In this piece we will look at the Top 5 Stocks to Buy and Hold for the Long Term. Please visit Top 10 Stocks to Buy and Hold for the Long Term if you’d like to see an extended list and how we came up with the list of Top Stocks to Buy and Hold for the Long Term.
5. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 262
Meta Platforms, Inc. (NASDAQ:META) ranks among our list of Top Stocks to Buy and Hold for the Long Term. Recently, on June 11, Bank of America Analyst Justin Post reiterated a Buy rating on Meta Platforms, Inc. (NASDAQ:META) with a price target of $835. The firm noted that Meta’s expanding AI strategy is a key catalyst for its long-term growth.
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The analyst noted that the heavy AI capital expenditure is not merely a cost, but is strengthening the company’s AI model development while also improving ad targeting and content recommendations. Analyst Post noted that this is already resulting in higher user engagement and increased advertisement revenue. He also expects the company to develop new revenue streams ahead, such as subscriptions, enterprise solutions, and AI business agents, which have the potential to result in additional monetization over time.
While Post acknowledges execution risks and a competitive landscape, it notes that investor sentiment is already cautious. He noted that the stock trades at a discount to its prior peaks and to large-cap peers, making it a buying opportunity.
Meta Platforms, Inc. (NASDAQ:META) develops products that allow people to share and connect with their family and friends using PCs, mobile devices, virtual reality (VR) headsets, and AI glasses. Some of its well-known apps include Facebook, Instagram, and WhatsAPp. It operates in the Reality Labs (RL) and Family of Apps (FoA) segments.
4. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 265
Alphabet Inc. (NASDAQ:GOOGL) is one of the Top Stocks to Buy and Hold for the Long Term. On June 11, Reuters reported that Google is reportedly in discussions with Samsung Electronics to manufacture part of its next-generation AI processor.
As per the report, the prospective plan involves a split manufacturing approach, where TSMC would produce the main computing component of the chip, while Samsung may handle a separate piece that connects the processor to memory, using its advanced 2-nanometer production technology. Moreover, Reuters also noted that Alphabet Inc. (NASDAQ:GOOGL) is also working with MediaTek on the design. However, mass production is not expected until 2028.
This move suggests that Google is making efforts to reduce its reliance on TSMC, which is already struggling to keep pace with surging AI demand and could become a bottleneck for the industry.
Separately, Google is also reportedly in talks with Intel to manufacture over three million TPUs in 2028, further diversifying its chip supply chain. The company’s in-house TPU chips are increasingly seen as a credible alternative to Nvidia’s dominant processors, and have become a key growth driver for its cloud business.
Alphabet Inc. (NASDAQ:GOOGL) is a holding company that operates Google services such as search engines, ad platforms, Internet browsers, devices, mapping software, app stores, video streaming, and more. The company also offers cloud infrastructure and platform services, collaboration tools, and other services for enterprise customers, as well as healthcare-related services and internet services.
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 275
NVIDIA Corporation (NASDAQ:NVDA) is one of the Top Stocks to Buy and Hold for the Long Term. On June 12 Jefferies released a research note saying that the reported delays in two key AI data center technologies including the 800V HVDC power systems and co-packaged optics are not disrupting the timelines for semiconductor companies.
Regarding the 800V HVDC, the firm noted that major cloud providers have already pushed deployments to 2028 as most semiconductor companies were already anticipating limited shipments in 2027 and broader adoption in 2028. Hence, the delay remains within expectations.
Similarly, the revised timeline for co-packaged optics, now expected to see vertical-scale deployments around 2029, aligns with what Jefferies had previously forecasted. The firm views any slippage here as neutral to slightly positive for STMicroelectronics.
Regarding NVIDIA Corporation (NASDAQ:NVDA), Jefferies noted that the company is pushing into the 6G radio GPUs. The firm believes this move to be neutral for telecommunication companies, as major companies such as Nokia have already pivoted their strategy toward software running on Nvidia-powered infrastructure, suggesting it is adapting rather than competing.
Moreover, recently, Morgan Stanley, on June 3, reiterated a Buy rating on NVIDIA Corporation (NASDAQ:NVDA) with a $288 price target. The firm noted Nvidia as one of the top picks in the processor group. Morgan Stanley believes that Nvidia provides the best value among the group with a strong position in multiple product lines.
NVIDIA Corporation (NASDAQ:NVDA) is a fabless semiconductor and AI computing company that designs GPUs, AI accelerators, Application Programming Interfaces (APIs), and system-on-a-chip units. Through its CUDA ecosystem, the company enables industries ranging from autonomous vehicles to scientific research by advancing AI, accelerated computing, and data center infrastructure.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 282
Microsoft Corporation (NASDAQ:MSFT) is among the Top Stocks to Buy and Hold for the Long Term. On June 12, Reuters, while citing The Information, reported that Microsoft Corporation (NASDAQ:MSFT) is exploring options for significant structural changes in its Xbox division. The report noted that options under consideration include spinning Xbox off as a separate entity or restructuring it as a wholly owned subsidiary.
The report also highlighted that Microsoft is also weighing the possibility of forming a joint venture with outside partners, noting that such moves could ultimately make the gaming business easier to sell if Microsoft chose to go that route. Moreover, CEO Satya Nadella and CFO Amy Hood have also reportedly approved plans to increase spending on top-tier game development for the fiscal year beginning in July. Reuters noted that the final budget has not yet been confirmed.
The report comes just days after Bloomberg News revealed that Xbox is planning major layoffs next month, alongside significant cuts to marketing and other budgets.
Separately, on June 4, TD Cowen reiterated a Buy rating on Microsoft Corporation (NASDAQ:MSFT) with a price target of $540. The firm noted that Microsoft is moving toward building more of its own AI capabilities rather than relying heavily on external frontier labs like OpenAI. The firm also noted progress across Microsoft’s broader AI stack, including advances in DIY applications and custom silicon. TD Cowen highlighted that such developments explain why Microsoft had been quietly allocating GPU capacity toward internal research and development in recent quarters.
Microsoft Corporation (NASDAQ:MSFT) is a global technology company that develops and sells a wide range of software, cloud services, devices, and business solutions, serving both individual users and enterprise customers worldwide. Its flagship products include Windows, Microsoft 365, Azure, LinkedIn, and Xbox.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 353
Amazon.com, Inc. (NASDAQ:AMZN) ranks among our Top Stocks to Buy and Hold for the Long Term. On June 11, the company announced the official availability of Alexa+, which is Amazon’s next-gen AI assistant, for all Canadian customers.
Management of Amazon.com, Inc. (NASDAQ:AMZN) noted that all Prime members get full access at no extra cost, making it the latest addition to the Prime membership bundle. The assistant is built on a new architecture powered by large language models, which makes it more capable than the original Alexa. Management highlighted that Alexa+ is more conversational, personalized, and able to complete tasks on a user’s behalf.
Moreover, early engagement numbers are encouraging as Canadian users are interacting with Alexa+ twice as often as the original one. In addition, the smart home feature usage is up 60%, and recipe requests have increased fivefold.
In other news, Barclays on June 11 reiterated a Buy rating on Amazon.com, Inc. (NASDAQ:AMZN) with a price target of $330. Earlier on June 1, Truist had raised the price target on AMZN from $310 to $320, while reiterating a Buy rating.
Amazon.com Inc. (NASDAQ:AMZN) operates across e-commerce, digital content, advertising, and cloud computing. Its online and offline stores offer both in-house and third-party products, while its Amazon Web Services (AWS) division runs one of the world’s largest data center networks.
While we acknowledge the potential of AMZN 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 AMZN and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 10 Good Stocks to Invest in Now and 10 Most Undervalued US Stocks According to Hedge Funds.
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