In this article, we will be taking a look at the 5 hot tech stocks to invest in now. To read our analysis of the recent technology trends, and market activity, you can go to the 12 Hot Tech Stocks to Invest in Now.
5. Microsoft Corporation (NASDAQ:MSFT)
3-Month Average Volume: 22.65M
Year-to-date Performance: 12.98%
Number of Hedge Fund Holders: 302
Redmond, Washington-based Microsoft Corporation (NASDAQ:MSFT) is a leading technology company with products including operating systems, server applications, desktop and server management tools, software development tools, and video games. It is among the leaders in the AI race following its partnership with OpenAI, the creator of Chat GPT – an artificial intelligence powered chatbot.
As of Q4 2023, Microsoft Corporation (NASDAQ:MSFT) ranks highest on our list of 12 hot tech stocks to invest in now. It was the most sought-after stock among the 933 hedge funds tracked by Insider Monkey as 302 of these hedge funds held its shares valued at $87.3 billion.
In its Baron Opportunity Fund Q4 2023 investor letter, Baron Funds, an investment management company, made the following comments about Microsoft Corporation (NASDAQ:MSFT):
“Microsoft was traditionally known for its Windows and Office products, but over the last five years, it has built a $135 billion run-rate cloud business, including its Azure cloud infrastructure service and its Office 365 and Dynamics 365 cloud-delivered applications. The stock contributed to performance because of continued strong operating results, and investor enthusiasm regarding Microsofts’s leadership across the secular megatrends of AI and cloud computing. As highlighted above, Morgan Stanley’s fourth quarter 2023 CIO Survey confirmed the strength and attractiveness of Microsoft’s product portfolio among its customer set: (1) 63% of CIOs expect to use at least one of Microsoft’s generative AI products over the next 12 months; (2) “Microsoft widened its lead as the #1 share gainer of IT wallet share as a result of the shift to the cloud on both a 1-year and 3-year view;” (3) Microsoft Azure ranks as the preferred cloud vendor today (with 48% of application workloads today) and is expected to extend its lead over the next three years (to 50% of workloads).”
4. NVIDIA Corporation (NASDAQ:NVDA)
3-Month Average Volume: 52.44M
Year-to-date Performance: 90.93%
Number of Hedge Fund Holders: 173
NVIDIA Corporation (NASDAQ:NVDA) is a leading technology company focused on the design and manufacturing of accelerated computing hardware and software products. Its core businesses comprise of Gaming, Data Center, Professional Visualization, and Automotive, with Gaming and Data Center making up for more than 80% of its revenues.
Hedge funds are bullish about NVIDIA Corporation (NASDAQ:NVDA) shares as the number of hedge funds that own its shares has increased from 133 in Q1 to 173 in Q4 2023. These hedge funds together held shares worth $33.8 billion, the second highest on our list of 12 hot tech stocks to invest in now.
This is what Baron Funds, an investment management company, had to say about NVIDIA Corporation (NASDAQ:NVDA) in its Baron Opportunity Fund Q4 2023 investor letter:
“NVIDIA is seeing the fruits of its nearly 20-year investment in AI and accelerated computing with data center revenues growing five-fold from $3 billion in 2019 to $15 billion in 2022, and they are expected to at least triple to $45 billion in 2023. This extraordinary top-line growth drove even faster growth in earnings per share, resulting in multiple contraction despite the rapid rise in shares.”
3. SoundHound AI, Inc. (NASDAQ:SOUN)
3-Month Average Volume: 57.61M
Year-to-date Performance: 183.73%
Number of Hedge Fund Holders: 13
SoundHound AI, Inc. (NASDAQ:SOUN) is a technology company offering an independent voice AI platform that enables businesses across industries to deliver conversational experiences to their customers.
SoundHound AI, Inc. (NASDAQ:SOUN) shares are up nearly 184% year-to-date at the time of writing. The significant surge in the share price followed NVIDIA Corporation’s (NASDAQ:NVDA) SEC filing which showed that it holds a stake in the voice AI platform maker.
SoundHound AI, Inc. (NASDAQ:SOUN) ranks lowest on our list of 12 hot tech stocks to invest in now based on market capitalization as well as hedge fund ownership. Its shares were owned by 13 of the 933 hedge funds tracked by Insider Monkey, as of Q4 2023.
2. Palantir Technologies Inc. (NYSE:PLTR)
3-Month Average Volume: 70.53M
Year-to-date Performance: 47.99%
Number of Hedge Fund Holders: 44
Denver, Colorado-based Palantir Technologies Inc. (NYSE:PLTR) is a leading technology company providing software platforms for big data analytics. It has built three principal software platforms: Gotham, Foundry, and Apollo. These platforms provide the infrastructure needed to integrate data and operations and run the required software in virtually any environment.
On February 5, Palantir Technologies Inc. (NYSE:PLTR) released its financial results for Q4 2023. Its revenue increased by 20% y-o-y to $608 million, while it generated a net income of $93 million. It generated a normalized EPS of $0.08, in-line with consensus estimates.
As of Q4 2024, 44 hedge funds owned Palantir Technologies Inc. (NYSE:PLTR) shares worth a combined total of $1.9 billion. Jim Simons’ Renaissance Technologies was the lead hedge fund shareholder with ownership of 43.6 million shares valued at $748 million.
1. Advanced Micro Devices, Inc. (NASDAQ:AMD)
3-Month Average Volume: 77.42M
Year-to-date Performance: 23.51%
Number of Hedge Fund Holders: 120
Based in Santa Clara, California, Advanced Micro Devices, Inc. (NASDAQ:AMD) is a leading semiconductor company using high-performance computing, graphics, and visualization technologies to provide computing solutions for cloud, edge, and end devices.
On October 10, Advanced Micro Devices, Inc. (NASDAQ:AMD) announced the signing of a definitive agreement to acquire Nod.ai to expand the company’s open AI software capabilities. Earlier this year in August, the company acquired Mipsology, and AI software company with proven expertise delivering AI software and solutions running on top of AMD adaptive computing silicon.
On March 7, Mizuho raised the price target on Advanced Micro Devices, Inc. (NASDAQ:AMD) to $235 from $200 and maintained a ‘Buy’ rating on the shares. “Positive AI custom silicon and ethernet tailwinds for the target increase” are the main reasons for the firm’s rosy outlook for the stock.
As of Q4 2023, 120 hedge funds tracked by Insider Monkey held shares of Advanced Micro Devices, Inc. (NASDAQ:AMD), worth $15.2 billion.
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