Got $5,000? 3 Tech Stocks to Buy and Hold for the Long Term

Key Points

• Autodesk’s design software is gaining popularity, and the company continues to grow both its top and bottom lines.

• Hims & Hers Health turned profitable last year as its digital health platform continued to gain traction.

• Affirm Holdings is witnessing healthy volume growth for its "buy now, pay later" services and other flexible loan options.

• 10 stocks we like better than Autodesk ›

The technology sector can be one of the best places to invest your money. With the digitalization trend gaining popularity and the rapid advancements taking place in artificial intelligence, the sector promises steady growth over the long term.

If you're looking for growth stocks suitable for long-term ownership, there are several characteristics you'll want them to possess. Among them are a robust business model, a solid track record of financial growth, and healthy business prospects.

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Here are three choice technology stocks that have all of those qualities, and that should sit well within your long-term growth stock portfolio.

Image source: Getty Images.

1. Autodesk

Autodesk (NASDAQ: ADSK) provides a cloud platform and software like AutoCAD that helps designers, engineers, and builders tap into data to design and build the infrastructure of the world around us. The company's software is seeing higher uptake, and its revenues and net income have been climbing steadily in recent years.

Data source: Autodesk. Company's fiscal years end Jan. 31.

In its fiscal 2026 first quarter, which ended April 30, Autodesk experienced healthy business momentum, with revenue rising 15.2% year over year to $1.6 billion and operating profit (excluding restructuring charges) climbing 13% to $338 million. Net income would have been 2% higher than in the prior-year period if one-off items were excluded, and free cash flow rose 21.2% to hit $549 million. Billings, which are a measure of future revenue, leapt 29% to $1.4 billion.

Autodesk forecasts its revenue for fiscal 2026 to come in around $6.9 billion, which would amount to a 12.5% increase. Free cash flow is also expected to be much stronger than it was in fiscal 2025, in the range of $2.1 billion to $2.2 billion. The company recently unveiled a refreshed brand strategy, and earlier this month, it launched a cheaper version of its Lite plan for Autodesk Flow Studio to make its software more accessible to a wider customer base. This software utilizes artificial intelligence to automate complex tasks involving video motion capture and character animation to enable creators to focus on telling their stories rather than obsessing over technical details.

With these moves, the company looks set to continue its growth into the foreseeable future as it garners a wider customer base with its cloud software and tools.

2. Hims & Hers Health

Hims & Hers Health (NYSE: HIMS) operates a digital wellness platform that connects people to licensed healthcare providers who offer personalized treatment plans. The business has experienced significant traction in recent years, with revenue nearly tripling from 2022 to 2024. It also turned profitable last year and saw its free cash flow go from negative to strongly positive.

Data source: Hims & Hers Health.

In the first half of 2025, Hims & Hers reported continued strong growth with revenue soaring 90% year over year to $1.13 billion. Operating income more than quadrupled to $84.6 million while net income stood at $92 million, up more than threefold. However, the digital health company's free cash flow turned negative as it boosted its capital expenditures to support its aggressive expansion plans.

The business experienced healthy subscriber growth of 31% year over year to 2.4 million as of the end of the second quarter. Hims & Hers has an ambitious target to grow revenue to at least $6.5 billion by 2030, and will rely on five growth pillars to achieve this: increasing personalization, expanding into promising specialties, providing follow-up care, global platform expansion, and inking strategic partnerships to extend its ecosystem.

The company is also relying on acquisitions to power its growth. Back in June, Hims & Hers acquired Zava, a digital health platform based in Europe, to expand the company's footprint in the United Kingdom and accelerate its expansion into countries such as Germany, France, and Ireland. A month later, Hims & Hers announced the launch of its affordable weight loss program in Canada. The company's personalized healthcare plans should endear it to existing and potential customers, and allow it to continue growing in an increasingly digitalized world.

3. Affirm Holdings

Payments company Affirm Holdings (NASDAQ: AFRM) offers "buy now, pay later" services and other alternative payment options for consumers and merchants. Its flexible platform and services have been gaining popularity, and its revenues have surged in recent years. Free cash flow also turned positive in its fiscal 2024, and metrics such as gross merchandise value and active customers also continued to rise.

Data source: Affirm. Company's fiscal years end June 30.

The first nine months of fiscal 2025 saw continued growth in Affirm's financial and operating metrics. Revenue grew 41% year over year to $2.3 billion, while free cash flow more than doubled to $578.2 million. Gross merchandise value in its fiscal 2025 third quarter (which ended March 31) stood at $8.6 billion, 36% higher than the $6.3 billion it logged in the prior-year quarter. Total transactions through Affirm's platform also climbed 45% to 31.3 million. Active customers continued their climb, hitting 21.9 million.

This steady growth in active customers and gross merchandise value showcases the popularity of Affirm's myriad payment solutions. The company's active merchant count has also been rising, going from just 246 two years ago to 358 in its latest quarter. The growth of both consumers and merchants promotes a virtuous cycle that should help attract more customers and merchants to its payment ecosystem. Earlier this month, Affirm expanded its partnership with Stripe to enable buy now, pay later integration on Stripe's terminals. These initiatives, along with healthy growth momentum in gross merchandise value, merchants, and consumers, should enable Affirm to steadily grow its top line and free cash flow in the medium term.

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Royston Yang has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Autodesk and Hims & Hers Health. The Motley Fool has a disclosure policy.