Top Tech Stocks to Consider for Long-Term Growth

Investing in established companies with strong growth potential is often wise. Here, we explore several key players in the technology sector that offer reasonable valuations and promising futures, thanks to their competitive advantages and history of innovation.

Nvidia: The AI Powerhouse

Nvidia (NASDAQ: NVDA) leads the market in graphic processing units (GPUs) essential for building artificial intelligence (AI) infrastructure. Originally designed to enhance graphics for video games, Nvidia later introduced its CUDA software platform, enabling diverse programming of its chips. The company also developed various tools for AI and high-performance computing, solidifying its competitive edge.

GPUs excel in parallel processing, making them ideal for AI workloads, which demand extensive calculations. This unique capability puts Nvidia’s products ahead of central processing units (CPUs), particularly as AI models grow more complex. Continued expansion in AI-related capital expenditures from major clients is expected in 2025, positioning Nvidia for sustained revenue growth.

Microsoft: A Software and Cloud Leader

Microsoft (NASDAQ: MSFT) has distinguished itself in software productivity with applications like Word, Excel, and PowerPoint. The tech giant adapted by transitioning to a software-as-a-service (SaaS) model and investing significantly in AI, notably through its partnership with OpenAI. Microsoft’s Azure platform stands as the second-largest player in cloud computing.

Microsoft reaps rewards from its early AI investments; Azure saw a 33% revenue increase year over year last quarter. AI also bolstered growth in GitHub, aiding developers in code efficiency. A significant opportunity lies in Microsoft 365 AI Copilots, which allow users to leverage Python commands through natural language in Excel. This subscription model opens up new revenue streams, considering the vast user base of Microsoft 365.

Amazon: Dominating E-Commerce and Cloud Services

Amazon (NASDAQ: AMZN) stands as both the largest e-commerce and cloud infrastructure provider globally. By revolutionizing logistics and creating a robust marketplace, Amazon transformed retail. Its Amazon Web Services (AWS) unit began to meet its internal IT requirements but has since become the company’s most lucrative and rapidly expanding division.

With services like Bedrock and SageMaker, AWS facilitates AI application development. Amazon’s willingness to invest heavily for future growth continues to enable its success, making it a reliable long-term investment choice.

Image source: Getty Images.

Alphabet: Innovating Across Multiple Sectors

Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) is the premier search engine provider with Google, also owning YouTube and a leading digital advertising network. Its Google Cloud unit ranks third among cloud providers, and the company has made strides in innovative fields, including quantum computing and self-driving technology.

Alphabet’s blend of established and emerging segments presents substantial growth potential. Recent advancements in quantum computing and AI tools like Veo 2 showcase its commitment to innovation. The Google Cloud unit is experiencing rapid growth, recently hitting an inflection point where profits are outpacing revenue increases. Additionally, there’s opportunity to monetize AI search results further, despite potential future antitrust scrutiny.

Should You Invest $1,000 in Nvidia?

Before considering an investment in Nvidia, reflect on this:

The Motley Fool Stock Advisor team has highlighted the 10 best stocks for investors today, and Nvidia is not one of them. Historically, had you invested $1,000 in Nvidia on April 15, 2005, it would be worth $857,565 today!*

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John Mackey, former CEO of Whole Foods Market, is on The Motley Fool’s board. Suzanne Frey from Alphabet also serves on the board. The Motley Fool holds positions in and endorses Alphabet, Amazon, Microsoft, and Nvidia, as well as specific investment options. They maintain a disclosure policy.

The views expressed here are the author’s own and may not reflect those of Nasdaq, Inc.