In this piece, we’ll check out a trio of generational growth stocks that may be best held for the extremely long term. Undoubtedly, it’s good to take a bit of profit off the table where there are still profits to be had (perhaps when shares are a tad on the pricey side), but then you’ve got to worry about getting back into a name.
And it can be tricky to do so if a red-hot name still has what it takes to continue marching higher, either due to improving fundamentals or an improving longer-term growth narrative. Indeed, such names may be best kept as near-permanent holdings at the core of a Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) retirement fund. Of course, generational growth stocks that have what it takes to keep going strong for the long term can be tempting to trade, but if you’ve got a multi-decade horizon and the patience to hold on through volatility, the following plays, I think, are top-tier growers hiding in plain sight right now.
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Microsoft
First, we have Microsoft (NASDAQ:MSFT), a generational growth stock that’s showing no signs of age-related growth erosion. With a stake in ChatGPT-owner Open AI and a ton of its own artificial intelligence (AI) projects (think its Phi model and Copoliot efforts) going on behind the scenes, you could make an argument that Microsoft is the best tech titan to own if you want AI growth without having to pay up all too high a multiple for it. Why take a chance on a non-profitable AI up-and-comer when you can pay just over 31 times forward price-to-earnings (P/E) for a mature tech titan that’s demonstrated time and time again that it can make the most of technological revolutions?
Also, AI isn’t the only reason to punch your ticket to Microsoft. Its quantum computing projects may very well change the computing game all over again. While quantum is a much longer-term trend, it’s still one that growth investors should keep on their radars, especially if they’re investing for the next two to three decades.
Apple
Apple (NASDAQ:AAPL) stock is unloved right now. There’s no question about that, with the stock drastically underperforming many of its big tech rivals. Indeed, the company has sagged so much that it’s no longer the world’s largest company by market cap. Heck, it’s not even in second place anymore! With a third spot in the market cap standings (and falling?), there’s serious concern that Apple’s best days are in the rearview mirror.
Before you dump Apple after an ice-cold first half of 2025, though, I do view the name as a prime AI racer that can catch up, all while it navigates a time of Trump tariff trouble. If DeepSeek can pull forward in the AI with unique innovations, so too can Apple. As the on-device AI revolution takes place in the coming years, maybe Apple stock could go from hated to loved again. For now, brace for volatility and pain as the Magnificent Seven heat up without the iPhone maker as it stumbles out of the gate early on.
