3 Monster Stocks to Hold for the Next 3 Years

Which stocks you decide to buy and hold depends on what timeframe you're looking at. Short-term traders aren't looking at a long-term outlook of a company, and are subject to the rise and fall of the market. Short-term institutional investors have access to the tools that individual investors don't have, making this a difficult game to win.

Long-term individual investors are usually far more successful, and the minimum holding period for most of these investors assumes three years. That timeframe lets business success do the heavy lifting of the stock price, and if you can find strong businesses that have growing prospects, you can utilize the one advantage individual investors have: time.

Three stocks that I think could have a monster three years ahead are Broadcom (NASDAQ: AVGO), Taiwan Semiconductor Manufacturing (NYSE: TSM), and Meta Platforms (NASDAQ: META). All three of these stocks have strong multi-year outlooks, and investors should look to scoop them up and hold them through 2028.

Image source: Getty Images.

Broadcom

Broadcom does a lot of different work in the tech sector, but its most exciting division by far is its artificial intelligence (AI) semiconductor division.

The leading growth driver in this segment is its custom AI accelerators. These are computing units designed for collaboration with the end user to optimize the workloads that they see. Graphics processing units (GPUs) from Nvidia (NASDAQ: NVDA) are fantastic, but they have a lot of wasted capacity that drives the price up. If clients can deploy Broadcom's custom AI accelerators, they can deliver better performance at a cheaper price, lowering the cost of the massive AI buildout.

During its fiscal 2025's third quarter (ended Aug. 3), Broadcom's AI revenue rose 63% year over year to $5.2 billion. For the fourth quarter, management expects that revenue to rise to $6.2 billion, indicating the massive demand for its custom AI hardware.

I believe these will only become more popular as the AI race progresses, setting up Broadcom for a monster three years.

Taiwan Semiconductor

Broadcom cannot make its chips by itself, so it farms that work out to semiconductor foundries like Taiwan Semiconductor. TSMC, as it's also known, is the world's largest chip manufacturer by revenue. With the artificial intelligence computing power buildout slated to continue into the foreseeable future, Taiwan Semiconductor is an excellent stock pick to take advantage of this rise.

It's also solving one of AI's biggest crises: power consumption. It's no secret that AI data centers consume a ton of electricity. This could become a bottleneck in the near future, so creating chips that consume less power is at the top of Taiwan Semiconductor's priority list.

Its 2nm (nanometer) chip node is entering production right now, and promises to consume 25% to 30% less electricity than previous chip generations when configured to run at the same speed. That's a huge improvement, and could help extend the AI buildout.

Meta Platforms

The market is growing impatient with Meta Platforms. Although it has an incredibly strong base business -- revenue rose 26% year over year -- investors are growing weary of Meta's massive capital expenditures, mostly around AI data centers.

Meta's CEO and founder, Mark Zuckerberg, has stated that he doesn't care if Meta overbuilds on AI capacity, as they'd much rather overshoot it. This raised some eyebrows and made investors concerned that Meta is planning on spending more on data centers in 2026 than its cash flows provide.

As a result, the stock sold off heavily and now trades for less than 20 times next year's earnings.

META PE Ratio (Forward 1y) data by YCharts.

That's a fairly attractive price tag for Meta's stock, and it could lead to outperformance over the next few years while the other stocks remain highly valued. I think investors need to focus on the long term with Meta, and ignore some of the short-term expenses that come from the massive data center buildout. If you can do that, I think you'll be rewarded as a long-term shareholder of Meta Platforms.

Keithen Drury has positions in Broadcom, Meta Platforms, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Meta Platforms, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.