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.”
9. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 113
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the Top Technology Stocks to Buy According to Hedge Funds. On August 20, Somite.ai announced a strategic investment from AMD Ventures, following the former’s $47 million Series A closing led by Khosla Ventures in May. Notably, AMD Ventures is the venture capital arm of Advanced Micro Devices, Inc. (NASDAQ:AMD). Furthermore, the collaboration combines Somite’s capsule-based data generation platform with industry-leading AMD Instinct™ GPUs, fueling compute power to accelerate training of Somite’s foundation models.
Elsewhere, Advanced Micro Devices, Inc. (NASDAQ:AMD) delivered healthy revenue growth in Q2 2025 led by record server and PC processor sales. Notably, its Q2 2025 revenue came in at a record $7.7 billion. Advanced Micro Devices, Inc. (NASDAQ:AMD) continues to see strong demand throughout its computing and AI product portfolio and remains well placed to deliver healthy growth in H2 2025, thanks to the ramp of its AMD Instinct MI350 series accelerators and ongoing EPYC and Ryzen processor share gains.
Longriver Investment Partners released its Q2 2025 investor letter. Here is what the fund said:
“Nvidia’s NVLink, its high-bandwidth interconnect, underpins training at scale, where GPUs must coordinate across racks. NVLink Fusion, announced this year, may extend that advantage by letting custom chips plug into Nvidia’s system rather than replace it. However, many inference tasks can be handled independently, one GPU at a time. That lowers the importance of networking, and with it, Nvidia’s edge in tightly integrated systems.
This has given Advanced Micro Devices, Inc. (NASDAQ:AMD) a window to become more than a second source. Its MI300X is now deployed at Microsoft, Meta, Oracle, and Dell. In some inference workloads, it beats Nvidia’s H100. As one expert put it, “ROCm used to be a science project. Now we’re finally seeing it run real workloads.” AMD plans to ship full-rack MI400 systems next year. It still trails in training, but inference gives it a real wedge into the market.
AMD is also leaning into openness. ROCm is open source, its interconnects run over Ethernet, not proprietary links, and it is sticking with x86 CPUs. That may appeal to buyers wary of lock-in or reluctant to cross-compile for ARM.”
8. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 121
Salesforce, Inc. (NYSE:CRM) is one of the Top Technology Stocks to Buy According to Hedge Funds. On August 25, Monness analyst Brian White maintained a “Neutral” stance on the company’s stock, providing a “Hold” rating. The analyst’s rating is backed by a combination of factors, which include Salesforce, Inc. (NYSE:CRM)’s strategic positioning in the broader AI sector and efforts to capitalize on the digital labor movement via initiatives such as Agentforce.
PepsiCo has announced its plans to deploy Agentforce – the digital labor platform from Salesforce, Inc. (NYSE:CRM) for bringing trusted, autonomous AI agents into the workflow. While Salesforce, Inc. (NYSE:CRM) continues to make significant strides with innovations and acquisitions, its growth remains lackluster in the competitive and challenging macroeconomic environment, added the firm’s analyst. However, the company remains optimistic about its momentum as it capitalizes on the opportunities presented by agentic AI. Overall, Salesforce, Inc. (NYSE:CRM)’s performance demonstrates robust execution, thanks to the continued focus on innovation and operational excellence.
Oakmark Funds, advised by Harris Associates, released its Q2 2025 investor letter. Here is what the fund said:
“Salesforce, Inc. (NYSE:CRM) is a leading technology company that offers a collection of software products aimed at providing businesses with a full front office productivity suite. We believe Salesforce is a wonderful business going through a transformation into a profitable, shareholder-focused enterprise. Since management announced their renewed focus on operating discipline a couple years ago, Salesforce’s margins have increased substantially. In our view, there is further room to improve as the company leverages its unique position to help businesses deploy AI and continues to restructure its sales organization. Since exiting our position in Salesforce in December, the stock price has declined by over 30% despite continuing to report fundamental results that are in line with our expectations. We were pleased to buy the stock, but we first established our position using a put writing strategy to lower our entry price. We believed the puts were overvalued as they implied that Salesforce was among the most volatile large companies, which was completely at odds with our assessment of its business value.”
7. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 124
Oracle Corporation (NYSE:ORCL) is one of the Top Technology Stocks to Buy According to Hedge Funds. On August 20, Bloomberg reported that Oracle Corporation (NYSE:ORCL) is spending tens of billions of dollars to develop large data centers amid energy and material shortages. This consists of the plan to spend over $1 billion a year just to power 1 new megasite in West Texas with gas generators rather than wait for utility connection. Bloomberg also reported that AI happens to the biggest driver of OCI’s growth. The majority of Oracle Corporation (NYSE:ORCL)’s backlog, or booked deals, remain tied to customers training or deploying AI models with GPU-based servers.
In Q4 2025, the company’s total quarterly revenues increased 11% YoY in USD and constant currency to $15.9 billion. Oracle Corporation (NYSE:ORCL)’s cloud services and license support revenues rose by 14% in USD and constant currency to $11.7 billion. The company highlighted that its cloud infrastructure growth rate is projected to increase from 50% in FY 2025 to more than 70% in FY 2026. Also, RPO is likely to grow over 100% in FY 2026.
Kovitz Investment Group Partners, LLC, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:
“Oracle Corporation (NYSE:ORCL) continues to demonstrate strong traction in scaling its cloud infrastructure and applications businesses. Growth in contracted backlog exceeded expectations at +41% in FY25 and management is expecting it to more than double in FY26. Revenue growth is also expected to accelerate materially with management indicating they expect to exceed their prior targets for the next two years. Lastly, the company recently disclosed that their fiscal year is off to a strong start with multiple new cloud contracts signed already, including one that is expected to generate more than $30B in annual revenue beginning in FY28.”
6. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 156
Broadcom Inc. (NASDAQ:AVGO) is one of the Top Technology Stocks to Buy According to Hedge Funds. On August 26, Broadcom Inc. (NASDAQ:AVGO) and Canonical announced an expanded collaboration to support customers in shipping modern container-based and AI applications faster and more securely. By bringing Canonical’s trusted open-source software with VMware Cloud Foundation (VCF), the alliance aims to help customers ramp up innovation, with lower costs and less risk. Overall, the partnership tends to combine the leading cloud OS with the industry’s first unified private cloud platform to ramp up the cloud native innovation.
Also, Broadcom Inc. (NASDAQ:AVGO) and Walmart announced a strategic collaboration to deliver a modern private cloud and edge environment. Broadcom Inc. (NASDAQ:AVGO) has been named as the strategic vendor for virtualization software solutions, leveraging VCF to unify Walmart’s globally distributed operations. This relationship is expected to improve the shopping experience, enhance operational efficiency, and ramp up the development and delivery of innovative services.
Baron Funds, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:
“Broadcom Inc. (NASDAQ:AVGO) is a leading semiconductor and enterprise software company, generating approximately 60% of revenue from semiconductors and 40% from software. The company is strategically positioned at the intersection of high-performance AI compute and networking infrastructure, while also demonstrating disciplined execution in software. Broadcom has continued its leadership in networking silicon from the cloud era to the AI era and emerged as the most reliable silicon partner for AI foundational model builders to design custom chips to train and inference their frontier models. Shares rose during the quarter on continued momentum in Broadcom’s AI product lines. In its April quarter, Broadcom reported over $15 billion in total revenue, up 20%; over $4.4 billion in AI revenue, up 40%; and over $6.6 billion in software revenue, up 25%. Broadcom continued to demonstrate excellent profitability, with operating margins over 65% and free cash flow margins at 43%. On the company’s earnings call and during other public appearances, Broadcom CEO Hock Tan confirmed that all programs supporting the company’s projected $60 billion to $90 billion serviceable addressable AI market by 2027 were “on track,” inference demand had emerged as an important AI revenue opportunity, and that the company’s AI revenue growth should accelerate to the 50% to 60% level for fiscal years 2025 and 2026.”
5. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 187
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the Top Technology Stocks to Buy According to Hedge Funds. In August 2025, the company highlighted key changes and activities, including the acquisition and disposition of fixed-income investments totalling NT$10.2 billion and NT$0.4 billion, respectively. Also, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) issued unsecured bonds to the tune of NT$12.3 billion, possessing varied maturity periods and interest rates.
In Q2 2025, the company reported consolidated revenue of NT$933.79 billion, net income of NT$398.27 billion, and diluted EPS of NT$15.36 (US$2.47 per ADR unit). On a YoY basis, its revenues rose 38.6%, while net income and diluted EPS both went up by 60.7%. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s business in Q2 2025 was supported by continued strong AI and HPC-related demand. In Q3 2025, it expects its business to be aided by healthy demand for its leading-edge process technologies.
Baron Funds, an investment management company, released its investor letter for Q2 2025. Here is what the fund said:
“Our largest add during the quarter was Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) as we continued to build our position. We believe that while near-term uncertainty due to tariffs and macro remains heightened, TSMC’s competitive positioning in leading-edge semiconductor manufacturing remains unmatched. We also believe that TSMC will benefit from a long duration of growth as the adoption of AI proliferates across industries – and the recent developments in the space which we discussed above (e.g. removal of the AI Diffusion rule, accelerated adoption of reasoning-based AI inference, and the expansion of scaling laws) will serve to further accelerate the adoption of AI. We also like the fact that TSMC will benefit regardless of the ultimate market share split between GPUs and application-specific integrated circuits. It’s the ultimate “arms dealer” to AI.”
4. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders (GOOGL): 219
Number of Hedge Fund Holders (GOOG): 178
Alphabet Inc. (NASDAQ:GOOGL) is one of the Top Technology Stocks to Buy According to Hedge Funds. On August 22, Reuters reported that Alphabet Inc. (NASDAQ:GOOGL)’s robotaxi unit Waymo received its first permit to start testing its autonomous vehicles in New York City with a trained specialist, helping advance the self-driving ambitions. Notably, Waymo can now start testing a limited number of its self-driving cars in parts of Manhattan and Downtown Brooklyn, as highlighted by Reuters while quoting New York City Mayor Eric Adams and Department of Transportation Commissioner Ydanis Rodriguez. The firm further reported that Waymo has accelerated its efforts to scale operations in the US, as the robotaxi race heats up.
Alphabet Inc. (NASDAQ:GOOGL) released its Q2 2025 financial results, with Google Cloud revenues rising 32% to $13.6 billion, led by growth in Google Cloud Platform (GCP) throughout core GCP products, AI Infrastructure, and Generative AI Solutions. Alphabet Inc. (NASDAQ:GOOGL)’s total operating income rose 14% and its operating margin came in at 32.4%. Notably, the operating margin benefited from healthy revenue growth and continued efficiencies in the expense base.
GreensKeeper Asset Management, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:
“Our second-best performer in the quarter was Alphabet Inc. (NASDAQ:GOOGL) +13.5%. During the quarter, Alphabet hosted its annual developer conference, highlighting its advancements in AI tools across its product suite. Google’s AI Overview product continues to gain traction with over 1.5 billion monthly users, and its direct ChatGPT competitor, Gemini, is now used by more than 400 million people each month. Recent updates have reinstated the company’s models to the top of the AI power rankings. Importantly for shareholders, AI Overviews have been increasing the total number of queries at Google, which the company is monetizing at a similar rate to traditional search. Google’s business fundamentals remain healthy, with operating earnings growing 20 % in Q1.”
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 235
NVIDIA Corporation (NASDAQ:NVDA) is one of the Top Technology Stocks to Buy According to Hedge Funds. On August 28, Christopher Rolland, an analyst from Susquehanna, reiterated a “Buy” rating on the company’s stock, while the associated price target remains same at $210.00. The analyst’s rating is backed by the company’s strong performance and promising prospects. As per the analyst, NVIDIA Corporation (NASDAQ:NVDA) surpassed expectations with its guidance, thanks to the rapid ramp-up of its Blackwell Ultra product line, which exceeded initial forecasts. Furthermore, NVIDIA Corporation (NASDAQ:NVDA)’s networking segment demonstrated healthy growth, mainly with Spectrum-X and InfiniBand, which contributed to its overall success. Overall, the analyst seems to be optimistic regarding its potential to resume H20 shipments and achieve further revenue growth.
In Q2 2026, NVIDIA Corporation (NASDAQ:NVDA) saw revenue of $46.7 billion, reflecting a rise of 6% from Q1 2026 and up 56% YoY, with Data Center revenue coming at $41.1 billion, up 5% sequentially and 56% YoY. For Q3 2026, the company expects revenue of $54.0 billion, plus or minus 2%. NVIDIA Corporation (NASDAQ:NVDA) didn’t assume any H20 shipments to China in the outlook.
Burke Wealth Management, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:
“NVIDIA Corporation (NASDAQ:NVDA): Shares of Nvidia were up 46% during the second quarter. Obviously, that is an outstanding result but in no way does it fully reflect the fundamental roller coaster ride the company was on during Q2. For the first time since the AI revolution began, Nvidia faced a threat to its dominant position. Frustratingly, this threat was not from a company with a competing technology but instead came from the United States government. A lot of attention has been given to the actions taken by the Biden administration during President Biden’s final days in office. While most of the scrutiny has focused on the wave of last minute pardons that were granted, the executive order on AI diffusion that was issued a week before the end of his term was what demanded our attention. This 200 page regulatory disaster would have placed restrictions on access to Nvidia chips to all but 18 countries in the world, with several NATO allies and the entirety of the Middle East among the impacted. If Xi Jinping and the CEO of Huawei had locked themselves in a room and tried to craft a piece of regulation that would guarantee Chinese dominance in AI for a generation they would have been hard pressed to come up with something better than the AI diffusion rules. If implemented, the AI diffusion rules would have resulted in the world building its AI infrastructure on the Huawei platform which China would have been more than happy to make readily available to any interested nation, rather than on Nvidia’s platform.
The idea that AI technologies can be controlled by the US government and exported to the rest of the world only after the completion of a nebulous regulatory maze is both arrogant and naïve. Roughly half of the world’s AI researchers are Chinese. China is going to have competitive AI capabilities. Artificial intelligence is not a race with a defined finish line and therefore AI leadership is going to be maintained by empowering our technology leaders (Nvidia) to run faster rather than trying to slow the pace of development in rival nations. Luckily, the AI diffusion rules crafted in January were not slated to take effect May 13th, which gave the Trump administration the chance to stop them which they did, almost. The Trump administration rescinded the AI diffusion rule which was greeted almost immediately by the announcement of a $50B AI factory being built on Nvidia chips in the UAE. This was a huge development as Huawei was beginning to make inroads across the Middle East with its technologically inferior, yet generally available products. Unfortunately, the lifting of the AI diffusion rules did not extend to China and the Trump administration moved the existing Chinese chip rules which restricted Chinese access to a degraded product (H-20) into an outright ban. The immediate implication of this was that Nvidia took a $5B write-down and left about $8B of Q2 revenues from China on the table. The longer-term implication is that the US government has just gifted Huawei a monopoly position in China while simultaneously stopping Nvidia from dominating China’s $50B and growing AI market for the foreseeable future. While there is still a chance that Nvidia chip access will be included in a broader trade deal with China and there is continued pressure to reverse this ban, at the present time we are headed for a world where certain parts of the world will build their AI infrastructure on a Chinese platform while the rest of the world will build on the Nvidia platform.”
2. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 260
Meta Platforms, Inc. (NASDAQ:META) is one of the Top Technology Stocks to Buy According to Hedge Funds. On August 20, Reuters, while quoting WSJ, highlighted that Meta Platforms, Inc. (NASDAQ:META) paused its hiring in the AI division after bringing over 50 researchers and engineers. Furthermore, CNBC, while quoting a statement shared by the company’s spokesperson, highlighted that the pause reflects some basic organizational planning. Notably, Meta Platforms, Inc. (NASDAQ:META) continues to spend significantly on AI this year.
CNBC also reported that the company acquired Alexandr Wang, founder of Scale AI. In the Q2 2025 earnings call, the company highlighted that it continues to build an elite, talent-dense team, with Nat Friedman leading its AI Products and Applied Research. Meta Platforms, Inc. (NASDAQ:META) stated that Meta AI’s reach remains healthy, with over 1 billion monthly actives. The company’s focus revolves around making Meta AI the leading personal AI. During the call, Meta Platforms, Inc. (NASDAQ:META) highlighted that it expects another year of significant CapEx dollar growth in 2026 as it continues to aggressively pursue opportunities to bring additional capacity online to address the needs of its AI efforts and business operations.
Baron Funds released its Q2 2025 investor letter. Here is what the fund said:
“Shares of Meta Platforms, Inc. (NASDAQ:META), the world’s largest social network, rose 28.2% this quarter on impressive top-line growth with revenues growing 19% year-on-year in constant currency and solid forward guidance. Meta is already seeing solid returns on its AI investments across its core business, with improved content recommendations driving increased time spent on the platform, and enhanced ad targeting and ranking delivering higher conversion rates and stronger return on ad spend. Our industry checks also suggest strong advertiser adoption and satisfaction, including in newer areas such as AI-powered creative tools and business messaging. Meta continues to manage costs effectively and remains focused on profitable growth. Over the long term, we believe Meta is well positioned to leverage its leadership in mobile advertising, massive user base, innovative culture, strength in generative AI research, and technological scale, with additional monetization opportunities ahead.”
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 335
Amazon.com, Inc. (NASDAQ:AMZN) is one of the Top Technology Stocks to Buy According to Hedge Funds. On August 26, Procore Technologies, Inc. announced that it has signed a multi-year strategic collaboration agreement (SCA) with Amazon.com, Inc. (NASDAQ:AMZN)’s AWS. Notably, the SCA demonstrates a joint commitment to co-invest in go-to-market activities as well as product innovation targeting the global construction industry and adjacent verticals that drive construction initiatives. The availability of Procore in AWS Marketplace and the joint go-to-market initiatives will help customers access the transformative solutions.
Amazon.com, Inc. (NASDAQ:AMZN)’s net sales rose 13% to $167.7 billion in Q2 2025 as compared to $148.0 billion in Q2 2024. AWS segment sales went up by 17.5% YoY to $30.9 billion. Amazon.com, Inc. (NASDAQ:AMZN) highlighted that AWS has an annualized revenue run rate of over $123 billion. During Q2 2025, there was growth in both its generative AI and non-generative AI businesses. Amazon.com, Inc. (NASDAQ:AMZN) plans to continue its investment spree in chips, data centers, and power in a bid to pursue the huge opportunity in Gen AI.
Investment management company Vulcan Value Partners recently released its Q2 2025 investor letter. Here is what the fund said:
“Amazon.com, Inc. (NASDAQ:AMZN) is a dominant, world-class company with powerful secular tailwinds in place including its e-commerce penetration, digital advertising growth, and the transition to the cloud. Amazon reported strong results during the first quarter. The company’s stock rebounded during the second quarter.”
While we acknowledge the potential of AMZN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AMZN and that has 100x upside potential, check out our report about this cheapest AI stock.
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