Top Long-Term Tech Stock Investments for Your $1,000

Even in a challenging start to the year, the technology sector remains a prime choice for long-term investments. Over recent years, this sector has fueled market growth, leading to tech companies dominating the upper tiers of the S&P 500.

With that context, let’s explore three strong stocks to consider for a $1,000 investment today.

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1. Meta Platforms

Meta Platforms (NASDAQ: META) stands out as a leading name in digital advertising, thanks to its array of popular social media and messaging apps like Facebook, Instagram, WhatsApp, Messenger, and Threads. The company draws in nearly 3.3 billion daily users across its platforms.

Meta excels at generating revenue from its extensive user base. In its most recent quarter, the company reported that its average revenue per person (ARPPU) increased by 12% to $12.29, greatly outperforming other social networks. For instance, Snap‘s average revenue per user was just $3.10, while Pinterest achieved $1.70 among its users. Notably, Meta performs particularly well outside the U.S., where competitors struggle to monetize effectively.

Currently, Meta is investing significantly in artificial intelligence (AI), having developed its own large language model (LLM) named Llama. This technology enhances user engagement, encouraging longer visits on its platforms, which in turn boosts advertising revenue. Last quarter, ad impressions and prices increased by 7% and 11%, respectively.

Meta is also focusing on Threads as a potential major platform. Recently, the platform reached 275 million users, with an addition of nearly 1 million new users daily. Furthermore, the company sees substantial potential in the metaverse, continuing its investments there.

2. Alphabet

Similar to Meta, Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) is a global leader in digital advertising, utilizing its Google search engine, YouTube, and various owned and third-party platforms to serve ads. Google maintains a commanding 90% market share in search, while YouTube leads as the top video site worldwide.

Moreover, Alphabet owns Google Cloud, which is now the third-largest cloud service and expanding rapidly. Its revenue shot up by 35% last quarter, with operating profits climbing from $266 million last year to $1.95 billion. This growth is fueled by increased customer interest in developing AI models and applications using its services. The company’s custom tensor processing unit (TPU) chips enhance efficiency for AI tasks, leading to cost reductions and quicker processing times.

Alphabet is also making substantial investments in AI, boosting its cloud offerings and creating its own AI model, Gemini, alongside AI applications like its text-to-video tool, Veo 2. This investment aims to improve search results and develop new ad formats using AI technology.

The company is pioneering advancements in autonomous driving as well. Its Waymo unit is uniquely positioned as the only robotaxi service offering paid rides in the U.S., while its recent developments in quantum computing with the Willow chip hold exciting potential.

Image source: Getty Images.

3. Microsoft

Microsoft (NASDAQ: MSFT) was among the first tech giants to fully embrace AI by partnering with OpenAI, the creator of ChatGPT, and making substantial investments in the AI sector. Today, AI is integrated throughout much of its operations.

The cloud computing division, Azure, has seen the most significant benefits, with revenue jumping 33% last quarter. Azure ranks as the second-largest cloud provider, trailing only Amazon‘s Amazon Web Services, and is rapidly gaining market share. Similar to Alphabet, Microsoft is seeing continued growth driven by customers crafting their own AI tools and applications.

Demand for its AI cloud services currently exceeds capacity, limiting growth, but Microsoft anticipates faster expansion as it rolls out new capacity later this year. Additionally, it plans to invest $80 billion this year in AI data centers.

Microsoft also maintains leadership in productivity software through its Microsoft 365 suite, which includes popular applications like Word and Excel, and dominates the PC operating system market with Windows. There is significant potential ahead for Microsoft with its AI Copilot tools, designed to boost workplace efficiency.

All three companies have consistently demonstrated their status as market leaders and innovators, particularly in the realm of AI, making them promising long-term investments.

Explore This Second Chance for Lucrative Opportunities

Have you ever felt like you missed the opportunity to invest in top-performing stocks? If so, this might be your chance.

Our team of analysts sometimes issues a “Double Down” stock recommendation when they believe a company’s stock is poised to rise. If you thought you had missed your opportunity, now is a smart time to consider buying before prices escalate. The numbers from previous recommendations are compelling:

• Nvidia: Investing $1,000 when we doubled down in 2009 would have netted you $357,084!*
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We are currently issuing “Double Down” alerts for three top-tier companies, offering another golden opportunity that may not come again soon.

See 3 “Double Down” stocks »

*Stock Advisor returns as of January 13, 2025

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, 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. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Geoffrey Seiler has positions in Alphabet and Pinterest. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Microsoft, and Pinterest. 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.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.