Twenty-five years may seem like a long time to some investors. But those of us of a certain age can think back to the turn of the century. What stocks would have been on a list of tech stocks to buy and hold back then? Apple (NASDAQ:AAPL)? Sure. Amazon (NASDAQ:AMZN). Check. And what about Netflix (NASDAQ:NFLX), the company we used to get DVDs from…in the mail?
These are names that look obvious today and have rewarded investors who had the foresight to invest in them before they were what they are today. But each of those stocks – and many like it – were not seen as slam dunk choices at that time.
So what are those stocks for the next 25 years? To make my choices, I looked at what Forbes had to say about some of the tech trends for the next decade and beyond. From there, I created this list of tech stocks to buy and hold for the next twenty-five years.
Palantir (PLTR)
From the time Palantir (NYSE:PLTR) went public via a direct listing in 2020, the company has been tagged with the “yeah but” label. No matter what the company did, investors responded with a series of objections.
First it was too reliant on government contracts. Then it wasn’t profitable. Lately, it’s been concerns about its ability to monetize its artificial intelligence (AI) platform, AIP. In each case, Palantir has shown that the concerns are largely unfounded.
That doesn’t mean the price of PLTR stock equates with a fair valuation. But as the saying goes, price is what shareholders are willing to pay. So far, Palantir is doing a good job of silencing its naysayers.
Nevertheless, it’s likely too late for investors to get in on the stock at a price below $10. However, with it becoming increasingly likely that Palantir will be included in the S&P 500 index sooner rather than later, there will be much more institutional interest in the stock. And that means if you’re looking at tech stocks to buy and hold for 25 years, PLTR stock looks like a solid choice.
Tesla (TSLA)
Tesla (NASDAQ:TSLA) is another tech stock that is likely to be a good choice for buy-and-hold investors. But it’s not (just) because of the company’s leadership in the electric vehicle (EV) space.
That doesn’t hurt, mind you. Tesla has been aggressively cutting prices on its EVs in an effort to capture market share. It’s too early to tell, but when the economy does become more favorable for consumers to buy cars, we may see that Tesla already has a significant chunk of the available market covered. And the company still expects to make a splash when its Cybertruck launches later this year.
But Tesla bulls have always viewed the company as a tech company more than a car company. For example, Tesla’s Gigafactory 2 in New York builds solar cells and components for energy storage as well as the company’s superchargers.
Current TSLA stock shareholders see the company’s position in solar power, battery technology, and EV charging as confirmation that, in short order, Tesla will be a sum-of-its-parts stock that will provide investors with long-term value for the next 25 years.
Coinbase Global (COIN)
Blockchain technology continues to be adopted. That means cryptocurrency, and in particular bitcoin, will continue to be relevant. Coinbase Global (NASDAQ:COIN) is one of the largest cryptocurrency exchanges and therefore should be on your list of tech stocks to buy and hold.
Twenty-five years ago, cryptocurrency was just an idea. Today, this is a $1.28 trillion market and that’s down from being a nearly $3 trillion market just a couple of years ago. Those who buy and sell crypto know all too well that this is an asset class that, though still in its infancy, has gone through many boom and bust cycles.
But the best may be yet to come. According to Forbes, Bitcoin’s recent push past $35,000 may be just the beginning of a larger move to $150,000 by 2025. One of the catalysts for this will be the arrival of multiple bitcoin spot exchange-traded funds (ETFs).
However, many investors may want exposure to Bitcoin without owning the currency. For those investors, owning shares of COIN stock makes a ton of sense.
CRISPR Therapeutics (CRSP)
Twenty-five years ago, scientists were making breakthroughs at mapping the human genome. Today, companies like CRISPR Therapeutics (NASDAQ:CRSP) is working in the emerging field of gene editing. This promising technology seeks to edit human DNA to treat genetic diseases that have resisted treatment.
In the short-term, the company’s lead candidate, Exa-cel, which is being developed in partnership with Vertex Pharmaceuticals (NASDAQ:VRTX), is designed to treat two rare blood diseases: sickle cell disease (SCD) and transfusion-dependent beta-thalassemia (TDT). What Exa-cel may lack in addressable audience, it will more than make up for in the expected cost of the treatment.
However, the buy-and-hold case for CRSP stock has to do with the company’s potential to expand gene editing into areas like some forms of cancer and type 1 diabetes.
Palo Alto Networks (PANW)
Cybersecurity is already one of the hottest trends in technology. And the reality is that, even with the expansion of blockchain technology, the need for cybersecurity is only going to grow. Palo Alto Networks (NASDAQ:PANW) is a leader in this space today, but it’s one that you’ll surely want to keep on a list of tech stocks to buy and hold for the long haul.
Many investors will hear words like “cyber resiliency” and “trust architecture” as part of the future cybersecurity landscape. To address these threats there are cybersecurity firms popping up nearly as fast as the emerging cyber threats. If you’re a casual investor in this space, it can be difficult to know which company’s stock to own.
With PANW stock, you keep it simple. You’re buying a company that’s one of the recognized leaders in the sector today, and one that is addressing current and future threats. As a long-term investment you can simply look for sell-offs to add to your position.
IonQ (IONQ)
IonQ (NYSE:IONQ) is a pure-play company in the area of quantum computing. The idea is that quantum computers use elements of quantum physics to solve the world’s most complex problems. These computers are being enhanced by artificial intelligence. That’s why many investors believe quantum computing stock may be getting ready to take off.
If that’s the case IonQ is a solid choice. The company is not profitable yet (none are). However, it is steadily growing its revenue, and since it has partnerships with the top three cloud computing companies that revenue trajectory is likely to continue.
IONQ went public as part of a special purpose acquisition company (SPAC) that went public as part of the SPAC frenzy in 2020 and 2021. That may not sit well with some investors, but if you have an appropriate risk tolerance, taking a small position now may pay off in a big way.
CVD Equipment (CVV)
CVD Equipment (NASDAQ:CVV) is a picks-and-shovel investment in the next generation materials that will be part of the tech and energy landscape for the next 25 years. Specifically, the company is one of the world’s leading graphene producers.
Graphene is considered a wonder material that is around 200 times stronger than steel. This is despite being comprised of a single, ultra thin layer of carbon atoms. One of the key applications for graphene will be the semiconductor market. It’s also used in solar panels and batteries.
Grand View Research forecasts that the global graphene market will be valued at $3.75 billion by 2030, a compound annual growth rate (CAGR) of 45.9%.
On the date of publication, Chris Markoch had a long position in PLTR The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
