3 Artificial Intelligence (AI) shares for $1,000 in perpetuity.

The Artificial Intelligence (AI) revolution is sure to produce some big winners, but it also has the potential to disrupt existing large corporations. How can you make sure you're investing in one of the beneficiaries of AI, rather than one of the subverted?

This is not an easy question to answer. However, an assessment of a company's competitive advantages and its history of defending them may provide some clues.

Looking at the tech landscape today, these three companies look like "sleeper picks" for your AI-focused portfolio.

Microsoft

Microsoft (NASDAQ resonance code: MSFT)Will it be helped or hurt by AI? It certainly looks like the former, as the company has an extremely wide moat in its empire and there are many ways to win from AI.

Apparently, Microsoft has an exclusive partnership agreement with OpenAI, the parent company behind ChatGPT. Microsoft has leveraged this savvy relationship to take the lead in the AI cloud race, with its Azure cloud platform delivering best-in-class growth compared to its competitors. As one of only three major cloud infrastructure vendors, where the majority of AI processing is likely to take place, Microsoft is expected to benefit from the increased intensity of AI computing in the coming years.

But Microsoft's AI strengths go far beyond OpenAI; as a longtime leader in enterprise software, Microsoft has decades of deep relationships with the world's largest corporations. With a recognized brand and the capital strength to invest in the latest innovations, it is certain that Microsoft will be able to leverage AI to increase revenue and reduce costs over the long term.

For example, Microsoft just launched AI CoPilot for Microsoft 365 at a cost of $30 per person per month. Microsoft's 365 Office software suite enjoys a wide moat in the enterprise, which makes significant price increases possible.

However, in addition to Azure and Office, all other Microsoft business units can benefit from AI, each with their own moats and networked responses. the LinkedIn social media platform will benefit from advanced AI targeting, while Github users will benefit from AI natural language coding prompts.

Let's also not overlook the impact of AI on Microsoft's consumer business. Microsoft owns the Xbox gaming platform as well as a number of gaming studios, such as the recently acquired Activision-Blizzard, and AI may be able to help with content creation and curation. In addition, with the development of AI曏 edge, AI personal computers could allow Microsoft to increase the price of its Surface series of laptops.

With a number of competitive products and services and leading AI capabilities, Microsoft should be a big winner in the AI space.

ASML Holdings Inc.

What is a good stock to sleep on? A company with a monopoly. That's exactly whatASML Holdings (NASDAQ resonance code: ASML)We have, in particular, the technology needed to produce the world's most cutting-edge chips: Extreme Ultraviolet Lithography (EUV).

All valuable AI chips require EUV lithography to encapsulate an incredible number of tiny crystals on the chip. Soon, the AI wars will require ASML's "High NA" EUV technology (ASML's latest EUV technology) to compete.

The new high-NA system will reduce the critical size of the chip - the smallest feature that can be printed on a wafer - to 8 nm from 13 nm with the regular EUV system. This is a 1.7-fold improvement, which will enable new 2-nm chips to be available in 2025.

That's why the new high-NA systems cost about $380 million each, more than double the price of the standard EUV systems ASML has sold to date.

This paves the way for rapid revenue growth, which will begin soon and continue into this decade. It is important to note that the first company to buy a Gona system was not the leading wafer fabrication company in the world today.Taiwan Semiconductor Manufacturing Co.Limited by Shares, but ratherIntelThis is because Intel is trying to catch up with TSMC as one of the world's leading foundries. This is because Intel is trying to catch up with TSMC as one of the world's leading foundries. Samsung is likely to follow suit, as are memory chip makers, which will all be using high-nano-crystal to produce DRAM memory chips at some point this decade, which will also be critical for AI systems.

Competition between TSMC, Intel and Samsung, as well as investment by governments around the world in domestically produced 耑 chips, has ensured strong demand for ASML machines in this decade.

meta-platform

Artificial intelligence may consolidate the advantage of companies with large numbers of users and proprietary data.Meta Platformsfirms(NASDAQ resonance stock code: META)Not only does it own the core Facebook and Instagram platforms, but it's becoming a key player in building AI models.

In its core business, AI can help display scrolls that are more likely to be of interest to users. On the monetization side, AI can help create and optimize ads to improve advertisers' ad spend returns, thereby increasing Meta's price per ad.

Meta is also building its own large-scale linguistic AI model under the Llama brand name. Interestingly, Meta has decided to make Llama open source, making the code available to developers. It's an odd strategy, and one that sets it apart from its competitors, but it could be very effective. Third-party contributions have the potential to improve Llama's performance as opposed to Meta's solo efforts, and the openness of the model could attract top talent.

Just as Facebook didn't make any money when it first expanded its曏 model, Llama isn't making much money now, although other cloud platforms do pay Meta a fee to host Llama models in their clouds. But if Llama is used as a baseline model for many future applications, the potential for profitability is even greater.

Meanwhile, like other big tech companies, Meta has just launched its own AI chip, Artemis, and Meta claims that running workloads on Artemis with its own optimization software will help reduce costs and save energy, even though it will still be buying lots ofNvidiaChip.

Meta has overcome many challenges in the past. Among them was the transition to moving the曏,Snap Meta's TikTok, and Bytedance's TikTok have posed even greater challenges. But Meta has thrived by utilizing its dominant position and technical prowess to fend off these technical challengers.

Coupled with a brand new dividend, Meta is another stock that investors can feel comfortable buying and holding for the long term.

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Randi Zuckerberg, former Facebook Market Development Director of Arms and Spokeswoman, and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's Board of Directors. Billy Duberstein serves on the boards of ASML, Meta Platforms, Microsoft, and Taiwan Semiconductor Manufacturing. His clients may own shares of the above companies.The Motley Fool owns and recommends shares of ASML, Meta Platforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing.The Motley Fool recommends the following options for Intel: Intel January 2023 $57.50 Call Options Long, Intel January 2025 $45 Call Options Long, Intel January 2025 $45 Call Options Long, Intel January 2025 $45 Call Options Long, Intel January 2025 $45 Call Options Long, Intel January 2025 $45 Call Options Long, and Intel January 2025 $45 Call Options Long. The Motley Fool recommends the following options for Intel: Intel January 2023 $57.50 Calls Long, Intel January 2025 $45 Calls Long, Microsoft January 2026 $395 Calls Long, Microsoft January 2026 $405 Calls Short, and Intel May 2024 $47 Calls Short. The Motley Fool has a disclosure policy.

3 Artificial Intelligence (AI) Stocks to Buy for $1,000 and Hold Forever was originally published by The Motley Fool.