3 Tech Stocks You Can Buy and Hold for the Next Decade

Finding stocks that you can buy and hold over the next decade isn't easy. If you rewind to 2015, some events like the COVID-19 pandemic or the exponential rise of artificial intelligence would have seemed very unlikely, but thinking about such potentials is what it takes to invest a decade in advance.

Right now, for instance, I think there are at least three companies that have obvious tailwinds blowing in their favor that should make them excellent long-term investments. Even better, now looks like a great time to buy shares in these three companies.

Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing (NYSE: TSM) tops this list as the best company to buy and hold over the next decade. The thesis here is simple: The world is going to need more-advanced chips in greater quantities. While AI is the largest demand driver for chip capacity right now, there are other technologies, like self-driving vehicles, that will require a vast amount of chips as well.

Taiwan Semiconductor (TSMC for short) is by far the world's largest chip foundry and will be instrumental in all of the various technologies that emerge over the next decade. The company itself is also pursuing new advanced chip technology, mainly focusing on making more energy-efficient chips to ease the power demand on the grid.

One thing to note with TSMC is that the chip industry is cyclical. Over the next decade, there will likely be at least one downturn that causes the stock to sink. However, the overall trend is to use more-advanced chips in greater quantities, and this stock will be one of the best to own as a result.

Amazon

Amazon (NASDAQ: AMZN) is another stock that I'm excited about when looking out over the next decade. The e-commerce build-out in North America is nearing completion, but there are other parts of the world for Amazon to conquer. Furthermore, it's building a digital advertising empire within its platform that is boosting margins significantly.

Another area where it is seeing strong growth with healthy margins is cloud computing. Amazon Web Services (AWS) is the biggest cloud provider, and this industry is seeing tailwinds from the general move to the cloud as well as AI workloads. Once the company is done building computing capacity for AI workloads, this business will transform back into a cash cow, driving the stock price higher.

Advertising and cloud computing have much higher margins than an e-commerce business, which is why Amazon's operating margins have jumped over the past few years. Investors may see a slight pause in operating margin expansion during the AI computing build-out, but they will also see a resulting rapid spike when it's complete.

Data by YCharts.

This trend will help boost Amazon's profits over the long term, making it an excellent stock to buy and hold over the next decade.

Nvidia

Nvidia (NASDAQ: NVDA) may be a surprise addition to this list, but I think it's worth owning over the next 10 years. Nvidia's graphics processing units (GPUs) are by far the most popular chips to power AI workloads.

The demand for advanced chips is rapidly rising, and management expects data center capital expenditures (capex) to increase from $600 billion in 2025 to $3 trillion to $4 trillion by 2030. That's huge growth, but what happens when it's over?

GPUs don't last forever. Estimates vary widely, with normal usage lasting for three to eight years. But the high processing demand that comes with AI points toward these GPUs burning out within one to three years. So all of this huge AI demand that Nvidia is enjoying right now will be sustained in the future, as companies building these giant AI data centers will need to replace GPUs as they wear out.

This will allow Nvidia to sustain its sales for years to come. If the general direction in AI capex is correct, the company's run could just be getting started, making it a no-brainer stock to buy now and hold over the next decade.

Keithen Drury has positions in Amazon, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Amazon, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.