In this piece, we discuss the 14 Best IT Stocks to Buy for the Long Term.
Following a massive rally driven by artificial intelligence, U.S. technology stocks finally show their first signs of fatigue. The sector has surged more than 50% since April, significantly higher than the broader S&P 500’s gain. However, recently, the sector stumbled as investors shifted their focus from the seasonally choppy market to secure their profits. Amid the uncertainty ahead of Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium, investors are worried that too much money is concentrated in AI-related stocks. Accordingly, the Nasdaq, which is heavy in tech stocks, is down about 2% in the past week, driven by large declines in tech giants, such as Nvidia and Palantir.
Here, investors are questioning whether AI enthusiasm has gotten ahead of fundamentals. Tech stocks have become very expensive, with the sector trading near 30 times forward earnings, which is the highest level in a year. Furthermore, an MIT study reports that most companies are seeing little to no returns from AI investments. Even Sam Altman, OpenAI’s CEO, advised caution, suggesting AI stocks might be overvalued.
Yet analysts see this as a natural cooling-off rather than a collapse of the AI growth story. Investors are shifting their attention to identifying the best IT stocks that demonstrate resilience amid short-term volatility while returning sustainable growth in the long term.
With this backdrop in mind, we will now shed light on the 14 Best IT Stocks to Buy for the Long Term.
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Our Methodology
To curate our list of the 14 Best IT Stocks to Buy for the Long Term, we used the Finviz screener to extract a list of IT stocks with over 20% revenue growth in the past five years. Next, we ranked those stocks in ascending order based on the number of hedge funds holding stakes in each stock as of Q1 2025. We assessed hedge fund ownership of each stock using Insider Monkey’s hedge fund database, which tracks over 1,000 hedge funds.
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. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
14. Palo Alto Networks, Inc. (NASDAQ:PANW)
5-Year Revenue Growth: 22.03%
Number of Hedge Fund Holders: 77
With strong revenue growth and significant hedge fund interest, Palo Alto Networks, Inc. (NASDAQ:PANW) secures a spot on our list of the 14 Best IT Stocks to Buy for the Long Term.
On August 19, 2025, Truist Securities increased its price target on Palo Alto Networks, Inc. (NASDAQ:PANW) from $205 to $220, maintaining a ‘Buy’ rating. This price revision follows the company’s strong fiscal Q4 results. The quarter experienced revenue growth of 15.8% YoY, surpassing analyst estimates, thanks to solid performances in SASE, XSIAM, and virtual firewalls. Furthermore, the gross margin stood at 73.6%, while levered free cash flow hit $3 billion.
Palo Alto Networks, Inc. (NASDAQ:PANW)’s strong quarterly performance was led by key growth drivers, including 32.2% NGS ARR growth and 24% RPO growth, both exceeding expectations. Moreover, the company reported encouraging FY2026 guidance, bolstering investor confidence. Meanwhile, Truist highlighted the company’s progress toward its ambitious $15 billion ARR target by 2030, driven by AI and identity-driven solutions.
With platforms such as Prisma Access, Prisma Cloud, Strata Cloud Manager, and virtual firewalls, Palo Alto Networks, Inc. (NASDAQ:PANW) delivers cybersecurity solutions across network, cloud, and hybrid environments. It is one of the best IT stocks.
13. Palantir Technologies Inc. (NASDAQ:PLTR)
5-Year Revenue Growth: 30.73%
Number of Hedge Fund Holders: 77
Palantir Technologies Inc. (NASDAQ:PLTR) is one of the 14 Best IT Stocks to Buy for the Long Term.
On August 5, 2025, Cantor Fitzgerald raised its price target on Palantir Technologies Inc. (NASDAQ:PLTR) from $110 to $155, maintaining a ‘Neutral’ stance, following the company’s record-breaking Q2 2025 results.
For the quarter, Palantir Technologies Inc. (NASDAQ:PLTR)’s U.S. Commercial segment exceeded Street estimates by 15%, driving the management’s projected sustained 90% growth despite challenging comparisons ahead. Despite international commercial revenue slipping for a second straight quarter, the investment firm highlighted the company’s growing U.S. focus, which will now comprise nearly 80% of revenue by 2026, up from previous estimates of 75%.
Palantir Technologies Inc. (NASDAQ:PLTR) achieved record contract value bookings and a “Rule of 94” (the company’s key metric combining revenue growth and profitability) in Q2. Looking ahead, the company reported guidance of a “Rule of 95” for Q3 2025, and a “Rule of 91” for the full year.
Palantir Technologies Inc. (NASDAQ:PLTR) enables intelligence, counterterrorism, and data-driven decision-making with its advanced software platforms. It is one of the best IT stocks.
12. Shopify Inc. (NASDAQ:SHOP)
5-Year Revenue Growth: 36.93%
Number of Hedge Fund Holders: 77
With strong revenue growth and significant hedge fund interest, Shopify Inc. (NASDAQ:SHOP) secures a spot on our list of the 14 Best IT Stocks to Buy for the Long Term.
On August 7, 2025, JPMorgan raised its price target on Shopify Inc. (NASDAQ:SHOP) from $115 to $179, maintaining an ‘Overweight’ rating. This price revision reflects the company’s strongest growth trends since the pandemic.
For Q2 2025, Shopify Inc. (NASDAQ:SHOP) reported a surge in its Gross Merchandise Volume and Gross Payment Volume segments, while its notional volume growth hit a record high. JPMorgan noted that consumer demand remained unaffected by tariffs, and the company’s volume growth was driven by price increases by some merchants.
Looking ahead, Shopify Inc. (NASDAQ:SHOP) projected over 20% gross margin growth in Q3, along with expanding free cash flow margins, beating Street expectations.
With its commerce technology solutions, Shopify Inc. (NASDAQ:SHOP) helps merchants globally manage sales, payments, fulfillment, analytics, and financing across digital and physical retail channels. It is one of the best IT stocks.
11. ASML Holding N.V. (NASDAQ:ASML)
5-Year Revenue Growth: 20.25%
Number of Hedge Fund Holders: 80
ASML Holding N.V. (NASDAQ:ASML) is one of the 14 Best IT Stocks to Buy for the Long Term.
On July 21, 2025, Freedom Broker downgraded ASML Holding N.V. (NASDAQ:ASML) from ‘Buy’ to ‘Hold’, maintaining a $790 price target following the company’s Q2 results. The company’s quarterly results exceeded expectations. However, the company issued mixed Q3 guidance, causing the company’s shares to decline 9% in the following week.
While ASML Holding N.V. (NASDAQ:ASML) reaffirmed its FY2025 targets, it faces increasing FY2026 risks associated with tariffs, export restrictions, and broader geopolitical uncertainty. Accordingly, Freedom Broker reduced its 2026 forecasts. At the same time, the investment firm remains confident in the company’s ability to pass potential cost increases along the supply chain.
Yet the analyst believes the recent sell-off offers a buying opportunity, valuing ASML Holding N.V. (NASDAQ:ASML) at 27x FY2026 earnings.
ASML Holding N.V. (NASDAQ:ASML) offers lithography, metrology, and inspection systems for advanced semiconductor equipment globally. It is one of the best IT stocks.
10. Atlassian Corporation (NASDAQ:TEAM)
5-Year Revenue Growth: 26.43%
Number of Hedge Fund Holders: 82
With strong revenue growth and significant hedge fund interest, Atlassian Corporation (NASDAQ:TEAM) secures a spot on our list of the 14 Best IT Stocks to Buy for the Long Term.
On August 8, 2025, Bernstein reduced its price target on Atlassian Corporation (NASDAQ:TEAM) from $310 to $296, maintaining an ‘Outperform’ rating. This price revision comes after the company’s Q4 earnings release.
Atlassian Corporation (NASDAQ:TEAM) reports strong total revenue and cloud revenue, both surpassing expectations by 2.2% and 2.7%, respectively. The topline growth stood at 19.12% YoY, resulting in 82.31% gross margins. Thanks to a new sales leader and improved tooling, the company noted improved visibility in enterprise sales.
Meanwhile, Atlassian Corporation (NASDAQ:TEAM) expects 18% growth in FY26. At the same time, Bernstein expects growth to exceed 21%, which is in line with its three-year 20% CAGR goal.
With its collaboration software, including Jira, Confluence, Loom, Jira Service Management, and Rovo, Atlassian Corporation (NASDAQ:TEAM) helps teams connect, share knowledge, and enhance productivity at scale globally. It is one of the best IT stocks.
9. Datadog, Inc. (NASDAQ:DDOG)
5-Year Revenue Growth: 44.38%
Number of Hedge Fund Holders: 84
Datadog, Inc. (NASDAQ:DDOG) is one of the 14 Best IT Stocks to Buy for the Long Term.
On August 8, 2025, Cantor Fitzgerald raised its price target on Datadog, Inc. (NASDAQ:DDOG) from $171 to $179, maintaining an ‘Overweight’ rating, driven by the company’s strong Q2 results.
Datadog, Inc. (NASDAQ:DDOG) eased concerns related to potential in-sourcing by its largest AI native customer, which contributes about 6.5% of quarterly revenue, thanks to a 25.5% YoY revenue growth. Following the Q4 2024 contract renewal, the company demonstrated resilience in its AI native segment. Its higher second-half guidance further bolstered the analysts’ confidence. Even after excluding the largest customer, the company’s revenue growth remains steady despite a cautious stance among enterprises.
Thus, the analyst believes Datadog, Inc. (NASDAQ:DDOG) is well-positioned to capitalize on both AI-native expansion and broader enterprise adoption.
With its observability and security platform for cloud applications, Datadog, Inc. (NASDAQ:DDOG) provides monitoring, data observability, security, automation, and AI visibility tools globally. It is one of the best IT stocks.
8. Intuit Inc. (NASDAQ:INTU)
5-Year Revenue Growth: 21.54%
Number of Hedge Fund Holders: 87
With strong revenue growth and significant hedge fund interest, Intuit Inc. (NASDAQ:INTU) secures a spot on our list of the 14 Best IT Stocks to Buy for the Long Term.
On August 18, 2025, Morgan Stanley reaffirmed its ‘Buy’ rating on Intuit Inc. (NASDAQ:INTU) with a $900 price target. This bullish stance remains despite an 11% pullback in the stock. The investment firm believes that investor concerns over AI disruptions may already be priced in and, therefore, sees the decline as an attractive buying point.
Looking ahead, the analyst expects Intuit Inc. (NASDAQ:INTU) to report solid Q4 results, alongside a strong FY26 guidance, due to growth in Global Business Services and sustained momentum in small-business solutions. Furthermore, TurboTax Live and Full Assist are seen as key growth drivers. At the same time, the company’s disciplined operational spending and resilience in Credit Karma are expected to improve margins amid a favorable lending environment.
With its Small Business, Consumer, Credit Karma, and ProTax segments, Intuit Inc. (NASDAQ:INTU) offers financial management, compliance, and marketing solutions globally. It is one of the best IT stocks.
7. Snowflake Inc. (NYSE:SNOW)
5-Year Revenue Growth: 63.38%
Number of Hedge Fund Holders: 94
Snowflake Inc. (NYSE:SNOW) is one of the 14 Best IT Stocks to Buy for the Long Term.
On August 8, 2025, Snowflake Inc. (NYSE:SNOW) launched the public preview of Snowpark Connect for Spark. This new architecture allows Apache Spark code to run directly in Snowflake warehouses.
Snowflake Inc. (NYSE:SNOW) launched Snowpark Connect to address long-standing challenges associated with Spark Connector, including costly data movement, latency, and governance issues. It addresses the issues by executing workloads within Snowflake itself and eliminating the complexity of managing separate Spark clusters while supporting Spark DataFrame, Spark SQL, and UDFs.
With this launch, Snowflake Inc. (NYSE:SNOW) delivers up to 5.6x faster performance and 41% cost savings compared to managed Spark services. Snowpark Connect is currently limited to Python and Spark 3.5.x, Snowflake is working on Java and Scala support to expand functionality.
Snowflake Inc. (NYSE:SNOW) enables advanced analytics, application building, and data sharing with its cloud-based AI Data Cloud platform that consolidates enterprise data. It is one of the best IT stocks.
6. Advanced Micro Devices, Inc. (NASDAQ:AMD)
5-Year Revenue Growth: 31.09%
Number of Hedge Fund Holders: 97
With strong revenue growth and significant hedge fund interest, Advanced Micro Devices, Inc. (NASDAQ:AMD) secures a spot on our list of the 14 Best IT Stocks to Buy for the Long Term.
On August 19, 2025, Bernstein reaffirmed its ‘Hold’ rating on Advanced Micro Devices, Inc. (NASDAQ:AMD) with a $140 price target. The investment firm’s stance reflects a balanced outlook despite notable market share gains.
Thanks to the company’s desktop unit share rising to roughly 30.2% and a roughly 5-point increase in revenue share, the investment firm highlighted the company’s strong momentum in its Q2 analysis. The analyst also highlighted that AMD’s strong momentum is helping the company outpace Intel in several areas. Notably, Advanced Micro Devices, Inc. (NASDAQ:AMD) is racing past Intel as its average selling prices have grown 8% quarter-over-quarter (QoQ) for notebooks and 2% for desktops.
Meanwhile, the company’s server revenue share also surpassed 40% for the first time, reflecting its growing presence in data centers. Furthermore, the investment firm highlighted Advanced Micro Devices, Inc. (NASDAQ:AMD)’s upcoming MI4XX accelerator roadmap as a potential growth driver, bolstering investor confidence.
Operating through its Data Center, Client and Gaming, and Embedded segments, Advanced Micro Devices, Inc. (NASDAQ:AMD) leads as a global semiconductor company. It is one of the best IT stocks.
5. ServiceNow, Inc. (NYSE:NOW)
5-Year Revenue Growth: 24.98%
Number of Hedge Fund Holders: 106
ServiceNow, Inc. (NYSE:NOW) is one of the 14 Best IT Stocks to Buy for the Long Term.
On August 19, 2025, ServiceNow, Inc. (NYSE:NOW) partnered with the DFL Deutsche Fußball Liga, the organizer of Germany’s Bundesliga and Bundesliga 2.
ServiceNow, Inc. (NYSE:NOW), as the Official Workflow Partner and provider of its AI platform, will replace legacy systems, driving automation, efficiency, and collaboration across DFL’s global ecosystem.
With the platform, ServiceNow, Inc. (NYSE:NOW) will modernize workflows spanning IT services, HR, CRM, and partner management. As a result, the company will streamline processes from player transfers to digital fan engagement. This partnership reflects the company’s growing momentum in Europe’s sports and entertainment sector.
With its AI platform, ServiceNow, Inc. (NYSE:NOW) helps transform businesses, connecting people, processes, data, and devices to improve productivity across industries globally. It is one of the best IT stocks.
4. Uber Technologies, Inc. (NYSE:UBER)
5-Year Revenue Growth: 31.81%
Number of Hedge Fund Holders: 145
With strong revenue growth and significant hedge fund interest, Uber Technologies, Inc. (NYSE:UBER) secures a spot on our list of the 14 Best IT Stocks to Buy for the Long Term.
On August 19, 2025, TD Cowen reaffirmed its ‘Buy’ rating on Uber Technologies, Inc. (NYSE:UBER) with a $108 price target, following a meeting with the company’s management.
The investment firm highlighted the company’s steady U.S. trip growth, easing insurance costs, and evolving strategy for autonomous vehicle partnerships. Furthermore, opportunities were highlighted within the company’s Uber One membership program, cross-platform integration, and the advertising segment. Following the meeting, the analyst felt confident in the company’s outlook, reinforcing its bullish stance.
Operating through its Mobility, Delivery, and Freight segments, Uber Technologies, Inc. (NYSE:UBER) develops and operates technology applications globally. It is one of the best IT stocks.
3. Broadcom Inc. (NASDAQ:AVGO)
5-Year Revenue Growth: 20.04%
Number of Hedge Fund Holders: 158
Broadcom Inc. (NASDAQ:AVGO) is one of the 14 Best IT Stocks to Buy for the Long Term.
On August 15, 2025, Broadcom Inc. (NASDAQ:AVGO) announced that Director Justine Page sold 800 shares on the previous day at $307.46 each. The sale, valued at $246,000, was conducted under a pre-arranged Rule 10b5-1 plan established in January. Following the transaction, Page is left with 23,782 shares, including restricted stock units.
Two days prior to the insider transaction, Goldman Sachs reiterated its ‘Buy’ rating on Broadcom Inc. (NASDAQ:AVGO) with a $340 price target. The investment firm highlighted the company’s strong growth outlook within semiconductors and infrastructure software markets, bolstering investor confidence.
Operating through its Semiconductor Solutions and Infrastructure Software segments, Broadcom Inc. (NASDAQ:AVGO) develops and supplies semiconductor devices and infrastructure software solutions globally. It is one of the best IT stocks.
2. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
5-Year Revenue Growth: 22.53%
Number of Hedge Fund Holders: 187
With strong revenue growth and significant hedge fund interest, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) secures a spot on our list of the 14 Best IT Stocks to Buy for the Long Term.
On August 13, 2025, Bank of America Securities reaffirmed its ‘Buy’ rating on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) with a $290 price target. The bullish stance reflects the company’s strong likelihood of exemption from proposed U.S. Section 232 semiconductor tariffs.
The investment firm also highlighted Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s multi-phase Arizona investment, which is a key factor protecting the company from trade risks. At the same time, the investment enhances the company’s competitive positioning against peers with smaller U.S. footprints.
Thanks to its resilient demand in AI and high-performance computing segments, minimal earnings impact is expected for Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) even under a tariff scenario. Investor confidence remains strong amid continued AI-driven growth and a projected 18x P/E multiple by 2026.
Taiwan Semiconductor makes and sells integrated circuits and semiconductor devices globally. It is one of the best IT stocks.
1. NVIDIA Corporation (NASDAQ:NVDA)
5-Year Revenue Growth: 66.01%
Number of Hedge Fund Holders: 212
NVIDIA Corporation (NASDAQ:NVDA) is one of the 14 Best IT Stocks to Buy for the Long Term.
On August 18, 2025, Cantor Fitzgerald raised its price target on NVIDIA Corporation (NASDAQ:NVDA) from $200 to $240, maintaining an ‘Overweight’ rating. This target revision reflects growing demand for AI compute.
Thanks to growing momentum in the Blackwell ramp-up, the investment firm expects the company’s earnings trajectory to re-accelerate, helping the analyst project strong upside into the October quarter and beyond. Meanwhile, Cantor expressed growing confidence in NVIDIA Corporation (NASDAQ:NVDA)’s ability to achieve $200-$300 billion in Data Center revenues between 2025 and 2026. Accordingly, the investment firm expects earnings per share of $8 by 2026.
NVIDIA Corporation (NASDAQ:NVDA) powers AI, data centers, and digital experiences globally with its advanced graphics, computing, and networking solutions. It is one of the best IT stocks.
While we acknowledge the potential of NVDA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NVDA and that has 100x upside potential, check out our report about this cheapest AI stock.
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