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3 Growth Stocks to Buy and Hold for the Long Term

3 Growth Stocks to Buy and Hold for the Long Term

Yahoo Finance • • 2 min read • Intermediate
Stocks Market Analysis Technology Investing #growth-stocks #long-term-investing #AMZN #NVDA #MSFT #cloud-computing #artificial-intelligence
Long-term investors often look for companies with durable competitive advantages, scalable business models and exposure to powerful secular trends. Three names that commonly meet those criteria are Amazon (AMZN), Nvidia (NVDA) and Microsoft (MSFT). Each offers a distinct combination of revenue diversification, reinvestment capacity and positioning in high-growth markets that can support multi-decade compounding.

Amazon remains a dominant e-commerce platform while its Amazon Web Services (AWS) cloud division delivers the bulk of operating profits. AWS’s leadership in cloud infrastructure and enterprise services gives Amazon recurring revenue and pricing power, even as the company reinvests heavily in logistics, advertising and content to expand margins and customer loyalty.

Nvidia is a pure-play beneficiary of the AI and accelerated computing cycle. Its GPU architectures underpin training and inference workloads across cloud providers, enterprise data centers and edge applications. As AI adoption grows across industries, Nvidia’s mix of hardware, software and developer ecosystems creates a high-margin, capital-efficient moat that can sustain long-term revenue growth and strong free cash flow generation.

Microsoft blends enterprise software, cloud infrastructure and productivity tools into a resilient cash-flow engine. Azure’s cloud growth, Office 365 subscription economics and expanding business in security, databases and AI services give Microsoft durable visibility into revenue and earnings. Under consistent product innovation and subscription monetization, the company has shown an ability to convert scale into margin expansion.

All three stocks carry risks: valuation sensitivity in tech markets, execution challenges, regulatory scrutiny and competition. Long-term holders should expect periods of volatility and reassess positions if fundamentals materially change. Diversification and periodic portfolio review remain important.

For investors focused on buy-and-hold strategies, Amazon, Nvidia and Microsoft represent exposure to cloud computing, artificial intelligence and digital commerce—three secular themes likely to shape corporate earnings for years. They are not guaranteed winners, but their market positions, cash-generation profiles and reinvestment prospects make them credible core holdings for patient investors who can tolerate short-term swings.