Nvidia is the leader in AI infrastructure and has strong growth opportunities ahead.
Alphabet is a market leader in search, and its cloud computing unit is growing quickly.
Both companies have solid, durable moats.
If you're looking for tech stocks you can buy and hold for the next decade, you're going to want stocks that have solid growth opportunities and a durable moat.
Let's look at two stocks that fit that bill.
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What it does: Nvidia (NASDAQ: NVDA) is a chipmaker that designs graphics processing units (GPUs), which have become the main chips used to power artificial intelligence (AI) workloads, including large language model (LLM) training and inference. It also has a networking portfolio of products that help transfer data more quickly within a data center, allowing it to provide end-to-end AI data center solutions.
Its competitive moat: Nvidia's moat stems from the ecosystem it's built around its chips, highlighted by its CUDA software platform. Before AI went mainstream, Nvidia smartly seeded CUDA into leading universities and research labs that were doing early work on the technology, which resulted in most foundational AI code being written on its software platform to optimize the performance of its chips. Today, its leading AI code libraries are a huge advantage. In addition, the company's proprietary NVLink interconnect system allows its chips to act as a single powerful unit, which keeps customers from mixing and matching chips within an AI cluster.
Growth opportunities: As the provider of the main chips that help power AI data centers, Nvidia's growth hinges on the AI infrastructure buildout. Right now, though, there appear to be no signs of demand relenting. Cloud computing companies are racing to keep up with demand, while OpenAI has laid out aggressive spending plans. Nvidia sees the AI data center market growing to a $3 trillion to $4 trillion market by 2030.
What it does: Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) is the world's largest digital advertising platform through its market-leading search (Google) and streaming service (YouTube). The company also owns the third-largest cloud computing provider in Google Cloud, and it is the majority owner of robotaxi provider Waymo. The company has also developed its own leading LLM with Gemini, and it has designed its own custom AI chips called tensor processing units (TPUs).
Its competitive moat: Alphabet's moat in search and generative AI comes from three main areas: distribution, data, and its ad network. The company controls the market-leading Chrome browser and Android smartphone operating system, and it has a deal with Apple to be the default browser on its devices. This makes it the gateway to the internet for most people in the world. Meanwhile, the company has decades of search data and YouTube videos to help train models and help advertisers better target users. It also has one of the world's most comprehensive ad networks, which can serve advertisers of all shapes and sizes around the globe.
In cloud computing, the company is starting to develop a sizable edge by being the only company with a complete tech stack, highlighted by having its own world-class AI model and custom chips. Its TPUs give it a cost advantage in both training and inference with its own AI model, which just creates a huge flywheel effect.
Growth opportunities: Alphabet is currently seeing search and AI meld into one, which is starting to drive revenue growth. New AI features, such as AI Overviews, Lens, and Circle to Search, are leading to more search queries, while its stand-alone Gemini app has been gaining share, and its just-released Gemini 3 model has garnered high praise. Meanwhile, its new AI Mode is also driving more queries, as it lets users easily toggle between traditional search and an AI chatbot. Given Alphabet's huge global ad network, it is the company best positioned to eventually benefit from the increased usage that AI is driving.
Meanwhile, the company has a huge opportunity in cloud computing, as demand continues to surge. Given the cost advantage it has of owning its own world-class AI models and chips, it should see the biggest lift in profits of any cloud company. Throw in Waymo and its progress in quantum computing, and the company has a lot of growth opportunities ahead.
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Geoffrey Seiler has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Apple, and Nvidia. The Motley Fool has a disclosure policy.