In this article, we will take a look at the 5 best tech stocks for long-term investment. To go through our analysis of the tech industry and its recent trends, you can go directly to see the 13 Best Tech Stocks For Long Term Investment.
5. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 112
Adobe Inc. (NASDAQ:ADBE) is a versatile software company offering a diverse range of products and solutions that empower individuals, teams, and enterprises to create, publish, and promote content. Renowned as a preferred choice for content creators, students, professionals, and consumers, Adobe Inc. (NASDAQ:ADBE) also operates a Digital Experience segment, facilitating brands and businesses in the creation, management, implementation, and monetization of customer experiences.
On October 27, Oppenheimer analyst Brian Schwartz upgraded Adobe Inc. (NASDAQ:ADBE) from Perform to Outperform, accompanied by a revised price target of $660.00, indicating a favorable outlook on Adobe Inc.’s performance and growth potential.
Among the 910 hedge funds included in Insider Monkey’s third-quarter 2023 database, 112 had invested in the firm. The most substantial hedge fund investment in Adobe Inc. (NASDAQ:ADBE) for the September quarter came from Ken Fisher’s Fisher Asset Management, which held 4.5 million shares valued at $2.3 billion.
Here is what Polen Global Growth has to say about Adobe Inc. (NASDAQ:ADBE) in its Q3 2023 investor letter:
“Both Alphabet and Adobe’s businesses continue to perform well. With respect to Adobe, the most recent quarter delivered more of the same with constant currency revenue growing 13%, margin expansion, and over 2% of shares outstanding repurchased for non-GAAP earnings growth of over 20%. We believe its approach to GenAI through Firefly, which guarantees safe content because it trains on Adobe Stock, will continue to be attractive to enterprises. The counter to GenAI, and something we are keeping an eye on with Alphabet and Adobe, is that it requires heavy investment. While both businesses can leverage their scale and manage costs in other areas, we expect the investment in future growth through GenAI will weigh on company-wide margins over the near term.”
4. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 122
Headquartered in San Francisco, California, Salesforce, Inc. (NYSE:CRM) is an American cloud-based software company specializing in customer relationship management. The company delivers customized software and applications tailored for sales, customer service, marketing automation, e-commerce, analytics, and application development.
Salesforce, Inc. (NYSE:CRM) exceeded analysts’ expectations with a swifter climb in third-quarter earnings, driven by customer migration to the company’s cloud-based services in anticipation of upcoming AI offerings. The cloud software firm reported a net income of $1.22 billion, translating to diluted earnings per share of $1.25, marking a significant year-over-year increase. The revenue surge, up by 11.2% to $8.72 billion, was propelled by subscription and support services. In recent months, Salesforce, Inc. (NYSE:CRM) has conveyed its commitment to embracing AI, consolidating numerous popular products into a single cloud-based platform.
In Insider Monkey’s Q3 2023 database, 122 out of 910 hedge funds had invested in the company, with Fisher Asset Management, led by Ken Fisher, emerging as the largest shareholder with a $2.87 billion investment during the specified period.
Harding Loevner talked about Salesforce, Inc. (NYSE:CRM) in its second-quarter 2023 investor letter. Here is what it said:
“Salesforce, Inc. (NYSE:CRM), a company we’ve owned since 2019, recently added ChatGPT-like capabilities onto its existing Al module, Einstein, to support its internal sales efforts and customer-facing software. For example, Einstein GPT can help generate marketing emails tailored to specific clients by using Salesforce’s customer database and past email correspondence to learn the most effective approach for each client. Einstein GPT is also different from off-the-shelf LLMS in three important ways: It keeps personal identifiable information private and secure, compared with external tools that retain anything a user enters. It employs the latest data in Salesforce’s system, as opposed to the sometimes-stale public data that train generic models. And generative Al capabilities can be integrated with other Salesforce offerings; the company has already introduced Slack GPT and Tableau GPT, Al-equipped versions of its workplace collaboration and analytics tools.”
3. Apple, Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 134
Apple Inc. (NASDAQ:AAPL) is a prominent technology company dedicated to the design, manufacturing, and marketing of smartphones, personal computers, tablets, wearables, and accessories. Additionally, the company offers a diverse range of related services. The most recent iteration of its flagship smartphone, the iPhone 15, was globally launched on September 22 this year. Early sales for the models have demonstrated robust performance, and analysts anticipate positive outcomes from the release.
In the third quarter of 2023, Apple Inc. (NASDAQ:AAPL) was part of the portfolios of 134 out of the 910 hedge funds monitored by Insider Monkey. The aggregate value of Apple Inc. shares held by hedge funds reached an impressive $179 billion. Notably, Berkshire Hathaway, led by Warren Buffett, emerged as the largest shareholder, possessing 915.6 million shares valued at $157 billion.
In its Baron Technology Fund Q3 2023 investor letter, Baron Funds made the following comments about Apple Inc. (NASDAQ:AAPL):
“Despite [the] quarterly fluctuations in product sales, we are encouraged by several long-term trends, including: (1) revenue from higher-margin services like the App Store, iCloud, and Apple Pay, which are growing faster than the overall business, driving better revenue visibility and higher free-cash-flow (FCF) margins; (2) continued gains in global market share in smartphones, wearables, and other hardware categories; and (3) consistent returns of capital to shareholders via share repurchases and dividends. On top of these trends in the core business, Apple is thoughtfully investing in new categories like augmented reality, search, financial services, and streaming media content. We took advantage of weakness in the quarter to add to our position in Apple.”
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 180
Situated in Santa Clara, California, Nvidia Corporation (NASDAQ:NVDA) is an American multinational technology company incorporated in Delaware. Renowned for its proficiency in integrated circuit development, Nvidia’s capabilities extend across a diverse array of devices, ranging from electronic game consoles to personal computers (PCs).
On November 21, NVIDIA Corporation (NASDAQ:NVDA) unveiled its financial results for the third quarter, concluding on October 29, 2023. The company reported a revenue of $18.12 billion, marking a significant increase of 206% compared to the corresponding period last year and a notable 34% rise from the previous quarter. The quarter recorded GAAP earnings per diluted share at $3.71, reflecting a more than 12-fold increase from a year ago and a 50% uptick from the previous quarter. Non-GAAP earnings per diluted share were $4.02, indicating an almost 6-fold rise from a year ago and a 49% increase from the previous quarter.
Insider Monkey’s analysis of hedge fund portfolios for Q3 2023 revealed that 180 hedge funds held a stake in NVIDIA Corporation (NASDAQ:NVDA). Citadel Investment Group emerged as its largest stakeholder, possessing approximately 21.85 million shares valued at about $9.5 billion in NVIDIA Corporation (NASDAQ:NVDA).
Baron Opportunity Fund made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2023 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) is a leading semiconductor company that sells chips and software for accelerated computing and gaming. Shares have nearly tripled year-to-date, as the company continues reporting unprecedented growth because of the acceleration in demand for its data center chips. After reporting revenue of $7 billion in the first quarter and providing guidance of $11 billion for the second quarter, NVIDIA reported second quarter revenue of $13.5 billion and guided for another step up in the third quarter to $16 billion, with its CFO declaring “[d]emand for our Data Center platform for AI is tremendous and broad-based across industries and customers.” We are at the tipping point of a new era of computing with NVIDIA at its epicenter. This is how CEO and founder Jensen Huang put it (during the company’s August 23 earnings call):
“[T]he easiest way to think about the demand is the world is transitioning from general purpose computing to accelerated computing…[W]hat you’re seeing companies do now is recognizing this…tipping point…recognizing the beginning of this transition, and diverting their capital investment to accelerated computing and generative AI…This isn’t a singular application that is driving the demand, but this is a new computing platform…a new computing transitioning that’s happening…A new computing era has begun. The simultaneously going through two platform transitions, accelerated computing and generative AI.””
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 306
Situated in Redmond, Washington, Microsoft Corporation (NASDAQ:MSFT) is a prominent technology company offering a diverse range of products, including operating systems, cross-device productivity applications, server applications, business solution applications, desktop and server management tools, software development tools, and video games.
Microsoft Corporation (NASDAQ:MSFT) has positioned itself as a frontrunner in the field of AI through its collaboration with OpenAI, the creator of Chat GPT—an AI-powered chatbot. Leveraging its AI capabilities, Microsoft Corporation (NASDAQ:MSFT) is dedicated to enhancing its existing products and services, spanning Bing Search, Cloud, and its Office Suite.
In the third quarter of 2023, Microsoft Corporation (NASDAQ:MSFT) stands out as the most favored stock among the 910 hedge funds monitored by Insider Monkey, holding the top position in hedge fund sentiment. A total of 306 hedge funds included shares of this software giant in their portfolios, reflecting a cumulative value of $72 billion.
In its Baron Technology Fund Q3 2023 investor letter, Baron Funds made the following comments about Microsoft Corporation (NASDAQ:MSFT):
“Looking at the big picture, Microsoft continues to execute at a high level, navigating a challenging macro backdrop while aggressively investing in long-term growth, and we remain confident that Microsoft is well positioned to leverage AI over the medium to long term as it infuses Open AI and other generative AI technologies across its entire product portfolio.”
You may also like to read Warren Buffett Sees Big Gains in These Small-Cap Stocks and 10 Top Stock Picks of Israel Englander
