What Is One of the Best Tech Stocks to Own for the Next 10 Years?
Alex Smith
6 hours ago
The artificial intelligence (AI) revolution gained momentum in 2024, setting the stage for the next big tech growth cycle of the decade. Huimanoids, AI factories, and self-driving cars are the future, and this future needs an AI infrastructure.
The next 10 years of tech growth
At present, AI infrastructure is only burning cash. It is not yet generating the kind of revenue it should, given its energy and cooling demands. AI data centres are only one part of the ecosystem. The entire ecosystem will comprise AI-powered devices collecting and processing data in real-time, software and systems plugged to the AI fabric, advanced cybersecurity that ensures secure passage of data, and a human override.
This whole infrastructure could take 10 years to build, adopt, and refine. Once it becomes mainstream, the AI fabric could generate recurring cash flow, just like cloud computing today. Microsoft and Amazon started building cloud computing networks in 2006â2010, and today it is their largest revenue generator.
While there is fear of an AI bubble, there is no denying that the AI ecosystem will change the way we live and work 10 years from now. Those who invested $10,000 in Microsoft and Amazon during the 2010â2012 period are sitting on a $180,000 portfolio today.
One of the best tech stocks to own for the next 10 years
The tech stock we are talking about is a far bigger wealth generator than Amazon and Microsoft. Broadcom (NASDAQ:AVGO) is the chipmaker that has evolved with technology, providing a one-stop shop for all infrastructure needs through acquisition and innovation.
Hock Tan, the chief executive officer of Broadcom, is known for his seamless and efficient integration of some of the largest tech acquisitions, such as Avago-Broadcom, Symantec, and VMWare. Avago started as a company providing chips for Wi-Fi routers and set-top boxes, and acquired the bigger company Broadcom in 2016 to supply Ethernet switches and other network infrastructure solutions.
Hock Tan realized that hardware and software are no longer two separate functions, but rather an integrated solution as demand for accelerated computing increased. Thus, it acquired Symantec in 2019 for cybersecurity technology and VMware for cloud computing technology in 2023. It has deducted $6 billion in amortization of acquisition-related intangibles in 2024 and 2025 as it integrates VMWare. Such tough business decisions around acquisitions have increased Broadcomâs range of offerings.
On the innovation front, Broadcom has developed AI XPUs, an application-specific AI accelerator, used in AI data centers. The company earned income from the 4G, 4G long-term evolution, and 5G infrastructure, and cloud computing network infrastructure, and is now earning from AI infrastructure, each denser and more expensive than the previous.
Long-term earnings potential of Broadcom
Intel and Nvidia have growth cycles as they largely cater to a specific need. They fear competition and disruption if a more efficient and high-performance computing processor emerges. However, Broadcomâs ecosystem approach leverages increasing semiconductor content requirements, which makes it an evergreen stock to hold for decades.
Share CountInvested AmountStock1-Jan-121-Jan-26Portfolio Value3,389$10,000Broadcom$2.95$346.10$1,172,932.9027,777$10,000Nvidia$0.36$186.50$5,180,410.50A $10,000 investment in Broadcom and Nvidia each in 2012 became $1.2 million and $5.2 million, respectively, at the start of January 2026.
Nvidiaâs growth began after 2016 and has been in pockets, while Broadcomâs growth is more evenly spread out. Broadcomâs stock mostly dipped 20â30% due to external macroeconomic factors, like the 2018 US-China trade war, the 2020 pandemic, the 2022 global tech meltdown, 2025 tariffs, and now the Iran war.
Every dip has created a buying opportunity. The next time the stock dips, buy and hold it for the long term, as it will justify its high valuations with hyper growth and efficiency.
The post What Is One of the Best Tech Stocks to Own for the Next 10 Years? appeared first on The Motley Fool Canada.
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More reading
- How Iâd Put $10,000 to Work in a TFSA Right Now
- Got $14,000? Turn Your TFSA Into a Cash-Gushing Machine
- 5 Cheap Canadian Stocks to Buy Before the Market Notices
- 1 Growth Stock Down X% in 2026 to Buy and Hold
- This Growth Stock Continues to Crush the Market
Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool recommends Amazon, Broadcom, Intel, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
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