Artificial intelligence is currently dependent on existing hardware and software, with the “Magnificent Seven” companies dominating the AI industry. Investors can ride the AI wave by sticking to these multitrillion-dollar juggernauts, which include Apple, Alphabet, Amazon, Meta Platforms, Nvidia, Microsoft, and Tesla. These companies have built empires with competitive moats and are leveraging them in AI development, making them the top stocks to own in the AI era.

Competitive moats in AI are forming, with most AI applications falling into infrastructure and consumer-facing products categories. The Magnificent Seven companies already dominate these areas, with a combined market cap of over $22 trillion and revenue exceeding $2.1 trillion in the past 12 months. Their overwhelming financial resources and competitive advantages make them the best stocks to own in the early years of the AI era.

While there may be exceptions of innovative companies disrupting the status quo, most investors are best served by investing in the established leaders in AI. The Magnificent Seven companies have an unparalleled long-term advantage in AI, with fortress-like balance sheets and enormous revenue streams. Investing in these companies simplifies the AI landscape and offers stability in a speculative market.

Read more at Nasdaq: Why AI Won’t Create a New Batch of Tech Giants — It Will Cement the Old Ones