Alphabet has the most complete AI stack and a distribution moat.
Amazon is the leading e-commerce and cloud computing company in the world.
Meta Platforms is using AI to drive strong revenue growth.
If you're looking for tech stocks you can buy and hold for the next decade, you want to invest in market leaders with solid growth opportunities and wide moats trading at reasonable valuations. Let's look at three tech stocks that fit that bill.
Key Businesses: Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) is the largest digital advertiser on the planet through its Google search engine, YouTube video streaming service, and other properties. It also owns the third-largest cloud computing business in Google Cloud, and it is the majority owner of robotaxi company Waymo.
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Opportunities: AI is expanding search queries, which is helping drive revenue growth at Google. Meanwhile, Google Cloud revenue is soaring from strong demand for computing power and artificial intelligence (AI) services. The company also has an opportunity to begin selling its custom AI chips outside of Google Cloud. Waymo has a first-mover advantage and could become a future growth driver.
Moat: Alphabet has a huge distribution moat for search and AI discovery through its ownership of the most widely used web browser in Chrome and smartphone operating system in Android. A search revenue-sharing deal with Apple helps it reach most of the rest of the world's population outside of China, essentially making it the gateway to the internet. Meanwhile, the company has the most complete AI stack, having developed top-tier custom AI chips and a robust AI model in Gemini. By having its own chips to train and run inference, the company has a big structural cost advantage.
Valuation: Alphabet trades at a forward price-to-earnings (P/E) ratio of around 26 based on the analyst 2026 consensus, making it attractively valued given its growth opportunities and advantages it has in the AI landscape.
Key Businesses: Amazon (NASDAQ: AMZN) owns the largest e-commerce platform and logistics network in the world. It is also one of the largest digital advertisers on the planet and the market share leader in cloud computing, through Amazon Web Services (AWS).
Opportunities: Through the use of robotics and AI, Amazon is increasing the efficiency of its e-commerce operations and driving strong operating leverage. Meanwhile, the company has started to spend aggressively to capture the big cloud computing opportunity in front of it that is stemming from AI.
Moat: Amazon's logistics network is unmatched, while it is also the leader in warehouse automation and robotics. On the cloud computing side, the company has also developed its own custom chips, which it is beginning to ramp up. This can also help give it a cost advantage as it becomes a more important part of its AWS business.
Valuation: Amazon trades at a forward P/E ratio of around 27 based on 2026 analyst estimates, which is well below brick-and-mortar peers Walmart and Costco Wholesale, which trade above multiples of 40.
Image source: Getty Images.
Key Businesses: Meta Platforms (NASDAQ: META) is the second-largest digital ad platform behind Alphabet, where it serves ads to its various social media and messaging platforms, like Facebook, Instagram, and WhatsApp. It has also been developing a virtual reality world called the metaverse and related VR headsets, smartglasses, and other accessories.
Opportunities: Meta is using AI to drive growth. It has incorporated AI into its recommendation algorithm, which is keeping users on its site longer, allowing it to serve more ads. At the same time, it is providing advertisers with AI-powered tools to better target and convert users, which is helping drive up ad prices given improved ad performance. Meta also has a big opportunity as it starts to serve ads to its more than 3 billion monthly WhatsApp users. It is also developing a new platform called Threads, which has strong potential.
Moat: Meta has the largest user base of any social media platform, and has proven to small and medium-sized advertisers around the globe to be one of the best avenues for their ad dollars. This creates a strong two-sided network effect that is tough to break.
Valuation: Trading at a forward P/E ratio of just above 21.5 based on analyst 2026 estimates, Meta's stock is cheap given its growth.
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Geoffrey Seiler has positions in Alphabet, Amazon, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Costco Wholesale, Meta Platforms, and Walmart. The Motley Fool has a disclosure policy.