{"id":255782,"date":"2026-01-21T07:50:11","date_gmt":"2026-01-21T07:50:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/255782\/"},"modified":"2026-01-21T07:50:11","modified_gmt":"2026-01-21T07:50:11","slug":"2-undervalued-ai-stocks-to-buy-in-2026-and-hold-for-decades","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/255782\/","title":{"rendered":"2 Undervalued AI Stocks to Buy in 2026 and Hold for Decades"},"content":{"rendered":"<p>These stocks have incredible long-term opportunities.<\/p>\n<p>The S&amp;P 500 is back to hitting new highs, but it&#8217;s also becoming more expensive. The <a href=\"https:\/\/www.fool.com\/terms\/c\/cape-ratio\/\" class=\"text-cyan-900 hover:text-cyan-800\" rel=\"nofollow noopener\" target=\"_blank\">CAPE ratio<\/a>, or cyclically adjusted P\/E ratio, is nearly 40. That&#8217;s the highest it&#8217;s been in more than a decade. Whether or not that means the market is due for a correction, it certainly seems like stocks are trading at higher valuations, and it&#8217;s harder to spot bargains.<\/p>\n<p>But they exist, even in the high-growth artificial intelligence (AI) space. Consider Amazon (<a href=\"https:\/\/www.fool.com\/quote\/nasdaq\/amzn\/\" class=\"font-bold hover:underline\" rel=\"nofollow noopener\" target=\"_blank\">AMZN<\/a> 3.42%) and Taiwan Semiconductor Manufacturing\u00a0(<a href=\"https:\/\/www.fool.com\/quote\/nyse\/tsm\/\" class=\"font-bold hover:underline\" rel=\"nofollow noopener\" target=\"_blank\">TSM<\/a> 4.45%), both of which look like super values right now and offer continued long-term opportunities.<\/p>\n<p><img alt=\"A person works on a computer in an office.\" loading=\"lazy\" width=\"880\" height=\"495\" decoding=\"async\" data-nimg=\"1\" class=\"h-auto max-w-full rounded object-contain\" style=\"color:transparent\"   src=\"https:\/\/www.newsbeep.com\/ie\/wp-content\/uploads\/2026\/01\/1768981810_607_.jpeg\"\/><\/p>\n<p class=\"caption\">Image source: Getty Images.<\/p>\n<p>1. Amazon<\/p>\n<p>Amazon is one of the major hyperscalers that&#8217;s pouring billions into developing a top-of-the-line AI program. CEO Andy Jassy has stressed many times that there&#8217;s going to be a shift from on-premises information technology (IT) spend, which represents about 85% of company spend today, to the cloud, and Amazon is preparing for it. It&#8217;s investing more than $125 billion in 2026 in the AI program, after spending about that much in 2025, and it&#8217;s upgrading everything from its chips to its <a href=\"https:\/\/www.fool.com\/terms\/l\/large-language-models\/\" class=\"text-cyan-900 hover:text-cyan-800\" rel=\"nofollow noopener\" target=\"_blank\">large-language models<\/a> (LLMs) to its range of services for clients, like its semi-custom <a href=\"https:\/\/www.fool.com\/terms\/a\/amazon-bedrock\/\" class=\"text-cyan-900 hover:text-cyan-800\" rel=\"nofollow noopener\" target=\"_blank\">Bedrock platform<\/a>.<\/p>\n<p><img alt=\"Amazon Stock Quote\" loading=\"lazy\" width=\"64\" height=\"64\" decoding=\"async\" data-nimg=\"1\" class=\"w-full flex-none object-contain\" style=\"color:transparent\"  src=\"https:\/\/www.newsbeep.com\/ie\/wp-content\/uploads\/2026\/01\/1768981811_577_.png\"\/><\/p>\n<p>Today&#8217;s Change<\/p>\n<p>(-3.42%) $-8.18<\/p>\n<p>Current Price<\/p>\n<p>$230.94<\/p>\n<p>Key Data Points<\/p>\n<p>Market Cap<\/p>\n<p>$2.5T<\/p>\n<p>Day&#8217;s Range<\/p>\n<p>$229.34 &#8211; $235.07<\/p>\n<p>52wk Range<\/p>\n<p>$161.38 &#8211; $258.60<\/p>\n<p>Volume<\/p>\n<p>1.9M<\/p>\n<p>Avg Vol<\/p>\n<p>45M<\/p>\n<p>Gross Margin<\/p>\n<p>50.05%<\/p>\n<p>It&#8217;s growing in every way, from its core e-commerce business through the Amazon Web Services (AWS) cloud business to advertising and more. Adding the AI business to these segments takes the whole business up a notch, and positioning itself to benefit from the AI windfall gives it years of further growth ahead.<\/p>\n<p>Yet Amazon stock trades at less than <a href=\"https:\/\/www.fool.com\/terms\/p\/pe-ratio\/\" class=\"text-cyan-900 hover:text-cyan-800\" rel=\"nofollow noopener\" target=\"_blank\">34 times trailing-12-month earnings<\/a>. The stock is only up 6% over the past year, but as it keeps reporting strong growth and harnesses its opportunities, it should keep rewarding investors.<\/p>\n<p>2. Taiwan Semiconductor Manufacturing<\/p>\n<p>Taiwan Semiconductor is a core player in AI production. It&#8217;s responsible for 85% of global start-up semiconductor prototypes, and it works with nearly every high-level AI player in nearly every type of technology, also beyond AI.<\/p>\n<p>Even though it&#8217;s a well-established industry giant with solid relationships and high profitability, including a 54% operating margin in the 2025 fourth quarter, it&#8217;s still growing quickly. Sales increased 21% year over year in the quarter. It has tremendous AI tailwinds, and all the money that Amazon and its peers are spending comes back at some level to Taiwan Semiconductor.<\/p>\n<p><img alt=\"Taiwan Semiconductor Manufacturing Stock Quote\" loading=\"lazy\" width=\"64\" height=\"64\" decoding=\"async\" data-nimg=\"1\" class=\"w-full flex-none object-contain\" style=\"color:transparent\"  src=\"https:\/\/www.newsbeep.com\/ie\/wp-content\/uploads\/2026\/01\/1768981811_407_.png\"\/><\/p>\n<p>Taiwan Semiconductor Manufacturing<\/p>\n<p>Today&#8217;s Change<\/p>\n<p>(-4.45%) $-15.24<\/p>\n<p>Current Price<\/p>\n<p>$327.16<\/p>\n<p>Key Data Points<\/p>\n<p>Market Cap<\/p>\n<p>$1.7T<\/p>\n<p>Day&#8217;s Range<\/p>\n<p>$326.90 &#8211; $342.15<\/p>\n<p>52wk Range<\/p>\n<p>$134.25 &#8211; $351.33<\/p>\n<p>Volume<\/p>\n<p>23M<\/p>\n<p>Avg Vol<\/p>\n<p>13M<\/p>\n<p>Gross Margin<\/p>\n<p>59.02%<\/p>\n<p>Dividend Yield<\/p>\n<p>0.94%<\/p>\n<p>Yet Taiwan Semiconductor stock trades at only 32 times trailing-12-month sales, and it&#8217;s barely moved over the past year, even though the stock has gained 60%. It&#8217;s a great value for growth investors &#8212; or any investor.<\/p>\n","protected":false},"excerpt":{"rendered":"These stocks have incredible long-term opportunities. The S&amp;P 500 is back to hitting new highs, but it&#8217;s also&hellip;\n","protected":false},"author":2,"featured_media":255783,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[220,218,219,61,60,80],"class_list":["post-255782","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-ie","tag-ireland","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/255782","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=255782"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/255782\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/255783"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=255782"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=255782"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=255782"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}