Despite being inherently volatile, there are no shortages of tech stocks with long-term potential in the market. Technology is constantly evolving, after all. We only have to look at Nvidia (NASDAQ:NVDA) and Super Micro Computer (NASDAQ:SMCI) as recent examples. 

The question, then, is how to choose tech stocks to hold long-term. Looking back on my investing career, which started in 1996, I find myself with a portfolio containing stocks that I’ve held for more than a decade. And yes, research is typically the best way to find such companies. However, I understand not everyone has the time to get into the nitty-gritty.

Thankfully, I know a few relevant categories to filter tech companies with good growth potential, strong financial performance, and a clear vision of their future. Let’s take a look at them. 

To come up with a shortlist of stocks, I screened for stocks with:

• Net income growth comparison from four years ago (above 30%)
• Analyst ratings (Strong Buy only) 
• One-year positive EPS growth

These metrics give me a good indication of how these companies might perform in the future. However, nothing is set in stone, and past performance does not equate to future results (even though that’s how investment advisors sell their products.)

Rambus (RMBS)

One tech stock on my radar is the semiconductor company Rambus Inc. (NASDAQ:RMBS). The company’s business portfolio is quite diverse, and it produces different types of tech products with all sorts of practical applications in the present and the future, contributing to its overall long-term potential.

The company’s productions include:

• Memory interface chips (DDR5 and DDR4) are sold to module manufacturers, OEMs, and hyperscalers.
• Silicon IP solutions for data movement and protection in advanced applications across data centers, government, and more.
• Security IP solutions include hardware roots of trust, high-speed protocol engines, provisioning technologies, and a patent portfolio covering memory architecture, high-speed serial links, etc.

Rambus has recently launched a $50 million accelerated share repurchase program with the Royal Bank of Canada, which shows its confidence in its long-term growth strategy.

The company will receive an initial delivery of approximately 675,000 shares, with the final number determined by the average price during the transaction. The program is expected to conclude by the end of this year’s Q1.

Aside from repurchasing shares, Rambus’ FY23 report showed relatively decent improvements across key metrics. Revenue reached $461.1 million, increasing from $454.8 million last year. The bottom line is even more impressive— $3.01 per diluted share, as opposed to negative 13 cents per share last year. 

Rambus also registered a 42.76% 4-year net income growth rate. Given their perfect “Strong Buy” recommendation, analysts consider RMBS one of the more attractive long-term tech stocks. 

OSI Systems (OSIS)

Another tech stocks worth your attention is OSI Systems (NASDAQ:OSIS). The company has been doing a pretty good job establishing market dominance with its multiple business segments, as evidenced by its four-year net income growth of 322.45%.

OSI Sytems’ main segments are: 

• Security (Rapiscan and S2): Offers inspection systems for baggage, parcels, cargo, and vehicles, as well as people screening, radiation monitoring, and explosive detection, along with related services.
• Healthcare (Spacelabs): Provides patient monitoring, cardiology, and other solutions for medical settings.
• Optoelectronics: Supplies optoelectronic devices, electronics manufacturing services, LCD displays, and flex circuits to industries like aerospace, defense, and more.

When it comes to the company’s business segments, OSI Systems’ security division recently secured an international deal worth $100 million. This contract aims to provide cargo and vehicle inspection systems and maintenance services—a global commitment to enhancing security measures. 

The company’s Q2’24 financial report easily proves my description of a tech stock “worthy of one’s attention.” Q2’24 revenue increased by 26% to $373 million year over year, and operating income increased by 105% in the same period. 

Looking at these financial metrics alone, I feel that analysts’ “Strong Buy” rating for the stock is quite deserved.

Liveramp (RAMP)

On this list, LiveRamp Holdings (NYSE:RAMP) currently has the highest net income growth compared to four years ago, clocking in at 4,280.54%. 

The company provides a data collaboration platform to help organizations unify customer and prospect data while protecting consumer privacy. It also supports various people-based marketing solutions, including data collaboration, activation, measurement, and more. LiveRamp sells its solutions to financial services, retail, automotive, telecommunications, healthcare, travel, etc.

Speaking of data platforms, LiveRamp recently launched its unified Data Collaboration Platform that features Composable Technology. This platform aims to streamline the marketing lifecycle on a single platform.

According to the report, the platform has a simplified user interface, composable tech for cross-cloud interoperability, and a marketplace for third-party developers. 

On the financial side, LiveRamp reported Q3’24 results with considerable YOY growth. Total revenue increased 9.6% to $173.9 million. Operating income also recovered from a $24 million loss to a $15 million gain, translating to a 46-cent loss per share to a 21-cent gain.

Liveramp anticipates continued growth, with Q4’24 expected to end between $158 to $162 million, representing a 6 to 9% increase. All of these factors have contributed to the analysts’ decision to give the stock with nothing but a “Strong Buy” rating. 

On the date of publication, Rick Orford 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.