In this article, we will discuss the Top 11 AI and Technology Stocks to Buy According to Hedge Funds.
Doug Clinton, founder and CEO of Intelligent Alpha, recently appeared on CNBC and highlighted that, when it comes to the technology sector, the focus remains on AI trade. Also, the investors are now turning their focus towards software. He believes that the software category had a tough 2025. iShares Expanded Tech-Software Sector ETF rose by ~8% YTD, while Invesco QQQ Trust rose by over ~20%.
Therefore, the software category is yet to see the benefits of AI, and Clinton opines that the story can shift in 2026. When asked about his views on the AI bubble, Clinton believes that there are still 2 – 4 years left in the current AI bull market. Elsewhere, Citi’s Heath Terry believes that corporate America has been finding value in AI, evidenced by the pace of adoption. Furthermore, acceleration of adoption is backed by the revenues of all the hyperscalers and backlog numbers.
Spending Patterns by Well-established Technology Firms
As per Natixis Corporate & Investment Banking, a leading global financial institution, the US economy has been exhibiting ongoing resilience, partly due to the AI-related capital expenditure. Notably, leading tech companies continue to allocate ~60% of operating cash flow to capex. Also, new fiscal measures are taking effect at the start of next year, which are anticipated to encourage further investment.
Amidst such trends, we will now have a look at the Top 11 AI and Technology Stocks to Buy According to Hedge Funds.
Our Methodology
To list the Top 11 AI and Technology Stocks to Buy According to Hedge Funds, we sifted through several online rankings and selected the companies catering to the broader AI and technology space. Next, we chose the ones popular among hedge funds, as of Q3 2025. The stocks are arranged in ascending order of their hedge fund sentiments.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Top 11 AI and Technology Stocks to Buy According to Hedge Funds
11. Snowflake Inc. (NYSE:SNOW)
Number of Hedge Fund Holders: 102
Snowflake Inc. (NYSE:SNOW) is one of the Top AI and Technology Stocks to Buy According to Hedge Funds. On December 3, the company released its financial results for Q3 2026, with revenue coming at $1.21 billion, reflecting 29% YoY growth amidst 29% YoY growth in product revenue to $1.16 billion.
Snowflake Inc. (NYSE:SNOW)’s product revenue rose $258.1 million and $726.6 million for 3 and 9 months ended October 31, 2025 on a YoY basis, respectively, primarily because of higher consumption of its platform by existing customers. This is evidenced by the net revenue retention rate of 125% as of October 31, 2025. The company saw an operating loss of $329.4 million in Q3 2025 compared to $365.4 million in Q3 2024, amidst an increase in total operating expenses of ~16.7% YoY to $1.15 billion and a higher gross profit.
As of October 31, 2025, Snowflake Inc. (NYSE:SNOW)’s RPO came at $7.9 billion, of which it anticipates ~48% to be recognized as revenue in the 12 months ending October 31, 2026 considering the historical customer consumption patterns. For Q4 2026, the company expects product revenue of between $1,195 million – $1,200 million, reflecting a growth of 27% on a YoY basis. The company expects a non-GAAP operating margin of 7%.
In a different update, on December 8, Citi reduced its price objective on the company’s stock to $300 from $310, while keeping a “Buy” rating.
Snowflake Inc. (NYSE:SNOW) offers a cloud-based data platform for various organizations in the US and internationally.
10. AppLovin Corporation (NASDAQ:APP)
Number of Hedge Fund Holders: 110
AppLovin Corporation (NASDAQ:APP) is one of the Top AI and Technology Stocks to Buy According to Hedge Funds. On December 11, Benchmark analyst Mike Hickey lifted the price target on the company’s stock to $775 from $700, while keeping a “Buy” rating. The firm believes that the company’s prospects have strengthened, thanks to the accelerating e-commerce traction and a clear roadmap to scale AXON Ads self-serve. Also, expansion of Gen AI creative capabilities and sustained margin durability are some of the additional factors.
In a separate release, on December 11, Jefferies analyst James Heaney also lifted the price objective on AppLovin Corporation (NASDAQ:APP)’s stock to $860 from $800, while keeping a “Buy” rating. The firm suggests being selective throughout Internet stocks. This is because elevated levels of investments might limit margin expansion, while the concerns around AI disintermediation can restrict the multiple appreciation.
In a different update, on December 3, Bank of America Securities analyst Omar Dessouky reiterated a “Buy” rating on AppLovin Corporation (NASDAQ:APP)’s stock, setting a price objective of $860.00. The analyst’s rating is backed by a combination of factors demonstrating healthy future performance for AppLovin Corporation (NASDAQ:APP). One critical reason revolves around the significant expansion of Axon’s pixel footprint among e-commerce advertisers.
AppLovin Corporation (NASDAQ:APP) is engaged in building a software-based platform for advertisers to enhance the marketing and monetization of their content.
9. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 119
Salesforce, Inc. (NYSE:CRM) is one of the Top AI and Technology Stocks to Buy According to Hedge Funds. On December 9, Morgan Stanley reduced the price target on the company’s stock to $398 from $405 while keeping an “Overweight” rating, as reported by The Fly. This comes after the firm adjusted estimates and valuations among its software coverage following Salesforce, Inc. (NYSE:CRM)’s strong earnings report.
Elsewhere, on December 3, Salesforce, Inc. (NYSE:CRM) announced its Q3 2025 revenue of $10.3 billion, reflecting a rise of 9% YoY and 8% in constant currency, amidst growth in subscription and support revenues. Notably, subscription and support revenues for 3 and 9 months ended October 31, 2025 rose mainly because of volume-driven increases from new business that consists of new customers, upgrades, and additional subscriptions from existing customers.
Salesforce, Inc. (NYSE:CRM)’s net income came in at $2,086 million in Q3 FY 2025, an increase from $1,527 million in Q3 FY 2024. Notably, the company’s Agentforce and Data 360 products were the momentum drivers. The company raised its FY 2026 revenue guidance to $41.45 billion – $41.55 billion, and Q3 cRPO was strong, up by 11% YoY and reaching $29.4 billion, hinting at a robust pipeline of future revenue.
Salesforce, Inc. (NYSE:CRM) offers customer relationship management technology, which connects companies and customers.
8. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 122
Oracle Corporation (NYSE:ORCL) is one of the Top AI and Technology Stocks to Buy According to Hedge Funds. On December 10, the company announced its Q2 2026 financial results, with total remaining performance obligations rising 438% YoY in USD to $523 billion. Notably, Oracle Corporation (NYSE:ORCL) highlighted that its RPO rose by $68 billion in Q2 2026, an increase of 15% sequentially. This was highlighted by new commitments from Meta, NVIDIA, and others.
Oracle Corporation (NYSE:ORCL)’s total quarterly revenues rose by 14% in USD and 13% in constant currency to reach $16.1 billion, amidst growth in the cloud revenues of 34% in USD and 33% in constant currency to $8.0 billion.
The increase in cloud and software business revenues in Q2 2026 and H1 2026 was mainly because of growth in its cloud revenues as customers purchased its applications and infrastructure technologies, and also renewed related cloud contracts. In constant currency, cloud applications made a contribution of 19% and 20% and cloud infrastructure contributed 81% and 80% to the growth in cloud revenues in Q2 2026 and H1 2026, respectively.
The company’s operating income came in at $4,731 million in Q2 2026, reflecting an increase from $4,220 million in Q2 2025 because of the increased revenues.
After the release, Goldman Sachs analyst Kash Rangan reduced the price target on the company’s stock to $220 from $320, while keeping a “Neutral” rating.
7. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 166
Apple Inc. (NASDAQ:AAPL) is one of the Top AI and Technology Stocks to Buy According to Hedge Funds. On December 8, Evercore ISI lifted the price target on the company’s stock to $325 from $300, while keeping an “Outperform” rating on the company’s stock. As per the analyst, Apple Inc. (NASDAQ:AAPL)’s upcoming Siri 2.0, powered by Gemini, is expected to act as a catalyst for potential upside in profits and valuation. The strategic launch has been planned for March 2026.
In a different update, Citi raised the price objective on Apple Inc. (NASDAQ:AAPL)’s stock to $330, hinting at stronger-than-expected momentum for the iPhone 17 cycle, along with a healthier upgrade pool moving ahead into 2026 and 2027. Notably, the firm expects iPhone upside in Apple Inc. (NASDAQ:AAPL)’s December and March quarters, amidst iPhone 12 and 13 users entering the company’s upgrade window. Also, Citi raised its earnings estimates to reflect iPhone 17 strength.
The firm’s analyst expects further tailwinds due to the company’s shift to WMCM (Wafer-level Multi-Chip Module) packaging in 2026. This can enable efficiency gains and place future devices for heavier on-device AI workloads. Furthermore, the firm bases the new target on a ~33x multiple of 2027 earnings. According to Citi, Apple Inc. (NASDAQ:AAPL)’s margin profile, services mix, and balance sheet tend to justify the premium.
6. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 183
Broadcom Inc. (NASDAQ:AVGO) is one of the Top AI and Technology Stocks to Buy According to Hedge Funds. On December 11, the company posted its financial results for Q4 2025 and FY 2025, with record quarterly revenue of $18.0 billion, up 28% YoY. This was mainly driven by AI semiconductor revenue that rose 74% YoY. Broadcom Inc. (NASDAQ:AVGO) continues to see the momentum continuing in Q1 and anticipates AI semiconductor revenue to double YoY to $8.2 billion, thanks to the custom AI accelerators and Ethernet AI switches.
In Q4 2025, the company saw income from continuing operations of $8,518 million, reflecting an increase from $4,140 million in Q4 2024, amidst increased operating income. Broadcom Inc. (NASDAQ:AVGO) expects total revenue of $19.1 billion and adjusted EBITDA of 67% in Q1 2026.
In Q4 2025, infrastructure software revenue came in at $6.9 billion, reflecting an increase of 19% YoY. Broadcom Inc. (NASDAQ:AVGO) ended the year with $73 billion of infrastructure software backlog, reflecting an increase from $49 billion a year ago. The company expects renewals to be seasonal in Q1 2026 and forecasts infrastructure software revenue to be ~$6.8 billion. Broadcom Inc. (NASDAQ:AVGO) expects that, for FY 2026, infrastructure software revenue will grow low double-digit percentage.
After the company’s earnings release, Morgan Stanley’s Joseph Moore gave an “Overweight” rating on the company’s stock, while increasing the price objective from $443 to $462.
5. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 234
NVIDIA Corporation (NASDAQ:NVDA) is one of the Top AI and Technology Stocks to Buy According to Hedge Funds. On December 12, Reuters reported that NVIDIA Corporation (NASDAQ:NVDA) informed Chinese clients that it is evaluating adding production capacity for its powerful H200 AI chips. This comes after orders surpassed its current output level.
To provide a brief background, the US President Donald Trump recently announced that the US government will allow the company to export H200 processors to China and take a 25% fee on such sales. In addition to the above, Reuters also reported that major Chinese companies, such as Alibaba and ByteDance, reached out to NVIDIA Corporation (NASDAQ:NVDA) with regards to purchasing H200, and they are keen to place large orders.
Elsewhere, NVIDIA Corporation (NASDAQ:NVDA) highlighted that the world hyperscalers, which is a trillion-dollar industry, continue to transform search recommendations and content understanding from classical machine learning to Gen AI. NVIDIA CUDA tends to excel at both.
At Meta, AI recommendation systems continue to deliver better quality and more relevant content, because of which more time is being spent on apps like Facebook and Threads. NVIDIA Corporation (NASDAQ:NVDA) further highlighted that analyst expectations for top CSPs and hyperscalers in 2026 aggregate CapEx continued to rise and is now at ~$600 billion, over $200 billion increase as compared to the start of the year.
In a different development, on December 8, Atif Malik from Citi maintained a “Buy” rating on NVIDIA Corporation (NASDAQ:NVDA)’s stock, with a price objective of $270.00. The rating is backed by a combination of factors demonstrating its strategic positioning in the evolving AI landscape.
4. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 243
Alphabet Inc. (NASDAQ:GOOGL) is one of the Top AI and Technology Stocks to Buy According to Hedge Funds. On December 15, Bloomberg reported that Alphabet Inc. (NASDAQ:GOOGL)’s Google signed a solar power agreement in Malaysia. This comes as the leading tech player plans to secure clean electricity for its operations.
Google would be purchasing power from a 30-megawatt solar farm developed by a consortium, which is led by a local unit of Japan’s Shizen Energy Inc. in Malaysia’s Kedah state, added Bloomberg. Notably, this project forms part of the Southeast Asian nation’s focus on providing green power to companies and is projected to begin operations in 2027.
This agreement showcases the efforts by global tech firms to decarbonize the energy-intensive operations, like data centers.
As per BloombergNEF, Malaysia targets having 70% of its installed power capacity to be renewables by 2050. This compares to ~26% last year. Malaysia also took steps to attract investment accordingly, such as the Corporate Green Power Programme, under which the Google-Shizen was signed.
Elsewhere, on December 10, S&P Global announced a multi-year strategic partnership with Google Cloud in a bid to accelerate enterprise-wide transformation throughout agentic innovation, data distribution, and workflow automation. This expansion highlights another milestone in S&P Global’s strategic AI and cloud journey.
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 273
Meta Platforms, Inc. (NASDAQ:META) is one of the Top AI and Technology Stocks to Buy According to Hedge Funds. On December 4, analyst John Blackledge of TD Cowen maintained a “Buy” rating on the company’s stock, retaining the price objective of $810.00. The analyst’s rating is backed by a combination of factors highlighting Meta Platforms, Inc. (NASDAQ:META)’s strategic cost management and potential for earnings growth.
One of the main reasons is Meta Platforms, Inc. (NASDAQ:META)’s plan to significantly reduce its Metaverse-related expenses, which form part of the Reality Labs segment. As per the analyst, such cost reductions are anticipated to be ~30% by 2026, potentially leading to savings of $5 billion – $6 billion. Notably, this move can help partially mitigate the increased spending on AI infrastructure, which happens to be a key area of investment for Meta Platforms, Inc. (NASDAQ:META).
Elsewhere, Morgan Stanley reduced its price objective on the company’s stock to $750.00 from $820.00, while maintaining an “Overweight” rating. While the firm reduced its price objective, it believes that Meta Platforms, Inc. (NASDAQ:META) happens to be one of the few selected companies that could leverage leading data, distribution capabilities, and AI investments to fuel earnings power and maintain technological leadership.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 312
Microsoft Corporation (NASDAQ:MSFT) is one of the Top AI and Technology Stocks to Buy According to Hedge Funds. On December 9, Bloomberg reported that Microsoft Corporation (NASDAQ:MSFT) pledged to invest $17.5 billion in AI and cloud computing in India over the span of 4 years. The company highlighted that this investment would focus on 3 pillars, i.e., scale, skills, and sovereignty.
Overall, Microsoft Corporation (NASDAQ:MSFT)’s capital expenditures are expected to be $97.5 billion in 2026 alone, added Bloomberg. One of the company’s priorities with the investment revolves around building AI infrastructure, which can give the country security and sovereignty over future technologies.
Bloomberg, while quoting Microsoft Corporation (NASDAQ:MSFT), also noted that the company’s facilities based in Hyderabad are expected to go live in the middle of 2026 and would be the largest hyperscale region in India.
In a different update, on December 5, Barclays kept “Overweight” rating on Microsoft Corporation (NASDAQ:MSFT)’s stock and a price objective of $625. This comes after an announcement related to the upcoming price increases for its Office and Microsoft 365 commercial subscriptions. Microsoft Corporation (NASDAQ:MSFT) highlighted that it will update its commercial pricing for Microsoft 365 suite subscriptions effective July 1, 2026.
Apart from the commercial products, the company also announced changes to Microsoft 365 Government Suites.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 332
Amazon.com, Inc. (NASDAQ:AMZN) is one of the Top AI and Technology Stocks to Buy According to Hedge Funds. On December 5, Eric Sheridan, an analyst from Goldman Sachs, reiterated a “Buy” rating on the company’s stock. The associated price target was same at $290.00. The analyst’s rating is backed by a combination of factors associated with Amazon.com, Inc. (NASDAQ:AMZN)’s strategic positioning and growth potential. The recent AWS re:Invent conference showcased the company’s focus on leveraging its past achievements in cloud migration while embracing expected opportunities in AI.
The analyst further added that the rise of AI agents is expected to transform enterprise computing, and Amazon Bedrock would be playing a critical role in offering access to a diverse range of AI models.
In a different update, Guggenheim analyst Simeon Siegel initiated coverage on Amazon.com, Inc. (NASDAQ:AMZN)’s stock with a “Buy” rating and a price objective of $300. The company highlighted that the cash engine of AWS is showing no signs of slowing down. Notably, the ~3.8-year backlog of AWS reached $200 billion in Q3 2025.
Furthermore, the available power capacity doubled since 2022, with management expecting it to double again by 2027, added Siegel. Considering the unmatched infrastructure scale and demand visibility, the analyst opines that AWS remains well-placed to sustain leadership and tap a disproportionate share of the multi-year opportunity available in cloud computing and handling AI workloads.
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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