2 Of My Favorite Long-Term Tech Stocks
The future is hard to predict but looking at stocks we can reliably predict where they may be some time years down the road. No matter how ugly it looks for this sector right now, over the long term, investors can bank on certain tech stocks pushing the limits of our technological boundaries.
Regardless of what kind of investor you are, income, growth, conservative, aggressive, Apple (AAPL) and Nvidia (NVDA) are two stocks that you should definitely consider adding to your portfolio. These companies are some of the most innovative companies ever created, and without them, the world would be a very different place.
Imagine if, instead of phones with which we could surf the internet using our touch screens, we had to flip open and close our phones when we wanted to use them and we couldn’t use them to video call with a loved one.
For all of us reading this newsletter today, we remember a time when this was very much the case. The impact these companies have had on the world has been so profound that they have given birth to whole other industries through what their products now allow people to do.
Take the gig economy for example, without the introduction of “apps” by Apple industries like transportation and delivery services would have not seen the revolution that it did. Now, instead of trying to find a taxi, you can call one in seconds with a fews taps of your finger.
Same idea with delivery services for restaurants. Instead of the restaurant missing out on sales because they don’t deliver, their customers can order right from their phone while anyone with the app and a car can be a delivery driver.
These innovations would be unthinkable to us even as recently as the late 90s. Now, we couldn’t imagine life without our everyday widgets, whether that be wearables, big data systems, or 5G devices.
As you can see by the 5-year chart on Apple above, on every pullback of the stock’s price, it would have been a wise decision to add to your position or initiate one. When you look at the mark left by this company, it’s hard to see them not continuing to demonstrate this outperformance into the future.
Especially when they have products that continue to push the companies limits. Looking at the Apple Car alone, if that product is able to capture the same popularity as many other of their products, it has the potential to double the companies market cap, according to some analysts.
Nvidia is another powerhouse stock as evidenced by the 5-year chart above. The company has been one of the major beneficiaries of the recent wave of interest in artificial intelligence (AI). The company’s stock multiplied more than ten-fold in less than three years as major companies rushed to buy chips that could smarten up their own applications, offer AI services to other companies — or both.
Inventory issues and a sudden drop in demand for cryptocurrency mining put a stop to the meteoric rise, but Nvidia continues to talk up the impact and market potential of AI, even as gaming remains its biggest source of revenue. Two industries that only continue to grow at an exponential rate, placing increasing importance on the company’s products and ensuring the performance over the next 5 years to resemble that of the past.
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