In this article, we will discuss the 12 Best AI and Technology Stocks to Buy Now.
On June 25, Bloomberg, while quoting the report from research firm Exponential View, noted that the revenue from AI has touched a tipping point. This demonstrates that the billions of dollars leading technology giants are spending might be economically sustainable.
The global AI sales, excluding China, touched $25 billion in Q1 2026. This exceeds the industry’s estimated $21 billion in depreciation costs related to the investments in data centers and chips for the 2nd consecutive quarter, reported Bloomberg.
Despite the milestone suggesting that AI companies are starting to cover the cost of capital spending, margins remain thin. Since the depreciation charges eat up over two-thirds of revenue, there is a small buffer to cover other expenses like power, labor, and financing.
Bloomberg, while quoting the report, further highlighted that generative AI revenue, excluding China, touched $110 billion over the previous 12 months. It continues to scale 3x faster compared to the previous IT wave, which included the internet, mobile applications, and the cloud.
Amidst such trends, we will now have a look at the 12 Best AI and Technology Stocks to Buy Now
Our Methodology
To list the 12 Best AI and Technology Stocks to Buy Now, we sifted through screener and shortlisted companies catering to the broader AI and technology sector. We also mentioned the hedge fund sentiments around each stock, as of Q1 2026. Finally, the stocks are arranged in an ascending order of their hedge fund sentiments.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
12 Best AI and Technology Stocks to Buy Now
12. Zeta Global Holdings Corp. (NYSE:ZETA)
Number of Hedge Fund Holders: 41
Zeta Global Holdings Corp. (NYSE:ZETA) is one of the Best AI and Technology Stocks to Buy Now. On June 24, Needham maintained a “Buy” rating on the company’s stock and maintained a price objective of $25. According to the firm, the company’s new partnership with AI software firm Palantir remains strategically positive. The agreement focuses on combining Zeta Global Holdings Corp. (NYSE:ZETA)’s data and AI tools with Palantir’s Foundry platform, which will create an enterprise marketing infrastructure.
The analyst believes that the key benefit is that Palantir’s Foundry can improve the performance of Zeta Global Holdings Corp. (NYSE:ZETA)’s Data Cloud. This will be done through serving as the data operating layer underneath Athena. The firm views this alliance as a strategic improvement rather than an immediate financial catalyst. That being said, the agreement can result in longer-term upside.
Notably, it was earlier highlighted that Palantir and Zeta Global Holdings Corp. (NYSE:ZETA) are combining AI infrastructure with the latter’s intelligent decisioning as well as trusted data. This can help bring a new standard of data-driven, agentic marketing to the enterprise.
Zeta Global Holdings Corp. (NYSE:ZETA) operates an omnichannel data-driven cloud platform, which is engaged in providing enterprises with consumer intelligence and marketing automation software.
11. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 79
Marvell Technology, Inc. (NASDAQ:MRVL) is one of the Best AI and Technology Stocks to Buy Now. On June 29, Cantor Fitzgerald analyst C.J. Muse lifted its price objective on the company’s stock to $300 from $220 and maintained a “Neutral” rating on the shares. Notably, the AI infrastructure buildout is being regarded as the generational semiconductor cycle, which remains durable and extended by the supply chain constraints. Furthermore, there are expectations for faster-than-earlier-expected industry revenue expansion touching ~$3 trillion by CY 2029 and potentially surpassing $3.5 trillion by CY 2030, added Muse.
In a different update, Stifel lifted its price objective on Marvell Technology, Inc. (NASDAQ:MRVL)’s stock to $350 from $321 and maintained a “Buy” rating on the shares. As per the analyst, in the last quarter, the firm noted that analog players are well-placed for a breakout in CY 2026. This thesis has been proved true, with Astera Labs, Credo Technology, and Marvell Technology, Inc. (NASDAQ:MRVL) reporting beat-and-raise quarters in calendar Q1.
Marvell Technology, Inc. (NASDAQ:MRVL) develops semiconductor solutions for data infrastructure, including custom silicon, optical connectivity, data center switching, storage, security, Ethernet, and cloud networking products.
10. Palo Alto Networks, Inc. (NASDAQ:PANW)
Number of Hedge Fund Holders: 87
Palo Alto Networks, Inc. (NASDAQ:PANW) is one of the Best AI and Technology Stocks to Buy Now. On June 24, analyst Shrenik Kothari of Robert W. Baird maintained a “Buy” rating on the company’s stock, retaining the price objective of $320.00. The analyst’s rating is backed by several factors that are related to Palo Alto Networks, Inc. (NASDAQ:PANW)’s strategic positioning and product relevance amidst the evolving cybersecurity landscape.
The analyst believes that the new partnership with IBM and Red Hat’s Project Lightwell demonstrates a meaningful validation of Palo Alto Networks, Inc. (NASDAQ:PANW)’s virtual patching technology. Furthermore, the analyst opines that the collaboration bolsters the company’s platform integration. This is done by linking network security, threat intelligence, and exposure management into a more unified remediation workflow, with AI-driven tools accelerating vulnerability discovery.
Even though the near-term revenue contribution from the single agreement remains uncertain, the architectural role and long-term demand tailwinds are expected to support continued growth and profitability.
Palo Alto Networks, Inc. (NASDAQ:PANW) is a leading cybersecurity company that provides a variety of products, like firewalls, malware protection, and cloud security.
9. AppLovin Corporation (NASDAQ:APP)
Number of Hedge Fund Holders: 91
AppLovin Corporation (NASDAQ:APP) is one of the Best AI and Technology Stocks to Buy Now. On June 29, Raymond James initiated coverage on the company’s stock with a “Strong Buy” rating, setting a price objective of $640.00. As per the firm, AppLovin Corporation (NASDAQ:APP)’s expansion into the e-commerce advertising market can act as a significant long-term growth opportunity. This can result in positive estimate revisions.
Furthermore, the analyst noted ongoing reinforcement learning as well as periodic enhancements to the Axon model, which can help fuel growth in the advertising business. The firm sees AppLovin Corporation (NASDAQ:APP) as a critical mobile in-app advertising platform in the market that is historically under-monetized.
In a different update, analyst Omar Dessouky from Bank of America Securities reiterated a “Buy” rating on AppLovin Corporation (NASDAQ:APP)’s stock and maintained the price objective of $705.00. The analyst’s rating is backed by several factors, which include steady expansion of the company’s Axon eCommerce footprint and a healthy long-term growth outlook.
AppLovin Corporation (NASDAQ:APP) offers end-to-end AI-powered advertising solutions for businesses.
8. Applied Materials, Inc. (NASDAQ:AMAT)
Number of Hedge Fund Holders: 138
Applied Materials, Inc. (NASDAQ:AMAT) is one of the Best AI and Technology Stocks to Buy Now. On June 26, B. Riley lifted its price objective on the company’s stock to $790 from $550 and maintained a “Buy” rating on the shares. As per the analyst, the company’s DRAM and Advanced Packaging Master Class demonstrate a larger-than-expected long-term opportunity.
The firm highlighted that, along with robust positioning in leading-edge foundry/logic and increasing process intensity throughout DRAM and packaging, Applied Materials, Inc. (NASDAQ:AMAT) seems to be well-placed for a continued multi-year semiconductor equipment investment cycle. Furthermore, there remains a potential for continued share gains.
In a separate release, Jefferies lifted its price objective on Applied Materials, Inc. (NASDAQ:AMAT)’s stock to $770 from $510 and maintained a “Buy” rating. The analyst opines that DRAM and advanced packaging are anticipated to outgrow the broader wafer fab equipment, led by AI. The firm views the company as an outperformer, which has healthy exposure to the leading-edge foundry and DRAM.
Applied Materials, Inc. (NASDAQ:AMAT) is a materials engineering solutions company, which provides equipment, software, and services to the semiconductor, display, and related industries.
7. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 170
Apple Inc. (NASDAQ:AAPL) is one of the Best AI and Technology Stocks to Buy Now. On June 25, Evercore ISI maintained an “Outperform” rating on the company’s stock with a price objective of $365. This comes after the company announced price increases throughout select Mac, iPad, and home devices. Apple Inc. (NASDAQ:AAPL) increased the prices across the product lineup, with these increases ranging between 17% to 25% on base-model Mac as well as iPad configurations.
The decision comes after the recent comments from its CEO regarding the memory supply constraints. It seems that the price hikes are due to the increased memory costs as DRAM and NAND pricing are now multiples higher compared to the previous year and significantly above levels at the beginning of the year when the company refreshed the product lines.
Furthermore, the firm stated that the intra-cycle price hike demonstrates that the magnitude and pace of cost pressure surpassed Apple Inc. (NASDAQ:AAPL)’s capability to absorb it. Even though the price increases are expected to support gross margins, intra-cycle hikes might lead to demand friction throughout Macs and iPads.
Apple Inc. (NASDAQ:AAPL) designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and home accessories.
6. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 234
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the Best AI and Technology Stocks to Buy Now. On June 23, S&P Global stated that the company has significantly bolstered its leadership in the broader global semiconductor foundry sector over the past few years, amidst strong revenue growth and robust margins. This was backed by its dominance in semiconductor foundry services for advanced high-performance computing chips.
Furthermore, S&P Global believes that rapid improvement in EBITDA and cash flow generation can help Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) sustain growth in its net cash position. This is despite elevated capex and cash dividends over the upcoming 1-2 years. The firm revised its outlook on the ‘AA-‘ long-term issuer credit rating on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM). This reflects its healthy EBITDA and free operating cash flow growth, which is aided by higher technology and scale barriers for its peers.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a Taiwanese multinational semiconductor contract manufacturing and design company that manufactures, packages, and tests integrated circuits for various industries.
While we acknowledge the potential of TSM 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 TSM and that has 100x upside potential, check out our report about the cheapest AI stock.
5. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 262
Meta Platforms, Inc. (NASDAQ:META) is one of the Best AI and Technology Stocks to Buy Now. On June 25, Piper Sandler analyst Thomas Champion reiterated “Overweight” rating on the company’s stock with the price objective of $800. As per the analyst, the AI-powered agents and business messaging provide an underappreciated opportunity. The analyst highlighted that Meta Platforms, Inc. (NASDAQ:META) has already witnessed growth via the automated business messaging it offers on WhatsApp in the emerging markets.
Notably, the company had recently announced its Business Agent product. The firm’s analyst opines that Meta’s Agent offering can be more universal, extending throughout apps and beyond the emerging markets.
To provide a brief background, earlier this month, Reuters reported that Meta Platforms, Inc. (NASDAQ:META) released an AI agent, which can help businesses conduct day-to-day operations. This places the tech giant as a player in the broader enterprise AI market.
Meta Platforms, Inc. (NASDAQ:META) develops products that allow people to share and connect with their family and friends using PCs, mobile devices, VR headsets, and AI glasses. Some of its apps include Facebook, Instagram, and WhatsApp.
4. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 265
Alphabet Inc. (NASDAQ:GOOGL) is one of the Best AI and Technology Stocks to Buy Now. On June 23, Argus maintained a “Buy” rating and a price objective of $440 on the company’s stock. Notably, the company reported healthy results with evidence that investments made towards compute infrastructure and generative AI are yielding results.
As per the analyst, while Alphabet Inc. (NASDAQ:GOOGL) was criticized due to its dependency on digital advertising, the rapid growth of Google Cloud and YouTube started to diversify its revenue. The firm remains optimistic about Alphabet Inc. (NASDAQ:GOOGL)’s underlying businesses and believes that the stock is attractively valued considering its growth runway.
In a different update, Bloomberg reported that Waymo plans to offer driverless robotaxis in Germany. This is the latest move to expand outside the US. The company registered a local entity in the name of Waymo Germany GmbH. This will provide ride-hailing services with autonomous vehicles as well as services that support the commercial offering of such services by third parties, added Bloomberg.
Alphabet Inc. (NASDAQ:GOOGL) is a holding company that operates Google services such as search engines, ad platforms, Internet browsers, devices, mapping software, app stores, video streaming, and more. The company also offers cloud infrastructure and platform services, collaboration tools, and other services for enterprise customers.
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 275
NVIDIA Corporation (NASDAQ:NVDA) is one of the Best Cloud Computing Stocks to Buy According to Hedge Funds. On June 22, the company announced NVIDIA Halos for Robotics, which is the industry’s first full-stack, comprehensive safety system for robotics and physical AI, unifying AI compute and safety. Agility is the first to use this in order to build safety into the humanoids that are working in factories, warehouses and logistics operations for customers that include Amazon, GXO, Schaeffler and Toyota Motor Manufacturing Canada. To give a background, Agility is a humanoid robotics and physical AI company.
It is expected that the next generation of autonomous robots would be operating in dynamic environments along with humans, utilising AI foundation models, accelerated compute, as well as distributed sensors. NVIDIA Halos allows companies to rely on a standardized and unified safety architecture. This connects AI compute, system software, sensor data, safety applications, and inspection for robotic systems.
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.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 282
Microsoft Corporation (NASDAQ:MSFT) is one of the Best AI and Technology Stocks to Buy Now. On June 25, CNBC reported that Microsoft Corporation (NASDAQ:MSFT) will be increasing the price of Xbox game consoles. This comes after Apple announced an increase in prices for MacBooks and iPads. Starting August 1, Xbox Series S consoles, which have 512GB of storage, will increase by $100 to about $500. The models with 1TB will go up by $150.
The broader consumer electronics industry is feeling the brunt of increased memory prices because of strong demand for the components from AI chipmakers, added CNBC. Microsoft Corporation (NASDAQ:MSFT) added that console storage and memory prices went up by over 2.5x, with the tech giant expecting another doubling by 2027 fall.
CNBC noted that memory manufacturers, like Micron and SK Hynix, have a limited capacity. Therefore, they give priority to high-bandwidth memory for AI infrastructure, like Nvidia’s GPUs.
Microsoft Corporation (NASDAQ:MSFT) is a global 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.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 353
Amazon.com, Inc. (NASDAQ:AMZN) is one of the Best AI and Technology Stocks to Buy Now. On June 18, Bloomberg reported that the company plans to sell its custom-made AI chips for use in other companies’ data centers.
This is a critical expansion of its efforts to cut into AI-giant Nvidia’s dominance. Peter DeSantis, Amazon.com, Inc. (NASDAQ:AMZN)’s AI chief, noted that the AI infrastructure continues to evolve, and the company’s focus remains on bringing more customers.
Notably, Amazon’s AI accelerator, Trainium, has few marquee buyers to its credit. These include OpenAI, Anthropic PBC, and Uber Technologies Inc., which access the hardware through AWS.
In a different update, it was announced that Amazon.com, Inc. (NASDAQ:AMZN)’s Alexa and ThunderSoft collaborated to bring intelligent voice AI as well as agentic capabilities to more automotive OEMs.
Amazon.com, Inc. (NASDAQ:AMZN) and several other cloud computing giants have started developing their own alternatives to Nvidia’s popular GPUs. Furthermore, they ramped up such efforts post the arrival of ChatGPT.
While we acknowledge the potential of AMZN 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 AMZN and that has 100x upside potential, check out our report about the cheapest AI stock.
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