On May 12, Jeff Kilburg of KKM Financial and Dan Ives of Wedbush Securities appeared together on CNBC to discuss AI, cybersecurity, and mega-cap tech, especially as tech stocks soar as the US-China tariff deal boosts market confidence. Jeff Kilburg first identified the tech software sector as the primary beneficiary of the recent market pause amid optimism and gains, and highlighted that markets are broadly positive. He noted that many investors underestimated how quickly a China trade deal would materialize and contrasted it with the UK deal, which was expected to be a slower, tentative template. Kilburg suggests that faster deal-making could continue and benefit several software companies, which have been overlooked due to the focus on the MAG7. Dan Ives concurred with Kilburg’s view but singled out NVIDIA as the biggest near-to-medium-term beneficiary of the pause, especially given its prior exposure to China tariffs. He referenced the ongoing AI revolution and the surge in AI-related stocks and described the current environment as a dream scenario for tech investors. Ives anticipates new highs for tech and the broader market. He also described a ‘golden age’ for cybersecurity stocks, which are acting as secondary beneficiaries of AI growth.
On a question about the impact of the admin’s focus on reducing federal spending and debt, particularly on companies that derive substantial revenue from government contracts, Kilburg responded that this fiscal discipline is actually positive for software companies as it may drive more spending toward efficient software solutions. Kilburg also addressed the sectors to avoid or be cautious about amid the current market environment. He suggests trimming utilities, which have been a safe haven but may now be less attractive. He points out that the VIX volatility index dropping below 20, which is a big change from over 60 in April, indicates reduced market fear and increased investor confidence. This suggests a market environment favoring higher-beta and growth-oriented investments rather than defensive plays.
That being said, we’re here with a list of the 13 best technology stocks to buy for long-term investment.
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Our Methodology
We first sifted through stock screeners, ETFs, and financial media reports to compile a list of the top tech stocks that have grown over 15% in the past 3 years. We then selected the 13 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024.
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).
13 Best Technology Stocks to Buy for Long-Term Investment
13. Fortinet Inc. (NASDAQ:FTNT)
3-Year Revenue CAGR: 19.64%
Number of Hedge Fund Holders: 61
Fortinet Inc. (NASDAQ:FTNT) is a cybersecurity company that provides networking & security solutions. It also offers AI-driven security operation solutions that identify, protect, detect, respond, and recover from threats. The company serves large enterprises, communication service providers, government organizations, and small to medium-sized enterprises.
The company’s Unified SASE (Secure Access Service Edge) grew over 110% in security service edge billings year-over-year in Q1 2025, which propelled the overall unified SASE billings growth to 18%. FortiSASE penetration among large enterprises saw a ~10% sequential increase and reached 11%. The company also offers Sovereign SASE, which is a solution for organizations that require full on-premise or in-country data control, particularly for highly regulated sectors.
On May 8, Scotiabank lowered the price target on Fortinet Inc. (NASDAQ:FTNT) to $115 from $135 while keeping an Outperform rating despite the company’s solid Q1 2025 billings performance. Unified SASE and SecOps accounted for 25% and 10% of the total billings, respectively. Management at Fortinet also stated that the US-China tariffs did not impact fundamentals this quarter.
Conestoga Capital Advisors stated the following regarding Fortinet, Inc. (NASDAQ:FTNT) in its Q4 2024 investor letter:
“Fortinet, Inc. (NASDAQ:FTNT) is the worldwide market share leader in network security firewalls (by units). During the quarter, FTNT continued to see positive momentum in firewall services revenue and posted a big beat and raise of results and guidance. Looking ahead, the company is expecting a larger-than-normal product refresh cycle, with many customers ordering well in advance (often one year prior) of their firewall’s 2026 end-of-life schedule.”
12. Shopify Inc. (NASDAQ:SHOP)
3-Year Revenue CAGR: 24.78%
Number of Hedge Fund Holders: 64
Shopify Inc. (NASDAQ:SHOP) is a commerce tech company with tools to start, scale, market, and run businesses of various sizes. It offers the Shopify platform that allows merchants to manage products & inventory, process orders & payments, fulfill & ship orders, build customer relationships, source products, and use analytics for running businesses.
In Q1 2025, GMV/Gross Merchandise Volume processed through Shopify Payments reached a penetration rate of 64%. This represents a significant portion of the total $74.8 billion in GMV for the quarter, which itself grew by 23% year-over-year. However, Stifel lowered Shopify’s price target to $100 from $120 on May 9 with a Hold rating. This adjustment came as Shopify delivered a thinner top-line beat than in recent quarters, with margins gross merchandise value slightly below/in-line.
The success of Shopify Payments is deeply intertwined with the growth of Shop Pay, which is the buyer-facing component of the company. In Q1, GMV processed through Shop Pay saw a 57% year-over-year increase and exceeded $22 billion. During Q1, Shopify Payments was launched in 16 new markets, which almost doubled its availability from 23 to 39 countries. Shopify Inc. (NASDAQ:SHOP) introduced multi-currency payouts in 20 countries across Europe.
Artisan Global Opportunities Fund stated the following regarding Shopify Inc. (NASDAQ:SHOP) in its Q4 2024 investor letter:
“Among our top Q4 contributors were Atlassian and Shopify Inc. (NASDAQ:SHOP). Our conviction in Shopify grew after it decided to exit the logistics business in favor of a capital-light partnership model, which we viewed as significantly narrowing the downside range of outcomes and allowed it to focus on what it does so well: developing great e-commerce software solutions for brands of all sizes. We have been encouraged by Shopify’s subsequent pace of innovative new product enhancements, including using AI assistants to help brands run their businesses. Shares rallied after the company reported strong earnings results, including 24% growth in gross merchandise volume, and management raised its forward guidance.”