It’s been a solid year for technology stocks. As of this writing, the tech-heavy Nasdaq Composite is up 13%, besting other benchmark indexes like the S&P 500 and the Dow Jones Industrial Average.

With that in mind, let’s take a look at two tech stocks that have led the way, and why they may be smart investments for the long term.

Image source: Getty Images.

Snowflake

With its stock price having more than doubled over the last 12 months, Snowflake (SNOW -0.47%) is on a roll. The company, which operates a cloud-based data analysis platform, is cashing in on the rapid growth of artificial intelligence (AI) systems.

Consider this: In its most recent quarter (for the three months ending on July 31, 2025), Snowflake reported:

• $1.09 billion in revenue, up 32% year-over-year
• 654 customers with over $1 million spent over the last 12 months, an increase of 30% from a year earlier
• 125% net revenue retention — indicating that existing customers regularly raise their platform spending over time.

So what’s leading to these excellent figures? In short, it comes down to data. Organizations are awash in it. However, in an effort to widen margins and increase profits, they require tools that can find efficiencies across massive data sets.

That’s where Snowflake can deliver value. The company’s platform helps organizations implement AI tools across multiple cloud vendors, including the big three of Amazon, Microsoft, and Alphabet (GOOG 2.47%) (GOOGL 2.39%). In this way, organizations can leverage AI and machine learning tools across a variety of data sets, even if competing cloud service providers house them.

Looking ahead, according to consensus estimates compiled by Yahoo! Finance, analysts expect Snowflake to generate $4.6 billion in revenue this year and $5.7 billion next year, representing growth of 27% and 23.6%, respectively.

Granted, as with many growth stocks, Snowflake has its risks. With a price-to-sales (P/S) ratio of 18, the market has priced in rapid growth with flawless execution. So, if the red-hot AI and cloud markets cool off, shares of Snowflake could tumble steeply.

Yet, for those growth-oriented investors looking to hold for the long term, Snowflake’s unique position within the AI ecosystem makes it a stock worth considering.

Alphabet

It may have been a quiet grind, but Alphabet’s stock has enjoyed a fantastic 2025.

As of this writing, shares have advanced by around 26% year to date, making Alphabet one of the top mega-cap stocks — second only to Nvidia. Similarly, the company’s market cap is fast approaching $3 trillion, meaning it could soon join Nvidia, Microsoft, and Apple as the only companies in the elite $3 trillion club.

So, why is Alphabet in this position? It comes down to two factors: execution and legal results.

Let’s start with the former. Some analysts came into 2025 concerned that Alphabet’s core search business would struggle as large language models (LLMs) continued to improve and gain popularity.

There’s no sign of that happening just yet. In its most recent quarter, Alphabet’s core business, Google Search, reported $54 billion in revenue, up from $49 billion a year earlier, representing growth of 10%. Total revenue increased from $85 billion to $96 billion. In other words, Google Search continues to drive enormous revenue and profit for Alphabet, despite the rise of AI tools.

On the legal front, Alphabet received a major win in court earlier this month when a federal judge ruled against the government’s proposal to force a breakup of the company. The ruling ends the uncertainty that has hung over Alphabet since the antitrust case was filed in October 2020.

As a result, long-term investors have another reason to consider Alphabet stock: Its core business remains stronger than ever, and its biggest legal hurdle has been cleared.