Got $5,000? 1 Tech Stock to Buy and Hold for the Long Term.
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By Marc Guberti – Feb 28, 2026 at 5:25AM ESTKey PointsAlphabet is the best-performing Magnificent Seven stock over the past year and has multiple catalysts that could extend its lead.It has a comfortable lead in the search engine market and is gaining ground in cloud computing.Waymo and Gemini present attractive long-term opportunities that are in their early innings.Choosing the right stocks can help investors outperform the S&P 500. Paradoxically, many of the same technology stocks that offer this potential also play an outsized role in driving the index’s overall performance.
The Magnificent Seven stocks make up nearly a third of the S&P 500's total market cap, and Alphabet (GOOG +1.39%) (GOOGL +1.50%) stands out as a particularly compelling opportunity right now. The company is a leader in multiple industries, and artificial intelligence (AI) has helped it gain market share in new opportunities. Image source: Getty Images. Many people use Alphabet's services every day Alphabet is one of the most valuable companies, in large part because so many people use its services. Google is the default search engine for many browsers, and it commands roughly 90% of the search market. That doesn't even factor in YouTube capturing more than 1 billion hours of attention every day through its vast video library. ExpandNASDAQ: GOOGAlphabetToday's Change(1.39%) $4.28Current Price$311.43Key Data PointsMarket Cap$3.8TDay's Range$303.59 - $312.0852wk Range$142.66 - $350.15Volume33MAvg Vol22MGross Margin59.68%Dividend Yield0.27% Google Cloud, a key part of the company's AI ambitions, is the third-largest cloud provider, making up roughly 14% of the entire industry. It has a big lead over competitors below it. Google Cloud powers many websites and AI tools, and its revenue growth has been accelerating in recent quarters. Gemini is another catalyst for Alphabet that has more than 750 million monthly active users. This AI model keeps people on Google's search engine and has monthly subscription plans that could become a large part of future revenue growth. Driving growth across multiple industries Alphabet captures people's attention in multiple industries, but that's not enough to justify a stock-buying opportunity. A company must continue to turn the attention it receives into accelerated income growth, and Alphabet is also delivering on that front. Overall revenue increased by 18% year over year in Q4 2025. Google Cloud was a key contributor, with sales up by 48% year over year. Profit margins also jumped, based on Alphabet delivering 30% year-over-year net income growth. All of this growth comes as Alphabet continues to tap into artificial intelligence. This technology has enhanced the company's search engine, social network, and cloud computing segments. However, it is also creating new opportunities, such as autonomous vehicles. Waymo cars have already expanded into multiple U.S. cities and may change the way people request ride-hailing services. The perfect blend of immediate revenue growth, sustainable business segments, and moonshot opportunities has turned Alphabet into a compelling stock as it approaches a $4 trillion market cap. The stock has rallied by more than 70% over the past year and has more than tripled over the past five years.Read NextFeb 28, 2026 •By James HiresPrediction: The AI Capex War Will Create a Clear Winner by the End of 2026Feb 27, 2026 •By Adria CiminoWant to Invest in Quantum Computing? 2 Stocks That Are Great Buys Right NowFeb 25, 2026 •By Eric Volkman1 Artificial Intelligence (AI) Stock With More Potential Than Any CryptocurrencyFeb 24, 2026 •By Bram BerkowitzBillionaire Investor Bill Ackman Has Nearly 40% of His Hedge Fund Invested in Just 3 Artificial Intelligence (AI) StocksFeb 22, 2026 •By Manali Pradhan, CFA3 Predictions for Alphabet in 2026Feb 22, 2026 •By Adam LevyBillionaire Value Investor Seth Klarman Sold Alphabet and Bought This Outstanding AI Stock InsteadAbout the AuthorMarc Guberti is a Certified Personal Finance Counselor and has been a contributing Motley Fool stock market analyst since 2025. He has written for several finance publications. Marc graduated from Fordham University with a finance degree. He is an avid marathon runner who aims to complete more than 100 marathons in his lifetime. His fastest marathon time is 2:40.TMFmarcgubertiStocks MentionedAlphabetNASDAQ: GOOG$311.43(+1.39%)+$4.28AlphabetNASDAQ: GOOGL$312.00(+1.50%)+$4.62*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.