5 Tech Stocks Hedge Funds Prefer Over Nvidia

3. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 138   

Apple Inc. (NASDAQ:AAPL) is a California-based technology company with a large stake in the consumer electronics business. It is ranked third on our list of 10 tech stocks hedge funds prefer over NVIDIA Corporation (NASDAQ:NVDA). 

On September 27, investment advisory Credit Suisse kept a Neutral rating on Apple Inc. (NASDAQ:AAPL) stock with a price target of $150, noting that aggressive US carrier promotions remained a key swing factor for sales of the new iPhones amid long waiting times.

At the end of the second quarter of 2021, 138 hedge funds in the database of Insider Monkey held stakes worth $145 billion in Apple Inc. (NASDAQ:AAPL), up from 127 in the preceding quarter worth $131 billion.

In its Q1 2021 investor letter, Distillate Capital, an asset management firm, highlighted a few stocks and Apple Inc. (NASDAQ:AAPL) was one of them. Here is what the fund said:

“Apple is an even more notable situation and one that highlights our free cash valuation methodology and bears further discussion given its Q3 ‘20 sale from our strategy. For an extended period, Apple was extraordinarily inexpensive on a free cash flow basis and was the largest position in our strategy, exceeding 5% of the portfolio.”