The recent selloff in technology stocks has raised questions about how much investors are willing to pay for growth, particularly as the cost of expanding AI infrastructure continues to rise. Even established technology companies have not been immune. In late October, Fortinet and ServiceNow suffered steep single-day share-price declines as investors questioned their growth prospects and the potential disruption from artificial intelligence, despite continued demand for enterprise technology. Reuters reported on October 29 that Fortinet lost 26% to a five-month low, marking the top decliner on Wall Street’s benchmark index. If you are looking for the best tech stocks to invest in for the next 5 years, access our complete list of the top contenders here.
Large-cap technology stocks occupy an interesting position in this environment. They offer exposure to established businesses outside the largest technology companies, but their market valuations remain sensitive to changes in earnings expectations and spending patterns. For this article, we define large-cap stocks as companies with market capitalizations between $30 billion and $100 billion. Those exceeding $100 billion are classified as mega-cap stocks, which readers can explore separately in our article on the 12 Best Big Tech Stocks to Buy According to Wall Street Analysts.
The pressure has been especially pronounced among companies financing large-scale AI infrastructure projects. CoreWeave’s bond-market difficulties and Nebius’s efforts to secure additional financing illustrate how the capital requirements of the AI buildout are becoming an important consideration for investors. Nebius, for instance, secured a $3.5 billion financing facility in October to support its data center expansion. The availability and cost of funding are increasingly relevant to assessing the economics of such projects. If you are looking for investment opportunities outside big tech, access our complete list of the 10 Best High Growth Stocks Outside Big Tech here.
However, not every technology company faces the same financial pressures. Established software providers, cybersecurity firms, and semiconductor businesses have different capital requirements, cash-flow profiles, and exposure to AI spending. For investors, this is significant because strong revenue growth alone does not establish whether a company can sustain profitability or justify its valuation.
With that, let’s look at our meticulously compiled list of the best large-cap tech stocks to buy according to billionaires.
Our Methodology
To compile our list of the 10 large-cap tech stocks to buy according to billionaires, we screened US-listed technology companies with market capitalizations between $30 billion and $100 billion. We then selected the 10 companies with the highest billionaire-investor ownership count, taking the data from Insider Monkey’s extensive database as of Q2 2026. These stocks are also popular among hedge funds.
Why do we care about what hedge funds do? 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 612.3% since May 2014, beating its benchmark by 375 percentage points (see more details here).
10 Large Cap Tech Stocks to Buy According to Billionaires
10. Cadence Design Systems, Inc. (NASDAQ:CDNS)
Number of Billionaire Investors: 23
Number of Hedge Fund Holders: 69
Cadence Design Systems, Inc. (NASDAQ:CDNS) develops electronic design automation software, hardware, and semiconductor intellectual property used to design increasingly complex chips and electronic systems. Growing demand for AI processors has supported its business, although the company’s profitability has not improved at the same pace as revenue.
In its third-quarter 2026 results, revenue increased 22% year over year to $1.633 billion, while recurring revenue grew 18% year over year. Cadence also reported a record backlog of $8.2 billion, providing visibility into contracted business.
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The company has been expanding its AI-driven design capabilities, including the introduction of Maestro, a portfolio of specialized AI models intended to accelerate chip and system design. However, GAAP operating margin declined from 31.8% a year earlier to 26.2%, while GAAP diluted net income per share remained unchanged at $1.05.
For investors, the contrast between growing demand and declining operating margins deserves attention. Cadence’s established position in semiconductor design and expanding AI capabilities support its business, but translating that growth into stronger profitability remains an important consideration.
9. TE Connectivity plc (NYSE:TEL)
Number of Billionaire Investors: 24
Number of Hedge Fund Holders: 60
TE Connectivity plc (NYSE:TEL) has become an important supplier of the connectivity infrastructure supporting data centers, industrial systems, and transportation equipment. Its position in both data and power connectivity offers exposure to AI infrastructure investment without making the company’s financial performance entirely dependent on that market.
The strength of its broader business was evident in its fiscal fourth-quarter results. Net sales increased 12% year over year to $5.312 billion, while orders rose 29% to $6.1 billion. The company also generated $1.241 billion in free cash flow during the quarter. Importantly, the growth was not limited to one product category. Management reported that Industrial Solutions sales increased 26% during fiscal 2026, supported partly by demand for data and power connectivity associated with AI infrastructure.
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While the increase in orders supports TE Connectivity’s growth outlook, investors should watch how effectively that demand translates into sales across its transportation and industrial businesses. Its diversified operations help distinguish it from more narrowly focused AI suppliers, but they also introduce exposure to broader economic conditions.
For investors, the combination of rising orders, strong cash generation, and diversified operations provides a financial foundation, and sustaining that performance across its end markets is more important than attributing its growth entirely to AI.
8. Fortinet, Inc. (NASDAQ:FTNT)
Number of Billionaire Investors: 24
Number of Hedge Fund Holders: 62
Fortinet, Inc. (NASDAQ:FTNT) illustrates how quickly investor sentiment can change even when a technology company continues reporting strong growth. The cybersecurity provider’s shares plunged 26% on October 29, as concerns over the sustainability of its growth overshadowed its latest financial results.
The selloff followed a quarter in which revenue increased 20% year over year to $2.08 billion. Product revenue rose 37% to approximately $765 million, while billings increased 29% year over year to $2.34 billion. Fortinet also maintained a GAAP operating margin of 34% and generated $865 million in free cash flow.
Nevertheless, the company’s financial strength did not eliminate concerns about its outlook. Reuters reported that analysts highlighted slower product revenue growth, longer component lead times, and reduced confidence in the timing of future earnings improvements. Fortinet also lowered its full-year services revenue expectations. Read more extensively about FTNT in our comparative article on Palo Alto vs. Fortinet: Is the Broader Security Platform Worth an 81x Cash-Flow Price?
While Fortinet remains profitable and cash-generative, sustaining its growth requires continued demand for its networking and security products. Its recent share-price decline demonstrates that strong profitability alone may not protect a technology stock when investors begin questioning the durability of its growth expectations.
7. Monolithic Power Systems, Inc. (NASDAQ:MPWR)
Number of Billionaire Investors: 25
Number of Hedge Fund Holders: 69
The expansion of AI computing infrastructure has created significant demand for power-management technology, an area where Monolithic Power Systems, Inc. (NASDAQ:MPWR) has established a growing business. Its semiconductor solutions manage and distribute electrical power across data centers, computing equipment, and other electronic systems.
The company’s third-quarter 2026 results illustrate that opportunity. Enterprise Data revenue reached $506.7 million, up 33.2% from Q2. Overall revenue increased 63.1% year-over-year to $1.2024 billion. However, the pace of expansion also places pressure on operating expenses. While quarterly revenue rose 22.6% sequentially, GAAP operating expenses increased 29.8%. Consequently, GAAP operating margin declined from 31.0% in the second quarter to 29.7% in the third.
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This does not negate the company’s growth, but it highlights why investors should examine profitability alongside accelerating demand. Monolithic Power’s increasing exposure to enterprise data infrastructure also makes customer spending decisions particularly important. Its ability to maintain margins while expanding across AI-related markets will be central to determining how effectively revenue growth translates into earnings.
6. Motorola Solutions, Inc. (NYSE:MSI)
Number of Billionaire Investors: 25
Number of Hedge Fund Holders: 69
Motorola Solutions, Inc. (NYSE:MSI) offers exposure to technology spending that is less directly dependent on the AI infrastructure boom. Its communications equipment, command-center software, and video security products serve government agencies, emergency services, and commercial customers.
One of its distinguishing characteristics is the scale of its contracted business. In its second-quarter 2026 results, Motorola Solutions reported a record $15.6 billion backlog, an increase of 11% year over year. Sales rose 13% to $3.1 billion, while operating cash flow reached $469 million, compared with $272 million a year earlier.
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The company has also pursued expansion into counter-drone technologies, announcing an agreement to acquire D-Fend Solutions for $1.5 billion. This would broaden its security capabilities, although the transaction also introduces integration and capital-allocation considerations.
For investors, the backlog provides visibility into contracted business, but the timing of government procurement and project delivery remains important. Acquisitions must also generate sufficient returns to justify their costs. Motorola Solutions’ appeal therefore rests on its established customer relationships, cash generation, and ability to execute on contracted demand, rather than on speculative expectations surrounding AI.
5. Intuit Inc. (NASDAQ:INTU)
Number of Billionaire Investors: 26
Number of Hedge Fund Holders: 98
Intuit Inc. (NASDAQ:INTU) is confronting a different question from companies building AI infrastructure, which is how artificial intelligence will affect the economics of established software businesses. Its QuickBooks, TurboTax, Credit Karma, and Mailchimp platforms serve customers across accounting, tax preparation, and personal finance.
The company’s fiscal 2026 results demonstrated continued financial strength. Annual revenue increased 14% to $21.448 billion, while GAAP operating income rose 20% to $5.9 billion. Its Online Ecosystem business generated $9.9 billion in revenue, representing 19% annual growth.
However, Intuit’s performance across its businesses was not uniform. Total US TurboTax units declined from 39.9 million in fiscal 2025 to 39.0 million in fiscal 2026, even as the company reported higher consumer revenue. Read more extensively about INTU’s bull and bear case here.
For investors, Intuit’s established customer base and profitability provide important advantages. The question is whether its investments in AI-enabled financial tools can deepen customer relationships and sustain growth while competition and changing consumer preferences continue to influence its core markets.
4. Cloudflare, Inc. (NYSE:NET)
Number of Billionaire Investors: 28
Number of Hedge Fund Holders: 87
Cloudflare, Inc. (NYSE:NET) continues to expand its position in enterprise networking, cybersecurity, and application infrastructure. Its platform has also become increasingly relevant to developers building AI-powered applications, although commercial growth has yet to translate into consistent GAAP operating profits.
The company reported second-quarter 2026 revenue of $696.1 million, an increase of 36% year over year. Current remaining performance obligations also increased 35%, indicating growth in contracted revenue expected to be recognized within the following 12 months.
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However, Cloudflare recorded a GAAP operating loss of $205.7 million, compared with $67.3 million a year earlier. Importantly, the latest quarter included $150.7 million in restructuring and other charges, meaning the increase in reported losses cannot be attributed entirely to ordinary operating costs. Free cash flow remained positive at $56.4 million, equivalent to approximately 8% of revenue.
For investors, the difference between Cloudflare’s commercial growth and its reported profitability remains central to the investment case. Its customer commitments are expanding, but the company must demonstrate that continued investment in its platform can support stronger underlying profitability over time.
3. Hewlett Packard Enterprise Company (NYSE:HPE)
Number of Billionaire Investors: 29
Number of Hedge Fund Holders: 85
Hewlett Packard Enterprise Company (NYSE:HPE) has been expanding its infrastructure business through AI servers, storage systems, and networking equipment. Its acquisition of Juniper Networks has also changed the composition of its operations, making organic performance an important consideration when assessing growth.
According to its third-quarter fiscal 2026 results, revenue increased 34% year over year to $12.2 billion. Networking revenue rose 74.9% from the prior year period to $2.9 billion, although the comparison reflects the company’s expanded operations following the Juniper acquisition.
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HPE’s Cloud & AI segment generated $9.0 billion in revenue, representing 25.4% annual growth. Its operating profit margin also improved to 17.0% from 7.0% a year earlier, while the company generated $1.0 billion in quarterly free cash flow, up $0.2 billion from the prior year period.
These improvements suggest that HPE has been able to strengthen profitability while participating in growing infrastructure demand. However, the integration of Juniper creates additional execution requirements, while server demand remains exposed to changes in enterprise and hyperscaler spending.
For investors, HPE’s combination of an established customer base, improving segment profitability, and cash generation deserves attention. Sustaining those gains beyond the initial acquisition-related expansion will be an important test.
2. Datadog, Inc. (NASDAQ:DDOG)
Number of Billionaire Investors: 29
Number of Hedge Fund Holders: 92
Datadog, Inc. (NASDAQ:DDOG) operates in a market where the increasing complexity of enterprise technology has created opportunities for software that monitors and secures applications and cloud infrastructure. The expansion of AI workloads has added another dimension to that demand.
The company’s second-quarter 2026 results demonstrated continued growth. Revenue increased 36% year over year to $1.12 billion, while the number of customers generating at least $100,000 in annual recurring revenue rose to approximately 4,720 from 3,850 a year earlier. Read more extensively about the stock in our insightful article on Datadog’s (DDOG) Expectations Have Outrun Its Earnings. What Lies Ahead?
Datadog also generated $279 million in free cash flow and ended the quarter with $5.0 billion in cash, cash equivalents, and marketable securities. However, GAAP operating income was just $5 million, compared with non-GAAP operating income of $257 million. The considerable difference means investors should avoid treating adjusted earnings as equivalent to reported profitability.
For investors, the challenge is determining whether its substantial revenue growth and cash generation can eventually be accompanied by consistently stronger GAAP earnings. Datadog’s growing base of large customers supports its commercial position, but sustaining that expansion will depend on continued enterprise spending and product adoption.
1. Synopsys, Inc. (NASDAQ:SNPS)
Number of Billionaire Investors: 29
Number of Hedge Fund Holders: 85
Synopsys, Inc. (NASDAQ:SNPS) plays an important role in the development of advanced semiconductors through its electronic design automation software, semiconductor intellectual property, and engineering simulation technologies. Its acquisition of Ansys has broadened that portfolio, extending its capabilities into engineering analysis and simulation.
The company reported third-quarter fiscal 2026 revenue of $2.477 billion, compared with $1.740 billion a year earlier. GAAP net income increased to $545.8 million from $242.5 million, while management raised its full-year revenue and non-GAAP earnings expectations.
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Contributions from Ansys formed part of the reported revenue expansion, meaning the year-over-year comparison does not represent entirely organic growth. Management also identified stronger demand for electronic design automation as an important driver of performance.
Synopsys benefits from the increasing complexity of semiconductor design, particularly as customers develop more advanced computing architectures. Nevertheless, it is significant to note factors like semiconductor investment cycles, international trade restrictions, and the challenges associated with integrating a major acquisition.
For investors, the company’s established position in semiconductor design provides a business foundation. Its ability to sustain growth across its enlarged portfolio, while managing integration costs and maintaining profitability, remains central to the investment case.
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