Alphabet is developing and improving its competing AI product, the Tensor Processing Unit (TPU). It launched the sixth-generation TPU, Trillium, earlier this year. With five times more speed and 67% more energy efficiency, sixth-gen Trillium is a considerable leap over version five.

As a result, Broadcom and Nvidia are positioned to benefit for years as the AI industry expands from 2023's global market size of $136 billion to an estimated $827 billion by 2030. This is one reason owning shares in both is a great way to invest in the secular trend of AI.

Next-generation cybersecurity specialist CrowdStrike's (NASDAQ: CRWD) stock infamously plunged from its highs earlier this summer after a software update snafu crashed millions of Microsoft-linked computer systems worldwide.

As more of its clients seek to leverage AI, Microsoft stock should find itself in a virtuous cycle. Not only will its free cash flow probably rise, but it will also help fund the share buybacks and, by extension, the price growth that will continue to draw more investors to Microsoft stock.