The past decade has seen some breakout stocks, especially in the tech industry. The smartphone era kicked off earlier, but it was over the past 10 years that many tech stocks became the ticket to growth that resulted in several consumer electronics behemoths.
The plateauing of smartphone growth has helped kick off the search for new must-have devices. Smart speakers, smart watches and wireless earbuds are all hot. Futuristic technologies like artificial intelligence (AI), virtual reality (VR), augmented reality (AR) and autonomous vehicle control are developing rapidly. Any one of these could become the driver of tech stock growth over the next 10 years, the way smartphones dominated the past decade.
This list of tech stocks to buy for the next 10 years includes many familiar names:
- Apple (NASDAQ:AAPL)
- Amazon (NASDAQ:AMZN)
- Shopify (NYSE:SHOP)
- Nvidia (NASDAQ:NVDA)
- Advanced Micro Devices (NASDAQ:AMD)
- Microsoft (NASDAQ:MSFT)
- Adobe (NASDAQ:ADBE)
- Activision Blizzard (NASDAQ:ATVI)
- Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL)
- Micron Technology (NASDAQ:MU)
While many companies have been a big part of the past decade in tech, these are giants that are certainly not going to fade away. Most of these companies are actively working on the next big thing in tech. Even if a smaller startup beats them to it, many have the cash to simply acquire it. These tech stocks may not duplicate the spectacular growth they have posted during the past decade, but odds are they still have significant long-term upside. And some may just be getting started.
Tech Stocks to Buy for the Next Decade: Apple (AAPL)
Apple released the first iPhone in 2007, but it was in 2010 with the iPhone 4 that AAPL stock started to really take off. The iPhone 4 marked the start of a period where people would camp outside Apple Stores for a new iPhone release. Each new launch would shatter previous records.
But the end of that era came in November 2018. That’s when Apple announced it would no longer report iPhone unit sales. Global smartphone sales were stalling and there were fears investors would panic at the prospect of the iPhone cash cow running dry.
However, AAPL has done quite well since then. The company is far from sitting still. Newer devices, including the Apple Watch and AirPods, are category leaders. Subscriptions for Apple Music, Apple TV+ and other endeavors make the Services division the company’s second-largest revenue generator. Apple Pay adoption is growing. The company continues to sell a wide range of consumer electronics, including Mac computers and the iPad series — businesses that may not be setting records, but are in no danger of disappearing any time soon.
Apple is sitting on a pile of cash (over $200 billion) and is known to be actively working on new products and services ranging from augmented reality glasses, to self-driving or electric car technology and healthcare.
If you’re looking for a tech stock that’s likely to have big upside for the next decade, AAPL stock is a safe pick.
Amazon has had a spectacular decade, and AMZN stock’s growth has been phenomenal.
The novel coronavirus pandemic has shown just how important the company’s online shopping service has become. There are many predictions that the pandemic is only going to accelerate that move from physical stores to buying online.
But amazon.com is just one part of Amazon’s expanding empire. The bet on Amazon Web Services (AWS) has paid off in a huge way. AWS dominates the global market for cloud computing — a market that’s projected to see continued growth. Cloud services like AWS are critical to our digital life. They host streaming video services, allow countless cloud services and apps to function, and are critical to the growth of AI. With AWS accounting for over three-quarters of the the company’s profits, the service’s growth trajectory is good news for AMZN stock.
Shares in Amazon may not repeat their growth rate of over 1,000% for the past decade, but expect AMZN to still have significant upside over the next 10 years.
Shopify is this list’s new kid on the block. The Canadian e-commerce company went public in 2015. Since that time, SHOP stock has seen nearly 2,300% growth. It has even defied the coronavirus pandemic and posted 66% growth so far in 2020 — no small feat.
Shopify provides the turnkey tools needed for small businesses and vendors to set up shop online. This includes providing the digital storefront and payment processing, all in an easy-to-use suite. The company has expanded into small business loans, a growing network of fulfillment and shipping centers, physical payment processing hardware for brick-and-mortar shops and just a few weeks ago, Shop — its first mobile shopping app for consumers.
Shopify is something like Amazon Marketplace, but it offers vendors more control and the ability to stand out as a unique website instead of being lumped in as part of Amazon.
SHOP stock’s trajectory shows plenty of potential for continued growth over the next decade, especially with online shopping getting a big boost during the coronavirus lockdown.
Nvidia is primarily known for its computer graphics cards. That may not sound exciting, but NVDA stock has posted big growth numbers over the past five years. Since May 2016, it’s up nearly 1,290%. That’s despite the crash of the cryptocurrency market, which resulted in a glut of graphic cards in 2018, and the recent market selloff.
Nvidia makes most of its money on the plug-in graphic cards used for gaming PCs. That market is unlikely to see major growth in the next decade, with PC sales continuing to soften.
However, Nvidia’s GPUs are ideal for parallel processing. And that has put them in high demand in high-growth markets, including data center servers, research computers and even self-driving car technology. In 2018, Nvidia outlined its plan for the next decade. The company sees its future in AI, autonomous vehicles and medical instruments (in partnership with AI).
NVDA stock is one of those tech stocks that is seeing its growth prospects grow stronger as it shifts focus from its core business to new opportunities.
Advanced Micro Devices (AMD)
Advanced Micro Devices competes against two tech titans, Nvidia and Intel (NASDAQ:INTC). The former with graphic cards and the latter with computer processors.
Once written off as a fading tech dinosaur whose market share was in danger of disappearing, AMD has come roaring back over the past several years. Its aggressive new architecture for graphic cards and CPUs — along with aggressive pricing — has seen the company make gains on both fronts. AMD stock was one of the best performers of 2019, after posting a 190% gain.
AMD has shown every sign of continuing its success in the PC space, on both the graphics card and processor fronts. In addition, its EPYC processors are beginning to take marketshare from Intel in the lucrative (and growing) data center market. Custom AMD processors are in the new Xbox Series X and PlayStation 5 game consoles, which are expected to launch this fall.
In other words, AMD is on a path to continued growth with legs to keep going.
Microsoft is another of those tech stocks that looked to have seen its best-before date a decade ago. Attempts to modernize with the Surface RT tablet, Windows 8 and the purchase of Nokia’s (NYSE:NOK) smartphone business all ended in disaster.
The turning point was the 2014 hire of Satya Nadella as CEO. Nadella has transformed Microsoft’s business. Cash cow Microsoft Office has morphed into a subscription business that will run on practically any device. Microsoft’s Azure has been built into the world’s second largest cloud computing service — and last year, it beat AWS for a high profile, $10 billion Defense Department contract.
Microsoft’s Surface devices now set the standard for PC manufacturers, and the Surface Pro was successful enough that Apple pivoted to compete with its iPad Pro line. The Xbox One may have been outsold by the PlayStation 4 this generation, but the X Box Series X launch in the fall will start the battle all over. Microsoft has led the way in subscription gaming with Xbox Live, Xbox Game Pass and All Access. Next up will be Project xCloud, the company’s forthcoming game streaming service.
MSFT stock has ridden the cloud to near 600% growth over the past decade, and a $1.38 trillion market capitalization. Look for it to be one of the high-flying tech stocks of the next decade as well.
Adobe is another company that has turned to the cloud and subscriptions to radically transform its business. ADBE stock has posted impressive growth as a result. Over the past five years, the payoff in that cloud-based strategy has been 353% growth for ADBE.
The company’s market-leading software tools like Photoshop used to be sold as one-time purchases, with the hope that buyers would continue to pay for upgrades every few years. The company transitioned that to subscription suites, and developed versions that could be used on mobile devices. Adobe has continued to stay ahead of the competition, including incorporating advanced AI-powered features into its editing suite.
The move has boosted revenue and made it much less cyclical.
Supplementing the company’s traditional media editing tools has been a push into digital marketing tools, including Adobe Experience Cloud and Adobe Analytics.
Activision Blizzard (ATVI)
Video games may sound unimportant in the grand scheme of things, but they are big business. They have successfully made the transition from PCs to consoles and mobile devices. While other businesses have been hammered by the coronavirus lockdown, video games have surged in popularity. Games are the new “blockbuster” entertainment, and esports are becoming must-watch entertainment with big growth potential.
Activision Blizzard is well-placed for continued long-term growth. The company owns some of the best-selling video game franchises of all time, including Call of Duty, Starcraft, Warcraft and Candy Crush. The Call of Duty franchise alone has sold over 300 million units in its lifetime.
As InvestorPlace advisor Matt McCall writes, ATVI stock is “a great long-term play on the future of gaming.”
Google parent company Alphabet has had its challenges lately, including government scrutiny and record fines.
However, none of that is expected to derail the growth of this giant among tech stocks. Google is on the leading edge of technology including AI, AR, media streaming (including its Stadia video streaming service), the smart home and it made a recent bet on health tracking with the acquisition of Fitbit (NYSE:FIT). Waymo is a leader in the race for self-driving cars.
Add in the possibility that one of Alphabet’s “moon shots” like Sidewalk Labs (smart cities) or Calico (AI-aided drug development) will pay off, and the next decade definitely continues to hold big upside for GOOG stock.
Micron Technology (MU)
Finally, Mircon is one of those tech stocks that has been around forever, but never really in the spotlight. The company was founded in 1978, and it produces chips, including the DRAM and NAND flash memory used in computers and mobile devices.
MU stock has been subject to the supply and demand fluctuations that affect the semiconductor industry. However, after every dip, MU stock comes back stronger than ever — and its last dip was in 2019.
Micron should be entering a period of growth as companies once again invest in cloud computing centers (those servers need RAM). Consumer goods, including new game consoles, smartwatches, smart speakers and other smart home devices, video streamers, VR headsets and even many smart earbuds contain RAM and/or NAND flash memory.
Smartphone, tablet and PC sales may have peaked, but they are also going to continue to be big consumers of DRAM and NAND for the next decade. There may be more fluctuations in store over the next 10 years, but it’s safe to say MU stock still has plenty of gas in the tank.
Brad Moon has been writing for InvestorPlace.com since 2012. He also writes about stocks for Kiplinger and has been a senior contributor focusing on consumer technology for Forbes since 2015. As of this writing, Brad Moon did not hold a position in any of the aforementioned securities.