In this article, we will take a look at the Top 10 Goldman Sachs Tech Stocks to Buy Now.
On June 2, Goldman Sachs Research’s Jim Covello, during a conversation on Goldman Sachs Exchanges, highlighted his interest in hyperscalers amid the AI growth cycle. He pointed out that hyperscaler stocks have underperformed due to a higher Capex drag, yet the companies continue to raise their AI Capex.
Covello said that historically, semiconductor companies have benefited from the AI buildout and continue to do so. However, this time around, he favors hyperscaler stocks over semiconductor stocks. Two of three plausible scenarios are playing out in favor of hyperscalers; either these companies start to get their investment back in the form of returns, rewarding the broader chain, or they moderately pull back on Capex to recover FCF. Covello’s only scenario where semiconductors continue to outperform is the status quo, which he believes cannot persist forever. His argument in favor of hyperscalers is simple: at some point, enterprises need to make money from their AI investments. Covello believes the gap between C-Suite expectations and actual worker productivity gains indicates that the moment has not yet arrived.
Also on June 2, Goldman Sachs CEO David Solomon shared thoughts on the market during his interview on CNBC. He sees ‘plenty of liquidity’ amid the upcoming AI IPOs expected in 2026. Elon Musk’s SpaceX is also set to go public. Contesting his point, Solomon said, “We are definitely in a moment where there’s more greed than there is fear.”
Solomon said the fundraising wave is unprecedented in size, considering the giant names in the world of AI and technology. He argued that the record levels of wealth and liquidity across markets support the move. He further added that returns from AI companies could create a self-reinforcing cycle as investors and employees turn their profit into taxes and new ventures.
With that, let’s take a look at the top 10 Goldman Sachs tech stocks to buy now.
Photo by Pascal Bernardon on Unsplash
Our Methodology
To create the list of the top 10 Goldman Sachs tech stocks to buy now, we looked at the tech stock holdings from Goldman Capital Management Inc. We selected the top tech companies with the highest percentage in the portfolio. Finally, we ranked the Goldman Sachs tech stocks based on the number of hedge fund holders. The hedge fund sentiment data for each stock were sourced from Insider Monkey’s database as of Q1 2026.
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).
Note: All the data is as of market close on June 1, 2026.
10. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 97
Cisco Systems, Inc. (NASDAQ:CSCO) is one of the tech stocks held by Goldman Sachs, with a total holding value of almost $2.78 billion, making it to our list of the top Goldman Sachs tech stocks to buy now.
Cisco shares are trading at their all-time high as investors show positive sentiment towards the company’s notable quarterly earnings performance. The company posted adjusted earnings per share of $1.06 for the third quarter of FY2026, surpassing the expected $1.04 per share. Revenue also exceeded expectations of $15.56 billion, coming in at $15.84 billion for the quarter. This marks a 12% revenue growth from a year ago. The company’s AI infrastructure and hyperscaler orders boosted the sales, and so far in 2026, Cisco has received AI infrastructure orders worth $5.3 billion. The company expects these orders to reach $9 billion in FY2026. In this space, the company anticipates the FY2026 revenue to reach $4 billion, up from the previous projection of $3 billion.
Cisco’s CEO, Chuck Robbins, highlighted that the company’s robust performance during Q3 demonstrates its relevance in connecting with and securing AI technology. On May 15, HSBC lifted the rating on CSCO from Hold to Buy, also raising the price target to $137 from $77. The analyst took a bullish stance and recommended HSBC as a Buy, largely due to Cisco’s growing AI orders, which are effectively redefining the firm’s growth trajectory.
Cisco’s management anticipates around $6 billion in FY2027 AI revenue, which implies a 50% year-over-year growth. On May 26, TheFly reported that BofA increased the price target on CSCO from $114 to $135, keeping a Buy rating. BofA’s target increase follows Q3 results and the company’s promising update around Acacia Communications. Acacia is focused on designing and manufacturing an entire portfolio of high-speed optical interconnect technologies that serve different applications across datacenter, metro, regional, long-haul, and undersea networks. BofA sees Acacia’s strong demand as positive, considering the underlying demand environment for Optical Networking.
Cisco Systems, Inc. (NASDAQ:CSCO) is involved in the manufacture, design, and sale of Internet Protocol-based networking products and services associated with the communications and IT industry.
9. Applied Materials, Inc. (NASDAQ:AMAT)
Number of Hedge Fund Holders: 138
Goldman Sachs owns around 0.31% of Applied Materials, Inc. (NASDAQ:AMAT) out of its portfolio, with a total portfolio value of around $2.68 billion.
Applied Materials seems to be proactive amid the robust AI demand. The company expects its semiconductor equipment business to soar more than 30% in 2026. The global AI computing infrastructure push has been crucial for semiconductor companies.
The company has partnered with major players, naming them innovation partners such as SPEED and TSMC. On May 26, Applied Materials partnered with SCREEN Semiconductor Solutions to utilize its wafer cleaning technology in its materials engineering to develop co-optimized process solutions for the most advanced chips. Similarly, Applied’s collaboration with TSMC announced on May 11 is part of its next era of AI. TSMC will work together with Applied’s EPIC Center in Silicon Valley to enhance equipment innovation, process integration, and materials engineering to deliver next-generation energy-efficient performance of the data center.
Analysts have a keen eye on AMAT. On May 27, TheFly reported that Mizuho’s Vijay Rakesh increased the price target on Applied Materials, Inc. (NASDAQ:AMAT) to $540 from a previous target of $500, maintaining an Outperform rating on the stock. The analyst has raised its wafer fab equipment spending estimate from $142 billion to $153 billion for 2026 and the 2027 estimate from $163 billion to $190 billion. Applied Materials, specializing in the DRAM and wafer equipment market, keeps its investors in the loop due to higher demand for semiconductor equipment.
Considering the wafer market revision, Rakesh believes that Applied Materials’ earnings are underestimated and it will benefit from the NAND node transitions, TSMC spending, and high bandwidth memory pricing strength.
Applied Materials, Inc. (NASDAQ:AMAT) is a materials engineering solutions company that provides equipment, software, and services to the semiconductor, display, and related industries. The company operates through its Semiconductor Systems and Applied Global Services (AGS) segments.
