3. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 224
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the best large-cap tech stocks to invest in.
On February 25, in an SEC filing, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) reported that it had made new investments and has kept its capital structure steady.
The company made no changes to the shareholdings of TSMC’s board members, executive officers, and shareholders who own over 10% of the company’s total common shares. In addition, Taiwan Semiconductor Manufacturing Company and its subsidiaries made fixed-income investments, including NT$30.2 billion in acquisitions, NT$300 million in equity investments through dispositions, and the acquisition of land valued at NT$6.2 billion.
In another SEC filing on March 2, TSMC announced that its board approved the distribution of approximately NT$115.59 billion in cash dividends, including a dividend of NT$6 per common share for Q3 2025. The dividend is set to be paid on April 9, 2026.
We also covered the news on Apple’s plan to purchase more than 100 million advanced chips produced by TSMC. You can read more about it here.
Of the 50 analysts covering TSM, 49 rate the stock a Buy, while 1 has a Hold rating. The average price target on TSM indicates an upside of over 21% as of March 10.
Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) is the world’s largest semiconductor foundry and is engaged in the manufacturing and designing of semiconductor chips. These chips are used by companies across several end markets, including personal computers and peripheral products, consumer electronics, wired and wireless communications systems, and automotive and industrial equipment.
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 264
NVIDIA Corporation (NASDAQ:NVDA) is one of the best large-cap tech stocks to invest in.
A February 27 report from the Wall Street Journal highlighted that NVIDIA Corporation (NASDAQ:NVDA) is developing a new processor platform for AI inference workloads. This new processor is specifically being designed for OpenAI and other major customers to build faster and more reliable tools through AI that generate responses to user queries, as per WSJ.
According to the report, Nvidia will reveal the system at the upcoming GTC in San Jose, scheduled for March 16 to March 19, 2026. The new inference will incorporate technology from AI chip startup Groq, designed to offer faster and more efficient AI responses for customers. OpenAI is said to be one of the largest customers of this new Nvidia processor, with sources indicating that it would potentially handle 10% of OpenAI’s inference computing needs.
This is a major development amid the rapidly growing AI hardware market and intense competition from rivals, including Amazon and Google, who are building their own AI chips.
Out of 69 analysts covering NVDA, 64 analysts rate the stock as Buy, while 4 have a Hold rating. The average price target of $265 highlights an upside potential of more than 43% as of March 10.
NVIDIA Corporation (NASDAQ:NVDA) is a fabless semiconductor and AI computing company that designs GPUs, AI accelerators, Application Programming Interfaces (APIs), and system-on-a-chip units. Through its CUDA ecosystem, the company enables industries ranging from autonomous vehicles to scientific research by advancing AI, accelerated computing, and data center infrastructure.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 312
Microsoft Corporation (NASDAQ:MSFT) is one of the best large-cap tech stocks to invest in.
On March 5, TheFly reported that Jefferies analyst Brent Thill reiterated his Buy rating on Microsoft Corporation (NASDAQ:MSFT) while maintaining a price target of $675.
Thill’s price target of $675 is higher than the average price target of $600 from 60 analysts covering MSFT, indicating an upside of over 47%. Thill’s price target represents an upside of almost 66%.
Jefferies remains bullish on Microsoft as it views MSFT’s enterprise AI spending as key to the firm’s success ahead, citing Azure and Microsoft 365 as major catalysts for the firm as enterprises roll out AI tools. Microsoft’s enterprise distribution network supports more than 450 million paid M365 users. The analyst pointed out three major areas for MSFT’s AI network: AI expanding the total addressable market in M365, infrastructure monetization, and AI margin tracking.
MSFT currently trades at nearly 21 times FY2027 earnings per share, which is lower than its 10-year average of 23.5, Jefferies noted. Of the 60 analysts covering Microsoft, 55 have a Buy rating, while 5 rate the stock a Hold.
Microsoft Corporation (NASDAQ:MSFT) is a leading technology company that develops and sells a wide range of software, cloud services, devices, and business solutions, serving both individual users and enterprise customers worldwide. Its flagship products include Windows, Microsoft 365, Azure, LinkedIn, and Xbox.
While we acknowledge the potential of MSFT to grow, 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 MSFT and that has 100x upside potential, check out our report about this cheapest AI stock.
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