2 Leading Tech Stocks to Buy in 2024 and Beyond

There’s no doubt that tech stocks have been among the most popular investments of the past few decades. Innovation and rapid progress have made them some of the most sought-after stocks, and their booming valuations reflect that fact. As of the end of August, seven of the world’s 10 most valuable companies were tech companies.

No matter how popular technology stocks In general, not all are created equal. Some companies’ long-term success is largely dependent on a specific industry, while others are built for sustained success. The following two companies are great options for investors interested in companies that fall into the latter category. This should come as no surprise either.

1.Microsoft

Microsoft (MSFT -0.13%) has been on the rise for the last five years. The stock is up over 200% in that time. Considering the company’s growth, that’s no small feat. market value This figure, which was approximately $1 trillion five years ago, is now over $3 trillion.

In the tech world, Microsoft is like a Swiss army knife; there’s not much it doesn’t do. It sells hardware (PCs and tablets), business and consumer software (Office and Windows), and is the world’s second-largest cloud computing platform (Azure), video games (Xbox), and a social media platform (LinkedIn).

Being involved in so many different industries has done wonders for Microsoft’s financials. In fiscal 2024 (ended June 30), it generated $245.1 billion in revenue, up 16% from the previous year. But arguably more impressive was its $109.4 billion in revenue business income (making profits from its core activities). For perspective, this is more Aim‘s past income four quarter.

MSFT Operating Income (YoY) by data YSchemas.

Much of Microsoft’s impressive operating income growth can be attributed to the growth of its cloud platform, Azure. Although it still lags behind Amazon Web Services (AWS) is gaining ground in market share along with AI (Artificial intelligence) has gained momentum in the last year.

Microsoft finished its latest quarter with more than 60,000 Azure AI customers, significantly more than the roughly 37,500 it had in the same period last year. These customers also spend more on average, contributing to the platform’s impressive revenue growth.

The tech giant already has a strong presence in a number of enterprise and consumer software products, but the growth of Azure and the cloud sector in general presents a high growth opportunity that should continue for the foreseeable future.

2. Apple

Apple (AAPL -0.86%) has been the world’s most valuable publicly traded company for most of the past decade, but its growth has lagged most of the “Magnificent Seven” stocks over the past 12 months. Still, it remains one of the best tech stock investments you can make.

Apple is known for its hardware, which will continue to be its bread and butter for the foreseeable future, but it has made huge strides in its services division. Three years ago, services accounted for just 27% of the company’s revenue. In its most recent quarter, they accounted for 39%. So I have confidence that Apple can continue its dominance for a long time.

Over-reliance on hardware (and the iPhone in particular) has left Apple vulnerable to cyclical consumer spending habits, as we’ve seen with the decline in smartphone sales over the past few years. However, services often come with subscriptions, providing the company with more reliable revenue streams.

AAPL Revenue (YoY Quarterly Growth) by data YSchemas.

With Apple’s devices now in the hands of billions of people, the company has prioritized building an ecosystem of services that will make it much harder for people to quit. The convenience and seamless integration between Apple devices and software is a key selling point, despite the high price tag.

Whether it’s ApplePay and Apple Card on iPhone or Health and Fitness+ on Apple Watch, Apple is showing us how the hardware-services ecosystem can be integrated into our daily lives. This deepens customer loyalty and opens up new revenue streams, contributing to Apple’s longevity potential.

Apple is a company I can buy into consistently and trust in its long-term vision.

John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a member of The Motley Fool’s board of directors. Stephen Walters The Motley Fool has positions in Apple and Microsoft. The Motley Fool has positions in and recommends Amazon, Apple, Microsoft, and Target. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool disclosure policy.