Putting $10,000 into each of these companies could pay off big over the next 10 years.
Tech stocks have a long reputation for consistently delivering strong returns over the long term, evidenced by results such as: Nasdaq-100 The technology sector has increased by 395% over the past 10 years.
The industry continues to expand, driven by a steady demand for upgrades to various hardware and software products. Therefore, investment king Warren Buffett’s holding company berkshire hathaway, allocates more than 40% of its portfolio to tech stocks. Meanwhile, Berkshire’s stock holdings experienced compound annual gains of nearly 20% between 1965 and 2023.
As a result, it may be worth following suit and investing heavily in high-growth sectors over the long term. Here are three stocks he recommends investing $30,000 in right now. $10,000 each.
1. Advanced microdevices
Advanced Micro Devices (AMD 2.37%) Its business has grown explosively over the past decade, giving it a leading role in the chip market.
Ten years ago, the company was on the brink of bankruptcy, running out of money and mounting debt. Then, in 2014, Lisa Su became his CEO of AMD, and he caused one of the most impressive transformations in the history of the technology market.
The launch of the Ryzen series of central processing units (CPUs) in 2017 was a major growth catalyst, with AMD’s CPU market share increasing from 18% in Q1 2017 to 33% in 2024. The company is gradually chipping away at its position. intelshare fell from 82% to 64% over the same period.
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AMD stock has soared 3,500% over the past decade. As a result, a $10,000 investment in AMD stock in 2014 would be worth more than $357 billion today.
Of course, past growth is not necessarily indicative of future growth. However, the company has an interesting outlook that could deliver significant gains over the next decade. AMD is investing heavily in artificial intelligence (AI), launching new AI graphics processing units (GPUs) this year and investing in AI personal computers.
The AI market reached nearly $200 billion last year and is projected to reach nearly $2 trillion by 2030. Similar to its position in other technology areas such as cloud computing, video games, and consumer PCs, AMD will continue to benefit from technology tailwinds. For many years.
As a result, investing $10,000 in AMD stock over the next 10 years could result in significant returns.
2. Amazon
impossible to deny Amazon‘s (AMZN 3.43%) A strong role in the technology field. Thanks to its popular e-commerce site, the company has built immense brand loyalty around the world. Amazon’s retail site is available in over 20 countries and ships to over 100 countries.
Due to the success of Amazon’s e-commerce business, annual revenue has increased by 546% since 2014, and operating profit has soared by more than 20,000%.
Amazon’s meteoric rise is largely due to its lucrative Prime membership. The subscription-based model bundles multiple services such as free expedited shipping on retail sites, video streaming, music, and games. Including multiple services makes consumers less likely to unsubscribe, leading to his global subscriber count of over 230 million.
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Amazon stock is up 926% since 2014. That means his $10,000 investment back then is now worth more than $102,000 to him. And the company could outpace that growth over the next decade.
In addition to consistent growth in retail, Amazon is also rapidly expanding in the areas of AI and cloud computing. On April 25, the company announced plans to invest $11 billion to build data centers in Indiana to support the growth of Amazon Web Services (AWS).
The company is on a promising growth trajectory, and if you have the cash to spare, it might be worth investing $10,000 this month. However, even a small investment is worth considering.
3. Apple
apple (AAPL -0.35%) Arguably one of the most successful companies in the history of technology. The market capitalization is $ 2.6 billion, making it the second most valuable company in the world ( microsoft). On the other hand, Apple has been able to achieve major market shares in multiple product categories due to its vast and loyal user base.
But the company stumbled last year. Macroeconomic headwinds led to repeated quarterly revenue declines in 2023. Apple’s first quarter of 2024 looked like it might have broken a streak, with revenue up 2% year-over-year.
Meanwhile, the tech giant’s free cash flow reached $107 billion, significantly outpacing the likes of Microsoft and Amazon. alphabet. This large difference could suggest that Apple continues to invest in its business and is best positioned to make a strong comeback in the coming years.
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Apple’s stock price has increased 738% over the past 10 years. Therefore, his $10,000 investment in the company’s stock 10 years ago would be worth almost $84,000 today.
Additionally, like AMD and Amazon, Apple is tackling AI head-on. The company has been gradually adding AI-driven features across its product line over the last year, and it also plans to overhaul its MacBook lineup to focus on AI. The company also recently acquired Datakalab, a French AI company specializing in on-device processing.
Given Apple’s dominant role in the technology sector and its exciting prospects, it could be worth investing $10,000 in the company’s stock, and you plan to hold onto it for at least 10 years.
Suzanne Frey, an Alphabet executive, is a member of the Motley Fool’s board of directors. John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a member of the Motley Fool’s board of directors. Dani Cook has no position in any stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, and Microsoft. The Motley Fool recommends Intel and recommends the following options: Long January 2025 $45 Calls on Intel, Long January 2026 $395 Calls on Microsoft, Short January 2026 $405 Calls on Microsoft, and $47 May 2024 Calls on Intel. It’s a short call. The Motley Fool has a disclosure policy.
