In this article, we will discuss the 10 Best US Stocks to Buy and Hold for the Next 5 Years.
On June 16, Dan Niles, Niles Investment Management Founder, joined ‘The Exchange’ on CNBC to discuss Niles’ thoughts on the recent rise in AI infrastructure, chip, and memory stocks. Niles suggested looking at the previous week’s market trends to understand the dynamics: while four major hyperscalers (Amazon, Google, Microsoft, and Meta) were down 4% on average and Oracle dropped 14% due to significant CapEx guidance, the semiconductor sector rose 9%.
He attributed this to investors selling the companies, spending the money due to cash flow concerns or capital-raising needs, and instead buying semiconductor companies where that money is being spent. He noted that the SpaceX IPO reinforced this trend, as Musk indicated a requirement to spend hundreds of billions of dollars to achieve his goals.
When asked about how much room to run is left for the chip stocks, Niles argued that the trend will continue until at least early next year. He explained that the emergence of agentic AI, formalized around January 30, requires 10 to 100 times more tokens to perform complex tasks, such as booking travel, finding hotels, and compiling itineraries, than standard chat-based queries. He believes that it will take about a year to build sufficient capacity and announce this development before a real problem emerges.
Against this backdrop, let’s look at some of the US stocks to buy and hold for the next five years.
Our Methodology
We used screeners to identify US stocks that are expected to grow their earnings by at least 30% over the next 5 years, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Note: All data was sourced on June 16.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10 Best US Stocks to Buy and Hold for the Next 5 Years
10. ON Semiconductor Corporation (NASDAQ:ON)
Number of Hedge Fund Holders: 58
ON Semiconductor Corporation (NASDAQ:ON) is one of the best US stocks to buy and hold for the next 5 years. On June 9, ON Semiconductor launched its GaNEXUS gallium nitride power portfolio, which is now sampling to provide enhanced efficiency, thermal performance, and power density. This new lineup includes FETs ranging from 40V to 650V, along with 650V Smart GaN FETs that feature integrated protection for improved system reliability and easier integration.
These solutions are specifically designed to address the growing power demands of AI data centers, robotics, industrial automation, and energy infrastructure. By enabling faster switching speeds and lower losses compared to traditional silicon, GaNEXUS allows designers to reduce the size of cooling systems and magnetics while increasing overall power density.
When combined with ON Semiconductor Corporation’s (NASDAQ:ON) Treo Platform for sensing and control, the GaNEXUS technology offers a robust, system-level approach to power management. This flexibility allows engineers to optimize performance and thermal behavior across the entire power-delivery chain, helping to lower total system costs and energy consumption in demanding high-power applications.
ON Semiconductor Corporation (NASDAQ:ON), founded in 1999 and headquartered in Scottsdale, Arizona, delivers intelligent power and sensing solutions, serving automotive and industrial markets.
9. Microchip Technology Inc. (NASDAQ:MCHP)
Number of Hedge Fund Holders: 69
Microchip Technology Inc. (NASDAQ:MCHP) is one of the best US stocks to buy and hold for the next 5 years. On June 9, Microchip released its TimePictra 12 platform, a software upgrade designed to enhance synchronization management for critical infrastructure like telecom, data centers, and power grids. The platform provides operators with improved visibility, automation, and control through a redesigned graphical user interface, supporting the management of complex timing architectures within large-scale networks.
The new version features expanded capabilities for handling High-Accuracy Time Transfer/HA-TT connections and monitoring GNSS observables via BlueSky technology, which helps identify potential security anomalies. It also incorporates SkyWire technology to maintain precise, nanosecond-level clock alignment across distributed network elements, ensuring resilience in environments where timing integrity is vital.
Designed to streamline operations, TimePictra 12 now supports up to 5,000 network elements, doubling the capacity of previous versions to simplify large-scale deployments. The platform is compatible with a wide range of Microchip Technology Inc.’s (NASDAQ:MCHP) synchronization products, offering a centralized management solution that reduces operational overhead while accelerating network configuration and upgrades.
Microchip Technology Inc. (NASDAQ:MCHP) provides smart, connected, and secure embedded control solutions. Its semiconductor products business designs, develops, manufactures, and markets mixed-signal microcontrollers, development tools, analog and interface products, timing and connectivity devices, and memory products.
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