Got $5,000? 5 Tech Stocks to Buy and Hold for the Long Term
Alex Smith
5 hours ago
Warren Buffett built his portfolio by following the basic rule of âPrice is what you pay. Value is what you get.” When markets are jittery, investors become fearful and sell good stocks with strong fundamentals. At such times, value investors pick them up at heavy discounts and benefit from the fear of others. Fear comes from not knowing the risk. But when you know the risk and the extent of it, they become value stocks to buy and hold for the long term.
Five tech stocks to invest $5,000 in for the long term
The geopolitical tensions shifted the focus to energy stocks. The oil supply shocks from the Iran war made investors fearful, resulting in the selling of several tech stocks and the buying of energy stocks. The 15â30% revenue growth of tech companies did not excite investors anymore, especially when oil companies were reaping windfall gains, creating an opportunity to buy the dip.
Software stocks to buy and hold
Topicus.com (TSX:TOI) stock has halved since July as the artificial intelligence (AI) impact on traditional software companies is unknown. Topicus.com acquires vertical-specific software companies for their regular and sticky cash flows from maintenance. The risk of the unknown has pulled down the share price. However, Topicus.com has continued to acquire companies at a lower value and grow its free cash flow by double digits. In short, nothing has changed in the fundamentals yet.
The management is closely watching AI developments and will work on a way to adopt AI where needed. Its flexibility to change its acquisition strategy and stay focused on fundamentals and compound cash flow makes it a long-term buy. The real risk to fear is when Topicus.comâs free cash flow falls significantly or turns negative. That is a signal to exit.
Shopify (TSX:SHOP) is another stock to buy the dip, which is more seasonal than structural. It has slipped 33% so far this year despite reporting 30% revenue growth in the fourth quarter of 2025. The fear of rising inflation from tariffs and war affecting shopping habits has pulled the stock price down. However, Shopify is touting the idea of AI to make its e-commerce platform more effective for merchants.
That efficiency could keep Shopify competitive and unlock more cross-selling opportunities, the impact of which could be felt in the long term.
The evergreen tech stock
Descartes Systems (TSX:DSG) stock has almost halved since the US waged tariff wars on its global trade partners. Nothing has revived since January 2025. Matters have only escalated, blocking smooth trade. This trade uncertainty risk has discounted this overvalued stock. However, Descartes was prepared for the risk. It has zero debt, and it keeps increasing its cash reserves. Since organic volumes are slow, it has been growing its revenue at a double-digit rate through acquisitions, while improving profit margins through cost-cutting.
This stock is a buy-and-hold for the long term as the company is ready to fire all cylinders when trade volumes recover and the new global supply chain is established.
AI stocks to buy and hold
Beyond this, you could consider investing in HIVE Digital Technologies (TSXV:HIVE) and Nvidia (NASDAQ:NVDA). HIVE is investing in AI data centres to offer graphics processing units (GPUs) as a service. The company is helping BCE build its AI fabric and is looking for opportunities from hyperscalers to build a data centre. It gives exposure to both Bitcoin prices and AI data centres, making it a buy below $3 and hold for the long term.
Meanwhile, Nvidia is an evergreen stock to buy on the dip and hold for the long term. Although its growth has slowed, Nvidia has the key to unlock AI 2.0 and self-driving cars. The only risk Nvidia faces is technology disruption if any new company beats its GPUs in its own game. So far, that risk is just a theory.
The post Got $5,000? 5 Tech Stocks to Buy and Hold for the Long Term appeared first on The Motley Fool Canada.
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More reading
- The Smartest Way to Deploy $21,000 in a TFSA in 2026
- Could This $97 TSX Stock Be Your Ticket to Millionaire Status?
- Why $1 Million in Retirement Savings May Not Be Enough Anymore
- 2 TSX Stocks Worth Buying Before the Next Market Recovery Gets Going
- What a Typical 50-Year-Old Canadian Actually Has in Their TFSAÂ
The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Descartes Systems Group, Nvidia, and Topicus.com. The Motley Fool has a disclosure policy. Fool contributor Puja Tayal has no position in any of the stocks mentioned.
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