There's no better sector for investors in 2025 than tech stocks. The technology sector makes up a whopping 30% of the S&P 500, and also has the best performance among equities, with a 15.6% overall return for the sector so far this year.
Tech stocks represent companies that are at the forefront of innovation as cloud computing, data analytics, and artificial intelligence (AI) reshape the world we live in. Investors are flocking to tech stocks, pushing their valuations higher by the quarter. It should come as no surprise that of the nine U.S. companies with market caps greater than $1 trillion, eight of them are tech companies.
If you want to beat the market and grow your portfolio, tech stocks are some of the best names you can choose. As part of your well-rounded portfolio, one way you can achieve your financial goals is by picking some tech stocks that you can comfortably own for a decade. Consider Nvidia (NVDA 0.43%), Microsoft (MSFT 1.82%), and Palantir Technologies (PLTR 4.14%).
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Nvidia: The market leader
No company is more impactful in the tech space right now than chipmaker Nvidia. The company's rocketed up the charts in the last few years on the strength of its powerful graphics processing units (GPUs) that make high-functioning compute processing possible.
Nvidia continues to make its GPUs better, from Hopper to Blackwell to the incoming Rubin architecture. CEO Jensen Huang has said he expects spending for AI infrastructure to top $1 trillion a year by 2028, with Nvidia on track to fill most of that demand.
Nvidia is still growing fast -- revenue in the second quarter of fiscal 2026 (ended July 27, 2025) was $46.7 billion, up 56% from a year ago. Blackwell data center revenue was up 17% from the first quarter.
And the innovations keep coming. Just this week, the company unveiled a new chip on its Rubin architecture. Nvidia says its Rubin CPX GPU allows the highest performance and token revenue for long-context processing, making AI coding assistants much more sophisticated and effective.
Microsoft: Dominant position, steady growth
While Nvidia has been shooting up the charts, Microsoft stock offers stable growth and a powerful position in software, hardware, services, and cloud computing. Its Microsoft 365 suite of office software is the industry standard, and it has a growing cloud computing segment.
Microsoft reported revenue of $76.4 billion its fiscal fourth quarter of 2025 (ended June 30, 2025), which was an increase of 18% from a year ago. Net income of $27.2 billion was up 24% from last year, and earnings per share (EPS) of $3.65 was an increase of 24%.
For the full fiscal year, Microsoft's revenue was up 15% to $281.7 billion, with net income up 16% to $101.8 billion and EPS up 16% to $13.64 -- not as dramatic as Nvidia, but steady and reliable.
The company saw 27% growth in its Microsoft Azure cloud services revenue, 21% growth in Microsoft 365 consumer cloud services, 16% growth in Microsoft 365 commercial cloud services, and Xbox revenue growth of 13%.
Microsoft's massive businesses make it a safe, profitable investment that you can hold for a decade -- or more.
Palantir Technologies: The disruptor
There's no other company like Palantir. The data mining company is changing both government and commercial businesses through its revolutionary platform that pulls information from multiple sources, digests it, and provides solutions in real time. Military commanders and intelligence analysts use it for an advantage on the battlefield; commercial customers use it to manage supply chains, perform studies, and improve workflows.
The differentiator is Palantir's Artificial Intelligence Platform, which uses generative AI so users submit detailed prompts to get specific responses without learning coding. Palantir has been rolling out boot camps to prospective clients so they can try the platform, and the response has been incredible.
U.S. commercial revenue grew 93% in the second quarter to $306 million, and government revenue jumped 53% to $426 million. Palantir closed 157 deals in the quarter that were valued at $1 million or more; 42 of them were valued at more than $10 million. Palantir says it closed U.S. commercial deals in the quarter with a total contract value of $843 million, up 222% from a year ago.
While Palantir was the best-performing stock in the S&P 500 in 2024 and the first half of 2025, the question about it continues to be the valuation. Palantir has a price-to-earnings ratio of 541 and a forward P/E of 188. But I say the valuation is out of whack because the market is just starting to understand Palantir's true potential. By the end of the decade it has enormous potential to be one of those $1 trillion stocks -- and investors who get in early will see the biggest returns.
