There are some stocks that you can buy with an almost guarantee that they’ll provide consistent gains over the long term. The tech industry is a particularly good place to find such investment opportunities, thanks to the ever-developing nature of the sector.
As a result, tech behemoths such as Apple (AAPL) and Microsoft (MSFT) are attractive options, with both companies leading multiple high-growth markets.
Apple’s stock has risen 301% in the last five years, as it has climbed to the top of consumer tech with the immense popularity of its products. Meanwhile, Microsoft shares aren’t far behind, soaring 220% in the same period thanks to the dominance of its software offerings.
These companies have a long history of reliable stock growth and are making promising moves to expand into new areas of tech.
So, want to get richer? Here are two top stocks to buy now and hold forever.
1. Apple
By far, Apple’s most successful product is the iPhone, regularly earning more than 50% of the company’s revenue. Consumers have proven their preference for Apple’s smartphones time and time again, most recently amid macroeconomic headwinds that brought down U.S. smartphone shipments by 17% in the first quarter of 2023.
The challenging period led Samsung’s market share to stagnate at 27% and Motorola‘s to fall from 10% to 8%. However, Apple managed to use the iPhone’s dominance to its advantage, with its market share rising from 49% to 53%.
Additionally, the iPhone has become one of the company’s best tools in attracting consumers to its other devices. The tech giant’s interconnected ecosystem of products makes shoppers far more likely to stick with Apple over a competitor if it is an option.
This strategy has allowed the company to achieve leading market shares in tablets, smartwatches, and headphones.
Apple’s dominating position across consumer tech strengthens its prospects in nearly any market it enters, with the company most recently venturing into artificial intelligence (AI). The company is gradually adding AI-enabled software features across its product lineup, with Bloomberg reporting Apple is developing a competitor to OpenAI’s ChatGPT.
The massive popularity of the iPhone and its other products could make Apple a leading driver of AI adoption by the public, allowing it to profit substantially from the high-growth sector.
A consistently rising stock that has soared 1,100% over the last 10 years, Apple is a no-brainer for those looking for a solid long-term buy.
2. Microsoft
As the home of potent brands such as Windows, Office, Xbox, and Azure, Microsoft has become the second most valuable company by market cap. The popularity of its software made its products crucial to the success of countless businesses worldwide, with the company’s annual revenue rising 58% over the last five years and operating income increasing by 94%.
Microsoft’s extensive financial resources allowed it to invest heavily in its business and developing markets, making the company one of the biggest names in AI.
Microsoft invested $1 billion in OpenAI in 2019, increasing that figure by $10 billion earlier this year. The partnership allowed the company to procure exclusive licenses on some of the start-up’s most powerful AI models. With the new partnership, plus popular products like Office and Azure, Microsoft could have the tools to become the go-to for anyone seeking AI services.
Moreover, Microsoft is further investing in the industry by supporting Advanced Micro Devices‘ AI chip expansion, with the company providing financial and engineering resources.
Microsoft aims to create an alternative to Nvidia, with the idea that increased competition will reduce the cost of chips. However, the collaboration could also allow Microsoft to obtain hardware specifically designed for its AI models, giving it an edge in the market.
Microsoft shares climbed 974% in the last decade, profiting from the consistently expanding business. With the power of AI at its side, the stock is an excellent option to buy now and hold indefinitely.
— Dani Cook
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Source: The Motley Fool