Three stocks poised for long-term gains in the artificial intelligence (AI) sector have been highlighted as strong buys: Amazon (AMZN), Meta Platforms (META), and Nebius (NBIS). Each company is leveraging AI to enhance its growth prospects, making them attractive options for investors looking to capitalize on this burgeoning market.

Amazon’s cloud computing unit, AWS, is a key driver of its success, with a projected $200 billion investment in data center expansion this year. This growth is bolstered by the demand for custom AI chips, which are rapidly gaining traction. Meanwhile, Meta Platforms is experiencing a resurgence in revenue, up 33% year-over-year, thanks to AI enhancements in its advertising business. Despite this growth, its stock remains undervalued at a historically low price-to-cash-flow ratio. Lastly, Nebius is witnessing explosive growth, with a staggering 684% revenue increase in Q1, fueled by partnerships with major players like Nvidia.

Investors should consider these stocks as they offer compelling opportunities to engage with the AI revolution, particularly as their current valuations may not fully reflect their growth potential.

Source: fool.com