3 AI Stocks That Could Outperform the S&P 500 for Years to Come

There's no doubt that artificial intelligence is one of the most impactful technologies to come along in decades. But choosing AI stocks that are more than just a flash in the pan is still tricky, especially as some investors jump at nearly any stock touting its AI chops.

Thankfully, you can cut through the noise and focus on a handful of tech giants that are already leaders in AI and will likely remain so for years. Here's why Micron Technology (NASDAQ: MU), Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG), and Taiwan Semiconductor Manufacturing (NYSE: TSM) could outperform the S&P 500 for years to come.

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1. Micron Technology's memory will be in demand for many more years

Micron Technology has been one of the biggest success stories in the AI boom, with its share price soaring more than 1,500% over the past three years. That rise has come as large tech companies are clamoring to get their hands on Micron's memory processors for their data centers.

The surge in demand has not only caused Micron's sales to rise -- revenue jumped 345% in the third quarter of fiscal year 2026 (ended May 28) to nearly $41.5 billion -- but also led to a surge in profits. All the demand has allowed Micron to raise prices, boosting its margins and resulting in non-GAAP (adjusted) earnings per share surging more than 1,300% to $24.67 in the quarter.

And the growth is nowhere near done. Some of the largest tech companies are collectively spending $750 billion on AI infrastructure, part of which will go to memory chips. One of the biggest indicators that memory demand will remain high for a prolonged period is Apple's recent price increases across many of its devices because of high memory costs. Apple wouldn't have made that move if it didn't expect memory prices to remain elevated.

Micron's management says it now has an annual revenue run rate of $100 billion in data center segment sales (mostly from memory processors), and bullish analysts have taken notice. A handful of analysts recently raised their price targets for Micron's stock to $1,500, representing a 45% increase from its current price, as of this writing.

2. Alphabet is vying for a top position in AI

Alphabet was once behind in the AI chatbot race but has quickly made up a lot of ground. Its Gemini chatbot has more than 900 million users and is integrated into many of its popular Google Workspace apps and other services.

Gemini is already helping expand Alphabet's revenue, with Google Cloud sales (where the company's AI revenue is housed) jumping 63% to $20 billion in Q1 2026.

While there have been concerns about Alphabet's ability to adapt in the AI era -- and the potential impact of AI on its massive advertising business -- the company has evolved by integrating AI across its services, including YouTube, Search, ads, and more. It has also found new ways to generate sales from AI, including the $1 billion that Apple is reportedly paying the company annually for use of its Gemini model in the latest Siri AI update.

Alphabet is spending a lot to keep pace in this AI race, up to $190 billion in capital expenditures (mostly for AI) this year alone. But with Alphabet's $10 billion in free cash flow and earnings per share soaring 82% to $5.11 in the most recent quarter, investors don't need to worry too much about the company being able to afford these large investments.

3. Taiwan Semiconductor wins no matter who takes the AI crown

One of the best ways to spread out your chances of benefiting from AI, no matter who ends up becoming the leading player years from now, is to own some Taiwan Semiconductor stock.

The company is the top manufacturer of global processors -- with an estimated 73% market share -- and leads the advanced manufacturing market for AI chips, with about 90% market share. This means that if there's demand for memory processors, CPUs, GPUs, and anything in between in the coming years for AI, Taiwan Semiconductor, also called TSMC, will likely benefit.

And the company has already reaped the financial benefits from its leading position. Sales jumped 41% in Q1 2026 to $36 billion, and earnings popped 65% to $3.49 per American depositary receipt (ADR). Management is bullish about the future as well, with leadership saying that TSMC's total addressable market for global processor manufacturing will reach $1.5 trillion by 2030.

With each of these companies already taking a leading role in AI, sales and earnings growing fast, and many more years of AI growth ahead, Micron, Alphabet, and Taiwan Semiconductor appear poised to deliver market-beating returns for years to come.

Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Micron Technology, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.