Wall Street has seen significant volatility in 2025, triggered by fears of a potential recession and new rounds of tariff wars. However, this market turmoil can also offer an opportunity to quietly compound your long-term wealth.
If you look beyond the daily panic, you will notice a few companies that are demonstrating healthy top-line growth while maintaining substantial competitive moats in their respective markets. Here's why Nvidia (NVDA 0.22%), Microsoft (MSFT +2.20%), Super Micro Computer (SMCI +4.07%), and ServiceNow (NOW +2.39%) are worth buying and holding for the long run.
1. Nvidia
At the time of this writing, shares of Nvidia are down nearly 31% from their January peak. Yet the business has not weakened. It is still going strong.
NASDAQ: NVDA
Key Data Points
The company's recently launched Blackwell chips represent a dramatic leap in artificial intelligence (AI) computing capabilities. Compared to previous Hopper architecture chips, they deliver impressive performance at a much lower cost when handling large inferencing AI workloads. This means faster results and lower client costs, translating into high enterprise demand. Blackwell has already generated over $11 billion in revenue during the most recent quarter.
Nvidia has also evolved from a gaming-focused chip player to a full-stack AI infrastructure giant, with a robust software ecosystem and networking infrastructure. The company is also focusing on upcoming AI opportunities in areas like agentic AI, physical AI, and autonomous driving. Not surprisingly, Bank of America analysts see the company's addressable AI infrastructure market reach at around $2 trillion. Nvidia is still in the early stages of capitalizing on this tremendous opportunity.
2. Microsoft
Microsoft has also emerged as a dominant AI player and is already monetizing its AI assets.
NASDAQ: MSFT
Key Data Points
Microsoft's primary profit driver, the Azure cloud computing platform, continues to be a major growth catalyst. Recently, however, Azure AI infrastructure services have been pivotal in attracting developers, businesses, and enterprises to the Azure ecosystem.
The company's AI-powered Copilot assistant, integrated across several of its flagship offerings, is also a very promising AI initiative. Copilot is helping attract new customers and increase usage frequency among large enterprises. The company is also at the forefront of the next-generation quantum computing technology, with initiatives such as the Majorana 1 chip and advances in quantum virtualization software.
Microsoft also differentiates itself from several of its peers based on its robust financial structure. The company's mostly subscription-based diversified business model is a significant strength in the current volatile environment.
And here's where it gets interesting: Even with all this momentum, the company is trading at 25.9 times forward earnings -- below its five-year average of 33 times. That disconnect may not last long. But it offers a smart opportunity to pick up this stock now.
3. Super Micro Computer
Super Micro Computer's leading position in the AI server market and its dominance in liquid cooling technology have made it a significant beneficiary of the explosive demand in the global AI infrastructure market, estimated to be over $200 billion by 2028.
NASDAQ: SMCI
Key Data Points
Super Micro Computer lowered its guidance for fiscal 2025 but remains confident about reaching $40 billion in revenues in fiscal 2026, implying around 65% year-over-year growth from its current-year forecasts. The company expects strong demand for air-cooled and liquid-cooled AI configurations, equipped with Nvidia's Blackwell GPUs. Super Micro Computer is also working on increasing manufacturing capacity at its U.S., Taiwan, and Malaysia sites. Since utilization is just 55% in the U.S., 60% in Taiwan, and only 1% in Malaysia, there is a lot of room to grow.
Although the company faces multiple challenges, including margin pressures, intensifying competition, and damaged investor trust due to historical compliance and governance issues, there is still much to like about this stock.
4. ServiceNow
ServiceNow's cloud-based digital workflow automation platform, known as the Now platform, has positioned the company as a key beneficiary of the growing adoption of digitization across enterprises. The company's software solutions are used to automate and streamline technology, CRM, industry, core business, and creator workflows across industry verticals such as healthcare, manufacturing, and the U.S. public sector. Thanks to the diversified business model, the company is not overtly reliant on any particular industry or workflow.
NYSE: NOW
Key Data Points
ServiceNow has delivered impressive financial performance, with subscription revenues rising 20% year over year and current remaining performance obligations (the current portion of future revenue backlog) growing 22% year over year in the recent quarter (first quarter fiscal 2025 ending March 31, 2025).
The company's AI initiatives are also gaining momentum. This is evident since the number of ServiceNow Pro Plus deals (which offer advanced generative AI capabilities integrated into the Now Assist suite) more than quadrupled year over year in the first quarter. The company's next-generation AI-optimized database, RaptorDB, also gained traction and won five deals over $1 million. Finally, the company's planned acquisitions, Moveworks and Logik.ai, are further expected to strengthen its AI capabilities.
ServiceNow is trading at a forward P/E of 47.8, which is not cheap. However, the stock seems a worthwhile buy now considering its robust fundamentals and the valuation, which is dramatically lower than its five-year average of 235.2 times.
