Tech stocks have a long reputation for providing consistent and significant gains over the long term, proven by the Nasdaq-100 Technology Sector's 395% rise over the last 10 years.
The industry's ever-expanding nature is driven by reliable demand for upgrades to various hardware and software products. So, it's unsurprising that investing mogul Warren Buffett's holdings company, Berkshire Hathaway, has dedicated more than 40% of its portfolio to tech stocks. Meanwhile, Berkshire's holdings posted a compound annual gain of nearly 20% between 1965 and 2023.
As a result, it could be worth following suit and making a sizable long-term investment in the high-growth sector. So, here are three stocks to invest $30,000 in right now -- $10,000 for each.
1. Advanced Micro Devices
Advanced Micro Devices (AMD +3.50%) business has exploded over the last decade, taking on a leading role in the chip market.
A decade ago, the company was on the brink of bankruptcy, bleeding money alongside mounting debt. Then, in 2014, Lisa Su became AMD's CEO, triggering one of the most impressive turnarounds in the tech market's history.
The launch of its Ryzen line of central processing units (CPUs) in 2017 has been a major growth catalyst, with AMD's CPU market share rising from 18% in the first quarter of 2017 to 33% in 2024. The company has gradually chipped away Intel's share, which fell from 82% to 64% in the same period.
Data by YCharts
Shares in AMD have soared 3,500% over the last 10 years. As a result, an investment of $10,000 in AMD's 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 an exciting outlook that could deliver major gains over the next 10 years. AMD is investing heavily in artificial intelligence (AI), launching new AI graphics processing units (GPUs) this year and investing in AI personal computers.
NASDAQ: AMD
Key Data Points
The AI market hit nearly $200 billion last year and is projected to reach nearly $2 trillion by 2030. Alongside positions in other areas of tech, such as cloud computing, video games, and consumer PCs, AMD will likely continue benefiting from the tailwinds of tech for years.
Consequently, an investment of $10,000 in AMD's stock over the next decade could deliver significant gains.
2. Amazon
It's impossible to deny Amazon's (AMZN +2.02%) potent role in tech. Thanks to its popular e-commerce site, the company has built up immense brand loyalty worldwide. Amazon's retail site is available in over 20 countries and ships to more than 100 nations.
The success of Amazon's e-commerce business has seen annual revenue climb 546% since 2014, with operating income skyrocketing by more than 20,000%.
NASDAQ: AMZN
Key Data Points
Amazon's meteoric rise is primarily owed to its lucrative Prime membership. Its subscription-based model bundles multiple services, including free expedited shipping on its retail site, video streaming, music, gaming, and more. Including multiple services makes consumers less likely to unsubscribe, leading to a global subscriber count above 230 million.
Data by YCharts
Shares in Amazon have risen 926% since 2014, meaning an investment of $10,000 back then would be worth over $102,000 today. And the company could potentially beat that growth over the next 10 years.
In addition to consistent retail growth, Amazon is rapidly expanding in AI and cloud computing. On April 25, the company announced plans to invest $11 billion to build data centers in Indiana to grow Amazon Web Services (AWS).
The company is on a promising growth path, and if you have the means, it could be worth an investment of $10,000 this month. However, a smaller investment is still worth considering.
3. Apple
Apple (AAPL 0.01%) is easily one of the most successful companies in tech history. Its market cap of $2.6 billion makes it the world's second-most-valuable company (only after Microsoft). Meanwhile, Apple's vast and loyal user base has allowed it to achieve leading market shares in multiple product categories.
NASDAQ: AAPL
Key Data Points
However, the company has stumbled over the last year. Macroeconomic headwinds led to repeated quarters of revenue declines in 2023. Apple's Q1 2024 seemed to break the streak, with revenue rising 2% year over year.
Meanwhile, the tech giant's free cash flow hit $107 billion, significantly more than Microsoft, Amazon, or Alphabet. The considerable difference could suggest Apple is best equipped to keep investing in its business and come back strong in the coming years.
Data by YCharts
Apple's stock has increased by 738% over the last decade. Consequently, a $10,000 investment in its shares 10 years ago would be worth nearly $84,000 today.
Moreover, like AMD and Amazon, Apple is taking on AI head-on. Over the last year, the company has gradually added AI-driven features across its product range, with plans to overhaul its MacBook lineup to focus on AI. The company also recently acquired French AI company Datakalab, which specializes in on-device processing.
Apple's dominating role in tech and exciting outlook could make it worth investing $10,000 in its stock, with plans to hold for at least a decade.
