10 Best Long Term Tech Stocks to Buy Right Now

2) Microsoft Corporation (NASDAQ:MSFT)

10-Year Revenue Growth: ~10.8%

Number of Hedge Fund Holders: 317

Microsoft Corporation (NASDAQ:MSFT) is engaged in developing and supporting software, services, devices, and solutions. The company’s early and aggressive investments in AI place it well in the transformative technology. Furthermore, AI integration throughout Microsoft Corporation (NASDAQ:MSFT)’s product portfolio, from Azure cloud services to productivity tools such as M365 Copilot, results in creating several avenues for revenue growth. With AI becoming increasingly central to business operations, the company’s comprehensive AI offerings are expected to drive consistent demand for services and strengthen its market position.

Microsoft Corporation (NASDAQ:MSFT)’s Azure platform is expected to drive the next leg of growth. The company’s healthy enterprise relationships, comprehensive suite of cloud services, and integration with significantly-used productivity tools provide it with a competitive edge. Overall, the company is well-placed to benefit from the growth of the broader technology industry via higher demand for AI, cloud computing, and enterprise software solutions. Microsoft Corporation (NASDAQ:MSFT)’s strong presence in AI-powered services, expansion of Azure cloud, and enterprise productivity tools place it for sustained revenue growth.

Mairs & Power, an investment advisor, released the Q4 2024 investor letter. Here is what the fund said:

“Unlike the dot-com companies that operated at the turn-of-the-century, many of today’s technology companies are established businesses with significant cash flows. We have argued, and continue to argue, that many of these investments are perfectly aligned with our investments process in that they embody durable competitive advantages, above-average growth prospects, and excellent management teams.

A perfect example is Microsoft Corporation (NASDAQ:MSFT), which has grown to become the largest holding in the Growth Fund. Microsoft has a near monopoly on the office software productivity market with its Microsoft Office Suite. The company’s Azure platform is a leader in cloud computing and has been steadily gaining share. Thanks to its Office and Azure products, the company is deeply embedded within many enterprise IT ecosystems. Therefore, it should be well-positioned to expand its presence within its customer base, as it rolls out premium-price AI solutions. The company is not resting on its laurels and plans on spending an astounding $80 billion in 2025 to build out AI data centers.”