2 Dominant Tech Stocks to Buy in January and Hold for 5 Years

• Investors continue to underestimate just how profitable Amazon can become over time.

• Strong demand for enterprise AI and advertising growth continues to drive impressive gains for Google.

• 10 stocks we like better than Amazon ›

The “Magnificent Seven” are among the most profitable and cash-rich businesses on the planet. These companies are driving the growth in artificial intelligence (AI) — a market that could lead to trillions in economic value in the coming years.

Amazon (NASDAQ: AMZN) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) are two members of this elite group of tech titans that could see substantial growth where it counts. Here’s why these stocks can power your portfolio through the end of the decade.

Amazon has created tremendous wealth for investors over the last 20 years. It is a rock-solid business that benefits from several growing revenue streams, including advertising, merchant services, and subscriptions with Prime. It also just happens to be the leader in the $390 billion cloud computing market.

All these businesses are growing, driving Amazon’s total revenue up 13% year over year in the third quarter, reaching $180 billion in quarterly revenue. However, free cash flow has fallen over the last year as Amazon increased capital spending to support growth in the cloud market and other initiatives. After surging the past few years, the stock stalled in 2025, underperforming the market.

Amazon spent nearly $120 billion in capital expenditures on a trailing-12-month basis through the third quarter, representing a year-over-year increase of 72%. Wall Street is concerned that this spending will pressure the company’s margins, but Amazon has a long history of seeing higher profitability following these investment cycles.

This spending is primarily supporting cloud computing demand, but it also includes investments in improving fulfillment efficiency in the e-commerce business. Amazon has deployed over 1 million robots across its fulfillment network, which is significantly reducing operating costs. This could contribute to explosive growth in Amazon’s free cash flow over the next five years.

Amazon stock has delivered a 700% return over the last decade, supported by a significant increase in free cash flow from $7 billion in 2015 to an expected $20 billion in 2025. By 2029, analysts expect Amazon’s free cash flow to exceed $142 billion. That’s a 63% annualized growth rate, which could yield substantial returns for investors.

Alphabet is benefiting from the growing demand for AI cloud services and advertising. The company’s revenue continues to grow at double-digit rates, with analysts expecting revenue to increase by 14% in 2026, reaching $455 billion.