If you’ve got $5,000 to invest right now, you can split that among a trio of top tech stocks. I’d look for market leaders with solid growth opportunities that you can buy and hold for the long term. Let’s look at three stocks to consider.
1. Alphabet
With the most complete artificial intelligence (AI) stack of any company, Alphabet (GOOGL 1.66%) (GOOG 1.69%) is a tech leader that’s well positioned for the long term. The company’s core business remains Google Search, where it has implemented its Gemini model to drive query volume and revenue growth through AI Overviews and AI Mode. Meanwhile, Alphabet has a significant distribution advantage in search and AI discovery. Its Chrome browser and Android smartphone operating system each have approximately 70% market share, and it has agreements with Apple to be the default search engine on its devices, while Gemini also powers Siri. This essentially makes Google the gateway to the internet for most people.
Today’s Change
(-1.66%) $-5.13
Current Price
$303.57
Key Data Points
Market Cap
$3.7T
Day’s Range
$301.03 – $308.71
52wk Range
$140.53 – $349.00
Volume
1.1M
Avg Vol
34M
Gross Margin
59.68%
Dividend Yield
0.27%
At the same time, the company’s cloud computing business, Google Cloud, has seen rapid growth. One of the big advantages Alphabet has is that it has developed its own custom AI chips, which power most of its internal workloads. This gives it a cost advantage, including when training Gemini. More recently, the company has begun selling these chips outside of Google Cloud, adding another significant potential growth driver. Throw in the potential of its Waymo robotaxi business, and this is a top tech stock to own over the long haul.
2. Amazon
With Amazon (AMZN 1.52%), investors are getting both the world’s top e-commerce player and the market-share leader in cloud computing. The company continues to see solid growth in its e-commerce operations, but what is most exciting is the operating leverage it is seeing in the business. Amazon is the world’s largest manufacturer and operator of robots, and it is using robots to make its fulfillment centers more efficient. It is using AI to coordinate its robot fleet through its DeepFleet AI model, while also using AI for things like inventory management and driver route optimization.
Today’s Change
(-1.52%) $-3.23
Current Price
$209.42
Key Data Points
Market Cap
$2.3T
Day’s Range
$208.15 – $211.70
52wk Range
$161.38 – $258.60
Volume
2.7M
Avg Vol
49M
Gross Margin
50.29%
At the same time, Amazon also operates the world’s largest cloud computing business with AWS (Amazon Web Services). This business is growing strongly, with revenue starting to accelerate, as it pours more money into building AI-focused data centers. Amazon has also developed its own custom AI chips and has investments and partnerships with leading AI model makers OpenAI and Anthropic. This should help fuel future growth.
Between the strong operating leverage it is seeing in its e-commerce business and the big cloud opportunity ahead, Amazon is a stock to own for the long term.
Image source: Getty Images.
3. Meta Platforms
When it comes to embracing AI and using it to fuel growth in its core business, few companies have been as successful in the early going as Meta Platforms (META 2.52%). The company’s social media ad platform is one of the best businesses suited for the AI age. Through the use of AI, the company can continually improve its recommendation algorithm, feeding users more and more of the content they are interested in. This keeps people on its apps longer and lets Meta serve them more ads.
Meta Platforms
Today’s Change
(-2.52%) $-16.52
Current Price
$638.34
Key Data Points
Market Cap
$1.7T
Day’s Range
$636.94 – $653.23
52wk Range
$479.80 – $796.25
Volume
717K
Avg Vol
15M
Gross Margin
82.00%
Dividend Yield
0.32%
At the same time, it is also using AI to help its advertiser customers. Since Meta’s bread and butter is generally small and medium-sized retailers and service providers, its AI tools can help them create much more visually appealing ads without the need for big ad budgets. Its AI tools can also help better target users who are more likely to be close to making a purchase, so advertisers can bid accordingly and improve conversions. Better ad performance, meanwhile, leads to higher ad prices.
Meta’s AI ad opportunity, combined with it just starting to serve ads on its popular messaging platform, WhatsApp, and new social media site Threads, makes this a top stock to own moving forward.