11 Best FAANG Stocks To Buy Now

Published October 7, 2022 at 9:24 am EDT Updated August 31, 2026 at 8:38 pm EDT

In this article, we will be taking a look at the 11 best FAANG stocks to buy now.

In spite of the Fed jacking up interest rates, the technology sector is continuing to attract investor attention in 2022. With rampant inflation still plaguing the market, the sector was expected to suffer from a loss in popularity. However, its cheaper valuation in a time of economic recession is managing to work in its favor. According to a Bloomberg article published this September, The Nasdaq 100 Index was 35% cheaper than its peak in 2020. Some of the best FAANG stocks like Apple Inc. (NASDAQ:AAPL) still continued to rake in cash and maintain their earnings outlooks, inspiring confidence as far as investors were concerned.

What are FAANG stocks?

The acronym FAANG refers to the top five American technology companies in the market today: Facebook (now known as Meta Platforms, Inc. (NASDAQ:META)), Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc., Netflix, Inc. (NASDAQ:NFLX), and Alphabet Inc. (NASDAQ:GOOG). With Netflix, Inc. (NASDAQ:NFLX) losing the favor of many investors with its performance this year, Microsoft Corporation (NASDAQ:MSFT) is steadily becoming a new member of this group of stocks.

Investors’ approach to the markets this year has demonstrated that staying away from the best FAANG stocks like Amazon.com, Inc. and Microsoft Corporation is not an option. The sheer size of the tech industry alone makes it the largest of its kind in the S&P 500, making up almost 27% of the index. As a result, many investors are now being pulled towards durable businesses like the FAANG stocks.

According to a Reuters article published this July, Microsoft Corporation’s (NASDAQ:MSFT) earnings results added to investor confidence in the tech sector, as they showed that the FAANG stocks were well-equipped to deal with a recession. Microsoft Corporation rose by about 3.1% in July after the company mentioned it was targeting double-digit growth in fiscal revenue.

11 Best FAANG Stocks To Buy Now

Let’s now take a look at the 11 best FAANG stocks to buy now.

Our Methodology

We have selected renowned tech stocks that are comparable to the Big Tech companies. These stocks were popular among the 895 hedge funds tracked by Insider Monkey in the second quarter of 2022. They have also reported positive latest earnings and demonstrate growth potential based on projected EPS growth, revenue growth, and free cash flow growth, among other factors. We have ranked these stocks based on the number of hedge funds holding stakes in them, from the lowest to the highest. We have also mentioned analyst ratings and price targets for these stocks.

Best FAANG Stocks To Buy Now

11۔ International Business Machines Corporation (NYSE:IBM)

Number of Hedge Fund Holders: 40

International Business Machines Corporation (NYSE:IBM) is an information technology company providing integrated solutions and services across the globe. The company offers hybrid cloud platform and software solutions, software for business automation, data and artificial intelligence solutions, and more. It is based in Armonk, New York.

An Overweight rating was reiterated on shares of International Business Machines Corporation on October 6, by analyst Erik Woodring at Morgan Stanley. The analyst also placed a $152 price target on the stock.

The company’s revenue has grown by 27.28% year-over-year, and its EPS is expected to grow by 8.97% over the next three to five years. International Business Machines Corporation has a one-year dividend growth rate of 0.77% as well. Its EPS in the second quarter of 2022 was $2.31, beating estimates by $0.02. International Business Machines Corporation also brought in $15.54 billion in revenue, beating estimates by $359.15 million.

Citadel Investment Group was the largest stakeholder in International Business Machines Corporation in the second quarter, holding 2.9 million shares worth about $420.9 million. In total, 40 funds were long the stock, with a total stake value of $948 million.

International Business Machines Corporation, like Amazon.com, Inc., Apple Inc., and Microsoft Corporation, is one of the top tech stocks hedge funds are pouring into today.

10. Intel Corporation (NASDAQ:INTC)

Number of Hedge Fund Holders: 65

Intel Corporation (NASDAQ:INTC) is a semiconductor company working to design, manufacture, and sell computer products and technologies across the globe. It offers platform products like central processing units and chipsets. It is based in Santa Clara, California.

Ross Seymore at Deutsche Bank has a Hold rating on Intel Corporation shares as of September 8. The analyst also placed a $35 price target on the stock.

Intel Corporation has a forward dividend per share growth rate of 4.21%, and a one-year dividend growth rate of 5.17%. The company has been investing large sums in research and development, manufacturing, and packaging technologies, a move that will benefit it in the long run. This March, Intel Corporation announced plans to invest $85 billion in the above areas.

In total, there were 65 hedge funds long Intel Corporation in the second quarter. Their total stake value was $2.5 billion.

9. QUALCOMM, Incorporated (NASDAQ:QCOM)

Number of Hedge Fund Holders: 71

QUALCOMM, Incorporated (NASDAQ:QCOM) is a semiconductor company working to develop and commercialize foundational technologies for the wireless industry worldwide. The company operates through its Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL), and Qualcomm Strategic Initiatives (QSI) segments. It is based in San Diego, California.

On September 26, Samik Chatterjee at JPMorgan reiterated an Overweight rating on shares of QUALCOMM, Incorporated. The analyst also placed a $185 price target on the stock.

QUALCOMM, Incorporated’s (NASDAQ:QCOM) EPS is expected to grow by 23.02% over the next three to five years. The company’s revenue has grown by 29.36% year-over-year, and its forward free cash flow per share growth rate is 50.65%. QUALCOMM, Incorporated also has a one-year dividend growth rate of 6.08%. Analyst Chatterjee sees a substantial upside in the stock in light of the stock’s current valuation.

QUALCOMM, Incorporated was found among the 13F holdings of 71 hedge funds in the second quarter, and 73 funds in the previous quarter. Their total stake values were $2.8 billion and $3.6 billion, respectively.

8. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 84

NVIDIA Corporation (NASDAQ:NVDA) is another semiconductor company providing graphics, compute, and networking solutions in the US, Taiwan, China, and internationally. It offers game streaming services and related infrastructure, solutions for gaming platforms, and automotive platforms for infotainment systems. It is based in Santa Clara, California.

Joseph Moore at Morgan Stanley holds an Equal Weight rating on shares of NVIDIA Corporation as of September 21. The analyst also maintains a $182 price target on the stock. Moore believes NVIDIA Corporation will benefit in the near future, since gaming revenues are set to recover in 2023, seeing how prices in the sector are 28% higher than the baseline price from two year ago. NVIDIA Corporation had revenue of $6.7 billion in the fiscal second quarter of 2023, beating estimates by $3.47 million.

There were 84 hedge funds long NVIDIA Corporation in the second quarter, with a total stake value of $3.3 billion. Of these funds, Citadel Investment Group was the largest stakeholder in the company, holding 17.7 million shares worth $2.7 billion.

7. Advanced Micro Devices, Inc. (NASDAQ:AMD)

Number of Hedge Fund Holders: 87

Advanced Micro Devices, Inc. (NASDAQ:AMD) is another information technology company operating in the semiconductor industry. The company offers chipsets, discrete and integrated graphics processing units (GPUs), data center and professional GPUs, and development services, among more. It is based in Santa Clara, California.

An Overweight rating was maintained on shares of Advanced Micro Devices, Inc. on October 5, placed by analyst Aaron Rakers at Wells Fargo. The analyst also placed a $90 price target on the stock.

Advanced Micro Devices, Inc.’s (NASDAQ:AMD) working capital growth year-over-year stands at a rate of 61.17%. The company’s EPS is expected to grow by 30.95% over the next three to five years, and its revenue has grown by 61.74% year-over-year. This October, Advanced Micro Devices, Inc. also led chip stocks higher for the third straight day of gains this month.

Out of 895 funds, 87 funds were long Advanced Micro Devices, Inc. in the second quarter, with a total stake value of $4.8 billion. In comparison, 83 funds were long the stock in the previous quarter, with a total stake value of $6.9 billion.

6. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 106

Alibaba Group Holding Limited (NYSE:BABA) is an internet and direct marketing retail company operating in the consumer discretionary sector. The company provides technology infrastructure and marketing reach to help merchants, retailers, and businesses to engage with their consumer bases in China and internationally. It is based in Hangzhou, China.

On October 3, Jiong Shao at Barclays kept an Overweight rating on Alibaba Group Holding Limited shares, while placing a $135 price target on the stock.

This October, Alibaba Group Holding Limited led Chinese tech stocks in the broader market, rising 4.6% on October 4. The company’s revenue has grown by 10.87% year-over-year, and its EPS is expected to grow by 1.74% over the next three to five years. In the fiscal first quarter of 2023, Alibaba Group Holding Limited had an EPS of $1.74, beating estimates by $0.18, while its $30.46 billion revenue also beat estimates by $296.3 million.

Alibaba Group Holding Limited had 106 hedge funds long its stock in the second quarter, with a total stake value of $7.4 billion. Fisher Asset Management was the largest stakeholder in the company, holding 14.5 million shares worth $1.6 billion.

Distillate Capital Partners LLC, an investment management firm, mentioned Alibaba Group Holding Limited in its second quarter 2022 investor letter. Here’s what the company said:

“Changes & Regional Weights: The largest new position is Alibaba Group Holding Limited (NYSE:BABA), which underperformed considerably and has seen its enterprise value fall by almost two thirds from its peak despite a net cash position on its balance sheet.”

Alibaba Group Holding Limited, like Amazon.com, Inc., Apple Inc., and Microsoft Corporation, has been on the rise in the tech sector for many year, attracting positive investor attention.

5. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 128

Apple Inc. is one of the Big Tech companies, most notably known for its production of the iPhone and the MacBook. The company is based in Cupertino, California.

An Overweight rating was reiterated on Apple Inc. shares on October 3, by analyst Samik Chatterjee at JPMorgan.

Apple Inc.’s (NASDAQ:AAPL) revenue has grown by 11.63% year-over-year, and its EPS is expected to rise by 11.61% over the next three to five years. The company’s forward free cash flow per share growth rate stands at 14.7%.

Our hedge fund data shows 128 funds long Apple Inc. in the second quarter. Their total stake value was $1.4 billion.

Distillate Capital Partners LLC, an investment management firm, mentioned Apple Inc. in its second quarter 2022 investor letter. Here’s what the firm said:

“Apple was largest new purchase in the quarter, at a 2% weight. Apple underperformed the overall market last quarter,and given very minimal debt, this price weakness translated into a commensurate fall in its enterprise value. For stocks with higher debt levels, it takes a disproportionately bigger market cap drop to achieve the same valuation improvementand this is a key reason we avoid highly leveraged names where significant price weakness can be experienced during a revaluation process. Alongside this decline in EV for Apple, its estimated free cash flows have risen steadily throughout the year. This contrast between a falling enterprise value and rising free cash flow, which is highlighted in Figure 12, made the stock sufficiently better valued such that it entered the portfolio. While Apple’s valuation is now attractive enough to warrant inclusion in the portfolio, it still ranks in the bottom quartile of the portfolio’s holdings and so the stock’s initiating weight is capped at a 2%. This contrasts significantly with Apple’s near-7% position in the S&P 500 benchmark,and reflects both our preference to avoid too much concentration risk as well our goal of ensuring that the overall portfolio valuation is as attractive as possible while balancing characteristics of stability and low indebtedness.”

4. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 153

Alphabet Inc. is a communication services company, also one of the five Big Tech companies, offering products like Google Services and the Android software. It is based in Mountain View, California.

Justin Post at Bank of America holds a Buy rating on shares of Alphabet Inc. as of October 4. The analyst also placed a $114 price target on the stock.

Over the next three to five years, Alphabet Inc.’s (NASDAQ:GOOG) EPS is expected to grow by 14.9%. The company’s operating cash flow growth year-over-year stands at 17.49%.

There were 153 hedge funds long Alphabet Inc. in the second quarter, and 160 funds long the stock in the previous quarter. Their total stake values were $22.2 billion, and $29.7 billion, respectively.

Lakehouse Capital, an investment management company, mentioned Alphabet Inc. in its July 2022 investor letter. Here’s what the firm said:

“Alphabet Inc. (NASDAQ:GOOG) reported another strong quarterly result despite the tough macroeconomic conditions. Revenue increased by 13% as Search proved resilient, primarily led by strength in the travel and retail verticals. YouTube advertising growth was lighter and moderated due to a tough comparison period and a general softening in brand advertising spend. That said, YouTube’s user engagement and time spent still continues to grow which bodes well for future monetisation opportunities. Google Cloud outpaced the company’s overall growth with revenue increasing by 36% and while it has yet to show any signs of profitability, we remain supportive of Alphabet continuing to reinvest in its cloud business given the size of the market opportunity ahead. On the cost front, the company added another 10,000 employees during the quarter, but notably, the CFO mentioned that hiring will likely slow down over the next twelve months as the company focuses on greater operating efficiency. Overall, we’re pleased with how the company has performed and are confident that management will be able to control costs, if or when the economic environment becomes more challenging.”

3. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 184

Meta Platforms, Inc. is a communication services company, most notably known for its provision and operation of platforms like Facebook and Instagram. The company is based in Menlo Park, California.

A Buy rating was maintained on shares of Meta Platforms, Inc. on October 4, by analyst Justin Post at Bank of America. The analyst also placed a $196 price target on the stock.

Meta Platforms, Inc.’s (NASDAQ:META) year-over-year revenue growth stands at 13.95%, and its EPS is expected to rise by 5.34% over the next three to five years. The company’s operating cash flow growth stands at 18.45% year-over-year.

Meta Platforms, Inc. was found among the 13F holdings of 184 funds in the second quarter. Their total stake value was $18.2 billion.

Harding Loevner, an asset management company, mentioned Meta Platforms, Inc. in its second quarter 2022 investor letter. Here’s what the firm said:

“Any discussion of Q2 underperformance is incomplete without addressing two FAANG stocks. We do not share the market’s concerns about growth prospects at Facebook, Meta Platforms, Inc. (NASDAQ:META)’s core social media platform. Yes, growth is moderating as the business matures. There is also work to be done on technical workarounds to repair the damage to earnings growth from privacy changes implemented by Apple that impair Facebook’s ad targeting to iPhone users. But Meta’s digital advertising model still generates an extremely attractive rate of return on investment for the merchants it serves. Once its Apple workarounds are complete, we expect growth through market share gains and addressable market expansion to resume. Despite all the hyped new initiatives and skirmishes with rivals, Facebook remains an immensely free cash flow-generative business with huge advantages in putting its cash to work developing direct consumer relationships and monetizing them through targeted advertising. CEO Mark Zuckerberg has noted on multiple occasions how the company’s returns from its significant investments in AI have been even higher than it expected, in terms of driving higher revenue and lower costs. We view Meta shares as a bargain today, trading at 15 times earnings after over US$10 billion in annual expenditures on its Metaverse investments.”

2. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 252

Amazon.com, Inc. is an internet and direct marketing retail company, known for its Amazon Web Services segment among more. It is based in Seattle, Washington.

A Buy rating was reiterated on shares of Amazon.com, Inc. on October 3, by analyst Justin Post at Bank of America.

JPMorgan’s Doug Anmuth commented on October 4 that Amazon.com, Inc. remains his top internet idea. Anmuth expects year-over-year revenue acceleration, margin expansion, and CAPEX moderation driving free cash flow inflection next year. Currently, Amazon.com, Inc.’s (NASDAQ:AMZN) year-over-year revenue growth rate stands at 9.61%.

Out of 895 hedge funds tracked in the second quarter, 252 funds were long Amazon.com, Inc., with a total stake value of $30 billion. In comparison, there were 271 funds long the stock in the previous quarter, with a total stake value of $48 billion.

Diamond Hill Capital Management, an investment advisor, mentioned Amazon.com, Inc. in its second quarter 2022 investor letter. Here’s what the firm said:

“Amazon.com, Inc. (NASDAQ:AMZN)’s shares underperformed as valuations of fast-growing companies continued to compress in Q2. Amazon’s growth investments over the past two years have pressured earnings as consumer demand has been weaker than anticipated. However, we believe the company will be able to grow into its infrastructure investments over time. These investments have obscured the magnitude of sustainable free cash flow as well as the attractive valuation of the business relative to peers.”

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 258

Microsoft Corporation is an information technology company working to provide renowned products such as Microsoft Office and Skype. The company is based in Redmond, Washington.

Timothy Horan at Oppenheimer holds an Outperform rating on Microsoft Corporation shares as of October 4.

The company’s revenue has grown by 17.96% year-over-year. Microsoft Corporation’s (NASDAQ:MSFT) EPS is expected to grow by 12.33% over the next three to five years, and its forward free cash flow per share growth rate stands at 13.46%.

Microsoft Corporation had 258 hedge funds holding stakes in it in the second quarter. Their total stake value was $56 billion.

Diamond Hill Capital Management, an investment advisor, mentioned Microsoft Corporation in its second quarter 2022 investor letter. Here’s what the firm said:

“The recent market environment has enabled us to initiate positions in some high-quality names that have sold off indiscriminately and are trading at prices we haven’t seen in quite some time. Microsoft Corporation (NASDAQ:MSFT) is one example. Microsoft’s stock price declined amid the broader selloff of technology companies. This presented an opportunity for us to purchase shares at an attractive discount to our estimate of the intrinsic value. We expect the business to continue generating strong revenue growth and benefiting from operating leverage. Microsoft’s cloud computing services business, Azure, is also generating robust growth, confirming its competitive positioning.”

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