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In this article, we will be taking a look at the 12 best big tech stocks to buy now. To skip our analysis of the recent technology trends, and market activity, you can go directly to see the 5 Best Big Tech Stocks to Buy Now.
Technology has been at the forefront of advancement and innovation in the recent past and is expected to be the primary catalyst in the future as well. The advancements in technology have not only improved the quality of life for individuals but have also resulted in improved productivity and efficiency across almost all aspects of life.
According to a report recently published by McKinsey & Company, the latest trends in the technology revolve around 14 major technologies, with clean energy, mobility, and connectivity leading the trends in terms of the investments made during 2021. Clean energy technologies focused on the whole energy value chain, from power generation to storage and distribution, were at the forefront with $257 billion investment last year. Other major trends include applied AI, Cloud, and edge computing, Web3, and immersive reality technologies, among others.
The companies picked in this list are at the forefront of their market segments and industries and hold significant competitive advantage over their peers based on strong technological capabilities. The companies have strong fundamentals and have exhibited high growth in the past with the potential to make breakthroughs in the future as well.
Despite the growing investments and the increasing importance of technology in our lives, the technology sector and the stocks of the companies that are part of this sector have not fared well in the recent past. The Nasdaq-100 index, heavily weighted with technology stocks, was down year-to-date by nearly 35%, as of October 11, 2022.
Global markets have been going through a rough patch with fears of a recession due to inflation and aggressive monetary policies implemented by central banks. On September 21, the US central bank raised interest rates by three-quarters of a percentage point for the third consecutive time and signaled further increases in the future.
Given the decline in the market, it could be a good idea for investors to have a well diversified portfolio of leading companies across many different sectors and not just technology alone. In the technology sector, however, here are some leading companies.
Methodology
We used multiple screening methods to pick the 12 best big tech stocks to buy now. We picked the top 40 stocks with market capitalizations of more than $50 billion, strong fundamentals and average analyst price targets representing an upside of more than 30% based on the current market price. We ranked these 40 companies based on the number of leading hedge funds holders who held shares in the same stock at the end of 2022.
12 Best Big Tech Stocks to Buy Now
12. QUALCOMM, Incorporated (NASDAQ:QCOM)
Market Capitalization as of October 10: $140.7 billion
Current Share Price as of October 10: $114.01
Number of Hedge Fund Holders: 71
San Diego, California-based QUALCOMM, Incorporated (NASDAQ:QCOM) is a leading wireless technology innovator and the driving force behind the development, launch and expansion of 5G technology. Its portfolio includes products for processors, modems, platforms, RF systems, and connectivity, among others.
QUALCOMM, Incorporated (NASDAQ:QCOM) is among some of the worst performing stocks in the US market with shares down by 33.88% since the beginning of the year, as of October 10.
On September 27, JPMorgan analyst Samik Chatterjee reiterated his belief in QUALCOMM, Incorporated (NASDAQ:QCOM) and maintained an ‘Overweight’ rating and a price target of $185.
As of Q2 2022, 71 of the 895 hedge funds tracked by Insider Monkey were long QUALCOMM, Incorporated (NASDAQ:QCOM), holding shares worth $2.8 billion. Its largest hedge fund shareholder is Ken Griffin’s Citadel Investment Group.
Like Apple Inc. (NASDAQ:AAPL), Uber Technologies, Inc. (NYSE:UBER), and Microsoft Corporation (NASDAQ:MSFT), QUALCOMM, Incorporated (NASDAQ:QCOM) is a stock many hedge funds own.
11. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Market Capitalization as of October 10: $370.6 billion
Current Share Price as of October 10: $67.25
Number of Hedge Fund Holders: 72
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), based in Hsinchu, Taiwan, is a leading semiconductor foundry operator. It serves more than 500 customers and manufactures over 12,300 products for various applications including smartphones, high performance computing, the Internet of Things (IoT), automotive, and digital consumer electronics.
In October, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) announced its net revenue for the month of September. Its net revenue increased by 36% y-o-y to NT$208.3 billion for the month.
As of October 10, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) shares have lost 42% of their value since the beginning of the year and currently trade at a forward P/E ratio of 13.17. Despite the recent bearish trend, analysts have an average price target of $117.78 for Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) shares, which represents a potential upside of 75% based on the current share price.
Given Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) operates in Taiwan, the company is riskier than companies based in the United States if tensions between China and the United States increase.
As of Q2 2022, 72 of the 895 hedge funds tracked by Insider Monkey owned shares of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), valued at $9.2 billion. Its largest shareholder was Ken Fisher’s Fisher Asset Management with ownership of 26.3 million shares valued at $2.2 billion.
10. Intuit Inc. (NASDAQ:INTU)
Market Capitalization as of October 10: $115.9 billion
Current Share Price as of October 10: $381.03
Number of Hedge Fund Holders: 75
Intuit Inc. (NASDAQ:INTU) is a global financial technology platform allowing consumers and small businesses to manage their finances, get and retain customers, save money, pay off debt and do their taxes with ease, among other solutions. Its platforms include TurboTax, Credit Karma, QuickBooks, and Mailchimp and serve over 100 million customers.
In August, Intuit Inc. (NASDAQ:INTU) released its financial results for the quarter ended July 31, 2022. Its total revenue decreased by 6% y-o-y to $2.4 billion, while it reported a net loss of $56 million. It reported a normalized EPS of $1.10 for the quarter, $0.12 more than the analyst consensus. The company also declared a quarterly cash dividend of $0.68 per share.
On October 3, JPMorgan analyst Mark Murphy downgraded Intuit Inc. (NASDAQ:INTU) shares to ‘Neutral’ from ‘Overweight’ with a $360 price target.
As of Q2 2022, 75 of the 895 hedge funds tracked by Insider Monkey held Intuit Inc. (NASDAQ:INTU) shares valued at a combined total of $5.4 billion. Terry Smith’s Fundsmith LLP was its largest hedge fund shareholder with ownership of 2.4 million shares valued at $914 million.
9. NVIDIA Corporation (NASDAQ:NVDA)
Market Capitalization as of October 10: $326.9 billion
Current Share Price as of October 10: $115.23
Number of Hedge Fund Holders: 84
Founded in 1993, California-based NVIDIA Corporation (NASDAQ:NVDA) is a leading technology company focused on the design and manufacturing of accelerated computing hardware and software products. Its core businesses comprise of Gaming, Data Center, Professional Visualization, and Automotive, with Gaming and Data Center making up for more than 80% of its revenues. Its GeForce GPU is used by more than 200 million gamers and creators, making it the market leader with 80% market share in PC Gaming.
In August, NVIDIA Corporation (NASDAQ:NVDA) released the financial results for the quarter ended July 31, 2022. Its revenues increased by 3% y-o-y to $6.7 billion, while its net income declined by 72% y-o-y to $656 million. The EPS for the quarter was recorded at $0.26, beating the consensus by $0.06.
Earlier in September, Citi analyst Atif Malik lowered the price target on Nvidia Corporation (NASDAQ:NVDA) shares to $210 from $248 while maintaining a ‘Buy’ rating on the shares.
Even though Nvidia Corporation (NASDAQ:NVDA) shares were down 58.94% year-to-date as of October 10, analysts have an average price target of $196.75.
NVIDIA Corporation (NASDAQ:NVDA) is subject to bullish sentiment from a large number of hedge funds as 84 of the 895 hedge funds held its shares as of Q2 2022, with the total hedge fund holdings valued at $3.3 billion. Its largest shareholder is Citadel Investment Group.
8. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Market Capitalization as of October 10: $109.5 billion
Current Share Price as of October 10: $57.35
Number of Hedge Fund Holders: 87
Based in Santa Clara, California, Advanced Micro Devices, Inc. (NASDAQ:AMD) is a leading semiconductor company using high-performance computing, graphics, and visualization technologies to provide computing solutions for cloud, edge, and end devices. On September 20, the semiconductor maker unveiled its latest Ryzen? 7020 Series and Athlon? 7020 Series Processor lineup, promising high-end performance and longer battery life for mobile and laptop devices.
In August, Advanced Micro Devices, Inc. (NASDAQ:AMD) released its financial results for the quarter ended June 25, 2022. Its revenues increased by 70% y-o-y to $6.6 billion, while net income declined by 37% y-o-y to $447 million. The normalized EPS was recorded at $1.05 per share, beating the consensus by $0.01.
As of October 10, Advanced Micro Devices, Inc. (NASDAQ:AMD) shares have lost 59.39% of their value year-to-date. Despite the recent downturn, the shares have an average analyst price target of $107.87.
On September 15, Mizuho analyst Vijay Rakesh lowered the price target on Advanced Micro Devices, Inc. (NASDAQ:AMD) shares to $125 from $140 but maintained a ‘Buy’ rating on the shares.
As of Q2 2022, 87 hedge funds tracked by Insider Monkey held shares of Advanced Micro Devices, Inc. (NASDAQ:AMD), worth $4.8 billion. Ken Fisher’s Fisher Asset Management is its largest hedge fund shareholder with ownership of 25.1 million shares valued at $1.9 billion.
7. Palo Alto Networks, Inc. (NYSE:PANW)
Market Capitalization as of October 10: $52.3 billion
Current Share Price as of October 10: $161.95
Number of Hedge Fund Holders: 90
Santa Clara, California-based Palo Alto Networks, Inc. (NYSE:PANW) is a leading global cybersecurity services provider. It serves thousands of customers globally across all sectors.
In August, Palo Alto Networks, Inc. (NYSE:PANW) released financial results for the quarter ended July 31, 2022. Its revenue increased by 27% y-o-y to $1.6 billion, while it generated a net income of $3.3 million, compared to a net loss of $119.3 million last year.
As of October 10, Palo Alto Networks, Inc. (NYSE:PANW) shares have shown significant resistance despite the turbulent market conditions and have lost 8.45% of their value since the beginning of the year. The outlook for Palo Alto Networks, Inc. (NYSE:PANW) may not be so gloomy in the future as analysts hold an average price target of $218.25.
On October 6, SMBC Nikko analyst Carson Sippel initiated coverage of Palo Alto Networks, Inc. (NYSE:PANW) with a price target of $230 and an ‘Outperform’ rating for the shares. The analyst believes that the company is “set to command an increasingly larger share of Security budgets going forward” and views the company “as a formidable player in Cloud Security and Security Ops”.
As of Q2 2022, 90 of the 895 hedge funds tracked by Insider Monkey held shares of Palo Alto Networks, Inc. (NYSE:PANW), worth $3.7 billion. Ken Griffin’s Citadel Investment Group was its largest shareholder.
6. Adobe Inc. (NASDAQ:ADBE)
Market Capitalization as of October 10: $138.7 billion
Current Share Price as of October 10: $284.02
Number of Hedge Fund Holders: 92
Adobe Inc. (NASDAQ:ADBE) is a leading digital media and digital marketing solutions company based in California. Its software and cloud solutions are packaged into three cloud solutions: Adobe Creative Cloud – comprising Photoshop, Lightroom, Illustrator, Premier Pro, and others; Adobe Document Cloud – comprising solutions for creating, editing, sharing, scanning, and signing digital documents; and Adobe Experience Cloud – solutions for customer journey management, data analytics, content personalization, commerce, and marketing workflows.
In September, Adobe Inc. (NASDAQ:ADBE) released its financial results for the quarter ended September 2, 2022. Its total revenue increased by 13% y-o-y to $4.4 billion, while net income declined by 6% y-o-y to $1.14 billion. It generated a normalized EPS of $3.40 for the quarter, exceeding the analyst estimates by $0.06.
On September 15, Adobe Inc. (NASDAQ:ADBE) announced that it had entered into an agreement to acquire Figma, a collaborative design platform, for $20 billion comprising half cash and half stock compensation. Even though the acquisition makes business sense, the price tag and timing has raised concerns for investors and analysts, which has resulted in a significant drop in its share price.
As of Q2 2022, Adobe Inc. (NASDAQ:ADBE) shares were held by 92 out of 895 hedge funds tracked by Insider Monkey with a total value of $7.5 billion. Its largest shareholder was Fisher Asset Management with ownership of nearly 6.2 million shares valued at $2.3 billion.
Companies like Apple Inc. (NASDAQ:AAPL), Uber Technologies, Inc. (NYSE:UBER), and Microsoft Corporation (NASDAQ:MSFT) are also big tech stocks many hedge funds own.
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Disclosure: None. 12 Best Big Tech Stocks to Buy Now is originally published on Insider Monkey.
