The AI bubble seems to be popping sooner than expected. Investors are running out of patience, and they want to know where the returns are on the huge AI investments. Tech stocks including Amazon, Meta, Alphabet, and Intel dropped hard after their latest earnings reports. Intel fell 29%, its biggest one-day drop in more than four decades, after a weak sales forecast dragged down chipmakers like Nvidia and Broadcom. Before the drop, Intel had gained about 143% over the past year, and we looked at whether its turnaround could keep going. Read our Intel analysis here. Amazon and Alphabet also fell after they stuck with aggressive AI spending plans while their core businesses cooled. Alphabet and Meta both reported negative cash flows.
Investors moved into safer assets. Utilities and consumer staples each rose more than 10% in October, and Treasuries and investment-grade bonds posted their best monthly return since late 2020, Bloomberg reported.
Billionaire Howard Marks, co-chair of Oaktree Capital Management, said in his latest interview on Bloomberg TV that the recent AI stumbles have burst the bubble of infallibility around the sector. He called the new skepticism healthy and said nobody knows whether AI will produce enough profit to pay for all the spending, Bloomberg reported. Marks has warned about this risk before, and we covered his earlier AI warning and 10 non-AI stock picks.
You can see the 10 stocks to buy for the next 10 years in our video on YouTube by clicking the image below.
Methodology
We looked through a Reddit discussion on r/ValueInvesting where users were asked which single stock they would buy and hold for 10 years. We picked the 10 stocks Redditors named most often, counting repeat mentions and skipping jokes and memes. For each stock, we explain why Redditors like it. We then ranked the 10 in ascending order by the number of hedge fund investors, based on Insider Monkey’s database of 1,006 hedge funds at the end of the second quarter of 2026.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 612% since May 2014, beating its benchmark by 375 percentage points (see more details here).
#10 AST SpaceMobile, Inc. (NASDAQ:ASTS)
Number of Hedge Fund Holders: 34
AST SpaceMobile is building a satellite network that connects directly to regular mobile phones. Some retail investors like the stock because they say its open model lets any phone company use the network, which could beat Starlink’s closed approach. They also said the open model lowers customer acquisition costs and offers fast speeds. Others asked whether it already works as a usable alternative today. Timing and execution are the open questions.
AST SpaceMobile shares are down about 50% this year amid launch delays, new competition from SpaceX, and share dilution from convertible note sales, but bulls say the company has carrier deals and spectrum that rivals will struggle to match.
AST sells satellite coverage to phone carriers, and the carriers sell it to their own customers. The company has signed more than 60 carriers that cover over 3 billion subscribers, including AT&T, Verizon, and Vodafone. AST also combines carrier spectrum with spectrum it controls and targets about 100 MHz in the US. Spectrum is scarce and tightly regulated, so it is hard to copy. Governments use the service too, and the US and Japan backed it in October through its Rakuten partnership. If AST gets enough satellites into orbit, bulls expect these contracts to bring steady demand for many years.
Bears say AST is behind schedule. Piper Sandler cut its forecast to 18 satellites by the end of 2026, down from 45, and AST needs 25 to start even partial US service. SpaceX is building a rival mobile service after buying 800 MHz spectrum, and AST depends on SpaceX to launch some of its satellites. AST also keeps raising money through convertible notes, which adds debt and can dilute shareholders. Until AST SpaceMobile shows steady launches and real revenue, bears see little reason to pay today’s valuation.
#9 Costco Wholesale Corporation (NASDAQ:COST)
Number of Hedge Fund Holders: 104
Costco won votes for its management and its culture. Redditors like its steady growth year after year and how it treats its employees and customers. RiverPark Large Growth Fund named Costco its third-largest contributor in the first quarter of 2026, with a 16% gain. Check the full letter here.
Costco Wholesale is up about 17% so far this year, but bears say its valuation leaves no room for a slowdown. Bulls say the stock deserves its premium because shoppers keep renewing their memberships.
Costco trades at a forward P/E of about 44, more than twice the S&P 500’s 18.7. Analysts expect earnings to grow about 10% a year, which matches the market’s long-run pace. If that happens, Costco’s P/E falls to about 37 in two years and about 33 in three. Growth is also slowing. Earnings per share grew about 15% a year over the five years through fiscal 2025, and comparable sales excluding gas and currency now rise 6% to 7%. Walmart added pressure in October with a $120 membership that bundles Walmart+ and Sam’s Club Plus. It undercuts Costco’s $130 Executive membership.
#8 ASML Holding N.V. (NASDAQ:ASML)
Number of Hedge Fund Holders: 140
ASML is a Dutch company that makes the machines chipmakers need to print advanced chips. It is the only commercial supplier of extreme ultraviolet lithography machines. Some Redditors called its moat the strongest in the thread. A rival would have to rebuild ASML’s huge network of suppliers, and chipmakers plan their factories about a decade ahead around ASML’s roadmap.
Emerald Wealth Partners, an asset manager based in Zurich, highlighted ASML in its second-quarter 2026 investor letter. Read the full letter here.
ASML Holding is up about 47% so far this year, but the stock sits about 22% below its June high as investors worry that AI spending will cool. Bulls say the company’s monopoly and its booked demand through 2030 make the dip a buying chance.
The company says customers are already placing orders for 2028 and asking about 2029 and 2030. ASML plans to raise its EUV and DUV production capacity about 30% next year to meet that demand. Third-quarter revenue grew 55% from a year earlier, and gross margin rose to 57.5%. Analyst consensus has fiscal 2026 earnings per share growing about 56%, which puts the forward P/E at about 34.
#7 Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 170
Broadcom makes chips and networking equipment that data centers use. Several Redditors picked it. One expects Broadcom to follow AMD’s path and deliver big gains over the next decade. Another said the recent pullback will pass, and that long-term holders will be glad they stayed. In early October, Broadcom was up only about 9% for the year and about 24% below its 52-week high, while analysts expected its earnings to rise 71% in fiscal 2026. See if it’s a buy now.
Broadcom is down about 6% this year and about 34% below its June high, as investors question how long AI spending can keep growing. D.A. Davidson recently upgraded the stock to Buy and raised its price target to $400 from $350. Analyst Gil Luria said Anthropic’s IPO filing suggests the offering will go ahead, which would help Broadcom meet its expectations for the next couple of years. He noted the stock trades at 16 times 2027 earnings, a price that assumes the deals fail. Broadcom also has a chip deal with Google that runs to 2031, and revenue grew about 49% last quarter.
Broadcom’s five largest customers make up 55% of quarterly revenue, so one cut in AI spending would hurt. Gross margin is shrinking as chips carry more memory, and the Anthropic lease deal adds risk if Anthropic defaults. Broadcom keeps its premium only while AI spending keeps growing.
#6 Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 194
Visa earns fees on payments without lending money, so it carries no credit risk. Redditors also cited its worldwide brand, its growing revenue and earnings, and its dividend. Skeptics pointed to Capital One’s Discover network and to payment systems built outside the US as competition. Visa hit an all-time high in mid-October after eight straight winning sessions, its longest streak since 2023. It is also a common pick of billionaire Bill Ackman, President Trump, and Claude’s AI portfolio. Click to read the full story.
Visa is up about 18% so far this year, but bears say its growth is slowing while the stock trades at about 27.5 times forward earnings. Bulls say Visa still grows faster than the economy.
Visa reported fiscal fourth-quarter results recently. Adjusted earnings per share beat analyst estimates, and revenue matched them. For fiscal 2026, net revenue grew 15%. Cross-border volume rose 14%, and Visa raised its dividend 16.4%. Management expects value-added services to grow in the low-to-mid 20s next year. Bulls say Visa earns a fee on more global spending every year, and that income keeps compounding.
For fiscal 2027, Visa guided to revenue growth in the low double digits, down from 15%, and earnings growth in the low double digits to low teens, down from 16%. Payments volume growth slowed to 9% from 10%, and client incentives grew 21%, faster than revenue. The forward P/E of 27.5 matches its five-year average, so bears say slower growth deserves a lower multiple. Visa can hold that multiple only if growth stays in the low teens.
#5 Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 254
Meta is in the spotlight as its AI spending rises and investors look for results beyond its Muse AI agent. Jim Cramer and a billionaire both like the stock. Read the full analysis here.
Meta Platforms, Inc. shares fell after the company reported third-quarter results on October 21. Revenue grew 26% from a year earlier and beat analyst estimates, but investors focused on the rising cost of its AI investments. Meta raised the low end of its 2026 capital spending forecast to $135 billion, with the range topping out at $145 billion. Free cash flow was negative $2.12 billion as spending on data centers and computing infrastructure continued to climb. Five days later, Meta unveiled an equity financing plan initially totaling about $95 billion, subsequently increased to $97.5 billion, involving common shares, convertible preferred stock and a potential future share-sale program.
Bears see little reason to expect a sustained rebound until Meta demonstrates stronger returns on its investments. Issuing additional common shares could dilute existing shareholders, while the preferred stock carries a 6.5% annual dividend rate. Nvidia, AMD and Broadcom have expressed interest in participating in the financing, with reported investments and potential commitments totaling up to $5 billion. All three supply chips to Meta, raising questions about the relationship between AI infrastructure spending and financing from its suppliers. Meta has not disclosed a standalone return on its data center investments, while its newly launched Meta Enterprise Platform has yet to receive a separate revenue disclosure.
Bulls point to Meta’s advertising business. Its apps reached 3.64 billion daily active users, up 3% from a year earlier, while the average price per advertisement increased 14%. Meta has credited improvements in its AI-powered advertising systems with helping advertisers generate better results, supporting higher monetization. If those improvements continue, advertising growth could help justify the company’s enormous infrastructure investments. However, the scale and timing of returns from its expanding AI operations remain uncertain.
#4 Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 273
Redditors called Microsoft one of the best companies in the world and said people keep underrating it. One Redditor said it is their biggest stock position, at about 9% of their portfolio. Another said Microsoft’s software is hard to replace, because customers use it every day. Investors have been nervous about whether Microsoft can keep growing as its AI spending climbs. We looked at whether that spending is finally paying off. Find out here.
In the midst of the latest earnings season, Microsoft has surprisingly become a top favorite because of its financial position. While giants like Meta and Alphabet fell sharply after posting negative free cash flows and no clear signs of return on investment, Microsoft Corporation stock rose after the company reported results for the first quarter of fiscal 2027. Bulls believe the rise can continue because Microsoft covers its AI spending with the cash its business generates. Operating cash flow was $58 billion in the quarter, up from $45.06 billion a year earlier, and it covered the $45.2 billion Microsoft spent on data centers and chips. The company also ended the quarter with more cash than debt.
Microsoft management said during the fiscal Q1 call that the company expects to remain cash flow positive for the year. This is a positive sign as rivals bleed money in AI investments with returns still far into the future.
Customers keep asking for more. Revenue from Azure, Microsoft’s cloud service where companies rent computing power and AI tools, grew 48.2% from a year earlier. Management said growth was constrained by delays in computing capacity from outside suppliers, while customer demand continued to exceed available supply. The value of commercial contracts Microsoft has signed but not yet recognized as revenue grew 73% to $677 billion, giving the company a substantial pipeline of future sales. Microsoft also earns more from businesses that upgrade to premium Microsoft 365 offerings, including Copilot, E5 and E7. Management said E7 has already reached millions of paid seats.
#3 Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 275
Alphabet was the stock Redditors named most often. Many of them called it cheap and said it was a good time to buy. They like its advertising business, its growing Google Cloud unit, and its large spending on AI. Others pointed to YouTube, Waymo, and its stake in SpaceX as extra sources of value. One Redditor who calls Alphabet a top holding said the stock looks less cheap once its investments are removed from the earnings multiple. Alphabet was also the best-performing stock in Claude’s AI stock portfolio this year. Click to see the full story.
Alphabet Inc. shares fell about 12% after the latest results, but bulls say now is the time to buy. They think the three things investors sold on do not change how much money Google can earn in the next few years. Revenue came in slightly below analyst estimates, and management blamed a currency headwind. Earnings per share fell 26% because Google booked a paper loss on its stake in SpaceX.
The bigger reason bulls like the stock is Google Cloud, the unit that rents computing power and AI tools to companies. Its revenue grew 103% from a year earlier, up from 82% in the prior quarter, and its operating margin jumped to 36.2% from 23.7%. Customers have signed contracts for cloud services that Google has not delivered yet, and Google expects to turn just over 55% of that backlog into revenue over the next 24 months. Nearly 100 customers already use Google’s own AI chips, called TPUs, and the Gemini app passed 1 billion users.
Search is the part that worried investors, because its revenue growth slowed to 12% from 17% in the prior quarter. Management said the slowdown came from currency moves, a new EU rule that hurt retail advertisers in Asia, and World Cup ad spending that landed in June instead of July. Management also attributed part of the slowdown to users shifting toward AI Mode, where Google is still developing its advertising business. That shift raises questions about whether Google can monetize AI searches as effectively as traditional searches.
But bulls say Alphabet can monetize its AI mode too and it just needs time to show in the results. Google is bringing ads to AI Mode, its AI search tool, in international markets for the first time. Management said clicks on sponsored product listings in AI Mode already match clicks on regular listings. Most AI Mode queries are new searches people would not have made before, and they run 3 times longer than regular ones. Management also said comparisons with last year get easier starting in the first quarter of 2027.
#2 NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 285
One Redditor has held Nvidia since 2014, has taken profits along the way, and plans to hold it for another 10 years. Another thinks the growth continues but is not sure it lasts the full decade. A third listed Nvidia with ASML and Alphabet as companies with very strong competitive advantages. One Redditor who owns the stock worried that Nvidia’s biggest customers are building their own chips. According to his disclosures, President Trump’s portfolio bought Nvidia repeatedly in July and August 2026. The stock is one of the four stocks in our list of the President Trump and Nancy Pelosi portfolio top picks. Click to see the other three.
Bulls believe Nvidia Corporation shares can still grow because customers want more chips than Nvidia can make. Management expects Nvidia’s revenue to grow 70% in fiscal 2028. CEO Jensen Huang says customer demand is growing well above 70%, and that the forecast stays at 70% only because Nvidia cannot build more chips than that.
Alphabet designs its own AI chips and still plans to use up to 960,000 of Nvidia’s newest Vera Rubin chips, which shows that even a company that can build its own chips has found no replacement for Nvidia’s.
Bears see a stock that has already had its best run because Nvidia now pays part of its customers’ bills to keep sales coming. Smaller AI cloud companies rent out computing power but lack the cash to build data centers fast enough. So Nvidia has promised to cover the cost of land, power, and buildings if those customers cannot pay.
#1 Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 369
Several Redditors picked Amazon on their own. The most detailed argument was about its warehouses. That Redditor expects robots to cut Amazon’s costs once they run across its fulfillment centers, which would lift profit. Another pointed to Amazon’s record of entering new markets and its many growth projects. Amazon is the top AI stock pick of Jim Cramer and billionaire Ken Fisher, and we looked at whether it is a buy ahead of its earnings report. Check the full analysis here.
Amazon.com, Inc. benefits from AI demand in two ways. Amazon Web Services is the largest cloud provider, and every company that builds AI tools needs a place to run them. Amazon also owns a stake in Anthropic, a leading AI model maker, so it earns from AI as a landlord and as an investor. The shopping side has its own edge. Amazon runs its own delivery network, which lets it ship fast, and fast shipping keeps Prime members buying.
Amazon spends so much on data centers and chips that its operating cash flow does not cover the bill. Net debt has grown over the last few quarters, and the stock depends on investors staying patient while that continues. If AI demand slows, Amazon holds a lot of expensive data centers and a bigger debt load. The shopping business also faces rising fuel costs for its trucks and planes, which squeeze margins. Amazon.com, Inc. booked a one-time gain on its Anthropic stake, so profit growth looks weaker without it.
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