7 Long-Term Tech Stocks to Buy Besides Apple.

The Technology Select Sector SPDR Fund (XLK) has gained almost 48% this year. Early on, it soared as analysts tracking the fund’s firms upped their profit growth forecasts because artificial intelligence improves product offerings, potentially allowing larger companies to gain market dominance. Recently, the earnings that such corporations are projected to generate in the next few years have grown more valuable as long-term interest rates have fallen.

Because many investors have already stocked up on the equities, they may struggle in the short run. However, tech investors, particularly those who purchased early this year, should keep them for the long haul. Many are at the forefront of the advent of AI or just stand to gain from the overall expansion of the software industry, and here are seven fascinating tech stocks to buy.  

That is why you should avoid lesser tech names. Many of these will be unable to compete with larger corporations investing extensively in AI with their enormous revenues. Some small businesses may be bought out, but not all.

Albion Financial Group’s chief investment officer, Jason Ware, stated that he finds it difficult to believe that any of these tiny cap AI businesses would be there in ten years. Those are intriguing prospects when market capitalization rises.”

Evercore analysts produced a report last week claiming that numerous major technology businesses had room for earnings growth and stock price rises.

Salesforce (CRM) is one example. According to FactSet’s analyst consensus, the cloud-based supplier of customer-relationship software is predicted to expand 11% this year and then maintain comparable growth for the following three years. By 2026, revenues would have risen to slightly over $47 billion.

The company is layering new solutions to complement clients’ existing software, allowing businesses to target sales prospects more efficiently. Some of the new products are AI-powered, and more of these solutions are on the way, particularly in financial services, where Salesforce gained new clients in the second quarter.

“Everyone is waiting for the ‘killer AI app’ in certain verticals that will illustrate the power of AI and create a bit of a domino effect in terms of demand…and financial services being the industry most poised to jump on any AI solutions that can deliver value,” wrote Evercore analyst Kirk Materne.  

Increased sales should result in improved profit margins and profitability. This year, the firm demonstrated that it can reduce its headcount and marketing costs while increasing its profitability. If expenditure does not grow too quickly, margins can continue to rise, as economists predict. According to the consensus, EPS will increase by slightly more than 20% yearly to $14.39 by 2026.

The greatest news is that the stock isn’t prohibitively pricey. At $222, it trades at nearly 15 times the expected 2026 earnings per share. Assuming that growth does not drop significantly by 2025, the stock should maintain its current value. After all, the S&P 500 has recently traded at a multiple in the mid-to-high teens.

Greater profits would increase the shares if the company remained at the same price/earnings ratio. Materne’s target price is $275. According to him, profit expectations should grow as Salesforce pushes out AI-based solutions.

Other promising tech stocks to buy are Intuit (INTU), a producer of QuickBooks accounting software for businesses and TurboTax for consumers. According to mainstream predictions, small-business revenue, based on a few million consumers now, can rise at least 16% each year for the next two years. According to the Small Business Administration, more than 30 million small enterprises are in the United States. Thus, the expansion can continue for many years. It is Intuit’s fastest-growing business division.

The combination of such an increase and higher prices on some other items may bring overall revenue to $19 billion by 2025 by percentages in the low double digits over the next two years. While poorer results in the coming quarters due to fewer individuals submitting tax returns may momentarily impede progress toward that target, Materne says Evercore has “a high degree of confidence in INTU as a durable double-digit top-and-bottom-line compounder.”

Sales increase may sufficiently boost profit margins modestly over the following few years.

Evercore also has Microsoft (MSFT), Adobe (ADBE), Oracle (ORCL), ServiceNow (NOW), and Snowflake (SNOW) as equities. Don’t fold ’em, hold ’em.