3 Top Tech Stocks to Watch for Long-Term Portfolio Growth

Technology stocks have consistently fueled Wall Street’s impressive returns, outperforming many other sectors. In our increasingly digital world, driven by the rise of the internet and now revolutionary advancements like artificial intelligence (AI), tech stocks continue to offer strong opportunities for growth-oriented investors.

While diversifying your portfolio is wise, technology remains a foundation for those looking to achieve substantial gains before retirement. However, it's important to select proven companies with sustainable growth prospects rather than risk capital on highly speculative plays. Below, we highlight three well-established tech giants that remain poised for further expansion, making them ideal candidates for significant, long-term investments.

If you have $300,000 in savings after covering essential expenses, consider allocating $100,000 to each of these stocks. Historical trends suggest that, with the right investment choices and an annual return of around 12.8%, you could potentially grow your portfolio to $1 million or more in the next decade.

1. Nvidia: Dominating the AI Revolution

Nvidia (NVDA) is at the forefront of the artificial intelligence boom, a sector predicted to generate trillions in economic value in the coming years. The company holds an estimated 92% market share for data center GPU chips—crucial components powering AI development. Nvidia’s unique ecosystem, combining advanced hardware and its CUDA programming platform, keeps it ahead of competitors and essential for non-graphical, AI-driven tasks.

Strong demand for data centers continues to bolster Nvidia’s prospects, with research from McKinsey & Company predicting industry investment could reach $7 trillion by 2030. There are also long-term growth opportunities in fields like robotics, where advanced computing is required at the edge. As long as Nvidia maintains its technological lead, analysts project average annual earnings growth of 29% over the long term. At a current price-to-earnings (P/E) ratio of 46, Nvidia is reasonably valued considering its growth potential, with the possibility to double or triple in value over the next decade if AI trends persist.

2. Taiwan Semiconductor Manufacturing: The Backbone of Chip Production

Nvidia and many other major chip designers rely on Taiwan Semiconductor Manufacturing (TSM), the world’s largest foundry, to manufacture their products. TSM holds around 67% of the global foundry market by revenue (as of the end of 2024), thanks to its cutting-edge manufacturing abilities and scale.

Taiwan Semiconductor’s dominant industry position, technical expertise, and capacity make it a vital player in the worldwide AI and semiconductor sectors. However, investors should be aware of risks tied to ongoing geopolitical tensions between China and Taiwan. While these concerns are real, analysts still expect TSM to grow earnings by over 21% annually over the long term. The stock trades at a modest 26 times earnings, presenting attractive upside potential if geopolitical stability persists.

3. Netflix: A Streaming Leader With Room to Expand

Consumer-focused companies remain essential for diversified portfolios, and Netflix (NFLX) stands out as the leading global streaming service. With over 301 million paid subscribers at the close of 2024, Netflix continues to see membership growth outpace spending on original content.

Looking forward, Netflix has several levers for further growth—including advertising on its ad-supported plans, expansion into mobile gaming, and entry into live sports. With billions of potential customers worldwide, there’s still significant room for organic subscriber increases. In the fourth quarter of 2024, Netflix’s paid membership base grew 15.9% year over year, highlighting the company’s resilience and growth momentum.

Despite a higher P/E ratio of 58, analysts anticipate an average annual earnings growth of 22% over the next several years. With its established platform and ventures into the booming $522 billion gaming industry, Netflix is well-positioned to double or even triple in value over the next decade.

This content is for informational purposes only and does not constitute financial advice.