Artificial intelligence (AI) presents a significant investment opportunity, considered by some to be a once-in-a-generation event. The growth of the AI market is projected to reach $826 billion by 2030, with a 27% annual expansion rate, according to Statista. Here are two stocks that could see substantial gains over the long term:
C3.ai
C3.ai (AI) is emerging as a strong contender in the AI software market, even as Palantir currently receives more attention. As the cost of developing sophisticated AI models decreases, the demand for AI software is expected to increase significantly. C3.ai has demonstrated accelerating growth, which indicates its potential to reward shareholders handsomely.
Organizations are using C3.ai’s AI applications for numerous purposes, including: demand forecasting, supply chain management, and streamlining operations. C3.ai has a diverse customer base across several sectors, including the U.S. military. In the second fiscal quarter, which ended in January, the company finalized 66 agreements, representing a 72% year-over-year increase. Additionally, during the last quarter, C3.ai’s revenue increased by 26% year over year, a rise from the 17% increase reported a year prior. Its strategic alliance with Microsoft Azure is driving sales momentum, leading to 28 new agreements with customers across nine industries.
Despite the company’s strong revenue growth, the stock has experienced a 28% decline in 2025 at the time of this writing because the company continues to report losses. Although C3.ai recognizes revenue throughout the subscription term with customers, most costs are accounted for as they are incurred. This means that an acceleration in sales can lead to large initial losses. However, as revenue continues to expand, higher margins should follow. Management anticipates the company will generate positive free cash flow by fiscal Q4 2025. While the stock has been volatile, C3.ai’s growing revenue and strategic partnerships suggest a promising outlook, making it a potentially rewarding investment for those with a five-year investment horizon. The company’s ability to adapt, its strong revenue and partnerships, and its customer satisfaction give it an upper hand in the industry.
Dell Technologies
Dell Technologies (DELL) is most widely recognized for its personal computers, but it’s also a key player in the server market. Demand for AI-optimized servers is boosting its infrastructure solutions business. The stock has delivered substantial performance, increasing almost 400% in the last five years, yet it still seems undervalued based on the most recent financial results.
Dell’s operations are divided between PCs (client solutions) and servers (infrastructure solutions). While the PC business is recovering slowly from a recent decline, revenue from infrastructure solutions continues to experience high growth rates, with a 22% year-over-year increase in the fourth quarter. Investing in Dell is essentially betting on the increasing demand for AI.
Dell provides the PowerEdge XE9712, built for large-scale AI deployments and to facilitate large language model training, which is powered by Nvidia. Dell signed a deal to supply servers for Elon Musk’s xAI, bringing its AI server backlog to $9 billion. Another positive element for the stock is the PC refresh cycle, where the obsolescence of Microsoft’s Windows 10 could encourage both businesses and consumers to upgrade over the next few years. Given the opportunities, the company increased its annual dividend by 18% to $2.10. This increase is supported by strong earnings, which saw a 14% growth year-over-year in 2024 on a non-GAAP basis. Analysts project a 13% long-term annualized earnings growth. However, the stock is trading at only 12 times its 2025 earnings estimates, which look very promising. For a leading server supplier in a market anticipated to continue growing, this presents an attractive valuation that could lead to significant gains.
