When you consider whether to invest in a company for the long term, you'll often find that stocks fall into two groups.
The first includes stocks of companies that have done well. For those, it's about whether they can continue to perform at a high level. The other consists of flawed stocks, companies facing adversity or potential challenges that may deter investors.
Palantir Technologies (PLTR 4.85%), Apple (AAPL +0.11%), and Alphabet (GOOG 3.06%)(GOOGL 3.44%) are three well-known technology stocks representing a mix of both groups. Palantir has been one of the market's biggest winners in artificial intelligence (AI), while investors wonder whether Apple and Alphabet are losing their edge.
Here is the skinny on each name and why all three can still be long-term winners.
Image source: Getty Images.
1. This AI stock continues to defy gravity
Palantir Technologies continues to chug higher, racking up a blistering 2,100% gain since 2023. The company has become a leader in developing AI software on its proprietary platforms for government and enterprise customers. And since launching AIP, its AI-focused platform, in mid-2023, Palantir's growth has continued to accelerate.
The company still has fewer than 500 commercial customers in the United States, a tiny fraction of the country's 20,000 large corporations. Then, you factor in Palantir's close military ties (government contracts accounted for 55% of revenue in Q1 2025) at a time when America is involved in numerous geopolitical conflicts, and it's easy to envision years of high-speed growth.
NASDAQ: PLTR
Key Data Points
Despite its best efforts, Palantir's business hasn't kept pace with its share price. The stock has rocketed to a forward P/E ratio of 245, which is excessive, to say the least, for a business expected to compound earnings at an annualized rate of 31% over the long term. Given its growth momentum, both in the government and with commercial customers, Palantir's business appears poised to continue winning. That said, investors will probably want to wait for some significant dips to buy the stock at a more reasonable valuation.
2. Should investors worry about Apple's slow start in AI?
AI seemed like a layup for Apple, with a wide-moat ecosystem spanning more than 2.35 billion active iOS devices worldwide. All Apple has needed to do is integrate AI capabilities into its iOS platform, and it would instantly be one of the leading consumer-facing AI companies, if not the leader.
Yet Apple has struggled to launch notable AI features smoothly, and its underwhelming rollout of Apple Intelligence, its first attempt at AI, compelled the company to reorganize its AI team.
The good news is that Apple's iOS remains one of the stickiest consumer ecosystems, which buys time for Apple to figure things out. People buy Apple products and use them for several years. The devices, whether it's a phone, computer, tablet, or watch, sync and work together. People become accustomed to iOS and develop a commitment to the ecosystem. Users may drift away from Apple eventually if it doesn't figure out AI, but it's unlikely that Apple's user base would implode overnight.
NASDAQ: AAPL
Key Data Points
Ultimately, Apple is a behemoth, a financial juggernaut with one of the world's most influential brands. While Apple may not deliver the same type of returns as in years past at a $3 trillion market cap, the stock should have a relatively high floor, based on the company's massive stock buybacks, growing dividend, and sticky business model. It's worth the leap of faith that Apple will solve its AI frustrations.
3. Is AI an opportunity or a threat to Google?
Google's parent company, Alphabet, is facing some pressure from several directions. AI models have become popular enough to begin siphoning traffic away from traditional search engines, like Google. At the same time, U.S. regulators have successfully pursued litigation against Alphabet for anti-competitive practices, which could result in fines or even forced divestitures that would potentially impact its core advertising business.
The adversity has one of the world's most prominent technology stocks trading at a P/E ratio of just 19 today. Yet, AI is arguably more an opportunity than a threat. Alphabet has integrated AI summaries into its search results, successfully monetizing them. Despite all the worries about AI, Google's ad revenue still grew by 10% in Q1 2025. Plus, Google Cloud is growing in size and profitability due to AI boosting demand for cloud services.
NASDAQ: GOOG
Key Data Points
If that weren't enough, Alphabet's autonomous ride-hailing business, Waymo, is continuing to expand its footprint across the United States and could eventually become a significant piece of Alphabet's business.
When you put it all together, it seems that this technology giant will continue to remain a prominent force across the AI and technology space. That's an easy bet to make when the stock trades near its lowest valuation of the past decade.
