Tech Giants Expected to Drive Long-term Stock Growth

Investors targeting $1 million in retirement should consider $200,000 in three stocks: Alphabet, Airbnb, and Taiwan Semiconductor. This trio is positioned for substantial growth over the next decade, fueled by EPS growth, revenue, and profit margins.

Date: 07-04-2025

AI Rating: 8

Investor Stability in Long-Term Holdings
For investors seeking wealth accumulation, focusing on quality businesses is crucial. The analysis presents three strong companies, Alphabet, Airbnb, and Taiwan Semiconductor Manufacturing (TSMC), which are projected to significantly increase in value over the next decade.

Earnings Per Share (EPS)
Alphabet's EPS has surged by an impressive 670% over the past decade, with a projection that suggests continued strong earnings performance, particularly from growth in AI-related revenues. TSMC also has a compelling narrative, showing nearly 300% EPS growth over the last ten years, driven by the increasing demand for high-performance computing chips, especially in AI sectors.

Revenue Growth
Alphabet reported a year-over-year revenue growth of 15%, reaching $350 billion. Google Cloud, a key growth driver, is increasing rapidly at a 30% pace last quarter. Similarly, Airbnb's revenue climbed by 12% to $11.1 billion. This consistent revenue growth for both companies is an indicator of their robustness in the competitive landscape.

Profit Margins
Alphabet's operating margin improved from 27% in 2023 to 32% in 2024, reflecting enhanced operational efficiency. Airbnb, with an operational margin of 23%, is expected to expand as it continues to scale. TSMC, serving as a foundational player in semiconductors, is also well positioned for margin growth as demand for computing capacity escalates.

The combination of strong EPS growth, steady revenue growth, and improving profit margins makes these stocks attractive for long-term investments. However, the ongoing macroeconomic dynamics, such as inflation and geopolitical factors, could introduce volatility. Investors must remain vigilant and consider these elements while modeling potential outcomes for their portfolios.

Stocks: GOOG GOOGL ABNB TSM