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8 days ago
2 Monster Stocks to Hold for the Next 2 Years
Summary
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Like it or not, artificial intelligence (AI) is likely going to be the driving theme of this market over the coming years. As such, let's look at two AI stocks to hold for the next two years.
One of the best ways to play the AI infrastructure boom, in my opinion, is through an investment in Taiwan Semiconductor Manufacturing (NYSE: TSM). Making logic chips is not easy, as foundries need to continually work to shrink nodes (make chips denser) to improve chip performance, and fabs (chip factories) need to run at nearly full utilization to typically be profitable. As such, most chip companies today outsource their manufacturing to independent foundries like TSMC.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
The company has become the clear market leader for manufacturing advanced chips at small nodes due to its technological expertise and scale. As competitors have struggled to achieve high yields (few defects) for smaller-sized nodes at a large scale, TSMC has established itself as a virtual monopoly for manufacturing advanced chips.
As such, the company will continue to be a huge winner from the AI data center boom because it will be the main manufacturer of graphics processing units (GPUs) and other AI chips. Meanwhile, it will also have an opportunity with advanced central processing units (CPUs), which will become increasingly necessary with the advent of agentic AI. This makes it a stock to own over the next two years and beyond.
The market has deemed infrastructure stocks winners and software-as-a-service (SaaS) stocks as losers when it comes to AI, but don't be surprised if the beaten-down SaaS sector outperforms over the next couple of years. One of my favorites in the space is ServiceNow (NYSE: NOW), which provides one of the main systems of record for organizations.
The company's platform is the glue that unifies customers' data with their workflow, and it is not something that can be easily ripped out and replaced. Years of tightly integrated custom business logic, audit trails, and security protocols make the product invaluable.
The same thing that makes ServiceNow's platform sticky is also what makes it a great launching pad for agentic AI. Its generative AI suite, Now Assist, has been a hit with customers. And with its new Control Tower, ServiceNow is looking to be an agentic AI orchestration layer.
The recent acquisitions of Armis and Veza add extra security measures, setting up ServiceNow to be an agentic AI leader in the coming years. Given its beaten-down valuation and the AI growth opportunity, this is a stock to own for the coming years.
Before you buy stock in Taiwan Semiconductor Manufacturing, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Taiwan Semiconductor Manufacturing wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $534,008!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,090,073!*
Now, it’s worth noting Stock Advisor’s total average return is 949% — a market-crushing outperformance compared to 190% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 8, 2026.
Geoffrey Seiler has positions in ServiceNow. The Motley Fool has positions in and recommends ServiceNow and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
2 Monster Stocks to Hold for the Next 2 Years was originally published by The Motley Fool
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Like it or not, artificial intelligence (AI) is likely going to be the driving theme of this market over the coming years. As such, let's look at two AI stocks to hold for the next two years.
One of the best ways to play the AI infrastructure boom, in my opinion, is through an investment in Taiwan Semiconductor Manufacturing (NYSE: TSM). Making logic chips is not easy, as foundries need to continually work to shrink nodes (make chips denser) to improve chip performance, and fabs (chip factories) need to run at nearly full utilization to typically be profitable. As such, most chip companies today outsource their manufacturing to independent foundries like TSMC.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
The company has become the clear market leader for manufacturing advanced chips at small nodes due to its technological expertise and scale. As competitors have struggled to achieve high yields (few defects) for smaller-sized nodes at a large scale, TSMC has established itself as a virtual monopoly for manufacturing advanced chips.
As such, the company will continue to be a huge winner from the AI data center boom because it will be the main manufacturer of graphics processing units (GPUs) and other AI chips. Meanwhile, it will also have an opportunity with advanced central processing units (CPUs), which will become increasingly necessary with the advent of agentic AI. This makes it a stock to own over the next two years and beyond.
The market has deemed infrastructure stocks winners and software-as-a-service (SaaS) stocks as losers when it comes to AI, but don't be surprised if the beaten-down SaaS sector outperforms over the next couple of years. One of my favorites in the space is ServiceNow (NYSE: NOW), which provides one of the main systems of record for organizations.
The company's platform is the glue that unifies customers' data with their workflow, and it is not something that can be easily ripped out and replaced. Years of tightly integrated custom business logic, audit trails, and security protocols make the product invaluable.
The same thing that makes ServiceNow's platform sticky is also what makes it a great launching pad for agentic AI. Its generative AI suite, Now Assist, has been a hit with customers. And with its new Control Tower, ServiceNow is looking to be an agentic AI orchestration layer.
The recent acquisitions of Armis and Veza add extra security measures, setting up ServiceNow to be an agentic AI leader in the coming years. Given its beaten-down valuation and the AI growth opportunity, this is a stock to own for the coming years.
Before you buy stock in Taiwan Semiconductor Manufacturing, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Taiwan Semiconductor Manufacturing wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $534,008!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,090,073!*
Now, it’s worth noting Stock Advisor’s total average return is 949% — a market-crushing outperformance compared to 190% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 8, 2026.
Geoffrey Seiler has positions in ServiceNow. The Motley Fool has positions in and recommends ServiceNow and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
2 Monster Stocks to Hold for the Next 2 Years was originally published by The Motley Fool
Sign in to access your portfolio
AI Description
The article discusses investment opportunities in AI-related stocks, focusing on TSMC and ServiceNow. It highlights the potential growth in AI infrastructure and services.