As we wind down the year, it’s time to consider which long-term stocks for 2024 should be on your buy list.
You might be able to make quick money in the short term through buying and selling, but if you want to build a portfolio for retirement or want to leave a legacy for your children, long-term investment is the way forward.
The stock market is improving, and 2024 is expected to be an excellent year for stocks. Build a solid portfolio that can withstand any market ups and downs. With that in mind, here are the seven long-term stocks for 2024 that should be on your radar.
Microsoft (MSFT)
One of the best tech stocks to own, Microsoft (NASDAQ:MSFT) is a leader in the industry and easily one of the best long-term stocks for 2024.
The company is cashing in on the trends right now. It is chasing a higher market share in artificial intelligence and cloud computing.
We can see the same in its recent quarterly results. Microsoft saw a revenue of $56.5 billion, a double-digit growth year over year, and the net income increased 27% year over year to hit $22.3 billion. MSFT stock enjoys a dividend yield of 0.80% and pays a quarterly dividend of $0.75. This is one of the best long-term stocks for 2024.
Trading at $373 today, the stock has immense upside potential, and its success isn’t limited to AI or confined to 2023. It has shown impressive performance over the past decade and will continue to grow in the coming years. The management aims to reach $500 billion in revenue by 2030 and looking at the company’s history, it does look possible to me.
Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) has been a hot stock in 2023 and it has taken the tech industry by a storm. However, I think this is one of the best long-term stocks for 2024 because it isn’t done yet. The company will continue to grow throughout 2024, but it might slow down a little.
The company has dominated the space with its H100 chips, and the demand for the chips is growing at a massive pace.
As the AI industry expands, we could see Nvidia do even better. It should show stellar performance in the first half of 2024 which will boost the stock price. It has already announced that the H200 chip which will supersede its H100 and this indicates that the company is ready to lead the AI race.
Nvidia is stronger than ever. In the third quarter, it reported a revenue of $18.12 billion, up 200% year over year and the data center revenue came in at $14.51 billion, up 279% year over year. Nvidia’s future looks bright and the sooner you get the stock, the higher your gains.
Alphabet (GOOG, GOOGL)
Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) benefits from AI and has been climbing steadily. Trading at $142 today, it is at the 52-week high but could move higher. This is the highest it has been since April 2022.
The recent rally is due to the reports that the company plans to reorganize the advertising business which currently accounts for 80% of the total revenue. It generated $54.4 billion from ad sales in the recent quarter and the reorganization of this segment could boost the financials.
The company has recently launched Gemini, its AI model, which will help transform its AI prowess into sales growth. With Gemini, the company aims to close the gap with Microsoft’s OpenAI. It is faster than OpenAI’s new model and is available in three versions.
This is not the sole reason to invest in Alphabet. The company has a solid history, impressive fundamentals, and a massive market share via Google Search. You will never regret owning GOOG stock.
Li Auto (LI)
One of the top long-term stocks to watch is Li Auto (NASDAQ:LI). The Chinese EV maker has been making solid moves this year, and its delivery numbers are proof that the company is firing on all cylinders.
It is one of the best EV companies right now, and the stock looks undervalued to me at $33.
2024 could be the best year for the company with its fully electric model, Li MEGA launching in February and the company hitting new delivery milestones. It delivered over 40,000 cars in November and is very close to its quarterly delivery target.
The company is in a good position right now. In the third quarter, it beat expectations and reported a revenue of $4.75 billion. Its gross margin was 22% in the quarter, and the net income stood at $385.5 million. As the company continues to expand its fleet, we could see LI stock soar higher.
SoFi Technologies (SOFI)
One of the hot fintech stocks to own right now is SoFi Technologies (NASDAQ:SOFI). It started as a lending company but has become a one-stop shop for all things money.
The company offers complete financial services and is set to gain with the resumption of student loan payments. With over 44 billion borrowers, the demand for personal loans will be on the rise.
SoFi has also grown its user base by 717,000 this quarter, and it aims to add 1 million members each quarter in 2024. Smart investors know SoFi is only getting started, and its best days are yet to come. The management aims to report a profit in the first quarter of 2024.
With 7 million members and a strong market share, SoFi is set to gain in the coming months. As the economy improves, we could see SOFI stock soar higher. It is trading at $9.64 right now and is a financial game changer that could give you solid gains.
Amazon (AMZN)
Amazon (NASDAQ:AMZN) is a diversified business that has delivered impressive growth in e-commerce, advertising, and cloud computing segments.
Black Friday sales and the holiday season have benefitted the company, and I believe it will report stellar fourth-quarter results. The tech stock is up 79% year to date and is exchanging hands for $153.
It will soon start selling vehicles on its website and has been using AI for several years now. It recently moved towards eight regions for fulfillment instead of having one national fulfillment center, and I think this will benefit the company in terms of logistics and quick delivery.
The company has everything you can think of buying and there is no stopping its growth. Its Amazon Web Services is one of the fastest growing segments and generated $23.1 billion in revenue in the recent quarter out of the total revenue of $143.1 billion. The stock is trading at a 52-week high of $153.8 and is a long-term buy and hold.
Palantir (PLTR)
Palantir (NYSE:PLTR) Palantir has been around for a long time now but its prowess in the AI space has helped it gain massive popularity.
It has strong connections with the defence sector and was once criticised for having a majority of the Government clients.
Today, the story is different and it is growing its commercial client base. It saw a 23% rise in the commercial client growth. Its commercial revenue hit $251 million while the government revenue was $308 million.
PLTR stock is trading at $17.59 today and is up 175% year to date. However, there is ample upside potential and it could double your money. But you will need patience, do not expect the stock to soar overnight.
The company did not report a profit for many years but has successfully reached the fourth consecutive quarter of profitability and I believe its investment in AI will pay off in the long term.
On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
