5 Tech Stocks You Can Buy and Hold for the Next Decade

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By Ronald Tech

Thinking about stocks in terms of decades instead of months or years is an investing superpower. It allows you to zoom out on the world and gives you perspective on the big things happening. Buying and holding the top companies behind the world’s growth trends can be a reliable path to building wealth, perhaps even beating the broader stock market.

Technology is central to today’s world, as innovation drives progress in fast-growing fields such as artificial intelligence, cloud computing, robotics, software, and more.

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If you want a portfolio that will stand the test of time and grow at the pace of innovation, consider buying and holding these top five technology stocks for the next decade. This isn’t about specifics; think about what each company already does and, more importantly, where it’s heading.

In other words, the big picture.

1. Nvidia

AI chip leader Nvidia (NASDAQ: NVDA) is a no-brainer for any long-term tech investor. The company should enjoy years of continued growth, with the AI chip market projected to grow 20% annually to over $300 billion by 2029. However, emerging opportunities to expand into new AI applications should excite investors the most.

NVDA Revenue (TTM) Chart

NVDA Revenue (TTM) data by YCharts

Nvidia recently announced a new AI supercomputer that is small enough for individual developers. The company’s focus on expanding beyond data center products could make it a player in additional end markets, such as robotics, over the coming decade.

2. Alphabet

Google’s parent company, Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG), is a one-stop shop for innovation. The company’s highly profitable Google brand (search engine and software ecosystem) has built one of the world’s finest companies. However, it has several promising irons in the fire, with ongoing developments in nascent technologies, including self-driving vehicles (Waymo) and quantum computing (Google Quantum AI).

GOOGL Revenue (TTM) Chart

GOOGL Revenue (TTM) data by YCharts

In addition, Alphabet operates the third-largest cloud platform (Google Cloud), has in-house AI models (Gemini), and accesses a mountain of first-party data from Google users to train its AI with. Thus, Alphabet might be better suited for the next decade of growth than any other “Magnificent Seven” stock.

3. Netflix

Streaming pioneer Netflix (NASDAQ: NFLX) continues to lead a streaming field that has become increasingly crowded with competition over the past five years. Netflix has become a global juggernaut with approximately 283 million paid memberships. Highly popular content, such as Squid Game, underlines its ability to appeal across cultures and geographic markets.

NFLX Revenue (TTM) Chart

NFLX Revenue (TTM) data by YCharts

Investing in Netflix for the next decade involves multiple growth levers that the company is only beginning to pull. After operating solely on a subscription model for years, Netflix has started integrating advertising into its business. In recent years, Netflix has expanded its content universe, branching into mobile gaming and live sports. Look for Netflix to lean further into these new categories (and monetize them) over the next decade.

4. Amazon

E-commerce giant Amazon (NASDAQ: AMZN) is known primarily as the online retail leader in America. It’s true that Amazon accounts for approximately 40% of U.S. e-commerce sales. However, e-commerce accounts for only about 16% of retail spending, meaning Amazon’s legacy business can still drive future growth. Yet Amazon goes far beyond e-commerce. The company operates the world’s largest cloud computing platform (AWS), which accounts for over 30% of theglobal market

See also  The Magnificent 7 Stocks: A Deeper Look at Earnings PerformanceChallenging June-Quarter Results

Disappointing market reactions followed the June-quarter earnings reports of Tesla TSLA, Alphabet GOOGL, Microsoft MSFT, and Amazon AMZN from 'The Magnificent 7' group, while Apple AAPL and Meta META received more positive feedback. The interpreted downturn may signal tougher times ahead for this elite group, possibly marking the end of their market reign.

Growth Potential Amidst Turbulent Market Sentiments

Despite this, the majority of the 'Mag 7' stocks exhibit robust growth in both revenues and earnings, positioning them as sustainable growth performers in the current market landscape. With most companies showing impressive financial numbers and a positive growth trajectory stretching into the foreseeable future, Amazon's remarkable earnings surge of almost 100% and Alphabet and Microsoft's solid performances reflect the overall positive outlook for these market giants.

Strategic AI Investments and Market Discontent

While the lack of clarity on monetizing significant AI investments has left investors skeptical, the commitment of these companies to enhance AI infrastructure ensures their relevance and leadership in an AI-centric future. Market concerns are primarily due to the perceived ambiguity around the returns on these substantial investments. However, Alphabet's CEO warning about the risks of underinvestment in AI underscores the critical nature of these strategic moves.

Current and Future Growth Expectations

Charts highlighting consensus expectations for the 'Mag 7' stocks portray a promising growth trajectory, with anticipated earnings growth of 33.5%. These projections, combined with a favorable revisions trend in the Technology sector, suggest continued prosperity for key players in the industry.

Insights from Earnings Season and Future Expectations

Recent Q2 earnings reports indicate a positive trend, with S&P 500 members showcasing a notable 11.2% increase in earnings and a resilient 5.5% rise in revenues. As more companies prepare to reveal their financial results, the upcoming reports from industry titans like Disney, Uber, and Shopify will provide further insight into the market's direction.

Historical Context and Future Projections

Examining the historical context of revenue and earnings beats percentages reveals a new low for Q2 revenue beats at 59.2%, emphasizing the unique challenges faced in the current economic landscape. Despite this, the overall outlook remains optimistic, with total S&P 500 earnings expected to climb by 10.5% and revenues by 5.3% from the previous year.

Paving the Way for Future Growth

As the market navigates through uncertain terrains, the strategic investments and growth initiatives undertaken by the 'Magnificent 7' stocks position them favorably for future success. By staying ahead of emerging trends like AI and fostering sustainable growth, these companies are set to maintain their leadership positions in the ever-evolving market landscape.

Insightful Analysis on Revenue Growth Trends Insightful Analysis on Revenue Growth Trends

AMZN Revenue (TTM) Chart

AMZN Revenue (TTM) data by YCharts

Amazon built a consumer-facing ecosystem on Prime memberships, which total over 200 million today. It has launched new businesses within that ecosystem, including a telehealth platform, video streaming service, and smart home devices (Alexa). The company’s digital advertising unit is blossoming into a key contributor. Amazon’s ability to enter new industries makes it an obvious investment for the next decade and probably beyond.

5. Microsoft

Technology behemoth Microsoft (NASDAQ: MSFT) has also shown it can continually launch and nurture new businesses. It rose to prominence over 30 years ago with Windows personal computer software. Today, Windows remains relevant, but the company boasts a sprawling software empire that includes Windows, Microsoft 365 (Outlook, Excel, PowerPoint, etc.), Microsoft Dynamics 365, Xbox (which owns three major game publishers), GitHub (developer platform), and more.

MSFT Revenue (TTM) Chart

MSFT Revenue (TTM) data by YCharts

Microsoft’s software is ingrained in millions of business and consumer devices worldwide. It’s a wide moat and distribution network for new products. Additionally, Microsoft operates Azure, the world’s second-largest cloud platform. The company is among the most aggressive AI hyperscalers investing in AI capabilities, tying Azure to a cloud services industry that could grow by 16% annually to over $2.7 trillion by 2034 on AI tailwinds.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

  • Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $381,355!*
  • Apple: if you invested $1,000 when we doubled down in 2008, you’d have $42,390!*
  • Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $514,479!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

Learn more »

*Stock Advisor returns as of January 21, 2025

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, Netflix, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.