After a year where the Nasdaq-100 Technology Sector index fell 40%, many of the world's most valuable companies started 2023 at a disadvantage. However, the new year has pumped optimism back into Wall Street, with the market showing signs of recovery. The roller coaster ride many stocks have been on over the last year has highlighted the importance of investing in solid companies likely to grow in the long term, negating temporary headwinds.
The tech industry is home to a wealth of growth stocks thanks to consistent development and innovation, making it the perfect place for a long-term investment.
So without further ado, here are two top stocks to buy now and hold forever.
1. Tesla
Throughout 2022, Tesla's (TSLA -0.52%) shares plunged 65%, suffering its worst decline in history as macroeconomic headwinds led to supply chain issues and reduced demand. However, the company's stock has skyrocketed since Jan. 1, soaring 58%. The rise is primarily thanks to increased production at Tesla's Shanghai Gigafactory and positive quarterly results.
Despite the swift increase in stock price, Tesla is still down 52% from the all-time high of $409.97 per share it hit in November 2021, presenting a buying opportunity for this growth stock.
Over the last five years, Tesla's stock has risen 729% and over 7,000% in the last decade. The table below shows that its five-year growth is almost unparalleled in the tech world.
Data by YCharts.
However, one of the most compelling reasons to buy and hold Tesla's stock indefinitely is its position in a market that isn't anywhere near hitting its ceiling. Last September, Bloomberg reported that about 25% of U.S. drivers want an electric vehicle (EV), with only about 4% of all vehicles produced in North America fitting the bill as demand is outpacing supply.
Moreover, Tesla held a leading 18.1% market share in EVs in 2022. Meanwhile, in the company's fourth-quarter 2022 earnings call on Jan. 25, CEO Elon Musk revealed the car manufacturer is currently "seeing orders at almost twice the rate of production." Considering the EV market's worth was an estimated $208.58 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 23.1% through 2030 (per Precedence Research), Tesla is in an excellent position to profit from that growth.
Tesla has offered investors consistent growth over the long term despite recent headwinds, making it a stellar investment to hold forever.
2. Apple
As another no-brainer growth stock, Apple (AAPL 0.71%) is one of those companies that allows you to sit back while your money does the heavy lifting. Since 2018, its stock has risen 278% and 844% since 2013. Alongside impressive stock growth, Apple's revenue has increased by 48% to $394 billion over the last five years, while operating income has soared 68% to $119 billion.
As a result, it's not surprising that Wall Street mogul Warren Buffett has made the iPhone company 40% of Berkshire Hathaway's portfolio after first investing in 2016.
Apple suffered a dismal first quarter of 2023, reporting a 5.5% year-over-year decline in revenue of $117.15 billion, with operating income falling 13% to $36 billion. The slides resulted from production issues in China, which faced a spike in COVID-19 cases and foreign exchange headwinds. However, its quarterly troubles are temporary and inconsequential by holding its stock over the long term.
Moreover, Apple has some exciting developments in the coming years. The company is expected to unveil its first augmented/virtual reality (AR/VR) headset this year. The device will see it venture into the AR market, worth $25 billion in 2021 and expected to grow at a CAGR of 40.9% through 2030, according to Grand View Research. Then from 2024 to 2025, Apple will reportedly shift from outsourcing some of its iPhone components to using in-house versions. The move will end expensive partnerships with other tech companies and increase its profit per iPhone.
Apple remains a must-buy stock thanks to its demonstrated resilience and reliability through economically challenging times and its promising long-term outlook.
