Got $5,000? 2 Tech Stocks to Buy and Hold for the Long Term.

The article identifies Marvell Technology and Amazon as prime beneficiaries of the rapidly expanding hyperscale data center market, propelled by artificial intelligence. Marvell, a data infrastructure specialist, experienced a 98% year-over-year surge in data center sales to $1.1 billion, with further growth projected, despite not yet achieving GAAP profitability. Amazon's AWS segment, the leading cloud services provider, contributed 60% of the company's operating profits with a 35% margin, as AWS sales grew 19% to $27.5 billion last quarter, positioning both firms for substantial long-term tailwinds from increasing data demands.

Analysis

The hyperscale data center market, significantly propelled by AI, is identified as a key secular growth driver for 2025 and beyond. Marvell Technology (MRVL), a data infrastructure specialist, is a primary beneficiary, with data center sales skyrocketing 98% year-over-year to $1.1 billion last quarter and projected to exceed $1.3 billion next quarter.

Despite not being GAAP profitable, Marvell's non-GAAP results show strong performance, with Q3 EPS of $0.43 and an expected $0.59 for Q4. Analysts forecast total EPS of $2.76 for fiscal 2026, leading to a forward P/E of 43, which, while not cheap, reflects its significant growth runway in an explosive market.

Amazon (AMZN) is highlighted as an industry titan, with its AWS cloud segment being the dominant profit driver. AWS contributed 60% ($36.4 billion) of Amazon's total operating profits over the past 12 months with a 35% margin, and sales grew 19% to $27.5 billion last quarter.

Amazon's forward P/E of 36, below its five-year historical averages, suggests a more attractive valuation for long-term holders despite a recent rally. Both Marvell and Amazon are strategically positioned to capitalize substantially on the sustained expansion of AI-driven data center infrastructure.

Key Decisions for Investors

• Investors should consider long-term positions in Marvell Technology (MRVL) to capitalize on the AI-driven hyperscale data center expansion, utilizing strategies like dollar-cost averaging to manage its premium valuation and potential volatility.
• Maintain or initiate long-term holdings in Amazon (AMZN), particularly given the robust profitability and growth of its AWS segment and its forward P/E trading below historical averages.
• Monitor Marvell's data center sales growth and Amazon's AWS revenue figures as critical indicators of continued performance within the accelerating data infrastructure market.