This month, a sell-off has wiped billions from the stock market, with the Nasdaq Composite down nearly 10% in the last 30 days. Fears of a recession have deeply concerned investors after news broke that the U.S. added 114,000 jobs in July against expectations of 175,000.

However, tech's long growth history and reputation for offering stockholders consistent and significant gains over many years make it a compelling place to invest. Despite a sell-off, the tech-driven Nasdaq Composite has risen 280% since 2014. So, recent declines actually present an exciting investment opportunity and the chance to pick up some stocks for a better value.

Markets such as artificial intelligence (AI), cloud computing, e-commerce, semiconductors, and more still have plenty of room to grow over the long term and could fuel the industry for decades.

So, got $5,000 spare? Here are two tech stocks to buy and hold for the long term. However, even a smaller investment could go far with these companies.

1. Nvidia

Nvidia 's (NASDAQ: NVDA) share price is down 16% over the last month. The recent sell-off hasn't been kind to the world's third most valuable tech company and the unofficial poster child for AI . However, at 21% below its all-time high in June, Nvidia's shares remain a compelling option for long-term-minded investors.

Despite recent declines, Nvidia hasn't given any indication that its earnings won't continue soaring, thanks to its lead in the chip market. The company is responsible for at least 80% of the AI chip market, 91% of data center graphics processing units (GPUs ), and 88% of desktop GPUs (chips sold directly to consumers).

According to a study from TechInsights, Nvidia shipped 3.76 million data center GPUs in 2023. For reference, a total of 3.85 million data center GPUs were shipped during the year when including sales from AMD and Intel .

Nvidia's success has seen its earnings skyrocket, extending its lead over rivals. Since last August, the chipmaker's quarterly revenue and operating income have increased by 44% and 62%, with free cash flow rising 112% to $15 billion. Meanwhile, AMD's free cash flow reached $439 million this year, and Intel's is at negative $3 billion. Nvidia's market dominance and significant cash reserves will likely prove a formidable combination over the long term as chip demand continues to rise and the company reinvests in its business.

Nvidia is trading at 60 times its earnings, which doesn't exactly shout "Bargain!" However, that figure is significantly lower than its five-year average of 80, signaling an excellent time to buy its stock and hold it indefinitely.

Half of your $5,000 would buy about 25 shares in Nvidia at its current price.

2. Amazon

Amazon (NASDAQ: AMZN) has seen its stock slip 17% since early July amid a market downturn. However, consistently expanding cloud and advertising divisions illustrate a shift in its business model that could pay off over the long term.

The company posted its second quarter of 2024 earnings on Aug. 1, revealing a bit of a mixed bag. Revenue rose 10% year over year but missed expectations by $760 million. Meanwhile, earnings per share of $1.26 beat consensus estimates by $0.23, proving the effectiveness of recent cost-cutting measures. The company suffered from softer-than-expected sales for the quarter, with revenue from its online store rising 5% year over year.

However, solid growth from its cloud platform, Amazon Web Services (AWS), and its advertising services strengthened its long-term outlook. In Q2, AWS sales jumped 19%, while operating income soared 74%. Meanwhile, revenue from ads on platforms like Prime Video increased 20% year over year as the segment continued on its positive growth trajectory.

Retail remains a lucrative venture. However, it can also be a weak point for Amazon as the business relies heavily on the state of the economy and consumers' spending power. As a result, solid growth in more stable sectors like cloud computing and digital ads is promising for Amazon's future.

Amazon's quarterly operating income and free cash flow have soared 31% and 186% over the last year, mainly thanks to the profitability of AWS. Alongside a price-to-earnings (P/E) and price-to-sales (P/S) ratio that are well below Amazon's 10-year average for both metrics, the company's stock is a no-brainer right now and worth at least half of your $5,000 investment. That $2,500 would yield about 15 shares of Amazon at its current position.

Before you buy stock in Nvidia, consider this: