Technology stocks have long had a reputation for generating consistent and significant gains over the long term, as proven by Nasdaq-100 395% increase in the technology sector in the last 10 years.
The ever-expanding nature of the industry is driven by reliable demand for upgrades to various hardware and software products. It’s no surprise, then, that investment magnate Warren Buffett’s holding company, Berkshire Hathaway, has devoted more than 40% of its portfolio to technology stocks. Meanwhile, Berkshire’s holdings saw a compound annual gain of nearly 20% between 1965 and 2023.
As a result, it could be worth doing the same and making a significant long-term investment in this high-growth sector. So here are three stocks to invest $30,000 in right now – $10,000 each.
1. Advanced micro-devices
Advanced microsystems (NASDAQ:AMD) the business has exploded over the past decade, assuming a leading role in the chip market.
A decade ago, the company was on the brink of bankruptcy, bleeding cash and mounting debt. Then, in 2014, Lisa Su became CEO of AMD, sparking one of the most impressive turnarounds in tech market history.
The launch of its Ryzen central processing unit (CPU) line in 2017 was a major growth catalyst, with AMD’s CPU market share increasing from 18% in the first quarter of 2017 to 33% in 2024. The company has gradually reduced its market share. IntelThe share of , which fell from 82% to 64% during the same period.
AMD shares have soared 3,500% over the past 10 years. As a result, a $10,000 investment in AMD stock in 2014 would be worth more than $357 billion today.
Of course, past growth doesn’t always indicate what’s to come. However, the company has promising prospects that could generate major gains over the next 10 years. AMD is investing heavily in artificial intelligence (AI) and launching new AI Graphics Processing Units (GPUs) this year and investing in AI personal computers.
The AI market reached nearly $200 billion last year and is expected to reach nearly $2 trillion by 2030. Along with its positions in other technology areas, such as cloud computing, video games and consumer PCs, AMD will likely continue to benefit from technology tailwinds. for years.
Therefore, a $10,000 investment in AMD stock over the next decade could yield significant gains.
2. Amazon
It’s impossible to deny AmazonIt is (NASDAQ:AMZN) powerful role in technology. Through its popular e-commerce site, the company has gained immense brand loyalty worldwide. Amazon’s retail site is available in over 20 countries and ships to over 100 countries.
The success of Amazon’s e-commerce business has seen annual revenue soar 546% since 2014, with operating profit soaring more than 20,000%.
Amazon’s meteoric rise is mainly due to its lucrative Prime membership. Its subscription model bundles several services, including free expedited delivery on its retail site, video streaming, music, gaming, and more. The inclusion of multiple services makes consumers less…
