Don’t let Nvidia‘s raging popularity distract you from the fact that there are many sorts of artificial intelligence (AI) stocks to choose from. Companies in industries ranging from chips to software are poised to feel the tailwinds of AI growth over the coming years.

Investors can position themselves for success by gravitating to bona-fide winners, the cream of the crop that are equipped to stay on top as the AI industry grows and inevitably evolves. Three Fool.com contributors did their homework and came up with Amazon (AMZN -0.29%), Qualcomm (QCOM 1.29%), and Meta Platforms (META -2.70%). These companies have the competitive edge to win over the long haul — and their stock can be had for just $1,000.

1. Amazon: Modest valuation makes it appealing

Jake Lerch (Amazon): My choice is Amazon. If I’m making a choice today about an AI stock to buy and hold forever, I have to consider valuation. Simply put, AI stocks have been on a wild ride, and some of them are now reaching dangerously high valuation levels.

Consider this chart:

NVDA PS Ratio data by YCharts

The three largest companies in the world — Apple, Microsoft, and Nvidia — are at or near 10-year highs when it comes to their price-to-sales (P/S) ratio. This ratio is important because it captures market sentiment, reflecting investors’ expectations of future growth, rather than quarter-to-quarter fluctuations in a company’s earnings results, which is what price-to-earnings (P/E) ratios tend to do.

The takeaway is that many AI stocks are rising to new highs on future expectations of growth, rather than on current sales. However, there are AI companies that are bucking this trend, or at least, they are an example where the size of the increase isn’t as large.

Here’s the same chart, with Amazon’s P/S ratio included.

NVDA PS Ratio data by YCharts

With a current P/S ratio of 3.6x, Amazon’s valuation is a fraction of Nvidia’s (41.8x); it’s also much lower than Microsoft’s (14.6x) or Apple’s (9.4x). Importantly, Amazon’s current P/S ratio is roughly equal to its 10-year average of 3.2x, indicating a stable valuation over time.

In other words, while some of its major competitors’ stocks have gotten ahead of themselves during the AI boom, Amazon stock still looks highly attractive.

On top of that, the company has numerous AI initiatives ranging from smart speakers to its fleet of nearly 1 million humanoid robots. These initiatives, coupled with Amazon’s strong financial position, show it is well-positioned to capitalize on the AI revolution and potentially experience significant growth.

In summary, investors seeking an AI stock to buy and hold forever should strongly consider Amazon.

2. Qualcomm: Build a connection with this stock

Will Healy (Qualcomm): Over the last year, investors have become focused on AI chips. However, just because Nvidia leads the industry does not mean it is the only player. With an increased focus on AI, investors may have more reasons to consider Qualcomm a forever holding.

Qualcomm has long served as the leader in smartphone chipsets, and maintaining that leadership in today’s market means proficiency in AI. Fortunately, the company has embraced on-device AI. This works collaboratively with cloud AI and its devices, which reside on the edge. Thus, it can deliver AI capabilities faster and more efficiently.

Moreover, Qualcomm does not limit these capabilities to smartphones. In recent years, the company has worked to deliver its technology to IoT devices, automotive platforms, and PC chips, amounting to a tech ecosystem powered by AI.

Additionally, after a revenue slump in fiscal 2023, Qualcomm has finally begun to rebound. In the first six months of fiscal 2024 (ended March 24), revenue of $19 billion rose 3% compared with the same period in the previous year.

Also, total costs and expenses fell 1%, leading to a net income of $5.1 billion in the first half of the fiscal year. That represents a 29% increase from year-ago levels. Also, since Qualcomm forecasts $9.2 billion in revenue at the midpoint in fiscal Q3, its revenue growth rate could reach double digits in the next quarter.

Investors have paid increased attention, as the semiconductor stock has risen by approximately 80% over the last year. That took its P/E ratio to around 28, its highest level in over three years.

Nonetheless, assuming double-digit revenue growth returns, rising profits should reduce the impact of its rising valuation. Ultimately, improving financials, coupled with Qualcomm’s increasing importance in the AI space, should solidify its stock as a profitable long-term holding.

3. Meta Platforms: AI is complementary

Justin Pope (Meta Platforms): While searching for the ultimate buy-and-hold AI stock, Meta Platforms kept rising to the top of my list. The pitch for Meta stock is simple but effective. The company is already a clear technology juggernaut today. It makes money on digital ads served to its 3.24 billion daily active users across its social media apps: Facebook, Instagram, WhatsApp, and Threads.

It’s a lucrative business; Meta converts a robust 35% of its revenue into free cash flow and earns an impressive 29% return on the capital it invests in the business.

Meta still offers plenty of growth despite its $1.3 trillion market cap. Analysts believe the company will grow earnings by an average of 18% annually over the long term. AI could play a big role in that. Meta has unleashed AI to improve its advertising business and boost profits.

Additionally, the company has invested heavily in AI infrastructure, spending billions of dollars to develop and run generative AI models.

The great thing about Meta is that AI won’t make or break the stock. AI could unlock the growth needed for Meta to remain a long-term market-beater, but it was already a great business before AI. Meta’s CEO and co-founder, Mark Zuckerberg, is still in charge, and he’s just 40 years old. You can buy and hold Meta, knowing the company is in good hands for the foreseeable future.

Lastly, the stock remains attractive at a P/E ratio of 26 times earnings, a very reasonable price for a business growing earnings by 18% annually. Many other AI stocks have gotten too expensive, meaning Meta could perform much better if it realizes its AI potential.

This ultimately makes Meta a no-brainer AI stock investors should buy and hold tight.