Top 10 Technology Stocks to Buy According to Hedge Funds

In this article, we will discuss the Top 10 Technology Stocks to Buy According to Hedge Funds

As per Janus Henderson Investors, for much of the previous 3 years, artificial intelligence was the story in global equity markets. The AI-related stocks – primarily the mega-cap hyperscalers – were responsible for a significant portion of the aggregate market returns over this period. One of the reasons behind the market’s early 2025 consternation around the AI CapEx was the question of when returns on such investments would start to materialize.

The investment firm highlighted that the answer came with the recent wave of tech-sector earnings reports. The tech giants believe that not only are AI investments resulting in monetization, but the deployed capacity has been met with strong demand.

Hyperscalers Back Concentration of CapEx

Morgan Stanley’s Global Investment Committee questions the idea of a broad-based capital spending boom. Capital spending remains solid (which has been true since 2010), but now, the spending is concentrated among a handful of mega-cap technology companies emphasizing building Gen AI capacity.

The investment firm opines that 4 major cloud-computing providers, known as hyperscalers, are spending over $300 billion per year, making up for over 20% of all capex in the S&P 500. Furthermore, the data center investments add another $40 billion.

Amidst such trends, we will now have a look at the Top 10 Technology Stocks to Buy According to Hedge Funds

Source: Pixabay

Our Methodology

To list the Top 10 Technology Stocks to Buy According to Hedge Funds, we used a screener to shortlist the stocks catering to the broader technology sector. Next, we chose the ones popular among hedge funds. Finally, the stocks were arranged in ascending order of their hedge fund sentiment, as of Q2 2025.

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).

Top 10 Technology Stocks to Buy According to Hedge Funds

10. Intuit Inc. (NASDAQ:INTU)

Number of Hedge Fund Holders: 105

Intuit Inc. (NASDAQ:INTU) is one of the Top Technology Stocks to Buy According to Hedge Funds. On August 21, the company released its FY 2025 results, and it saw an increase of 16% YoY in total revenues to $18.8 billion. Intuit Inc. (NASDAQ:INTU) witnessed healthy execution across its platform, driving robust adoption in assisted tax, introducing transformative AI agents throughout its business platform, and building the mid-market go-to-market capabilities. The company also drove robust margin expansion.

For FY 2025, Intuit Inc. (NASDAQ:INTU) saw an increase in combined platform revenue, including Global Business Solutions Group Online Ecosystem, TurboTax Online, and Credit Karma, of 19% to $14.9 billion. For FY 2026, Intuit Inc. (NASDAQ:INTU) expects revenue in the range of $20.997 billion -$21.186 billion, reflecting a growth of ~12% – 13%. Furthermore, it projects GAAP operating income of between $5.782 billion – $5.859 billion, demonstrating ~17% – 19% growth.

Baron Funds released its Q2 2025 investor letter. Here is what the fund said:

“Very briefly on the other, smaller adds to existing investments during the second quarter. Tax and small business software provider Intuit Inc. (NASDAQ:INTU) – the company continues to execute at a high level and has not seen a cyclical slowdown with stable Small Business revenue growth at 19% in the company’s most recently reported quarter, strong Consumer segment growth of 11%, and very robust Credit Karma growth of 31%, which underpinned annual guidance raise to 15% revenue growth and 18% to 19% EPS growth.”