In this piece, we will take a look at the 5 best high-growth IT stocks to buy. If you want to go through our overview of the IT sector and the general stock market climate, then you can take a look at the 12 High Growth IT Stocks to Buy.
5. ServiceNow Inc. (NYSE:NOW)
P/E Ratio: 90.32
Number of Hedge Fund Holders: 99
Headquartered in Santa Clara, California, ServiceNow, Inc. (NYSE:NOW) is a leading American software company that develops a cloud computing platform aimed at helping businesses streamline digital workflows for enterprise operations. The company focuses on IT service management, IT operations management, and IT business management.
As of the third quarter of 2023, Insider Monkey’s tracking of 910 hedge funds revealed that 99 were investors in ServiceNow, Inc. (NYSE:NOW). The largest hedge fund stakeholder is GQG Partners, managed by Rajiv Jain, with a substantial investment totaling $831.6 million.
ClearBridge Multi Cap Growth Strategy made the following comment about ServiceNow, Inc. (NYSE:NOW) in its third 2023 investor letter:
“ServiceNow, Inc. (NYSE:NOW) is a leading provider of workflow automation software. We see the company as a key enabler of modernization and digital transformation, which is well-positioned as enterprises look to converge on a single platform solution. Despite its sizable customer base, we believe ServiceNow still has substantial room to expand spending with existing customers, as most have not fully leveraged its full product suite. We also are encouraged by the company’s strong leadership team and history of innovation which should enable it to continue to expand wallet share. Additionally, despite ongoing investments in growth, ServiceNow continues to drive healthy operating leverage.”
4. Advanced Micro Devices, Inc. (NASDAQ:AMD)
P/E Ratio: 1097.40
Number of Hedge Fund Holders: 110
Headquartered in Santa Clara, California, Advanced Micro Devices, Inc. (NASDAQ:AMD), commonly known as AMD, is a multinational semiconductor company specializing in the development of computer processors and related technologies for both business and consumer markets.
On October 10, Advanced Micro Devices, Inc. (NASDAQ:AMD) announced the execution of a definitive agreement to acquire Nod.ai, a strategic move to enhance the company’s open AI software capabilities. Earlier in August of the same year, AMD had also acquired Mipsology, an AI software company known for its proficiency in providing AI software and solutions compatible with AMD adaptive computing silicon.
On November 13, investment advisory firm Roth MKM initiated coverage of Advanced Micro Devices, Inc. (NASDAQ:AMD) with a Buy rating and a price target of $125, emphasizing the company’s distinctive portfolio of high-performance compute and networking processors.
As of the third quarter of 2023, Insider Monkey’s tracking of 110 hedge funds revealed holdings in Advanced Micro Devices, Inc. (NASDAQ:AMD) valued at $9.2 billion. Fisher Asset Management, managed by Ken Fisher, is its largest hedge fund shareholder with ownership of 27.8 million shares valued at $2.9 billion.
3. Salesforce, Inc. (NYSE:CRM)
P/E Ratio: 99.30
Number of Hedge Fund Holders: 122
Based in San Francisco, California, Salesforce, Inc. (NYSE:CRM) is an American cloud-based software company specializing in customer relationship management. The company provides tailored software and applications for sales, customer service, marketing automation, e-commerce, analytics, and application development.
Salesforce, Inc. (NYSE:CRM) surpassed analysts’ expectations, reporting accelerated third-quarter earnings, driven by increased customer migration to the company’s cloud-based services in anticipation of upcoming AI offerings. The cloud software firm disclosed a net income of $1.22 billion, resulting in diluted earnings per share of $1.25, representing a substantial year-over-year increase. The revenue saw a notable surge, up by 11.2% to $8.72 billion, propelled by subscription and support services.
As per Insider Monkey’s Q3 2023 database, 122 out of 910 hedge funds had invested in the company. Fisher Asset Management, under the guidance of Ken Fisher, emerged 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.”
2. NVIDIA Corporation (NASDAQ:NVDA)
P/E Ratio: 64.55
Number of Hedge Fund Holders: 180
Headquartered in Santa Clara, California, Nvidia Corporation (NASDAQ:NVDA) is a multinational technology company incorporated in Delaware that specializes in the design and sale of GPUs (Graphics Processing Units) catering to diverse applications. These applications include gaming, cryptocurrency mining, and professional uses. Additionally, the company provides chip systems utilized in various sectors, including vehicles, robotics, and other tools.
On November 21, NVIDIA Corporation (NASDAQ:NVDA) unveiled its financial results for the third quarter, ending on October 29, 2023. The company reported a revenue of $18.12 billion, marking a substantial 206% increase compared to the same period last year and a notable 34% rise from the previous quarter. The quarter recorded GAAP earnings per diluted share of $3.71, signifying 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, reflecting 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 NVIDIA Corporation (NASDAQ:NVDA) in Q3 2023 revealed that 180 hedge funds had a stake in the company. Citadel Investment Group emerged as the largest stakeholder, holding approximately 21.85 million shares valued at about $9.5 billion in NVIDIA Corporation (NASDAQ:NVDA).
1. Amazon.com, Inc. (NASDAQ:AMZN)
P/E Ratio: 78.31
Number of Hedge Fund Holders: 286
Amazon.com, Inc. (NASDAQ:AMZN), a prominent American multinational technology company, encompasses a diverse range of business interests, including e-commerce, cloud computing through Amazon Web Services (AWS), online advertising, digital streaming, and artificial intelligence.
In the quarter ending in September, Amazon.com, Inc. (NASDAQ:AMZN) reported a 236% growth in EPS to $0.94. For its closely-watched Amazon Web Services Cloud business, the company recorded a 12% year-over-year sales increase to $23.1 billion, slightly below analysts’ expectations for sales of $23.2 billion. Amazon.com, Inc. (NASDAQ:AMZN) also stated that it anticipates sales to fall within the range of $160 billion and $167 billion for the current fourth quarter.
Based on data from Insider Monkey’s database, a total of 286 elite hedge funds held positions in Amazon.com, Inc. (NASDAQ:AMZN) stock, with a collective stake value of $38.8 billion. This represents an increase from the 278 hedge funds that collectively held a stake valued at $34.9 billion previously. Notably, Ken Fisher’s Fisher Asset Management emerged as the most significant stakeholder in the company, with 41.35 million shares valued at $5.25 billion.
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