Got $5,000? 5 Tech Stocks to Buy and Hold for the Long Term
Demand for artificial intelligence hardware and services isn’t slowing down. These companies are already tapping into it.
Technology stocks have been on a tear lately, mostly due to the industry’s embrace of artificial intelligence. AI could add an estimated $15.7 trillion to global GDP by 2030, according to PwC, as companies integrate AI into everything from cloud computing to virtual assistants and e-commerce.
With nearly every tech company attempting to ride the AI wave right now, it can be difficult to parse out which will truly benefit and which are just following the pack. Here are five that are leading the way and will likely be good investments for years to come.
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1. Nvidia
There’s one big reason why Nvidia (NVDA 0.27%) is on every AI stock list: The company’s semiconductors are in an estimated 70% to 95% of artificial intelligence data centers. That gives Nvidia a massive advantage over other chip designers and ensures that as companies invest in AI, Nvidia will likely be one of the biggest winners.
AI data centers are Nvidia’s bread and butter, and in the most recent quarter, sales from the segment jumped 56% to $41.1 billion. More growth could be on the way as companies continue to upgrade and expand their AI footprint, which is why Nvidia CFO Colette Kress estimates global data center spending could reach up to $4 trillion by 2030. With Nvidia’s leading position in AI chips, the company’s future continues to look bright.
2. Microsoft
Microsoft (MSFT 0.88%) has a multi-pronged approach to benefiting from AI. Its early moves to integrate ChatGPT’s platform into its suite of services have already paid off, with millions of users now using the company’s Copilot AI services. That’s helped increase Microsoft’s total sales, which jumped 18% in Q4 to $76 billion and helped non-GAAP earnings rise 24% to $3.65 per share.
But the real long-term opportunity for Microsoft is likely its cloud computing business, Azure, which already has 20% of the public cloud market. As demand for AI services increases, companies need more powerful cloud computing platforms. Azure is already benefiting — generating $75 billion in fiscal 2024, a 34% increase from last year. And with global AI cloud computing revenue estimated to reach $2 trillion by 2030, Microsoft should be able to tap this market for years to come.
3. Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing (TSM -1.17%), also known as TSMC, is a semiconductor manufacturing powerhouse that produces some of the world’s most advanced processors. The company has a near monopoly in the AI processor manufacturing market, with close to 90% of advanced processors made by the company.
That lead has been a boon to TSMC’s bottom line. The company’s earnings popped 67% in Q2 to $2.47 per American depositary receipt (ADR). And in case you’re worried about demand slowing down any time soon, consider that Taiwan Semiconductor’s management said that its artificial intelligence revenue will double this year, compared to 2024.
4. Broadcom
Broadcom (AVGO -0.48%) may be one of the lesser-known names on this list, but it would be a mistake to overlook this AI powerhouse. The company designs application-specific integrated circuits (ASICs) for AI data centers that are used by Alphabet (GOOG 0.21%) (GOOGL 0.28%), Meta Platforms, and others, and management says AI sales will reach $6.2 billion in the current quarter, up 19% sequentially.
The company is benefiting from the AI boom and profits are rising quickly — with non-GAAP earnings jumping 36% to $1.69 in Q3. Broadcom estimates that more growth from AI is on the way too, with AI revenue estimated to reach up to $90 billion annually by 2027 — a 650% increase from last year.
5. Alphabet
Alphabet’s artificial intelligence niche can be found in its increasingly popular Gemini chatbot, which has an estimated 400 million monthly active users. While there have been concerns that AI chatbots will take ad revenue away from the company, that doesn’t appear to be the case yet — Google ad sales were $71.3 billion in Q2, a 10% increase from the year-ago quarter.
Creating an advanced AI chatbot that helps keep Google users wrapped in the company’s ecosystem is smart, but it’s only one of Alphabet’s opportunities. The other comes from its Google Cloud services, which has about 13% of the public cloud market. Like Microsoft, Google is benefiting from the increasing need for AI cloud services, which led to sales from Google Cloud rising 32% in Q2 to $13.6 billion in the most recent quarter.
With all of the tech companies on this list already carving out their niches in artificial intelligence, each one would be worth putting some of your $5,000 toward — and holding for the long term.
Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom and 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.