Micron, Amazon, and IBM: My 3 Favorite Stocks to Buy and Hold Through 2030

Holding a stock through 2030 means keeping it for more than four years. A lot can go wrong with any one business in that time, so I'd rather not count on a single company for that long.

My three favorites today are Micron Technology (NASDAQ:MU), Amazon (NASDAQ:AMZN), and International Business Machines (NYSE:IBM). They don't look like much of a group. Micron stock trades at under 5 times the earnings analysts expect for this fiscal year, while Amazon trades at around 25 times earnings, using analysts' 2027 forecasts. And IBM's dividend yields about 2.8%.

But I think these differences are a big reason the three fit well together.

Image source: Micron.

1. Micron: The stock looks cheap for what it earns

Micron's growth in the last year has been stunning. Revenue more than tripled in fiscal 2026 to $133.2 billion (Micron's fiscal year ended Sept. 3, 2026), and net income climbed around tenfold to $85.0 billion.

The company's still growing, too. Revenue climbed to $54.2 billion in fiscal Q4 from $41.5 billion the quarter before, and management expects about $61.5 billion in the current one -- slower sequential growth, but growth all the same.

Yet at roughly $820 as of this writing, shares cost under 5 times earnings, using analysts' forecasts for fiscal 2027. In other words, investors are arguably pricing in a steep fall in profits at some point.

There's history behind this doubt. In fiscal 2023, Micron's revenue was around half the prior year's, and the company lost $5.8 billion.

What makes me comfortable holding through 2030 is how much of the business is now under contract. Micron estimates that its 26 strategic customer agreements will make up over a third of its revenue through 2030. And most of that revenue comes with set pricing terms, often including floor and ceiling prices.

2. Amazon: AWS has years of work lined up

Amazon's cloud business is the top reason I'd hold the stock through 2030. Amazon Web Services (AWS) revenue climbed 39% year over year to $46.0 billion in the third quarter, its fastest growth in almost five years. And AWS brought in about 63% of Amazon's operating income on about 23% of its sales.

What's more, AWS's backlog (contracted revenue it hasn't recognized yet) hit $578 billion. That's over three years of revenue at AWS's current $184 billion annual run rate.

"[W]e believe that AWS can grow north of 40% in each of 2027 and in 2028 and be a trillion-dollar revenue business in the next five to 10 years," CEO Andy Jassy said on Amazon's third-quarter earnings call.

Of course, growth like this costs a lot. Amazon expects around $220 billion in cash capital expenditures this year, and Jassy said it plans to spend "meaningfully more" in 2027. Free cash flow for the last 12 months was negative $42.4 billion, versus positive $14.8 billion a year before.

3. IBM: AI agents, sold with Microsoft

IBM is the slowest grower of the three. Management expects revenue to climb 4% to 5% at constant currency this year (a measure that removes exchange-rate changes).

But a new product may help where IBM has struggled. On Nov. 10, IBM and Microsoft (NASDAQ:MSFT) announced Imagine Enterprise, a platform that helps businesses make and manage artificial intelligence (AI) agents for their industries. IBM Consulting brings over 6,000 pre-built AI agents and assets, and Microsoft provides the AI and cloud technology underneath.

This matters because consulting is IBM's weak spot. The segment's revenue climbed just 2% at constant currency in the third quarter, even though AI work made up about 30% of it.

Software's doing better, with revenue up 9% at constant currency to $7.8 billion. And IBM pays $1.69 a share in dividends each quarter. It's paid dividends every year since 1916. At around 18 times earnings, using analysts' 2027 estimates, the stock's priced between the other two.

Why these three together?

Each stock helps cover a weak spot in the others. Micron's profits will probably swing the most, as memory prices can drop fast when supply catches up. Amazon and IBM run steadier businesses.

Amazon, meanwhile, is spending more cash than it takes in, but Micron and IBM both generate plenty of it. And IBM's slow growth matters less next to the other two.

Of course, all three might stumble if AI spending slows sharply. Still, with more than four years to hold them, I'd happily buy all three now. I'd just keep Micron as the smallest position, because its profits have collapsed before.

Daniel Sparks and his clients do not have positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, International Business Machines, Micron Technology, and Microsoft. The Motley Fool has a disclosure policy.