In this article, we will be looking at the 10 Best American Tech Stocks to Buy.
On April 28, Reuters reported that Big Tech companies have invested hundreds of billions of dollars over three years to support the rapid growth of AI. However, investors are focused on one key question: whether these investments will deliver returns.
According to the report by Reuters, Alphabet Inc. (NASDAQ:GOOGL), Meta Platforms, Inc. (NASDAQ:META), Amazon.com, Inc. (NASDAQ:AMZN), and Microsoft Corporation (NASDAQ:MSFT), are on track to spend about $600 billion on AI this year alone. This massive spending has reduced their cash flow and put pressure on investors, even when stock prices have mostly stayed strong based on expectations of future growth.
Joe Maginot, large-cap portfolio manager at Madison Investments, said that “what investors are looking for – us included – is what’s the return on all the capital expenditure (capex)?”
He added that “obviously, it takes time, but … these have been businesses that generated significant amounts of free cash flow and today, pretty much all operating cash flow is being consumed in capex. So, the economics of the business are changing.”
With this background in mind, let’s take a look at the 10 best American tech stocks to buy.
Our Methodology
To compile our list of the 10 best American tech stocks to buy, we used stock screeners from Finviz and Yahoo Finance to find the largest American technology companies. We sorted our results based on market capitalization and picked the top 40 American stocks. Next, we focused on the 10 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2025 database of 1041 elite hedge funds. Finally, the 10 best American tech stocks to buy were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q4 2025.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10 Best American Tech Stocks to Buy
10. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 132
Advanced Micro Devices, Inc. (NASDAQ:AMD) ranks among the best American tech stocks to buy. On April 29, Deutsche Bank reaffirmed its Hold rating on Advanced Micro Devices, Inc. with a price target of $250. The research firm expects the company to report strong results for the first quarter and provide solid guidance for the second quarter of fiscal 2026.
Deutsche Bank analyst Ross Seymore said that investors will be paying close attention to Advanced Micro Devices, Inc.’s EPYC server CPU performance, especially because of the recent momentum in the data center compute space. The research firm estimates that the company’s EPYC segment will grow 10% quarter-over-quarter in both the first and second quarters. However, Deutsche Bank also noted that supply constraints are likely to be the main factor limiting growth in the company’s CPU business.
For Advanced Micro Devices, Inc.’s Instinct data center GPU segment, Deutsche Bank expects steady performance in the first half of 2026, with revenues of around $2.6 billion per quarter. The firm expects growth to speed up to 30% in the third quarter and then 75% in the fourth quarter. Deutsche Bank forecasts this segment will reach $6.2 billion in the fourth quarter and total $15 billion for the full year.
It expects the company to keep its gross margins over 55% through the first three quarters, before a mix-driven fall to 54.5% in the fourth quarter.
Advanced Micro Devices, Inc. is a global semiconductor company that manufactures GPUs, microprocessors, and high-performance computing solutions and serves a number of high-growth industries like gaming, data centers, and AI.
9. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 137
Micron Technology, Inc. (NASDAQ:MU) ranks among the best American tech stocks to buy. On April 25, Mizuho Technology, Media, and Telecommunications (TMT) specialist Jordan Klein highlighted several memory stocks that investors should be investing in to benefit from the AI CPU trade.
Klein said that he “could not be more bullish on DRAM and Memory overall off this AI CPU acceleration narrative/chase.” These comments come at a time when industry data shows tightening supply conditions. Supply is not keeping up with demand and no new supply is expected until the second half of 2027. As a result, prices are expected to rise.
High Bandwidth Memory (HBM), a type of DRAM used in AI accelerators, is also seeing strong demand, with a 3-to-1 trade ratio. Klein also pointed out that CPUs cannot operate RAM. He noted that “they go hand in hand. So a lot more server (or even client CPUs) means a lot more DRAM over time.”
Looking at NAND stocks, Klein noted that Micron Technology, Inc. is among the stocks that are “way cheaper.” He added that Micron Technology, Inc. is “crazy cheap,” trading at around 3 to 4 times buy-side EPS.
Micron Technology, Inc. is a leading semiconductor technology company that is known for its innovative memory and storage solutions. The company offers a portfolio of high-performance DRAM, NAND, and NOR memory and storage products.
8. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 147
Uber Technologies, Inc. (NYSE:UBER) ranks among the best American tech stocks to buy. On April 29, Reuters reported that Uber Technologies, Inc. is introducing a new in-app hotel booking feature in partnership with Expedia Group. This move is part of the company’s effort to become a one-stop platform for travel, rides, and food.
According to the report by Reuters, Uber Technologies, Inc. is looking to increase user engagement and create new sources of revenue by adding travel services to its app. This comes as the company tries to capture a larger share of consumer spending across mobility and lifestyle.
The feature was announced at Uber Technologies, Inc.’s annual GO-GET event. Supported by travel booking platform Expedia’s inventory, the new feature will allow users in the US to search and book from over 700,000 hotels around the world directly within the Uber app. Later in 2026, vacation rental options from Expedia-owned Vrbo are also expected to be added.
Uber Technologies, Inc. is a global transportation technology company that focuses on ride-hailing, courier services, food delivery, and freight transport.
7. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 169
Apple Inc. (NASDAQ:AAPL) ranks among the best American tech stocks to buy. On April 30, Morgan Stanley increased its price target on Apple Inc. from $315 to $330 and kept its Overweight rating, pointing to the company’s solid March quarter results and guidance for the June quarter.
In the March quarter, Apple Inc.’s Services business grew by 16.3% compared to the same period last year, beating the guidance of around 14%. The company also gave a higher-than-expected gross margin outlook for the June quarter, forecasting it between 47.5% and 48.5%, despite higher memory costs.
In the first half of fiscal 2026, Apple Inc.’s revenue grew by 16% year-over-year, while earnings per share (EPS) increased by 20%.
Morgan Stanley lifted its fiscal 2026 EPS estimate from $8.63 to $8.89 and its fiscal 2027 estimate from $9.76 to $10.23. The research firm kept its valuation multiple at 32 times earnings.
Apple Inc. is an American multinational technology company that is known for its products like the iPhone, iPad, and Mac computers.
6. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 202
Broadcom Inc. (NASDAQ:AVGO) ranks among the best American tech stocks to buy. On April 30, Broadcom Inc. reported that it is launching its fourth wave of Wi-Fi 8 chips and an optimized 10G PON chip.
These new products strengthen the company’s position as a leader in the broadband market by extending the advantages of IEEE 802.11bn for service providers in highly competitive markets where the average revenue per user is limited.
Wi-Fi 8’s combination with 10G PON will allow operators to offer modern fiber-based connectivity at scale. This provides a technically solid and cost-effective way to move away from older copper and cable systems while improving network performance.
The new launch builds on Broadcom Inc.’s earlier residential and enterprise platforms. It introduces a more value-focused residential Wi-Fi 8 and 10G PON gateway designed to help speed up the mass market shift to the latest Wi-Fi technology as the demand for fast and reliable wireless broadband continues to grow.
The upgraded Wi-Fi 8 features offer improved reliability, higher capacity, lower latency, and higher throughput. The high-bandwidth 10G PON interface provides the required backhaul foundation to support consistent multi-gigabit performance in the competitive service provider markets.
Broadcom Inc. is an American multinational technology company that designs, develops, and supplies a wide range of semiconductor, enterprise software, and security solutions.
5. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 256
Meta Platforms, Inc. ranks among the best American tech stocks to buy. On April 30, Stifel reduced its price target on Meta Platforms, Inc. from $805 to $780 and kept its Buy rating on the stock.
The research firm pointed out that Meta Platforms, Inc.’s GAAP earnings per share surpassed expectations, despite adjusting for one-time benefits. Daily active people fell quarter-over-quarter for the first time since the second quarter of 2019. However, Stifel believes this figure would have increased if not for access issues in Iran and Russia.
Meta Platforms, Inc.’s guidance for the second quarter was in line with market expectations. The company increased its capital expenditure guidance for 2026 by $10 billion to $145 billion, up from a previous maximum of $135 billion. This raises questions around return on investment.
The company’s management highlighted its vision for Superintelligence. However, Stifel believes that “having a publicly announced model out of MSL is a good start for helping investors wrap their heads around where dollars pay off long-term.”
Meta Platforms, Inc. is an American multinational technology company that owns and operates Facebook, Instagram, Threads, Messenger, and WhatsApp.
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 264
NVIDIA Corporation (NASDAQ:NVDA) ranks among the best American tech stocks to buy. On April 30, Reuters reported that strong demand for AI computing equipment in China has pushed the price of NVIDIA Corporation’s B300 servers to around 7 million yuan, or about $1 million each.
Industry sources said this sharp increase comes as a crackdown on chip smuggling has reduced supply in the black market. The prices for B300 servers, which are the company’s most advanced and powerful servers, critical for AI tasks, have increased since early this year. However, prices jumped after the grey market, which is an important supply channel, came under pressure.
According to the sources, strong computing demand from Chinese tech companies is driving the price surge, even when many companies are careful about holding NVIDIA Corporation hardware directly on their books to avoid possible exposure to US sanctions.
At the same time, uncertainty around NVIDIA Corporation’s H200 chips has added further pressure to prices. Although both governments have approved exports of the H200, the chips have still not been shipped to China due to disagreements over the conditions governing its sale.
NVIDIA Corporation is an American multinational technology company known for producing graphics processing units (GPUs), AI hardware and software, and high-performance computing (HPC) solutions.
3. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 288
Alphabet Inc. ranks among the best American tech stocks to buy. On April 30, Pivotal Research increased its price target on Alphabet Inc. from $420 to $470 and kept its Buy rating on the stock.
The research firm pointed to the company’s first-quarter results. Search revenue growth accelerated for the fifth quarter in a row, increasing 19% year-over-year, which was higher than the firm’s expected growth of 15%. Cloud revenue growth also accelerated for the fourth quarter in a row, growing 63% and beating Pivotal Research’s estimate of 48%. Cloud operating margins were also better than expected.
Subscriptions and Devices revenue increased by 19% in the first quarter of 2026. Pivotal Research increased its forecasts for search and cloud revenue after the results.
Pivotal Research also raised its capital expenditure estimates, including an increase of $10 billion for 2026 linked to the Intersect acquisition, along with higher spending projections for 2027 and beyond. According to the research firm, these updates reflect strong cloud and AI momentum.
Alphabet Inc. is an American multinational technology company and the parent company of Google. The company’s products include Search, Ads, Chrome, Cloud, YouTube, and Android. It specializes in areas like AI, cloud computing, and hardware.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 312
Microsoft Corporation ranks among the best American tech stocks to buy. On April 30, Stifel increased its price target on Microsoft Corporation from $392 to $415 and kept its Hold rating on the stock.
The research firm pointed to Microsoft Corporation’s latest quarterly results, which showed Azure revenue coming in about 100 basis points higher than expected. The company added 5 million Copilot Microsoft 365 users compared to the previous quarter and reported slightly better profit levels than expected.
Microsoft Corporation’s management said they expected Azure growth to accelerate in the fourth quarter and suggested this momentum will continue into the first half of fiscal year 2027. The company also gave early guidance for fiscal year 2027, which included capital expenditures of $190 billion for calendar year 2026.
Stifel pointed out that the stock stayed mostly unchanged in after-hours trading, even after the positive comments on Azure growth and double-digit operating income growth guidance. The research firm said that investors may be cautious because of capital expenditure growth surpassing commercial cloud growth by over two times.
Microsoft Corporation is an American technology company that specializes in AI-powered cloud, productivity, and business solutions. The company develops and markets software, services, and hardware.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 381
Amazon.com, Inc. ranks among the best American tech stocks to buy. On April 29, Reuters reported that Amazon.com, Inc. posted stronger-than-expected cloud sales growth, supported by higher enterprise spending as companies continue to invest heavily in AI.
Amazon Web Services (AWS) saw revenue rise 28% to $37.6 billion in the first quarter, surpassing market expectations, which had forecast growth of 25%, according to LSEG data. Overall, Amazon.com, Inc. reported net sales increased to $181.5 billion.
The company’s CEO, Andy Jassy, said the company is keeping its plan to invest $200 billion in AI this year. This helped ease concerns among investors, who have seen Big Tech sharply increase spending on data centers, which are required for AI workloads.
According to the report by Reuters, Amazon.com, Inc. is one of the best performers in the “Magnificent 7” group as the company continues to reassure investors that its AI investments will generate returns in the near term.
Jesse Cohen, senior analyst at Investing.com, noted that “the significant reacceleration in AWS sales growth is the standout story.” He added that the company’s customers “are fully embracing new workloads, especially in AI.”
Amazon.com, Inc. is an American technology company that focuses on e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions.
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