Prediction: If Artificial Intelligence (AI) Leads to Unprecedented Economic Growth, These 2 S&P 500 Stocks Are Once-in-a-Decade Buying Opportunities Right Now

When it comes to artificial intelligence (AI), virtually all the attention goes to how much money is being spent. According to Nvidia management, there will be $3 trillion to $4 trillion in related infrastructure spending per year by the end of this decade. It doesn't matter how you look at it. This is a gargantuan dollar figure.

While the spending boom has benefited many companies, the biggest uncertainty surrounding the AI trend is how this technology will impact the broader macro picture in the long run. The most bullish supporters and optimists believe that AI will lead to unprecedented economic activity. New business models, products, and services will be introduced, the thinking goes.

If you adopt this upbeat view, then you might think that Nvidia is the best AI stock to buy. It's hard to argue with that perspective, given that shares have surged 934% in the past five years (as of Aug. 27).

However, the leading investors consider knock-on effects and how they might impact certain companies. If AI eventually lives up to the hype, these two S&P 500 stocks look like once-in-a-decade buying opportunities right now.

Image source: The Motley Fool.

Controlling the payments layer will be even more lucrative

Over the past 10 years, U.S. gross domestic product (GDP) has increased nominally at a compound annual rate of 5.7%. What if, in a very bullish scenario thanks to AI progress, GDP will grow at a yearly clip of 6.7%? This means that in a decade, the domestic economy would be 91% bigger. This is a larger gain than the 74% cumulative increase of the past 10 years.

The U.S. accounts for 25% of global economic activity. This thought experiment doesn't factor in the huge opportunity for AI to have a positive impact on international markets. This is obviously not an insignificant amount in terms of GDP dollars.

Nonetheless, notably faster economic growth, leading to higher GDP in the future, lays the foundations for greater income generation and spending activity Visa (NYSE: V) and Mastercard (NYSE: MA) are positioned well to benefit.

In their latest fiscal quarters (corresponding to the three-month period that ended June 30), they processed $30 trillion in combined annualized total payment volume. There would be meaningful incremental spending in an AI-powered economy. This would translate into more revenue for these companies, as they can collect more in fees whenever their credit or debit cards are used at checkout.

These businesses are working on agent payment capabilities

AI agents, or fully autonomous software systems that handle specific tasks, are believed to have tremendous potential. Visa and Mastercard are both thinking about the possibility of AI agents handling more commerce on behalf of individual consumers, businesses, financial institutions, and governments.

These companies are playing offense in an effort to be ahead of the curve if agentic payments really take off. Visa's Intelligent Commerce Connect and Mastercard's Agent Pay are platform solutions enabling AI transactions.

It's hard to say how much incremental payment activity agentic AI will create as opposed to being a substitute for existing financial transactions. But again, Visa and Mastercard seem to be playing with a huge advantage.

Don't underestimate how robust these network effects are

The idea of cryptocurrencies, specifically stablecoins, also comes to mind if AI adoption grows rapidly and agents handle more economic activity. In theory, stablecoins could completely undermine the competitive positions of Visa and Mastercard as they use blockchain technology to connect consumers and merchants.

Again, Visa and Mastercard aren't shying away. They are working on integrating stablecoins into their infrastructures.

It's smart not to underestimate how robust their network effects are, however. Visa and Mastercard have deep relationships with financial institutions, merchants, and consumers. This gives them unbelievable distribution and adoption, which entrenches their payment ecosystems in ways stablecoins don't have.

If you're bullish on the impact AI will have on the broader economy, considering an investment in Visa and Mastercard is a wise move.

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Mastercard and Nvidia. The Motley Fool has a disclosure policy.