Why 60% of Americans Believe AI Stocks Will Deliver Strong Long-Term Returns

As artificial intelligence (AI) stocks soared higher and higher throughout 2025, more and more voices sounded warnings of an "AI bubble" that was about to pop. Concerns about the valuation of some of the biggest AI players like Nvidia (NASDAQ: NVDA) and Microsoft (NASDAQ: MSFT) likely contributed to November's market slump.

But according to new research by The Motley Fool, a majority of Americans aren't buying it. In fact, over 60% of them believe that AI stocks will instead deliver strong long-term returns. The reason why may surprise you.

Image source: The Motley Fool.

Younger investors see AI's potential

According to The Motley Fool's 2026 AI Investor Outlook Report, which was just released, it's younger investors who are most confident in AI companies' ability to produce strong, long-term returns, with 67% of Gen Z investors and 63% of Millennial investors optimistic about the sector's potential. Meanwhile, older investors remain far more skeptical, with just 50% expressing confidence that the AI investments of companies investing heavily in the technology will pay off.

As you'd expect, the most confident AI investors have, largely, already put their money where their mouths are, with 93% of Americans who already own AI stocks or exchange-traded funds (ETFs) expressing confidence in the technology's ability to produce long-term returns.

But is this just a case of younger investors being attracted to the shiny new technology, regardless of its merits? Motley Fool AI Stock Analyst Asit Sharma, CPA, doesn't think so. Here's what he thinks is really going on.

A game-changing technology

Many younger Americans have already had the opportunity to create content using AI technology tools, either at work or on social media, and so they've seen firsthand the game-changing potential of the technology, and how much it's improved over the past few years. Sharma believes that younger investors have recognized AI's ability to fundamentally alter the way businesses and the overall economy function.

"As reasoning models become more powerful, the companies that benefit from AI-driven optimization will produce superior returns on capital, and the businesses that support this infrastructure will thrive from sustained demand," Sharma says in the report.

Younger investors are also less concerned about AI being a bubble, but more likely to say that an AI stock correction would impact their personal finances. Ultimately, though, AI stocks could be affected by near-term price corrections and still go on to outperform the market. Sharma, for one, believes that's a distinct possibility.

"AI is a generational investment opportunity," he said. "Consistent, rational buying will help most investors tap into the industry's long-term potential while maintaining the peace of mind that comes from a strategic or even opportunistic approach to volatility."

You can read more about investors' attitudes toward AI stocks, including their top concerns about AI-focused companies, in The Motley Fool's 2026 AI Investor Outlook Report.

John Bromels has positions in Microsoft and Nvidia. The Motley Fool has positions in and recommends Microsoft and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.