Tech stocks have made many investors millionaires with their ability to scale and generate consistently strong returns. Even tech stocks are cyclical and have high risk, as disruptive technology can even bring down a market leader within months. However, companies that keep innovating tend to generate sustainable growth even after tech disruption.
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Three tech stocks you can buy and hold for a decade
Technology improves every year or two. Among tech stocks, what matters is that their product and service offerings are updated, relevant, and sticky.
As Warren Buffett said, “If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes.”
Three companies have shown resilience in technological upgrades, sound product roadmaps, and strong implementation, while keeping debt in check. These facets make their stocks worth holding for a decade.
Descartes Systems
Descartes Systems (TSX:DSG) stock has dropped 20% from its 2025 peak as the tariff war impacts trade volumes. Its logistics and supply chain management solutions help companies manage trade complexities. The current slowdown in trade volumes is because companies adopted a wait-and-watch approach to find alternatives, negotiate trade terms, absorb some tariffs, and pass on the rest to consumers. Once the new supply chain norm is set, trade volumes will pick up. At that time, Descartes will ride the recovery rally.
On the technological front, the company keeps acquiring logistics technology-related companies to enhance its offerings and cater to the new age challenges. This helps it stay relevant and sticky. For instance, the supply chain solutions provider added e-commerce and fulfillment solutions during the pandemic. Its Global Trade Intelligence solution has become a sought-after solution amidst tariff uncertainty.
Descartes’ stock has surged 509% in the last 10 years, converting a $5,000 investment in August 2015 to $30,285 today. It is well-positioned to continue this long-term growth as trade evolves.
Topicus.com stock
Topicus.com (TSXV:TOI) is a technology stock focused on European markets but is expanding into new geographies. A spin-off from Constellation Software, Topicus.com follows its parent’s model of acquiring vertical-specific software companies with recurring cash flow from maintenance. It acquires companies in the verticals of education, healthcare, social services, local and central government, retail, financial services, accountancy, legal services, real estate, automotive, maritime, and professional associations.
Such diverse verticals, each having strong technology spending, will help Topicus.com compound the cash flows to acquire new companies, bringing long-term growth. The first half generally sees a higher flow of cash, given the timing of the maintenance fee. Thus, growth is stronger at that time.
Topicus.com’s stock has surged 180% in the last four and a half years, converting a $5,000 investment in February 2021, after it spun off, to $13,900 today. The stock could continue to grow in the long term as more companies’ cash flows become accretive.
AMD stock
Advanced Micro Devices (NASDAQ:AMD) stock surged a whopping 135% from April 7 on the back of its latest artificial intelligence (AI)-powered Instinct MI350 Series data centre graphics processing units (GPUs). Many are asking if it is a good time to buy this stock at its high. AMD is into designing advanced processors for a range of devices from laptops and personal computers to data centres, game consoles, and embedded devices.
While it is not the first preference for many, like Intel and Nvidia, it is a cost-effective alternative. However, AMD overtook Intel to become the preferred choice for data centre Central Processing Units (CPUs). Recently, AMD’s stock fell 10% in the second half of August as Japan’s Softbank and the Trump administration announced significant investments of US$2 billion and US$8.9 billion, respectively, in Intel for its manufacturing capabilities.
These investments do not change AMD’s technological prowess or design advantage, which it has gained over Intel. AMD has just begun its AI journey and has all the means to ride the AI wave along with Nvidia.
AMD stock has surged 8,990% in the last 10 years, converting a $5,000 investment in August 2015 to $541,597 today. However, this was also the time of its turnaround, which led to such windfall gains. The stock could continue to grow in the long term, but at a normalized rate.
