Microsoft (MSFT 0.51%) has been a tech industry staple for over 50 years, and it's not showing signs of slowing down. In the past five years, its valuation has jumped from around $1.6 trillion to over $3.4 trillion (crossing the $4 trillion mark at one point).
Even with Microsoft's past success, its stock still has plenty of room to grow. If I had to choose a stock to hold for the next decade, Microsoft would be it.
NASDAQ: MSFT
Key Data Points
Microsoft isn't one of the best tech stocks for the next decade because people think it will outperform all others. It's one of the best choices because its business is as stable and consistent as any tech business you'll find.
A lot of Microsoft's virtually guaranteed longevity stems from its stronghold in enterprise software. Millions of companies globally rely on it for their productivity tools, cloud services, and cybersecurity. This acts as a natural safety net because businesses are more likely to keep these services through rough economic patches.
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There are also significant switching costs in these industries that discourage customers from jumping ship to competitors. Some tech companies may lose a lot of steam if (or when) the artificial intelligence (AI) hype dies down, but Microsoft's business is thorough enough to keep flourishing regardless of how the current AI craze plays out.
That safety net will help it as it pursues multiple growth opportunities in newer segments of its operations. It's what makes Microsoft such a great buy-and-hold candidate for the next decade.
