Tech stocks to buy and hold are on every investor’s radar.
Technology has been the driving force behind global growth for multiple years, leading the charge in developing solutions that continue moving the needle across many industries.
Fast forward to eight months into 2023, and the technology sector is not just on the rise; it’s exploding.
Having left behind the dreary shadows of 2022, the industry is thriving, with artificial intelligence at the helm of this resurgence OF tech stocks to buy and hold.
The tech-laden NASDAQ skyrocketed 32% in the first half of this year, marking its best performance since its staggering 37% ascent in 1983.
As inflation takes a backseat and the economy pushes forward, it’s clear that tech stocks are not just a passing trend; it’s a foundational investment for the future.
Let’s look at these tech stocks to buy and hold to see which ones best fit your portfolio.
Amazon (AMZN)
Amazon (NASDAQ:AMZN) has transcended its identity as merely an online retail titan, spreading its tentacles in various realms, including cloud computing, ad tech, and other burgeoning sectors.
Amazon’s prowess in leveraging AI is central to this transformation, especially through its powerhouse Amazon Web Services. According to Synergy Research Group, AWS held an impressive 32% market share in global cloud computing at the end of the second quarter.
CEO Andy Jassy reiterated Amazon’s commitment to AI during the second-quarter earnings call, pointing out how the caters to an extensive range of AI services.
Along with AWS, its proprietary AI chips, Trainium and Inferentia, will become game-changers for large-language models.
With the dynamic Bedrock service and inventive tools like Amazon CodeWhisperer, AWS is poised to lead the AI revolution. Riding high on such advancements, AMZN stock has soared by an eye-catching 64% this year, consistently outpacing the S&P 500.
In financials, the numbers speak for themselves. Amazon’s second-quarter results were a knockout, with earnings surpassing expectations and a revenue boost of 10.80% year-over-year to $134.3 billion.
Looking ahead, the tech behemoth projects an optimistic growth trajectory, fortifying its reputation as a market leader and making it one of the top tech stocks to buy and hold.
Salesforce (CRM)
In the ever-evolving tech landscape, Salesforce (NYSE:CRM) stands on the cusp of a monumental shift as it efficiently harnesses the power of AI to cement its position as an undisputed titan further.
With its unparalleled ability to sift through a maze of data points, AI emerges as the definitive tool for sales teams.
It effectively paves the way for organizations to streamline their sales teams, marrying operational efficiency with cost optimization, a boon for Salesforce and its peers.
However, Salesforce’s AI journey doesn’t stop there.
In a strategic alliance, Salesforce has intertwined its path with tech giant IBM, enabling customers to tap into its formidable AI suite.
Revolutionary initiatives such as the Einstein GPT and Slack GPT are rewriting the rules of customer engagement, sales, and marketing. With these generative AI assets infused across its cloud spectrum, businesses can unlock new horizons of customer insights, further solidifying their positioning as one of the best tech stocks to buy and hold.
ServiceNow (NOW)
ServiceNow (NYSE:NOW) is a leading name in the IT services management sphere, effectively catering to a sprawling clientele of over 7,700 global enterprises. The company offers a software-as-a-service solution, promising efficiency while elegantly automating workflows.
Despite any overarching macroeconomic challenges, ServiceNow’s quarterly performances remain laudable. The firm continues to showcase robustness with a 25% year-over-year bump in subscription revenues and a 24% uptick in remaining performance obligations.
Adding to its fiscal prowess is a commendable 21% free cash flow margin achieved during the quarter.
Its horizon is ablaze with opportunities, especially with AI’s transformative potential. The recent announcement of AI-driven enhancements to the Now Platform promises to revolutionize the nexus of productivity, speed, and value for its ever-expanding user base.
The future beckons with even greater promise ahead for ServiceNow making it an easy choice among tech stocks to buy and hold.
Microsoft (MSFT)
In the AI-driven tech era, Microsoft (NASDAQ:MSFT) stands out as a beacon. Pioneering the next generation of generative AI, Microsoft’s strategic alliance with the renowned start-up OpenAI has been nothing short of visionary.
MSFT has elegantly interwoven AI advancements into its software ecosystem, especially Azure. Riding on these ventures, MSFT stock has leaped a staggering 37% year-to-date.
Though its record-breaking high of $358.73 on July 18 stirred excitement, its stock has cooled off of late. Yet, this modest dip mirrors the broader tech market’s rhythm.
The future seems luminous for MSFT, particularly with its foray into Generative AI. Azure should help unlock potential AI-centric applications.
AI will be reflected in Office365’s Co-Pilot suite, GitHub, Bing, and Teams Premium. Also, Kirk Materne from Evercore ISI hints at a potential $100 billion windfall from Microsoft’s AI endeavors by 2027.
In the financial spectrum, Microsoft continues its impressive stride. The recent fourth-quarter numbers were commendable: a 5.9% earnings surprise and a robust revenue growth of 8.30% year-over-year to $56.2 billion, exceeding projections.
Meta Platforms (META)
Re-emerging from the turbulence of 2022, Meta Platforms (NASDAQ:META) has arguably been one of the best comeback stories in the tech realm in years. Boasting an awe-inspiring 129% surge in stock value this year, it continues on its stellar upward trajectory.
The company has redefined its trajectory by sidestepping the metaverse frenzy and anchoring firmly in the world of AI. A fusion of this strategic focus on AI and cost-cutting measures has ushered in a remarkable $32 billion in quarterly revenue.
Its second-quarter results further solidify Meta’s formidable position, with robust $2.98 earnings per share, surpassing expectations, and an impressive 29% operating margin.
Meta’s third-quarter projected revenue will likely fall between $32 billion and $34.5 billion, pointing to a potential 15% year-over-year leap.
All eyes are set on Meta’s AI forays across its flagship platforms: Instagram, WhatsApp, and Facebook.
Mastercard (MA)
When discussing powerhouse stocks, one cannot overlook Mastercard (NYSE:MA). This financial behemoth is moving full-steam ahead, showcasing a growth trajectory that underscores its current attractiveness.
As inflationary pressures intensify, Americans are resorting to their plastic companions more than ever, leading to a staggering $1 trillion in combined credit card dues.
With many opting to let balances swell rather than offsetting them, this has directly fueled Mastercard’s impressive 14% revenue upswing in the second quarter, accompanied by a 25% leap in net income.
The firm also benefits from its distinct position in cross-border transactions, outshining its competition. As the travel sector rebounds, indicated by recent robust airline earnings, this particular revenue channel for Mastercard promises even more growth ahead.
As some Americans grapple with growing financial obligations, Mastercard is poised to thrive, benefiting from both domestic debt trends and broader global economic indicators.
Nvidia (NVDA)
In the realm of chip stocks, Nvidia (NASDAQ:NVDA) has proven a trailblazer over the past several years.
Defying the tumultuous headwinds of a chip glut that affected many of its rivals, Nvidia stands tall, as reflected by its recent earnings report.
In a striking display of financial prowess, Nvidia’s sales touched an incredible $13.5 billion in just one quarter. Add to that an adjusted earnings per share of $2.70, and the growth narrative is even clearer compared to the prior year’s net income of $656 million, which has now soared to an impressive $6.2 billion.
Fueling this stellar performance is Nvidia’s data center business, accounting for a whopping 76.3% of the total quarterly revenue at $10.3 billion. The raging demand for Nvidia’s A100 and H100 chips only augments the story, with these chips as workhorses behind the complex large language models (LLMs) that form the backbone of sophisticated AI applications and software.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
