- Successful long-term wealth building requires strict diversification and the use of “play money” or position limits for high-risk moonshot stocks to ensure individual losses don’t derail an entire portfolio.
- AI has moved beyond “fad” status into a multi-year scaling phase, offering a multi-trillion-dollar market opportunity as major corporations integrate the technology to automate repetitive tasks and accelerate market discoveries.
- Read about four potential AI torchbearers for the next decade: Capstone Green Energy (AI power demand), Recursion Pharmaceuticals (AI drug discovery), Cellebrite (AI data forensics) and Seagate (AI data storage infrastructure).
The task of identifying top-performing stocks, whether during the Nifty Fifty era of the 1960s, the Dot-Com Bubble of the late 1990s, or the surge of cryptocurrency following the 2008 financial crisis, is anathema to the building of long-term wealth, unless you take care to minimize risk through diversification – across geographies, industries and asset classes – such that the losses you’re likely to incur in pursuit of these winners does not derail your financial future.
This article is a journalistic opinion piece which has been written based on independent research. It is intended to inform investors and should not be taken as a recommendation or financial advice.
If you’re an index fund investor, you might allow yourself a small, 5-10 per cent ‘play money’ account to try your hand at being a Market Wizard.
If you’re an active investor, and single stocks are already part of your regular diet, you might set limits on how many moonshot stocks you’ll hold in your portfolio, and on how big they can get before trimming is in order, with eyes on not interrupting compound interest should your chosen companies take turns for the worst.
With this safety measure in place, idiosyncratic, single-company risk, which cannot ever be fully diversified away, is at least contained, freeing you up to focus on due diligence and make the highest-probability investments possible.
Quantifying the AI opportunity landscape
Today, if you’re trying to “buy into the next Amazon,” the industry to be evaluating is artificial intelligence (AI), which, since the release of ChatGPT in 2022, has been opening the world’s eyes to the potential of AI agents and large language models to spare us from a multitude of repetitive tasks at the heart of everyday life, including writing emails, scheduling and data entry, while tackling complex data analysis questions, potentially heralding new eras of innovation in scientific discovery, medical treatment, fraud detection, risk modeling and system optimization.
Though AI has falsified claims of being a fad, with large-cap companies including Meta, Microsoft, Coinbase, as well as Amazon itself, instituting thousands of layoffs to more efficiently onboard the technology, investors still benefit from AI adoption being in its infancy, with just over a third of participating companies in the scaling stage, offering a multi-year horizon to invest in the soon-to-be multi-trillion-dollar market‘s most attractive pockets of opportunity.
4 top AI stocks to hold for a decade
To this end, we’ll now turn our attention to profiling a quartet of stocks whose underlying companies embody the potential to evolve into some of AI’s top torchbearers over the next decade, thanks to their combination of profitable growth and differentiated innovation.
Why is Capstone Green Energy a magnet for AI energy demand?
Our first top AI stock deserving of the spotlight is Capstone Green Energy, market cap US$299.83 million, a pioneer in microturbine clean energy technology with a presence in 88 countries and more than 10,000 units shipped to date.
Capstone’s microturbines use air-bearing technology, which generates the lowest emissions among non-catalyzed gas combustion engines and can run on a wide variety of fuels, including natural gas, biogas, propane, flare gas, landfill gas, hydrogen and renewable natural gas, making it an attractive choice for clean energy generation in hotels, food processing plants, industrial-scale utilities, as well as data centers reinforcing the backbone of global AI computing power. At a cost of only US$0.067/kWh, the company offers clients more than 28 per cent in savings versus competing natural gas reciprocating engines.
The company’s flexible solutions are strongly aligned with an expected rise in data center electricity demand, which the International Energy Agency sees more than doubling by 2030 to about 3 per cent of global electricity consumption, clocking an impressive 15 per cent compound annual growth rate, more than four times faster than total growth from all other sectors combined.
Based on recent income statements, it’s clear that the value proposition propelling Capstone’s microturbine technology it catching on, with the company posting seven straight quarters of positive adjusted EBITDA as of Q3 FY 2026, ending the quarter with 33 per cent revenue growth year-over-year, catapulting operations into their second straight quarter of positive net income.
Looking ahead, Capstone’s ability to marry low emissions with low costs compared to competing systems is an easy win for potential clients across the industrial landscape committed to meeting firm sustainability goals.
Capstone Green Energy stock (USOTC:CGEH) last traded at US$11.33 and has added 1,670.31 per cent year-over-year.
Why is Recursion Pharmaceuticals a leading light in AI drug discovery?
Moving into the healthcare sector, we have Recursion Pharmaceuticals, market cap US$1.73 billion, a company based out of laboratories in Utah and Oxfordshire, as well as offices in New York, Montreal and London, dedicated to using AI to unravel biology’s inner workings to improve quality of life.
The company is advancing Recursion OS, its AI-enabled drug-discovery platform, spanning biology, chemistry and clinical development, leveraging a proprietary autonomous experimentation process designed to increase clinical trial enrolment by 30-60 per cent, while increasing eligible patients by 10-40 per cent, enabling drug development that is twice as fast as the industry average.
Recursion is focused on a promising pipeline of oncology, neurology and immunology therapies geared to fulfilling areas of significant unmet need, with numerous inflection points expected over the next 12-18 months. Here’s a breakdown:
- REC-4881, the company’s flagship candidate to treat familial adenomatous polyposis (FAP), is in phase 1/2 trials, having demonstrated rapid, durable and safe polyp reduction capabilities.
- REC-617, to improve the therapeutic window for advanced solid tumors, REC-1245 targeting DNA repair vulnerabilities in resistant tumors, REC-3565 to treat B cell malignancies and REC-4539 to better address central nervous system tumor metastases have also reached the clinical trial process.
- REC-7735 to treat solid tumors and REC-102, vying to be the first oral therapy to restore bone mineralization, are in the pre-clinical stage.
- These drug candidates, addressing a patient population of about 500,000, are complemented by partnerships with heavy-hitter pharma companies, including Sanofi (NASDAQ:SNY) and Roche (USOTC:RHHBF), to develop treatments in high-demand areas, with the potential for new molecules to be synthesized over the next 12 months.
From a financial perspective, Recursion has been successful at translating its drug discovery potential onto its income statements, reducing cash operating expenses by 30 per cent YoY as of Q1 2026, while amassing US$665 million in cash and cash equivalents, granting it a growth runway until 2028 to continue demonstrating its AI platform’s skill at transforming biological and chemical data into promising clinical programs.
Recursion Pharmaceuticals stock (NASDAQ:RXRX) last traded at US$3.43, giving back 26.08 per cent year-over-year and 83.81 per cent since 2021, heavily discounting a company with a proven ability to harness AI in multiple potentially life-saving directions.
Why is Cellebrite Digital Intelligence a model for the future of AI data analysis?
When it comes to digesting mammoth amounts of data to spot patterns elusive to the naked eye, Cellebrite Digital Intelligence, market cap US$3.40 billion, is a well-established name worth studying.
Cellebrite specializes in digital investigations and intelligence, having partnered with more than 7,000 businesses, defense organizations and law enforcement agencies to marry AI with their forensic initiatives. These include police departments in the 20 largest US cities, 72 companies in the Fortune 100 and police departments in all EU member states, combining into a strong foundation for further global expansion.
Facilitating nearly 3 million legally sanctioned investigations per year, Cellebrite differentiates itself from competitors with an AI technology suite capable of accessing more devices, extracting more data, deriving faster insights and closing more cases than legacy solutions, reducing the manual review of digital evidence by up to 85 per cent.
The company’s broad entrenchment across its target market has allowed it to grow annual free cash flow from US$13.7 million at a 5.1 per cent margin in fiscal 2022 to US$160.3 million at a 33.7 per cent margin in fiscal 2025, reflecting steadily growing annual recurring revenue at a more than 85 per cent average gross margin.
Leadership expects operational efficiency to continue into 2026, marked by 18-19 per cent recurring revenue growth, 19-20 per cent overall revenue growth and a 16-17 per cent bump in adjusted EBITDA, as the company rolls out a recently established AI Innovation Center to advance its predictive capabilities and accelerate the ongoing expansion of its portfolio.
Cellebrite stock (NASDAQ:CLBT) last traded at US$13.15, has given back 33.75 per cent year-over-year, and is up only marginally since listing in August 2021.
Why is Seagate Technology a pillar of the AI infrastructure buildout?
Our fourth and final AI stock to take you into the 2030s and beyond is Seagate Technology, market cap US$175.33 billion, a go-to name in digital storage with a more than 45-year track record helping businesses and consumers protect and manage their data.
Seagate is the world’s top supplier of bytes, having shipped over 4 billion terabytes of capacity since inception. According to the company’s 2025 Analyst Day presentation, this currently works out to production of 550 exabytes or 550 billion gigabytes per year, spanning seven manufacturing sites and 4 R&D facilities, leveraging the coordinated efforts of more than 30,000 employees across the world.
Growth is spearheaded by Seagate’s Mozaic hard drive platform, based on its heat-assisted magnetic recording (HAMR) technology, which achieves exponentially greater memory capacity at a fraction of the cost compared to legacy storage drives. Mozaic 4 is expected to offer up to 44 TB and is on pace to surpass 100 TB in future generations sometime in the 2030s.
The technology puts the company in a position of strength when it comes to satiating expected global data demand, with the figure expected to grow from 72 zettabytes in 2020 to 394 by 2028, according to IDC Worldwide, as the AI era gets into full swing.
Seagate’s competitive mote, built out of an industry leadership position and differentiated technology, led to a financially flourishing Q1 fiscal 2021 to Q3 fiscal 2025, ending March 28, yielding more than US$4 billion in free cash flow, an 18 per cent reduction in outstanding shares at an average price of US$72 – a steal based on the stock price listed below – all while reducing gross debt by 15 per cent over the past 2 years to US$5.1 billion. This is in addition to:
- Keeping operating expenses on a clear downward trend.
- Almost doubling non-GAAP gross margins from 19 per cent in Q3 fiscal 2023 to 36 per cent in Q3 fiscal 2025, with a path in place to 50 per cent.
- Raising its quarterly dividend by 11 per cent to a respectable 3.7 per cent yield.
Value creation has carried on into the recently completed Q3 fiscal 2026, highlighted by revenue of US$3.1 billion, up by 44 per cent YoY, driven by accelerating Mozaic demand, supported by record operating margins of 37.5 per cent, up by ~1,400 basis points YoY, driven by pricing power and a more favorable product mix, resulting in a robust foundation for future profitability, including:
- US$4.10 in earnings per share (EPS), up from US$1.90 YoY, exceeding Seagate’s high-end guidance.
- Free cash flow of US$953 million, up by 57 per cent quarter-over-quarter, the highest in more than a decade
- The retiring of ~US$640 million in debt, cutting the company’s net leverage ratio from 2.1x to 0.7x at a conservative 12.6x interest coverage ratio.
With revenue, operating margins and EPS all expected to come in higher in Q4 fiscal 2026, Mosaic 5 on track for qualification shipments in 2027, and the company aiming for long-term annual revenue growth in the low-to-mid teens, coupled with an unwavering focus on expanding margins, investors looking for a picks-and-shovels play to grow into AI’s global proliferation have arrive at the right place.
Seagate Technology stock (NASDAQ:STX) last traded at US$836.02 and has added 720.03 per cent YoY.
Takeaway
Successful stock selection is a matter of probability, which you can tilt in your favour by limiting your focus to companies on improving paths to profitability, whose products and services are adding clear value to their target markets, which, in turn, are ideally in the midst of a long-term tailwind.
While this recipe, deployed across a diversified portfolio, is no guarantee of satisfactory returns, it’s as close as you can get to one as a retail investor, whether your focus in on an industry, a sector, or the public markets at large.
Join the discussion: Find out what investors are saying about these top AI stocks on the Capstone Green Energy Holdings Inc., Recursion Pharmaceuticals Inc., Cellebrite Digital Intelligence Ltd. and Seagate Technology Holdings PLC Bullboards and make sure to explore the rest of Stockhouse’s stock forums and message boards.
