It’s time to address the pressing questions surrounding three key stocks and their prospects for the long haul.
When considering a long-term investment, you’ll generally find stocks categorized into two groups.
The first includes stocks from successful companies, raising the question of whether they can sustain their performance. The second consists of underperforming stocks, representing companies that are grappling with issues or challenges that might put off investors.
Palantir Technologies (PLTR -9.04%), Apple (AAPL 0.04%), and Alphabet (GOOG 2.30%) (GOOGL 2.70%) are three major technology stocks that represent both categories. Palantir has been among the market’s leading performers in artificial intelligence (AI), while questions arise regarding Apple’s and Alphabet’s competitiveness.
Below is an overview of each company and the reasons all three may still be viable long-term investments.
1. This AI Stock Keeps Rising
Palantir Technologies continues to soar, boasting a spectacular 2,100% increase since 2023. The company has established itself as a leader in AI software development for government and enterprise clients. Following the launch of its AI-focused platform, AIP, in mid-2023, Palantir’s growth has gained momentum.
Currently, Palantir serves fewer than 500 commercial clients in the U.S., a mere fraction of the 20,000 large corporations available. Coupled with its strong military relationships—government contracts accounted for 55% of Q1 2025 revenue—it’s easy to foresee sustained high growth rates.
2. Is Apple’s AI Progress Cause for Concern?
AI should have been a straightforward addition for Apple, given its extensive ecosystem of over 2.35 billion active iOS devices globally. Integrating AI into its platform could have positioned Apple as a front-runner in consumer AI.
However, Apple has encountered challenges in launching impactful AI features, leading to a restructuring of its AI team after a lackluster debut of Apple Intelligence.
On the brighter side, Apple’s iOS remains a highly sticky ecosystem, allowing the company the necessary time to navigate its AI struggles. Users have a longstanding attachment to Apple devices, increasing the likelihood they won’t abandon the brand overnight.
3. Is AI More of an Opportunity or a Challenge for Google?
Alphabet, Google’s parent company, is facing pressures from multiple fronts. Popularity in AI models is diverting traffic from traditional search engines like Google, while U.S. regulators target the company for anti-competitive practices, which could lead to heavy penalties impacting its core advertising revenue.
Despite these challenges, AI might represent more of an opportunity than a threat. Alphabet has successfully integrated AI summaries into search results, which have led to monetization. Impressively, Google’s ad revenue grew by 10% in Q1 2025, and the Google Cloud segment is expanding due to increased demand for AI-driven services.
Moreover, Alphabet’s autonomous ride-hailing service, Waymo, is broadening its reach and could play a crucial role in Alphabet’s future growth.
In sum, it appears this tech giant will remain a major player in the AI and technology sectors, making it a favorable investment as its stock is currently near a decade-low valuation.
Suzanne Frey, an executive at Alphabet, sits on The Motley Fool’s board of directors. Justin Pope has no investments in the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, and Palantir Technologies. For further information, see The Motley Fool’s disclosure policy.
