Big Tech comprises some of the largest and most influential companies in the world, recognized for their sheer size, extensive customer base, and financial strength. Leading this group are five major companies that have been at the forefront of the tech sector economy, driving innovation and shaping consumer behavior. Over the years, Big Tech firms have benefited from the widespread adoption of smartphones and high-speed internet, increased demand for digital services, the rise of social media, strong demand for cloud computing, e-commerce, and digital advertising.
How Did the Big Tech Companies Become The Giants They are Today?
Beyond technological advancements, these companies have also benefited from several phenomena. The first is network effects—the more users a platform has, the more valuable it becomes. Other contributing factors include economies of scale as they expanded through acquisitions and the ease of scaling digital businesses globally; access to vast amounts of user data used to enhance products, target ads, and create highly personalized services; and their deep pockets (strong balance sheets) that enabled them to invest heavily in R&D, hire top talent, and operate during challenging times. This financial strength also allowed them to aggressively invest in AI and maintain a first-mover advantage. While challenges persist, we believe these companies will continue to innovate, expand their influence, and shape the future of technology.
In a recent interview with Yahoo Finance, Wedbush Securities’ Global Head of Technology Research, Dan Ives, expressed optimism about the future of Big Tech, stating:
“Microsoft’s $80 billion investment announcement and then Mark Zuckerberg’s announcement that his company plans to spend up to $65 billion on artificial intelligence is “the start of a massive build-out of AI Capex” that I think the Street is massively underestimating. And it’s the multiplier – every dollar spent on a NVIDIA chip, means $8 to $10 multiplier goes to the rest of tech – that’s bullish for tech. Of course, with Trump and Stargate, it just shows that fourth industrial revolution is just starting.”
While Big Tech typically refers to the top five mega-cap companies, we have prepared an extended list of 15 stocks that have made a significant impact on the tech landscape and are equally innovative and transformative as the top five. With that, let’s explore the 15 best Big Tech stocks to buy according to analysts.
A technician testing the latest 5G device, demonstrating the company’s commitment to innovation.
Our Methodology
To list the 15 best Big Tech stocks to buy according to analysts, we screened companies with market capitalization of at least $100 billion and potential upside of at least 15%. Ultimately, the stocks were arranged in ascending order of their potential upside.
Note: all pricing data is as of market close on February 3.
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15. Texas Instruments Inc. (NASDAQ:TXN)
Upside Potential: 16%
Number of hedge funds: 57
Texas Instruments Inc. (NASDAQ:TXN) is a global semiconductor company that designs and produces an extensive array of analog and embedded processing products. Serving a diverse range of markets including automotive, industrial, personal electronics, communications, and enterprise systems, Texas Instruments is known for its innovative solutions that enhance performance and efficiency in electronic systems. The company’s strong emphasis is on analog technology which significantly contributes to its revenue.
On January 23, 2025, the company announced its Q4 2024 earnings results, reporting $4.01 billion in revenue (-2% year-over-year (YoY)) and an EPS of $1.3, both surpassing street expectations. The Analog segment experienced a 2% YoY revenue growth after 8 consecutive quarters of decline, whereas the Embedded Processing segment saw an 18% decline in revenue, causing some disappointment among investors. Additionally, the guidance for Q1 2025 indicated a sequential revenue decline. Despite these challenges, management remains committed to investing in its competitive advantages—such as manufacturing, technology, a broad product portfolio, and expansive channels—to drive long-term free cash flow per share growth.
14. QUALCOMM Inc. (NASDAQ:QCOM)
Upside Potential: 18%
Number of hedge funds: 74
QUALCOMM Inc. (NASDAQ:QCOM) is a top fabless semiconductor firm that specializes in wireless technology and mobile communications. It is well-known for its extensive array of patents critical to 5G, 4G, and other mobile communication standards, which significantly boost its licensing revenue. With around 160,000 granted and pending patents in over 100 countries, QUALCOMM holds a formidable intellectual property position.
During its November 2024 Investor Day presentation, QUALCOMM Inc. (NASDAQ:QCOM) projected a $900 billion addressable market and aims to be integrated into over 50 billion devices by 2030. The company is well-positioned to capitalize on the increasing demand for 5G technology and its applications in various sectors such as automotive, IoT, and mobile devices. With a strong financial footing, including over $13 billion in cash and equivalents, the company is well-prepared to pursue strategic acquisitions and investments to enhance its growth trajectory.
QUALCOMM Inc. (NASDAQ:QCOM) is scheduled to announce its next quarterly earnings on February 5, 2025. Analysts from JP Morgan have placed the stock on ‘Positive Catalyst Watch,’ expecting a robust quarter due to anticipated benefits from Chinese government subsidies for the smartphone market. Additionally, the company’s strategic partnership with Samsung is anticipated to further increase market share, favourably positioning it in the competitive landscape.
