Got $5,000? 2 Tech Stocks to Buy and Hold for the Long Term

Being patient has paid off for investors during the past decade, as the S&P 500 has soared over 262% and it’s close to setting new records once again. But these mammoth gains wouldn’t be…

possible without the contribution of technology stocks. Many people don’t realize that although the benchmark is comprised of the 500 largest stocks on the market, over 27% of those companies are tech stocks, the largest component of the index.

In fact, the Nasdaq 100 Technology Sector index has far outperformed the S&P 500 over the last 10 years, by more than two to one. To make real money on Wall Street, investors need to put time on their side. If generating serious wealth is one of your financial goals, it’s perfectly achievable by practicing a buy-and-hold strategy. A great place to start would be with the following high-growth tech stocks.

1. Nvidia

Video games remain the heart of Nvidia (NASDAQ:NVDA), with graphics processing units (GPUs) for gaming generating 47% of the $6.5 billion revenue for the second quarter. With the gaming GPU market forecast to grow at a compound annual rate of 14% through 2026, according to Mordor Intelligence, Nvidia could be generating $20 billion a year in this segment alone if its sales keep pace.

Because it has an 83% market share of the discrete gaming GPU market, there’s no reason it shouldn’t be able to achieve that. Yet Nvidia also has its finger in the pie of artificial intelligence, data centers, and automobiles. It is using AI to make gaming even better and more immersive. Its deep learning super sampling (DLSS) technology uses AI to take low-resolution images and scale them up to high resolutions for display on high-res screens. Nvidia is also using it on its Morpheus platform to allow for cybersecurity protection of data.

Data center revenue soared 35% year over year last quarter and should grow to actually become Nvidia’s largest segment by 2025. Its $7 billion acquisition of Mellanox completed in 2020, helped position Nvidia to be a leading supplier for networking hardware. And we haven’t even begun to scratch the surface yet on its Drive AV platform for autonomous vehicles, or Omniverse, the first real-time 3D simulation and collaboration platform. These components have contributed to the nearly 300% stock growth over the past three years, and it doesn’t seem like it’ll stop anytime soon.

Wall Street forecasts Nvidia will see revenue growth of…

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