Stocks

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

Published February 26, 2025

Technology continues to influence our daily lives, and the rise of artificial intelligence (AI) is proving to be a transformative experience. This evolution has led tech companies to flourish, establishing themselves as some of the most prominent entities in the market. In this article, we will examine two top-tier technology stocks that are excellent choices for long-term investment.

1. Alphabet

Currently trading at a forward price-to-earnings (P/E) ratio of just 20.5 based on 2025 analyst forecasts, Alphabet (GOOGL) represents one of the most appealing megacap technology options available. As the leading player in online search, Alphabet is also the parent of YouTube, the most popular streaming platform globally, and operates the third-largest cloud computing service.

Through its various services, Alphabet has built a substantial advertising network, delivering ads not only on its platforms but also on third-party websites. The company is actively integrating AI into its offerings, presenting a significant opportunity for future profits.

Traditionally, Google has monetized about 20% of search queries through advertisements that direct users to relevant products and services. For example, a search for "best dishwasher" might display sponsored links to retailers like Home Depot and Lowe's Companies. Google earns revenue each time a user clicks one of these links.

While some see AI as challenging, it opens new avenues for Alphabet. Looking ahead, Google could potentially monetize the 80% of search queries that currently don’t yield ads through innovative advertising formats and AI-generated ad placements. This technology will enhance Google's capacity to target its ads more effectively, leveraging the vast amount of data and user search histories available.

Alphabet enjoys a significant advantage in competition due to its extensive user base and robust advertising clientele. Any competitor would face considerable challenges in establishing a similar user and advertiser ecosystem.

Alphabet is already seeing the benefits of AI in its cloud computing division, with Google Cloud experiencing an impressive revenue increase of 30% in the last quarter. This shift has led to a notable uptick in operating income.

As organizations increasingly build their AI models on its platform, Alphabet is also advancing in areas like quantum computing and self-driving technology. Recent developments include the unveiling of its Willow chip for quantum computing and the operations of Waymo, which is currently the only company providing paid robotaxi services in the U.S.

These factors position Alphabet as a solid investment for those looking to buy and hold over the long term.

2. Salesforce

Another promising technology player is Salesforce (CRM), with a forward P/E ratio of about 24.5 based on fiscal 2026 estimates. Salesforce was among the first to adopt the software-as-a-service (SaaS) model, and today, it leads the market in customer relationship management (CRM). This platform enables businesses to manage and access customer information seamlessly.

Salesforce has expanded into areas like automation and analytics through acquisitions, including Mulesoft, Tableau, and Slack. It is also looking to pioneer the next major development in AI via its agentic AI initiatives.

Whereas many initial AI efforts have focused on generative applications—such as content generation from prompts—agentic AI allows for autonomous AI agents to perform tasks with minimal human input. Recently, Salesforce introduced its autonomous AI agent platform, Agentforce, which is designed to automate various tasks, from customer billing inquiries to scheduling healthcare appointments.

The platform offers ready-to-use AI agents and also features low-code and no-code tools, giving users the ability to create customized agents for specific tasks. Salesforce reported significant traction for Agentforce, with over 1,000 deals closed shortly after its launch.

Agentforce operates on a consumption model, generating revenue based on usage, which means higher adoption leads to increased income for Salesforce. The company anticipates the potential to deploy 1 billion AI agents by fiscal 2026, emphasizing a bright growth trajectory ahead.

As an innovator in the technology sector, Salesforce stands out as a smart investment choice for those interested in long-term holdings.

technology, stocks, investment