Technology is a fascinating field to invest in, as you put your money into the companies building the future. But disruption can happen fast, and the investing landscape is constantly changing.
That’s why looking for battle-tested leaders in growing industries can be a great way to find the right stocks for your long-term portfolio. Sometimes, swinging for singles and doubles is better than striking out looking for a grand slam.
Here are five fabulous technology winners you can enjoy buying and holding. Their persistent growth and billions of dollars in cash flow give them the tools to invest, innovate, and reward shareholders for the next decade.
1. A tremendous software company for government applications
Palantir Technologies (PLTR -0.36%) made a splash on Wall Street, weaving its custom software into the inner workings of America’s government and that of its allies. Palantir’s Gotham, Foundry, and AIP platforms can create and deploy software and artificial intelligence (AI) to help organizations analyze data and make better real-time decisions. Overall, Palantir gets about half its revenue from the U.S. government and is steadily building its commercial customer base.
The United Kingdom’s National Healthcare Service recently awarded Palantir a seven-year contract to rework the country’s healthcare system, a deal worth potentially more than $400 million. The company has already done extensive work with the U.S. Department of Defense and military branches, so this shows the continued ability to win over deep-pocketed government clients.
2. The chip company powering the AI revolution
Semiconductor leader Nvidia (NVDA 1.18%) has become the de facto chip company of this year’s AI explosion. Nvidia specializes in computer chips for high-compute applications like gaming and cryptocurrency mining. But that has seamlessly translated to data centers and AI models that require high-powered chips.
Industry experts believe that Nvidia could have as much as 80% of the current market for AI chips. The surge in AI investments accelerated Nvidia’s growth and pushed the stock to all-time highs. This doesn’t seem like a fluke. Artificial intelligence could add trillions of dollars in economic value over the next two decades, making Nvidia an obvious choice to invest in the future.
3. A social media powerhouse
Dominating the world’s social media landscape, Meta Platforms (META -0.84%) is behind several of the world’s most popular apps, including Facebook, Instagram, and WhatsApp. Nearly 4 billion people log on to Meta’s family of apps each month. Meta makes billions of dollars from showing ads to its huge audience.
Meta’s user numbers keep growing, and the company is just beginning to monetize WhatsApp, setting the stage for future growth. It’s also investing heavily in AI and metaverse technology, which could eventually add to the stock’s upside. Founder and CEO Mark Zuckerberg has grown Meta into a technology titan and is still 39 years old.
4. The world’s leading cloud company
Known most for e-commerce, Amazon (AMZN 1.17%) doubles as a global technology giant. Its cloud platform, Amazon Web Services (AWS), is the world’s leading cloud business, with an estimated 32% hold on the world’s cloud service market. Analysts believe the global cloud market could grow to $2.4 trillion by 2030, compounding at 20% annually from now. Amazon would likely grow its cloud business accordingly if it can maintain its leadership position.
Amazon maintained an innovative attitude from its early years with CEO Jeff Bezos. The company is constantly looking at building new revenue streams. It recently launched its latest healthcare offering and has grown an advertising segment that’s cleared $32 billion through nine months of 2023, up 23% year over year. Plus, its e-commerce business probably isn’t going anywhere — it dominates the U.S. with a 37% market share.
5. An EV company building humanoid robots
CEO Elon Musk is a sometimes polarizing figure, but nobody can deny his success in growing Tesla (TSLA 0.46%) into a $700 billion juggernaut. The growth opportunities for electric vehicles (EVs) alone are known (and enticing) for long-term investors, but I’m looking at Optimus, the humanoid robot in development.
Optimus was announced in 2021, and Musk has said it won’t be ready for market until 2027 at the earliest. A fully functioning robot that can replace simple human labor could be a game changer for Tesla. Potential unit sales could be in the millions, given the world’s 8 billion-plus population. Investors can buy Tesla today for its EV opportunities, but humanoid robots could be the story by the decade’s end.
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