Riding the AI Wave: Which Tech Giants Are Positioned to Win by 2035?

The AI Investment Thesis: A Multi-Trillion Dollar Opportunity

The artificial intelligence sector is reshaping the investment landscape. Research from Roots Analysis projects the AI market could explode from approximately $270 billion today to over $5.2 trillion within the next decade. This isn’t merely hype—it reflects genuine infrastructure buildouts and strategic positioning by the world’s largest technology companies.

The challenge for investors? Some of tomorrow’s biggest AI winners haven’t even gone public yet. However, several established tech leaders have already secured dominant positions in critical AI niches while maintaining stakes in promising private ventures. These companies offer both direct exposure to AI’s hardware revolution and indirect access to emerging software opportunities.

The Compute Power Gatekeepers

Nvidia remains the central nervous system of the AI arms race. The company controls an estimated 92% of the GPU market for data centers, acting as the primary supplier of computational horsepower that powers AI model training across the industry.

This dominance didn’t happen by accident. Nvidia’s CUDA programming language has created substantial switching costs—hyperscalers have already invested billions integrating Nvidia’s infrastructure. The friction involved in migrating to alternative solutions has, so far, kept competitors at bay. With a $500 billion order backlog, Nvidia’s momentum shows no signs of slowing.

The company also faces emerging competition in chip design. Notably, Alphabet has developed custom Tensor Processing Units (TPUs) to reduce reliance on external suppliers, signaling the competitive pressures shaping the industry.

Cloud Infrastructure: The New Data Center Battleground

Three tech giants dominate cloud infrastructure, each leveraging their position to capture AI-related revenue streams:

Microsoft operates Azure, the world’s second-largest cloud platform, and maintains approximately 27% ownership in OpenAI—creator of ChatGPT, the leading consumer AI application. This combination positions Microsoft to benefit as enterprises funnel AI workloads through cloud infrastructure. Beyond AI speculation, Microsoft offers stability through mature software franchises (Windows, Microsoft 365) and 23 consecutive years of dividend increases.

Amazon controls AWS, the leading cloud services platform globally, and has invested $8 billion directly into Anthropic, an OpenAI competitor. This dual positioning—leading infrastructure provider plus venture capital stake in an AI software heavyweight—gives Amazon exposure across the stack while maintaining its core e-commerce and advertising momentum.

Alphabet presents perhaps the most comprehensive AI thesis. The company’s billion-user ecosystem (Google Search, YouTube, Android) provides natural AI integration opportunities. Its custom TPU chips represent vertical integration efforts, while its Gemini AI model deployment demonstrates end-to-end capabilities. As a bonus, Alphabet’s approximately 7% stake in SpaceX offers satellite internet exposure through Starlink.

Emerging Software Plays

Palantir Technologies occupies a unique position in the still-developing AI software landscape. Since launching its AIP (artificial intelligence platform) in mid-2023, Palantir has accelerated revenue growth while winning significant government and enterprise contracts.

The company’s challenge is valuation—investor enthusiasm has driven share prices up substantially, which could constrain future returns. However, with fewer than 1,000 customers currently, Palantir has a massive runway for expansion. This early-stage customer acquisition phase could fuel growth throughout the 2030s.

The Long-Term Investment Case

For investors looking beyond individual stock picks, the overarching theme remains compelling: the infrastructure buildout for AI is just beginning. Whether through chip manufacturers, cloud providers, or software platforms, these established technology leaders offer proven business models alongside meaningful AI exposure. For those with a 10+ year horizon, the combination of structural growth tailwinds and competitive moats makes big AI stocks worth holding through 2035 and beyond.