look Like Long-Term Winners
It’s time to tackle the burning questions surrounding three prominent stocks and their long-term outlooks.
When you consider whether to invest in a company for the long term, you’ll often find that stocks fall into two groups.
The first includes stocks of companies that have done well. For those, it’s about whether they can continue to perform at a high level. The other consists of flawed stocks, companies facing adversity or potential challenges that may deter investors.
Palantir Technologies (PLTR 1.62%), Apple (AAPL 0.53%), and Alphabet (GOOG 0.51%) (GOOGL 0.54%) are three well-known technology stocks representing a mix of both groups. Palantir has been one of the market’s biggest winners in artificial intelligence (AI), while investors wonder whether Apple and Alphabet are losing their edge.
Here is the skinny on each name and why all three can still be long-term winners.
Image source: Getty Images.
1. This AI stock continues to defy gravity
Palantir Technologies continues to chug higher, racking up a blistering 2,100% gain since 2023. The company has become a leader in developing AI software on its proprietary platforms for government and enterprise customers. And since launching AIP, its AI-focused platform, in mid-2023, Palantir’s growth has continued to accelerate.
The company still has fewer than 500 commercial customers in the United States, a tiny fraction of the country’s 20,000 large corporations. Then, you factor in Palantir’s close military ties (government contracts accounted for 55% of revenue in Q1 2025) at a time when America is involved in numerous geopolitical conflicts, and it’s easy to envision years of high-speed growth.
Despite its best efforts, Palantir’s business hasn’t kept pace with its share price. The stock has rocketed to a forward P/E ratio of 245, which is excessive, to say the least, for a business expected to compound earnings at an annualized rate of 31% over the long term. Given its growth momentum, both in the government and with commercial customers, Palantir’s business appears poised to continue winning. That said, investors will probably want to wait for some significant dips to buy the stock at a more reasonable valuation.
2. Should investors worry about Apple’s slow start in AI?
AI seemed like a layup for Apple, with a wide-moat ecosystem spanning more than 2.35 billion active iOS devices worldwide. All Apple has needed to do is integrate AI capabilities into its iOS platform, and it would instantly be one of the leading consumer-facing AI companies, if not the leader.
Yet Apple has struggled to launch notable AI features smoothly, and its underwhelming rollout of Apple Intelligence, its first attempt at AI, compelled the company to reorganize its AI team.
The good news is that Apple’s iOS remains one of the stickiest consumer ecosystems, which buys time for Apple to figure things out. People buy Apple products and use them for several years. The devices, whether it’s a phone, computer, tablet, or watch, sync and work together. People become accustomed to iOS and develop a commitment to the ecosystem. Users may drift away from Apple eventually if it doesn’t figure out AI, but it’s unlikely that Apple’s user base would implode overnight.
Ultimately, Apple is a behemoth, a financial juggernaut with one of the world’s most influential brands. While Apple may not deliver the same type of returns as in years past at a $3 trillion market cap, the stock should have a relatively high floor, based on the company’s massive stock buybacks, growing dividend, and sticky business model. It’s worth the leap of faith that Apple will solve its AI frustrations.
3. Is AI an opportunity or a threat to Google?
Google’s parent company, Alphabet, is facing some pressure from several directions. AI models have become popular enough to begin siphoning traffic away from traditional search engines, like Google. At the same time, U.S. regulators have successfully pursued litigation against Alphabet for anti-competitive practices, which could result in fines or even forced divestitures that would potentially impact its core advertising business.
The adversity has one of the world’s most prominent technology stocks trading at a P/E ratio of just 19 today. Yet, AI is arguably more an opportunity than a threat. Alphabet has integrated AI summaries into its search results, successfully monetizing them. Despite all the worries about AI, Google’s ad revenue still grew by 10% in Q1 2025. Plus, Google Cloud is growing in size and profitability due to AI boosting demand for cloud services.
If that weren’t enough, Alphabet’s autonomous ride-hailing business, Waymo, is continuing to expand its footprint across the United States and could eventually become a significant piece of Alphabet’s business.
When you put it all together, it seems that this technology giant will continue to remain a prominent force across the AI and technology space. That’s an easy bet to make when the stock trades near its lowest valuation of the past decade.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, and Palantir Technologies. The Motley Fool has a disclosure policy.
AI Insights
Real or AI: Band confirms use of artificial intelligence for its music on Spotify
The Velvet Sundown, a four-person band, or so it seems, has garnered a lot of attention on Spotify. It started posting music on the platform in early June and has since released two full albums with a few more singles and another album coming soon. Naturally, listeners started to accuse the band of being an AI-generated project, which as it now turns out, is true.
The band or music project called The Velvet Sundown has over a million monthly listeners on Spotify. That’s an impressive debut considering their first album called “Floating on Echoes” hit the music streaming platform on June 4. Then, on June 19, their second album called “Dust and Silence” was added to the library. Next week, July 14, will mark the release of the third album called “Paper Sun Rebellion.” Since their debut, listeners have accused the band of being an AI-generated project and now, the owners of the project have updated the Spotify bio and called it a “synthetic music project guided by human creative direction, and composed, voiced, and visualized with the support of artificial intelligence.”
It goes on to state that this project challenges the boundaries of “authorship, identity, and the future of music itself in the age of AI.” The owners claim that the characters, stories, music, voices, and lyrics are “original creations generated with the assistance of artificial intelligence tools,” but it is unclear to what extent AI was involved in the development process.
The band art shows four individuals suggesting they are owners of the project, but the images are likely AI-generated as well. Interestingly, Andrew Frelon (pseudonym) claimed to be the owner of the AI band initially, but then confirmed that was untrue and that he pretended to run their Twitter because he wanted to insert an “extra layer of weird into this story,” of this AI band.
As it stands now, The Velvet Sundown’s music is available on Spotify with the new album releasing next week. Now, whether this unveiling causes a spike or a decline in monthly listeners, remains to be seen.
I have always been passionate about gaming and technology, which drove me towards pursuing a career in the tech writing industry. I have spent over 7 years in the tech space and about a decade in content writing. I hope to continue to use this passion and generate informative, entertaining, and accurate content for readers.
AI Insights
How to Choose Between Deploying an AI Chatbot or Agent
In artificial intelligence, the trend du jour is AI agents, or algorithmic bots that can autonomously retrieve data and act on it.
AI Insights
Do AI systems socially interact the same way as living beings?
Key takeaways
- A new study that compares biological brains with artificial intelligence systems analyzed the neural network patterns that emerged during social and non-social tasks in mice and programmed artificial intelligence agents.
- UCLA researchers identified high-dimensional “shared” and “unique” neural subspaces when mice interact socially, as well as when AI agents engaged in social behaviors.
- Findings could help advance understanding of human social disorders and develop AI that can understand and engage in social interactions.
As AI systems are increasingly integrated into from virtual assistants and customer service agents to counseling and AI companions, an understanding of social neural dynamics is essential for both scientific and technological progress. A new study from UCLA researchers shows biological brains and AI systems develop remarkably similar neural patterns during social interaction.
The study, recently published in the journal Nature, reveals that when mice interact socially, specific brain cell types create synchronize in “shared neural spaces,” and artificial intelligence agents develop analogous patterns when engaging in social behaviors.
The new research represents a striking convergence of neuroscience and artificial intelligence, two of today’s most rapidly advancing fields. By directly comparing how biological brains and AI systems process social information, scientists can now better understand fundamental principles that govern social cognition across different types of intelligent systems. The findings could advance understanding of social disorders like autism while simultaneously informing the development of more sophisticated, socially aware AI systems.
This work was supported in part by , the National Science Foundation, the Packard Foundation, Vallee Foundation, Mallinckrodt Foundation and the Brain and Behavior Research Foundation.
Examining AI agents’ social behavior
A multidisciplinary team from UCLA’s departments of neurobiology, biological chemistry, bioengineering, electrical and computer engineering, and computer science across the David Geffen School of Medicine and UCLA Samueli School of Engineering used advanced brain imaging techniques to record activity from molecularly defined neurons in the dorsomedial prefrontal cortex of mice during social interactions. The researchers developed a novel computational framework to identify high-dimensional “shared” and “unique” neural subspaces across interacting individuals. The team then trained artificial intelligence agents to interact socially and applied the same analytical framework to examine neural network patterns in AI systems that emerged during social versus non-social tasks.
The research revealed striking parallels between biological and artificial systems during social interaction. In both mice and AI systems, neural activity could be partitioned into two distinct components: a “shared neural subspace” containing synchronized patterns between interacting entities, and a “unique neural subspace” containing activity specific to each individual.
Remarkably, GABAergic neurons — inhibitory brain cells that regulate neural activity —showed significantly larger shared neural spaces compared with glutamatergic neurons, which are the brain’s primary excitatory cells. This represents the first investigation of inter-brain neural dynamics in molecularly defined cell types, revealing previously unknown differences in how specific neuron types contribute to social synchronization.
When the same analytical framework was applied to AI agents, shared neural dynamics emerged as the artificial systems developed social interaction capabilities. Most importantly, when researchers selectively disrupted these shared neural components in artificial systems, social behaviors were substantially reduced, providing the direct evidence that synchronized neural patterns causally drive social interactions.
The study also revealed that shared neural dynamics don’t simply reflect coordinated behaviors between individuals, but emerge from representations of each other’s unique behavioral actions during social interaction.
“This discovery fundamentally changes how we think about social behavior across all intelligent systems,” said Weizhe Hong, professor of neurobiology, biological chemistry and bioengineering at UCLA and lead author of the new work. “We’ve shown for the first time that the neural mechanisms driving social interaction are remarkably similar between biological brains and artificial intelligence systems. This suggests we’ve identified a fundamental principle of how any intelligent system — whether biological or artificial — processes social information. The implications are significant for both understanding human social disorders and developing AI that can truly understand and engage in social interactions.”
Continuing research for treating social disorders and training AI
The research team plans to further investigate shared neural dynamics in different and potentially more complex social interactions. They also aim to explore how disruptions in shared neural space might contribute to social disorders and whether therapeutic interventions could restore healthy patterns of inter-brain synchronization. The artificial intelligence framework may serve as a platform for testing hypotheses about social neural mechanisms that are difficult to examine directly in biological systems. They also aim to develop methods to train socially intelligent AI.
The study was led by UCLA’s Hong and Jonathan Kao, associate professor of electrical and computer engineering. Co-first authors Xingjian Zhang and Nguyen Phi, along with collaborators Qin Li, Ryan Gorzek, Niklas Zwingenberger, Shan Huang, John Zhou, Lyle Kingsbury, Tara Raam, Ye Emily Wu and Don Wei contributed to the research.
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