In this article, we discuss the 5 best tech stocks to buy according to billionaire Julian Robertson. If you want to read our detailed analysis of Robertson’s history and hedge fund performance, go directly to the 10 Best Tech Stocks to Buy According to Billionaire Julian Robertson.
5. QUALCOMM Incorporated (NASDAQ: QCOM)
Robertson’s Stake Value: $21,678,000
Percentage of Julian Robertson’s 13F Portfolio: 4.26%
Number of Hedge Fund Holders: 73
QUALCOMM Incorporated (NASDAQ: QCOM) is a technology company working in the development of foundational technologies and products to be used in mobile devices and wireless products including network equipment and broadband gateway equipment. The company is also a manufacturer of semi-conductors and ranks 5th on our list of the top tech stock picks according to billionaire Julian Robertson.
On June 13th, QUALCOMM Incorporated (NASDAQ: QCOM) said it would consider an investment in ARM Holdings if Nvidia’s $40 billion acquisition fails. QUALCOMM Incorporated’s (NASDAQ: QCOM) Q121 report also revealed a $7.93 billion revenue and earnings valued at $1.76 billion. Additionally, QUALCOMM Incorporated (NASDAQ: QCOM) beat EPS estimates by $0.23 with its $1.9 EPS value. Yet, the stock lost 7.45% in the past 6 months and 7.54% year to date, but still has a forward PE ratio of 17.61.
As of Q121, 73 hedge funds held stakes in the company worth over $2.76 billion, down from 85 hedge funds in Q420, but there has been a slight increase in the stake value between the quarters since the stake value last quarter was $2.72 billion. Tiger Management holds 163,500 shares in the company worth $21 million.
“Within IT, we have also increased exposure to a cyclical semiconductor industry currently working through a severe supply shortage due to several years of capacity reductions, COVID-19 shutdowns and one-off production delays as well as demand resilience in areas like autos and smartphones. The main risk for semiconductors is short-term revenue pressure until capacity catches up with demand, which hurt wireless chipmaker Qualcomm. Looking past current constraints, we expect the industry to see a strong second half and solid growth in 2022.”
4. Alphabet Inc. (NASDAQ: GOOG)
Robertson’s Stake Value: $28,733,000
Percentage of Julian Robertson’s 13F Portfolio: 5.64%
Number of Hedge Fund Holders: 159
Alphabet Inc. (NASDAQ: GOOG) is a multinational technology company providing online advertising services in the US and internationally. It also offers performance and brand advertising services and is among the Big Five tech giants. The company ranks 4th on our list of the best tech stocks to buy according to billionaire Julian Robertson.
In Q121 reports, Alphabet Inc. (NASDAQ: GOOG) reported a $55.31 billion revenue and $17.93 billion in earnings, alongside the fact that the company beat EPS estimates by $10.41 with their $26.29 EPS for Q1. Alphabet Inc. (NASDAQ: GOOG) also gained 42.95% in the past 6 months and 46.22% year to date and has a forward PE ratio of 28.95.
In Q121, 159 hedge fund holders held stakes valued at over $29 billion in Alphabet Inc. (NASDAQ: GOOG), up from Q420 numbers of 157 hedge fund holders holding stakes valued at $20.5 billion. Tiger Management holds 13,890 shares in the company worth $28 million.
Artisan Partners, in its Q1 2021 investor letter, mentioned Alphabet Inc. (NASDAQ: GOOG). Here is what Artisan Partners has to say about Alphabet Inc. in its letter:
“Large-cap tech companies have been resilient through the pandemic—Alphabet among them. A top contributor, Alphabet’s Play Store and Google Cloud are in demand as businesses accelerate online activity which, along with strong YouTube user growth, is helping stabilize temporarily weaker search ad revenue trends. Through the lens of our disciplined bottom-up research process, we view Alphabet as one of the best businesses in the world, capable of expanding revenues at a rapid rate for years to come, with a bullet proof balance sheet and an average asking price. It’s a name we’ve owned since 2012 and for which we continue to have high hopes regarding future prospects.”
3. Micron Technology, Inc. (NASDAQ: MU)
Robertson’s Stake Value: $39,368,000
Percentage of Julian Robertson’s 13F Portfolio: 7.74%
Number of Hedge Fund Holders: 100
Micron Technology, Inc. (NASDAQ: MU) is a manufacturer of memory and storage products across the globe and some of its famous brands include Micron and Crucial. The company ranks 3rd on our list of the best tech stocks to buy according to Julian Robertson.
This May, according to DigiTimes sources, DRAM memory contract prices rose more than 20% and are expected to increase by 10-20% more in coming quarters, and Micron Technology, Inc. (NASDAQ: MU), being the world’s third-largest DRAM company, is set to benefit from the rise.
100 hedge fund holders held stakes in Micron Technology, Inc. (NASDAQ: MU) as of Q121, worth over $7.6 billion, and although the number of holders stayed the same between quarters, the stake value decreased from the Q420 value of $8.14 billion. Tiger Management holds 446,300 shares in the company worth $39 million. Like Microsoft Corporation (NASDAQ: MSFT), Facebook, Inc. (NASDAQ: FB), and Alphabet Inc. (NASDAQ: GOOG), Micron Technology, Inc. (NASDAQ: MU) is a tech stock worth investing in.
In its Q1 2021 investor letter, Bonsai Partners highlighted a few stocks and Micron Technology Inc (NASDAQ:MU) is one of them. Here is what the fund said:
“Micron is a manufacturer of memory semiconductor chips. Micron appreciated 17.3% during the quarter.
With the semiconductor cycle in full swing, sentiment continued to improve for major DRAM and NAND suppliers. Spot pricing for DRAM continues its upward march due to supply shocks across the industry and sustained demand levels that continue to outstrip supply.
As a result, Micron showed improving results for the fiscal first quarter, raised guidance intra-quarter for the fiscal second quarter, and offered strong guidance for the fiscal third quarter in both growth and margins.
While the cyclical nature of DRAM hasn’t changed, the cycles themselves continue to become more benign, leading to long-term economic improvement across these businesses. Micron is now continuously profitable, with industry players in a dramatically stronger position than even just five years ago.
The biggest negative surprise in the quarter came from Micron’s exit from its 3D XPoint hybrid memory business. The company also announced its decision to sell its accompanying Utah fab. Fortunately, this development does not alter the investment thesis much since 3D XPoint was an option ticket for future growth. While it’s unfortunate this product didn’t pan out, now is an excellent time to sell a fab, so perhaps it is a blessing in disguise?”
2. Facebook, Inc. (NASDAQ: FB)
Robertson’s Stake Value: $46,094,000
Percentage of Julian Robertson’s 13F Portfolio: 9.06%
Number of Hedge Fund Holders: 257
Facebook, Inc. (NASDAQ: FB) is a technology company focusing on communication services and internet content and information. It has taken over WhatsApp and operates Messenger as well. The company falls under the list of the Big Five tech giants and is 2nd on our list of the best tech stocks to buy according to billionaire Julian Robertson.
In terms of hedge fund holders, as of Q121, 257 hedge funds held stakes in Facebook, Inc. (NASDAQ: FB) worth over $40 billion, up from Q420 numbers of 242 hedge fund holders with stakes worth $38.2 billion. Tiger Management holds 156,500 shares in the company worth $46 million.
Our calculations show that Facebook, Inc. (NASDAQ: FB) tops our list of the 30 Most Popular Stocks Among Hedge Funds. ClearBridge Investments, in its Q1 2021 investor letter, mentioned Facebook, Inc. (NASDAQ: FB). Here is what ClearBridge Investments has to say about Facebook, Inc. in its letter:
“We continued to keep our learnings from 2020 in mind during the quarter as we sought to increase the up capture of the portfolio. We also made adjustments to the portfolio’s top 10 holdings to increase the participation of select stocks, including Facebook, while trimming our weighting to stable names, which now represent 47% of the portfolio. Our repositioning has been encouraging so far with the portfolio performing better on up days in the market while maintaining good down capture during more turbulent sessions.”
1. Microsoft Corporation (NASDAQ: MSFT)
Robertson’s Stake Value: $48,215,000
Percentage of Julian Robertson’s 13F Portfolio: 9.47%
Number of Hedge Fund Holders: 251
Microsoft Corporation (NASDAQ: MSFT) is a technology company that develops and supports software, services, devices, and solutions across the globe. Some of its products include Office 365 and Microsoft Teams. It is one of the Big Five tech giants in the industry. The company ranks 1st on our list of the top tech stock picks according to billionaire Julian Robertson.
On June 4th, Microsoft Corporation (NASDAQ: MSFT) gained US antitrust approval for the purchase of Nuance Communications, a deal valued at $19.7 billion. In its Q121 report, the company revealed a $41.71 billion revenue, $15.46 billion earnings, and $2.03 EPS which beat EPS estimates for the quarter by $0.25. The stock gained 21.37% in the past 6 months and 19.39% year to date. Microsoft Corporation (NASDAQ: MSFT) also has a forward PE ratio of 33.46.
In Q121, Microsoft Corporation (NASDAQ: MSFT) had 251 hedge fund holders with stakes in the company worth over $58.9 billion. While the number of hedge fund holders has dropped from Q420 to Q121, the stake value has increased from the Q420 value of $52.8 billion. Tiger Management holds 204,500 shares in the company worth over $48 million.
“We also made adjustments to the portfolio’s top 10 holdings to increase the participation of select stocks. The FAANGs and Microsoft delivered mixed results during the quarter and we continue to be mindful of our weighting to these mega cap growth stocks to ensure they are not limiting our ability to add diversity through new ideas. Our repositioning has been encouraging so far with the portfolio performing better on up days in the market while maintaining good down capture during more turbulent sessions.”
You can also take a peek at 15 Biggest Tech Companies In The World and 10 Best Tech Stocks To Buy Now According To Billionaire Laffont.
