Technology stocks continue to be the engine that is driving the stock market higher. The tech-laden Nasdaq Composite just closed above 17,000 for the first time and is at an all-time high. The index has increased 10-fold in the past 15 years and is up 30% over the last 12 months. Tech stocks continue to outperform all other asset classes, notably value stocks.
Among the tech stocks to buy, certain companies are dominating today and are likely to continue their domination in coming years. Whether it be in artificial intelligence (AI), cybersecurity, electric vehicles, financial technology, streaming, satellites, or other areas of tech, certain companies have positioned themselves as sector leaders and have separated themselves from the pack.
Here is the tech takeover: three stocks poised to dominate the decade.
Nvidia (NVDA)
If there’s one tech stock to buy to dominate in the next decade, it is Nvidia (NASDAQ:NVDA). The company is arguably the most dominant technology concern today, with its quarterly earnings swaying the entire stock market. Nvidia currently controls about three-quarters (75%) of the global market for the microchips and semiconductors that power AI applications and models. That dominant position is powering the company’s financial results to astronomical heights.
For this year’s first-quarter, Nvidia posted sales and profit growth that was truly mind-boggling. Sales were up 268% from a year ago. Profits rose 646% from the same period in 2023. The company also announced a 10-for-1 stock split and raised its quarterly dividend payment by 150%. Nvidia anticipates more growth ahead, expecting sales of $28 billion in the current second quarter of the year. Wall Street had forecast Q2 sales amounting to $26 billion.
Given its dominance and incredible growth, it should come as no surprise that NVDA stock has nearly tripled in the last 12 months and is up more than 3,300% in the past five years. Analysts sees more upside ahead and currently have a consensus “strong buy” rating on the tech stock.
Alphabet (GOOG, GOOGL)
If the future is truly to be driven by AI, then Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) is sure to dominate over the coming decade. The company’s recent developer’s conference went a long way to showing analysts and investors what the company is capable of achieving with AI. This year’s I/O developer event saw Alphabet showcase how it is integrating AI into online search through Google.
The company also demonstrated a new version of the Android operating system and updated its most advanced AI technology, “Gemini.” Ahead of the developer conference, Alphabet also released a video demonstrating a new AI model that can draw conclusions from a camera’s live feed. While Nvidia might make the nuts and bolts that run AI applications, Alphabet continues to employ the world’s best AI researchers through its DeepMind unit. GOOGL stock is up 42% over the last 12 months.
Netflix (NFLX)
Cable television is on the way out and streaming looks here to stay. Among streaming companies, Netflix (NASDAQ:NFLX) has built a nice competitive moat around itself. While other companies struggle to make their movie and television streaming platforms profitable, Netflix is reporting strong earnings and subscriber numbers, fueled by increasingly diverse content that plays to a global audience.
For this year’s first quarter, Netflix reported EPS of $5.28 compared to $4.52 that was expected on Wall Street. Revenue totaled $9.37 billion versus $9.28 billion that was estimated among analysts. Subscribers amounted to 269.6 million, which was ahead of expectations for 264.2 million. The number of subscribers rose 16% from a year earlier.
What’s helped Netflix has been its ability to quickly adapt and evolve. The company has successfully cracked down on password sharing, added advertising to its platform, and is pushing into live sports and events. NFLX stock is up 67% over the last 12 months.
On the date of publication, Joel Baglole held long positions in NVDA and GOOGL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
