In a recent conversation on December 3, Clare Pleydell-Bouverie from Liontrust Asset Management appeared on CNBC and shared insights on the current state of innovation, particularly in Silicon Valley. She emphasized that the pace of innovation is not only continuing but is accelerating. This rapid evolution necessitates frequent visits to the region to discern which companies are successfully navigating this transition and which are not. Pleydell-Bouverie noted that the clarity regarding these companies is improving quarter by quarter. She expressed a firm belief that the beneficiaries of the new technology cycle, which began about 18 months to 2 years ago with the advent of ChatGPT and the AI Revolution, will differ significantly from those in the previous technology cycle. While established names remain relevant, her focus is increasingly on opportunities beyond the MAG7.
The discussion also touched on market trends for 2025, highlighting a significant focus on AI infrastructure. Pleydell-Bouverie indicated that this year has seen a concentrated effort on building out the necessary compute infrastructure before monetization can occur. This infrastructure encompasses not only silicon but also semiconductor equipment and networking components, which are essential for scaling AI capabilities. She pointed out that while model providers are often viewed as commoditized, there is an ongoing arms race to develop large foundation models. Engineering tools that facilitate the integration of AI into businesses and various applications are also critical, although currently, most value resides within the AI infrastructure layer.
Looking ahead, Pleydell-Bouverie anticipates a shift in focus toward application layers where substantial disruption is expected. Numerous AI startups are targeting established players like Salesforce, indicating a competitive landscape. Despite this shift, she believes that the importance of NVIDIA in AI infrastructure remains strong. She described its role as pivotal, suggesting that it is positioning itself to become the operating system for an emerging landscape of AI-infused software set to launch in the coming year. Pleydell-Bouverie cautioned against viewing the company merely as a chip provider; instead, she argued that understanding its strategic positioning within this technological paradigm shift is crucial for investors.
Her insights reflect a broader narrative about Silicon Valley’s ongoing transformation and its implications for investors looking to navigate this rapidly evolving technological landscape effectively. As tech stocks become increasingly popular, we’re here with a list of the 10 best tech stocks for long-term investment.
Methodology
We first sifted through the stock screeners and internet lists to compile a list of the top mega-cap tech stocks. We then selected the 10 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q3 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.
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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Tech Stocks For Long Term Investment
10. Salesforce Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 116
Salesforce Inc. (NYSE:CRM) is a leading cloud-based software company that provides a top-tier AI-powered CRM (Customer Relationship Management) platform utilized by 150,000+ businesses globally. Its integrated suite of products connects every team by uniquely combining human expertise with autonomous agents to drive customer success.
Recently, the company’s focus has shifted towards the development of digital labor. It has emerged as a leading provider of digital labor solutions, powered by autonomous AI agents. AgentForce, a key component of this strategy, has shown early success. Since its recent launch, it has secured over 200 deals and has a robust pipeline for future growth. This technology enables businesses to enhance productivity by augmenting human capabilities with AI agents.
Salesforce Inc. (NYSE:CRM) has demonstrated the effectiveness of AgentForce within its own operations. By integrating AgentForce into its customer support platform, help.salesforce.com, the company has improved efficiency and accuracy in handling customer inquiries. AgentForce utilizes Salesforce Inc.’s (NYSE:CRM) extensive data resources, including 200-300 petabytes of customer data, to provide accurate and personalized responses, distinguishing it from competitors like Microsoft Copilot.
The upcoming launch of AgentForce 2.0 on December 17 in San Francisco will showcase significant technological advancements. This event will provide an opportunity to learn more about the future of digital labor and how Salesforce Inc. (NYSE:CRM) is leading the way in this transformative field.
9. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 123
Adobe Inc. (NASDAQ:ADBE) is a global software company that provides a comprehensive set of creative, marketing, and document management solutions. Its flagship products, including Photoshop, Illustrator, InDesign, Acrobat, and Premiere Pro, are industry-standard tools used by millions of professionals worldwide.
One of its products, Adobe Experience Platform (AEP) is a suite of customer experience management solutions that allows organizations to centralize and standardize customer data, with the help of data science and machine learning. As December began, Adobe and Amazon Web Services (AWS) expanded their partnership to make AEP available on the AWS cloud. With AEP on AWS, marketers can enhance personalization through Adobe Real-Time CDP by gaining a unified, real-time view of customer interactions across all channels. This enables the creation of highly targeted audiences and the delivery of personalized experiences that resonate deeply with individual preferences.
Furthermore, Adobe Journey Optimizer helps marketers create smooth customer experiences everywhere customers interact with the brand. By leveraging fully managed AWS native services, marketers can streamline data management, reduce operational overhead, and accelerate workflows. This collaboration reinforces Adobe Inc.’s (NASDAQ:ADBE) position as a leader in customer experience management.
