Top 10 Stocks to Buy and Hold Forever

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1. Microsoft Corp. (NASDAQ:MSFT)

Returns CAGR 10 Years: 29.7%

Number of Hedge Fund Holders: 294

Microsoft Corp. (NASDAQ:MSFT) is one of the top stocks to buy and hold forever. Microsoft Corp. (NASDAQ:MSFT) has an unmatched market position through its dominance in operating systems, productivity software, and cloud services. Its products are deeply embedded in enterprise workflows, creating high switching costs and long-lasting customer reliance.

On August 20, a UBS analyst reaffirmed his Buy rating on Microsoft Corp. (NASDAQ:MSFT) with a price target of $650. The call followed upcoming pricing and licensing changes that take effect on November 1, which will standardize enterprise agreements and lift costs by roughly 3% to 14%, depending on customer tier.

The analyst estimates the changes will impact products that account for about 55% of revenue, including Azure, Microsoft 365, and Dynamics 365, while government and education contracts are excluded.

He also believes the pricing actions were already reflected in guidance, but still adds confidence to forecasts of 14% revenue growth in FY 2026. Microsoft Corp.’s (NASDAQ:MSFT) positioning in AI remains a key driver, with UBS describing the stock as reasonably valued given its leverage to the trend.

Microsoft Corporation (NASDAQ:MSFT) is a technology company that develops and sells software, devices, and cloud-based services for individuals and enterprises worldwide.

While we acknowledge the potential of MSFT as an investment, 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 MSFT and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 15 Best Data Center Stocks to Buy Now and 11 Deep Value Stocks to Buy According to Analysts.

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