3 no-brainer tech stocks to buy with $5,000 and hold for years

Core Viewpoint - The article highlights three technology companies—Nvidia, Micron, and Alphabet—as compelling long-term investment opportunities due to their strategic positions in the artificial intelligence (AI) sector, which is expected to drive significant growth in the coming years [1][2]. Group 1: Nvidia - Nvidia dominates the GPU market, with its Blackwell chips sold out and a gross margin of 73.6%. The company has raised GPU prices by 10% to 15% to maintain margins amid tariff costs [5][6]. - Nvidia reported record third-quarter revenue of $57 billion, with data-center revenue reaching $51.2 billion, a 66% increase year-over-year [3]. - The stock trades at a premium P/E ratio of 46.6x, reflecting its strong market position, holding 80% of the AI chip market [6]. Group 2: Micron - Micron is positioned as a key player in the memory supply chain, with its high-bandwidth memory (HBM) critical for AI training. The company’s HBM revenue reached an annualized run rate of $8 billion in Q4, with all of its 2026 output already contracted [7]. - Management projects a gross margin of 68% and a total addressable market of $100 billion by 2028, anticipating 40% annual growth [7]. - Micron's stock trades at a P/E of 29.7x, which is below the semiconductor sector average despite the high demand for its products [8]. Group 3: Alphabet - Alphabet's Google Cloud has transformed into a growth engine, with cloud revenue increasing by 34% in Q3 and AI product revenue soaring over 200% year-over-year [9]. - The company serves nine of the top ten AI labs, including OpenAI and Anthropic, and has a cloud backlog of $155 billion, providing multi-year revenue visibility [9]. - Alphabet's stock is valued at a P/E of 30.7x, which is considered fair for 2026 [9]. Group 4: Investment Strategy - A suggested investment strategy involves allocating approximately $1,700 to each of the three companies, as they are seen as essential players in the AI era [10].