When investing in the stock market, choosing companies with solid market share in consistently growing industries is always best. The tech market is home to a wealth of growth stocks because it's made up of companies in a near-constant state of development and innovation. And investing in companies that have a perpetual eye on the future can provide significant gains over the long term.
Here are three tech stocks building the future, making them excellent investments for the long haul.
1. Nvidia
Nvidia's (NVDA -3.33%) stock plummeted 53% in 2022, alongside a declining PC market. However, its shares have climbed 51% since Jan. 1 as Wall Street has grown bullish over the company's prospects in artificial intelligence.
According to Grand View Research, the AI market was worth $136.55 billion in 2022 and will expand at a compound annual growth rate of 37.3% through 2030. Meanwhile, Nvidia is home to technology crucial to the market's growth. The tech company's graphics processing units (GPUs) have the processing power necessary to push AI forward.
Moreover, in November 2022, Nvidia partnered with Microsoft's (MSFT 0.37%) Azure to build a massive cloud AI computer. The partnership will combine Nvidia's GPUs with Azure software, which will "help enterprises train, deploy, and scale AI," the company said in a news release.
AI will likely impact the future development of countless forms of technology, such as search engines, self-driving vehicles, machine learning, and much more. And Nvidia is well positioned to be a major player in that development.
2. Microsoft
Microsoft owes much of its success to its near-constant search for technologies of the future. Since its founding almost 50 years ago, it has become a leader in operating systems, productivity software, video games, and cloud computing with this mindset. For instance, the launch of Microsoft's cloud computing service Azure in 2010 has more than paid off, with the platform still reporting double-digit quarterly revenue in 2023.
Most recently, Microsoft's $1 billion investment in AI start-up OpenAI in 2019 is looking like one of its best decisions of the decade. The AI company stunned the tech world in November with the launch of its chatbot software ChatGPT, capable of producing human-like dialogue based on prompts. The software will soon be offered through Azure and is expected to incorporate Microsoft's search engine Bing in the future.
The promise of ChatGPT has led to reports that Microsoft is considering a further investment of $10 billion in OpenAI. Meanwhile, competitors like Alphabet have announced a stronger focus on AI going forward, as ChatGPT has created a threat to its Google search engine.
Microsoft is easily an investment in the future, with its stock likely to offer consistent gains for years.
3. Apple
While Apple (AAPL 1.27%) isn't always the first to the plate when it comes to new technology, the company is often credited with propelling it into mainstream use. The tech giant's immense success with smartphones, tablets, smartwatches, and Bluetooth headphones has seen it take budding technology and put it into the hands of millions of users worldwide after launching its custom versions. In fact, AppleInsider reported in November 2019 that Apple's AirPods business would be a $175 billion enterprise on its own, making it the U.S.'s 32nd-largest company.
Additionally, numerous reports over the years have stated Apple intends to enter new markets such as virtual/augmented reality (VR/AR), self-driving cars, and folding phones. Each of these technologies has long been in development by other companies, but Apple's immense brand loyalty and innovation could push them forward faster than would otherwise happen.
This year, Apple is expected to launch its first mixed-reality headset, which is expected to feature AR and VR capabilities. While Meta Platforms and Sony already have competing VR headsets on the market, Apple's device will likely push more consumers to consider applying the technology to their daily lives, attracting other companies to develop AR and VR software as demand rises.
Apple is an expert at patiently waiting for new technology to develop and striking at the perfect time by enhancing it with consumer-friendly versions. In that way, the company pushes technology forward, with its devices often becoming the most popular in their respective markets.
As a result, Apple is no doubt a company building the future, with its stock a no-brainer investment.
