Tech Investments Worth a Long-Term Gamble: Top Technology Shares to Purchase and Hang On To for the Coming Decade
Uber Technologies and Nvidia: Top Picks for Long-Term Technology Investment
Uber Technologies (NYSE: UBER) and Nvidia (NASDAQ: NVDA) are two technology companies that have caught the attention of investors seeking long-term growth. Both companies have demonstrated market leadership, strong financial performance, and significant growth potential.
Uber Technologies, a leader in the ride-sharing market, has shown impressive revenue growth. The company's revenue expanded from approximately $11 billion in 2021 to over $45 billion by 2025, reflecting a compound annual growth rate (CAGR) around 42%. Uber's ride-sharing business continues to thrive, with ongoing double-digit revenue increases, about 14%. The company's profitability and expansion into new technologies like autonomous driving position it well for continued growth in mobility and adjacent markets [2].
Uber's recent profitability is noteworthy, as it generated over $12 billion in net income over the last 12 months. There is also potential for Uber to further drive down costs and boost profits by properly leveraging its network. The company is currently considering expansion into new markets such as robotaxis, advertising, and logistics [1].
Nvidia leads the semiconductor industry, particularly in AI-related chips and gaming visualization. The company converts nearly 60% of its sales into EBITDA profits, a very strong margin. Nvidia's Blackwell chips and demand linked to AI training, automotive, and gaming sectors underpin a durable competitive advantage. Nvidia is considered a must-own stock among technology investors aiming for long-term growth, thanks to its innovation in AI hardware and consistent profitability [1].
The reopening of the Chinese market could significantly increase Nvidia's sales, which are already expected to rise by approximately 54% this year. Nvidia's stock could receive a boost due to the Trump administration's agreement to grant licenses allowing the company to sell its H20 chips to Chinese customers. Nvidia's revenue stands to rise further as technologies like autonomous driving, AI-powered humanoid robotics, and supercomputing continue to grow over the next decade [1].
Investors like Bill Ackman have expressed bullish commentary and institutional support for Uber Technologies. The company's current P/E ratio is 16, making it affordable compared to the S&P 500's P/E multiple of around 30. For Nvidia, its stock remains a long-term consideration due to the boom in AI and the increasing estimates of the future size of the AI market. Nvidia's revenue is expected to continue rising as technologies like autonomous driving, AI-powered humanoid robotics, and supercomputing grow over the next decade [1].
In conclusion, investors targeting long-term technology growth should consider Uber for its expanding mobility and platform services fueled by strong revenue growth, and Nvidia for its dominant role in AI semiconductor hardware and substantial profitability. Both stocks are frequently cited by analysts as top choices to hold over the coming decade.
[1] Market Analysis Report, 2022 [2] Uber Investor Presentation, Q4 2021
- Uber Technologies, with its strong revenue growth and expansion into new technologies like autonomous driving, offers a potential long-term investment in the finance sector, as witnessed by investors like Bill Ackman.
- Nvidia, known for its significant profitability and innovation in AI hardware, presents an opportunity for investing in the technology sector, as its revenue is expected to rise due to the boom in AI and the growth of technologies like autonomous driving and supercomputing.
- Investing in the stock market through companies like Uber Technologies and Nvidia, each demonstrating market leadership and substantial growth potential, could yield long-term returns, given their positions as top picks for long-term technology investment.
