In this article, we will look at the 10 Best Large Cap Tech Stocks to Buy Now.
The technology sector has been on a tear in recent months. The S&P 500 Information Technology Sector Index is up 15% year-to-date, outperforming the broader S&P 500 Index by nearly 7%. This is a sharp turnaround from the first quarter, when the sector lagged behind. Since mid-April, however, tech has flipped the script and taken the lead. Even the tech-heavy Nasdaq Composite has surged around 11%, outperforming the broader market as well.
In an early-May interview with CNBC, David Zervos, Jefferies’ chief market strategist, explained the probable reasons for the April rebound in U.S. stocks, led by technology stocks. He believes that it stemmed largely from clearing up confusion that hit markets in early April. Back then, unusual market patterns emerged, long-term interest rates jumped to levels not seen since the 1980s, the dollar weakened, and stocks fell. He believes some foreign holders of U.S. securities, possibly trade rivals, sold assets to disrupt markets following tariff announcements. However, reassurances from U.S. Treasury officials about potential countermeasures helped stabilize conditions.
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He sees optimism around trade balance improvements, fiscal stability, and ongoing deregulation. While some investors might shift toward the euro, which has risen notably against the dollar in recent months, Zervos stressed that U.S. assets remain attractive and the “Buy America” theme never really disappeared.
On the broader market front, Invesco’s Global Market Strategist, Brian Levitt, believes the U.S. equity market still has room to advance into year-end, though the pace may be slower. Talking on a CNBC discussion on August 12, Levitt said that he sees the economy in a mid-cycle slowdown rather than a late-cycle phase, noting that key warning signs, like widening credit spreads, tighter lending standards, or excessive leverage, are not present. He argues that policy easing and improved sentiment would help broaden market participation beyond the current concentration in large-cap leaders.
With the tech sector’s momentum building and sentiment toward U.S. equities improving, now could be a good time to revisit top names in the space. Against this backdrop, let’s look at the 10 best large-cap tech stocks to buy now.
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Our Methodology
To identify the best large-cap tech stocks to buy now, we first screened for U.S.-listed companies with market capitalizations between $2 billion and $200 billion. From this universe, we selected the 20 stocks most widely held by hedge funds. We then filtered for names with at least 20% upside to their consensus price targets. Finally, we ranked the top 10 qualifying stocks in ascending order based on the number of hedge funds holding positions, using Q1 2025 data from Insider Monkey’s database.
Why are we interested in the stocks that hedge funds pile into? 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Note: All pricing data is as of market close on August 8, 2025.
10 Best Large Cap Tech Stocks to Buy Now
10. MongoDB Inc. (NASDAQ:MDB)
Market Cap: $18.6 Billion
Potential Upside: 31%
Number of Hedge Fund Holders: 72
MongoDB Inc. (NASDAQ:MDB) is one of the best large-cap tech stocks to buy now. Although MongoDB’s core strength as a modern, document-based database and cloud data platform is still intact, it has been facing growth headwinds recently, especially since the results for the fourth quarter of FY 2025 (FY ends in January), when it provided a weaker guidance.
Its Q1 2026 results, reported on June 4, were a tad better. The company is aiming to secure larger enterprise deals, but questions around the durability of its growth trajectory persist.
That said, on July 28, BMO Capital’s Keith Bachman began coverage on MongoDB with an Outperform rating and a $280 price target. He views the company as a clear leader in the fast-expanding non-relational database market, underpinned by substantial technology advantages.
Bachman also believes that the company’s potential to capitalize on the growing demand for generative AI workloads and applications could contribute meaningfully to the company’s growth in the coming years. This long-term positioning supports his constructive opinion on the stock despite near-term uncertainty.
MongoDB Inc. (NASDAQ:MDB) develops database software and provides database platforms for automating, monitoring, and deploying data.
9. Fiserv Inc. (NYSE:FI)
Market Cap: $72.1 Billion
Potential Upside: 35%
Number of Hedge Fund Holders: 72
Fiserv Inc. (NYSE:FI) is one of the best large-cap tech stocks to buy now. On July 24, TD Cowen’s Bryan Bergin reiterated his Buy rating on Fiserv but trimmed the price target to $188 from $233.
Bergin’s decision came a day after the company reported its Q2 2025 results. According to him, the stock has come under pressure after the results and a downward revision to the company’s growth outlook.
He acknowledges that execution issues, especially within the Merchant segment, are weighing on sentiment. However, he argues that Fiserv’s competitive positioning and differentiated assets remain intact. He points to several operational initiatives that could help steady performance and drive roughly 10% revenue growth alongside more than 15% earnings expansion.
The analyst also believes the market is assigning an overly cautious value to Merchant Solutions compared with peers, and that concerns about reliability are likely to ease over time. In his view, the current pullback offers an attractive entry point for long-term investors.
In its July 11 investor letter, Giverny Capital Asset Management said it added Fiserv to its portfolio in Q2, citing the company’s decades-long track record of double-digit annual earnings growth. Even with slower momentum in Clover (its point-of-sale and business management platform), they expect about 15% earnings growth this year to roughly $10 per share. Giverny also sees the current valuation as attractive, considering it trades just over 14x forward earnings versus the market’s 20x. They also view Fiserv’s extensive network of regional bank partners as a key competitive edge.
Fiserv Inc. (NYSE:FI) is a provider of payments and financial services technology solutions that serves clients around the globe, including merchants, banks, credit unions, other financial institutions, and corporate and public sector clients.
8. Palo Alto Networks Inc. (NASDAQ:PANW)
Market Cap: $112.3 Billion
Potential Upside: 30%
Number of Hedge Fund Holders: 77
Palo Alto Networks Inc. (NASDAQ:PANW) is one of the best large-cap tech stocks to buy now. Morgan Stanley’s Keith Weiss reiterated his Buy rating on Palo Alto Networks on August 7, keeping a $205 price target. His view is based on the strategic impact of the company’s planned acquisition of CyberArk Software Ltd. (NASDAQ:CYBR), which he describes as a transformative step in Palo Alto Networks’ shift toward a unified, platform-based security model.
As announced on July 30, Palo Alto is set to acquire CyberArk in a cash-and-stock transaction worth roughly $25 billion. Under the agreement, CyberArk shareholders will receive $45 in cash and 2.2005 Palo Alto shares for each CyberArk share they own. Expected to close in the second half of Palo Alto’s fiscal 2026, the acquisition is expected to bring Palo Alto a robust lineup of identity security solutions designed to control and verify user access across organizations.
After the announcement, the company reiterated its fiscal year 2025 guidance of a total revenue in the range of $9.17 to $9.19 billion.
Weiss sees the addition of CyberArk’s identity security expertise as a timely move, given the growing importance of identity protection within the broader cybersecurity landscape. He also points to Palo Alto Networks’ track record of strong free cash flow generation and sustained high margins as evidence that the company is well-positioned to integrate and scale this acquisition.
From his perspective, the deal should deliver immediate benefits to revenue and gross margins, with free cash flow per share accretion targeted for 2028. Weiss believes the synergy goals set out in the pro forma model are achievable, which support his positive long-term view.
Palo Alto Networks Inc. (NASDAQ:PANW) provides security solutions to help secure enterprise users, networks, clouds, and endpoints, with platforms such as Prisma Access, Prisma Cloud, and Cortex.
7. Western Digital Corp. (NASDAQ:WDC)
Market Cap: $26.0 Billion
Potential Upside: 20%
Number of Hedge Fund Holders: 78
Western Digital Corp. (NASDAQ:WDC) is one of the best large-cap tech stocks to buy now. On July 31, Wells Fargo’s Aaron Rakers reaffirmed his Buy rating on Western Digital (NASDAQ:WDC), while lifting his price target to $95 from $80. His positive stance follows quarterly results and guidance that came in ahead of expectations, strengthening the case for the company’s growth outlook.
Rakers pointed to notable momentum in Western Digital’s nearline storage segment, where shipment volumes exceeded forecasts, signalling competitive gains against peers. He also highlighted the company’s ongoing technology investments, including progress in HAMR development and the broader rollout of UltraSMR, which he expects will support both revenue expansion and margin improvement in the years ahead.
The analyst’s long-term model now pencils in an annual revenue growth in the mid-teens, helped by firm pricing trends and operational efficiencies. With strong demand from hyperscale cloud customers adding another layer of support, Rakers sees Western Digital well-positioned to deliver sustained growth, justifying the higher price target alongside the Buy rating.
Western Digital Corp. (NASDAQ:WDC) is a prominent developer and manufacturer of data storage devices and solutions. The company’s product range includes hard disk drives (HDDs), NAND flash-based products, and external storage systems tailored for both consumer and enterprise markets.
6. Analog Devices Inc. (NASDAQ:ADI)
Market Cap: $110.7 Billion
Potential Upside: 21%
Number of Hedge Fund Holders: 79
Analog Devices Inc. (NASDAQ:ADI) is one of the best large-cap tech stocks to buy now. In mid-July, Tore Svanberg, an analyst at Stifel Nicolaus, raised his price target on Analog Devices to $270 from $248 while reiterating a Buy rating. In his view, the prolonged inventory correction across the semiconductor sector over the past two years has likely reached its trough, setting the stage for a cyclical rebound. However, it is difficult to gauge how quickly the rebound will unfold.
Within this report, Svanberg also communicated his broader sector outlook, which continues to favour AI-linked semiconductor names. He expects the AI-focused companies under his coverage to post median revenue growth of 32% in 2025 and 17% in 2026, thus underscoring the structural demand tailwinds in this space. Within that context, Analog Devices is seen as well-positioned to benefit from the upturn, supporting the case for maintaining an overweight stance in AI-driven chipmakers.
On July 25, Christopher Danely from Citi had also published his latest report, where he maintained a Buy rating on Analog Devices, with a price target of $290.
While analysts remain confident in the company, it is worth noting the positive perspective shared by Kovitz Investment Group Partners in its Q2 2025 “Kovitz Core Equity Strategy” investor letter. The firm cited several reasons for its long-term optimism on Analog Devices, including its leadership in key markets, robust 70% gross margins that help offset tariff impacts, and an irreplaceable talent pool of 11,000 experienced analog engineers. With the stock currently at an appealing valuation, Kovitz’s portfolio managers believe that it offers a compelling opportunity for investors over the next five to seven years.
The company is expected to report its Q3 2025 results on August 20.
Analog Devices Inc. (NASDAQ:ADI) is a semiconductor company that designs, manufactures, tests, and markets a broad portfolio of solutions using high-performance analog, mixed-signal, and digital signal processing technologies.
5. QUALCOMM Inc. (NASDAQ:QCOM)
Market Cap: $157.5 Billion
Potential Upside: 20%
Number of Hedge Fund Holders: 82
QUALCOMM Inc. (NASDAQ:QCOM) is one of the best large-cap tech stocks to buy now. On July 31, Bank of America Securities analyst Tal Liani reaffirmed his Buy rating on Qualcomm and kept the $200 price target. His view comes after the company’s Q3 FY 2025 results, which showed continued strength outside the handset market, especially in automotive and IoT, both delivering solid growth. Liani noted that these areas now represent a sizable share of QCT revenue (Qualcomm CDMA Technologies segment) and should expand further in the years ahead.
Looking at the finer detail of the results, for Q3, the company’s total revenue surged 10% year-over-year to $10.4 billion, and adjusted EPS rose 19% to $2.77 due to better operating leverage. While revenue in its licensing business (QTL) rose 4%, QCT revenue was up 11%. Within QCT, IoT (+24%) and Automotive (+21%) stole the show, while Handsets revenue was also up a healthy 7%. Notably, for Q4, the company expects Handset revenues to grow around 5% sequentially, whereas IoT is expected to remain flat.
Liani believes that while handset demand, particularly in China, remains a headwind, Qualcomm’s upbeat guidance for the following quarter points to a rebound in that segment. He also sees meaningful upside from the company’s push into data center solutions, where it is aiming for leadership in CPU and NPU technologies. Taken together, these factors underpin the analysts’ constructive outlook on the stock.
QUALCOMM Inc. (NASDAQ:QCOM) is a semiconductor technology company that specializes in wireless communications. It engages in 5G technology, supplies chipsets and system-on-chip solutions for mobile devices, automotive applications, and the Internet of Things (IoT). Its Snapdragon processors are widely used across smartphones and connected devices.
4. Workday Inc. (NASDAQ:WDAY)
Market Cap: $59.0 Billion
Potential Upside: 35%
Number of Hedge Fund Holders: 85
Workday Inc. (NASDAQ:WDAY) is one of the best large-cap tech stocks to buy now. Workday stands out as a market leader in cloud-based finance, HR, planning, and analytics solutions, addressing a vast $160 billion total addressable market. With more than 11,000 global customers across over 175 countries, including over 60% of the Fortune 500, its scale and entrenched enterprise relationships create strong competitive moats.
The company is executing on a disciplined growth strategy, targeting FY26 (FY ends in January) subscription revenues of $8.8 billion, representing an 18% CAGR from FY22 levels. Profitability is improving in tandem, with adjusted operating margins projected to expand to 28.5% in FY26, up 560 basis points since FY22. Gross revenue retention rates remain exceptionally high, underscoring the stickiness of Workday’s solutions.
Recently reported Q1 FY26 results highlight this momentum: subscription revenue grew 13.4% year-over-year, with a 30.2% adjusted operating margin, an improvement of 437 basis points. In addition, operating cash flow rose 23% to $457 million, and free cash flow surged 44.6%. To top it all, the $24.6 billion total subscription backlog (+19.1% YoY in Q1) provides strong visibility into future growth.
3. Micron Technology Inc. (NASDAQ:MU)
Market Cap: $125.2 Billion
Potential Upside: 26%
Number of Hedge Fund Holders: 96
Micron Technology Inc. (NASDAQ:MU) is one of the best large-cap tech stocks to buy now. While the overall performance of the stock has been strong with YTD gains of over 41%, the rally so far has been volatile. From trading at $95-$100 levels throughout the first quarter of the year, the stock plunged to $65 in April, staged an impressive surge to $127 by June, and has since settled closer to an average of $116. But this volatility has not dampened bullish sentiment. In fact, for some, it has made the story more compelling.
One such optimist is Mizuho analyst Vijay Rakesh, who on July 18 reiterated his Outperform rating and $150 price target, calling the recent pullback a buying opportunity. He expects the company to deliver a strong performance in the second half of 2025, with high-bandwidth memory (HBM) playing a key role. Larger deal sizes in HBM are projected to lift selling prices by 15%–20%, supporting revenue growth.
Rakesh favours semiconductor names showing both sales momentum and margin improvement, and he believes Micron fits that profile. He also sees the company increasing its market share in HBM by 2026, which would further strengthen its competitive position.
That thesis got a boost on Monday, August 11, when Micron raised its Q4 FY 2025 (FY ends in August) revenue and earnings guidance, driven by better execution and improved pricing, especially in DRAM. Management now expects sales for the quarter to be in the range of $11.1 billion to $11.3 billion, up from $10.4 billion to $11 billion earlier. It also raised adjusted gross margins guidance for the quarter to 44% to 45%, compared with an earlier guide of 41% to 43%. As a result, EPS is now expected at $2.78 to $2.92, versus $2.35 to $2.65 earlier.
Such upward revisions underscore both the demand strength and the pricing power Micron is enjoying in its core markets.
Micron Technology Inc. (NASDAQ:MU) designs, develops, manufactures, and markets memory and storage products, including dynamic random-access memory (DRAM), flash memory (NAND), solid-state drives (SSDs), and High Bandwidth Memory (HBM) globally.
2. ServiceNow Inc. (NYSE:NOW)
Market Cap: $181.4 Billion
Potential Upside: 34%
Number of Hedge Fund Holders: 106
ServiceNow Inc. (NYSE:NOW) is one of the best large-cap tech stocks to buy now. On July 24, Oppenheimer analyst Brian Schwartz reiterated his Buy rating on ServiceNow and lifted the price target to $1,150 from $1,100. He pointed to strong sales execution, solid margins, and contract revenue in the first half of the year that exceeded expectations.
Schwartz’s update came after ServiceNow posted better-than-expected Q2 2025 results and guided solid subscription revenue growth for Q3. The management is now forecasting about $3.26 billion in subscription sales, slightly ahead of the $3.21 billion average analyst estimate compiled by Bloomberg. The company credited much of the momentum to strong uptake of its generative AI offering, Now Assist, which is available only through higher-priced subscription plans. CFO Gina Mastantuono noted that bookings for the AI tool exceeded expectations, driven by both larger contract values and a higher volume of deals.
Schwartz also noted that third-quarter guidance came in ahead of forecasts, supporting potential upside to 2026 estimates. With healthy IT spending trends and growing adoption of AI and back-office solutions, he believes ServiceNow is well-positioned to sustain its momentum through the remainder of 2025 and beyond.
ServiceNow Inc. (NYSE:NOW) provides a cloud-based platform for digital workflows, enabling organizations to automate and optimize their business processes. Its Now Platform offers solutions across IT service management, customer service, HR, and other areas.
1. Adobe Inc. (NASDAQ:ADBE)
Market Cap: $143.5 Billion
Potential Upside: 41%
Number of Hedge Fund Holders: 111
Adobe Inc. (NASDAQ:ADBE) is one of the best large-cap tech stocks to buy now. The company’s shares have lost around 23% so far this year, making it the second weakest stock on this list of large-cap stocks. It recently reported its Q2 results and gave out guidance for the third quarter, which was seen as weaker than expectations. The weaker performance is now generally being attributed to rising competition from newer AI tools such as those from Canva or Midjourney.
On the pessimism towards the company, DA Davidson’s Gil Luria, in a mid-June Bloomberg interview, said that he believes the market underestimates Adobe’s position, wrongly labelling it as an “AI loser.” While AI can automate content creation, Adobe’s real strength lies in the tools such as those used for collaboration, editing, and publishing, and they remain critical for creative professionals. He believes this positions Adobe to benefit from AI adoption while further reinforcing its competitive moat.
Adobe’s latest results and outlook remain solid, and Luria sees its AI strategy as a meaningful growth driver. The company is integrating generative AI into its Creative Suite to enhance core capabilities in image and video creation, while also enabling customers to use leading third-party AI models from providers like OpenAI, MidJourney, and Google.
And it’s not just Luria, portfolio managers at Diamond Hill Capital also expressed a positive view on Adobe in their Q2 2025 “Large Cap Fund” investor letter. They noted that while the market appears focused on potential competitive pressures and AI-related disruption, these risks are already factored into the current valuation. Citing Adobe’s broad and diversified product portfolio, strong market position, and recent AI integration across its offerings, they expect the company to maintain healthy fundamentals in the coming years. Seeing the stock trading at a discount to their intrinsic value estimate, they initiated a position during the quarter.
Adobe Inc. (NASDAQ:ADBE) is a global leader in creative, document, and digital experience software, providing tools for content creation, design, marketing, analytics, and customer engagement.
While we acknowledge the potential of ADBE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ADBE and that has 100x upside potential, check out our report about this cheapest AI stock.
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