Billionaire Cliff Asness’ Top 10 Technology Stock Picks

Published November 19, 2022 at 11:24 am EST Updated September 7, 2026 at 2:33 pm EDT

In this article, we will take a look at billionaire Cliff Asness’ top 10 technology stock picks.

Billionaire Cliff Asness is the founder of quantitative giant AQR Capital Management which as of the end of September had a 13F equity portfolio of over $40 billion.

As a quantitative fund, AQR Capital Management uses sophisticated data models and intensive computing to decide what to buy and sell. Given the fund’s huge size and Asness’ belief in diversification, AQR Capital Management has thousands of positions and regularly rotates in and out of stocks each quarter.

Given how big the tech sector in the United States is, AQR Capital Management has substantial positions in many leading tech stocks.

In terms of the S&P 500 index, for example, the tech sector accounted for 28% of the index as of April 2022, or more than the combined weighting of the health care and consumer discretionary sectors.

In terms of AQR Capital Management’s portfolio, tech stocks account for 7 of the fund’s top 10 positions.

Technology stocks account for a substantial percentage of the S&P 500 and also AQR Capital Management’s top positions due to the growth in the industry over the last thirty years.

Given tech advancements in semiconductors, computers and smartphones have become more affordable over time. With billions of more potential customers, some software, hardware, and internet companies have grown substantially as a result. With their scale, those companies have created even more useful services that have made more people want to buy computers and smartphones.

Given the cycle, some software, hardware, and internet companies have grown to rank among the world’s most valuable companies that many investors want to own in their portfolios.

2022

Due to high inflation, the Federal Reserve has raised interest rates six times in 2022 alone and many analysts expect the U.S. central bank to raise rates further.

Although October’s core inflation was lower than expected, San Francisco Federal Reserve President Mary Daly said in mid November that she expects interest rates to rise at least one percentage point or potentially more before the Federal Reserve pauses to evaluate the inflation fight.

With rising interest rates, Treasury rates have increased substantially and capital has moved from big tech stocks into Treasuries as a result. With the capital flows, many big tech stocks are down substantially year to date. If the economy slows more than expected in the future, there could be even more downside in the near term.

Given the uncertainty, it could be a good idea for long term investors to own a well diversified portfolio of stocks across many different sectors.

Cliff Asness of AQR Capital Management

Methodology

For our list of Billionaire Cliff Asness’ Top 10 Technology Stock Picks, we selected 10 technology stocks among AQR Capital Management’s top equity holdings according to 13F filings as of Q3 2022.

We ranked them based on AQR Capital Management’s stake value in the stocks at the end of September.

Billionaire Cliff Asness’ Top 10 Technology Stock Picks

10. Texas Instruments Incorporated (NASDAQ:TXN)

AQR Capital Management’s Stake Value as of 9/30: $200,116,000

Percentage of AQR Capital Management’s 13F Portfolio as of 9/30: 0.48%

AQR Capital Management cut its position in Texas Instruments Incorporated (NASDAQ:TXN) by 10% to end the quarter with a stake worth around $200 million. Since September 30, shares of the semiconductor company have rallied thanks to the broader market rally despite the company’s fourth quarter guidance being weaker than expected.

Baron Funds commented on Texas Instruments Incorporated in a Q3 2022 investor letter,

Shares of Texas Instruments Incorporated, the leading global analog semiconductor company, rose 1% during the quarter after the company reported strong financial results with revenue growth of 14% year-over-year, operating profit growth of 23%, and operating margins of 52%. While the level of uncertainty over near-term revenue and free-cash-flow trends has risen due to a potential macro slowdown and supply-chain normalization, Texas Instruments has a long history of growing free-cashflow-per-share over full-market cycles to drive shareholder value. We remain investors and believe that Texas Instruments will benefit from the growth in semiconductor content across a broadening set of end-markets and applications. In addition, we believe that the company will be able to sustain its competitive advantages for the long term, underpinned by its manufacturing technology and process, its broad product portfolio, the reach of its go-to-market organization, and the diversity and longevity of its products.

Alongside Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), and Apple Inc. (NASDAQ:AAPL), Texas Instruments Incorporated is one of billionaire Cliff Asness’ AQR Capital Management’s top tech holdings at the end of Q3 2022.

9. Arrow Electronics, Inc. (NYSE:ARW)

AQR Capital Management’s Stake Value as of 9/30: $207,532,000

Percentage of AQR Capital Management’s 13F Portfolio as of 9/30: 0.5%

Arrow Electronics, Inc. (NYSE:ARW) is one of AQR Capital Management’s largest tech positions given the fund’s stake value of over $207 million at the end of September. Arrow Electronics, Inc., which provides products and services to industrial and commercial users of electronic components and enterprise computing solutions, hasn’t done well in 2022 with shares down 19.5% year to date. Nevertheless, Arrow Electronics, Inc. shares have increased since the end of Q3 thanks to the broader market rally.

8. Cisco Systems, Inc. (NASDAQ:CSCO)

AQR Capital Management’s Stake Value as of 9/30: $335,677,000

Percentage of AQR Capital Management’s 13F Portfolio as of 9/30: 0.81%

AQR Capital Management raised its position in Cisco Systems, Inc. (NASDAQ:CSCO) by 22% to end the quarter with a stake of over $335 million in the computer networking giant. For Q1, Cisco Systems, Inc. reported adjusted EPS of $0.86 on sales of $13.6 billion versus the consensus of $0.84 on sales of $13.31 billion. For FY23, Cisco Systems, Inc. sees adjusted EPS of $3.51-$3.58, up from the previous $3.49-$3.56.

7. Meta Platforms, Inc. (NASDAQ:META)

AQR Capital Management’s Stake Value as of 9/30: $356,988,000

Percentage of AQR Capital Management’s 13F Portfolio as of 9/30: 0.87%

Given its substantial year to date decline, Meta Platforms, Inc. (NASDAQ:META) is no longer among the top 10 most valuable companies in the world. Nevertheless, Meta Platforms, Inc. is among the top 10 biggest positions for AQR Capital Management’s 13F equity portfolio at the end of Q3 given the fund’s stake of over $356 million in the social media giant. Meta Platforms, Inc. is facing competition from TikTok but still has long term growth potential.

6. Tesla, Inc. (NASDAQ:TSLA)

AQR Capital Management’s Stake Value as of 9/30: $381,898,000

Percentage of AQR Capital Management’s 13F Portfolio as of 9/30: 0.93%

Tesla, Inc. (NASDAQ:TSLA) shares have declined recently due to CEO Elon Musk’s purchase of Twitter. Given the distractions, some long term Tesla, Inc. shareholders have probably taken profits given that the stock has still rallied substantially over the last 10 years. As for AQR Capital Management, however, the fund increased its position in Tesla, Inc. by 327% in Q3 to end the quarter with a stake worth almost $382 million.

Like Tesla, Inc., Alphabet Inc., Microsoft Corporation, and Apple Inc. are top tech holdings of billionaire Cliff Asness’ AQR Capital Management at the end of the third quarter.

5. Amazon.com, Inc. (NASDAQ:AMZN)

AQR Capital Management’s Stake Value as of 9/30: $422,010,000

Percentage of AQR Capital Management’s 13F Portfolio as of 9/30: 1.02%

AQR Capital Management raised its position in e-commerce giant Amazon.com, Inc. (NASDAQ:AMZN) by 6% to end the quarter with a stake worth $422 million. Like other big tech companies, Amazon.com, Inc. shares have fallen substantially this year due to slowing growth and lower valuations due to rising Treasury yields. Although it might take some time for the Federal Reserve to win its battle against inflation, Amazon.com, Inc. still has a lot of growth ahead of it in the long term if it maintains its market share in e-commerce and cloud computing.

4. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

AQR Capital Management’s Stake Value as of 9/30: $492,567,000

Percentage of AQR Capital Management’s 13F Portfolio as of 9/30: 1.2%

AQR Capital Management raised its position in Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) by 6% in the third quarter to end September with a stake worth over $492 million. As a result, Taiwan Semiconductor Manufacturing Company Limited accounts for 1.2% of the fund’s overall 13F portfolio. Although it faces geopolitical risk if tensions between China and the United States rise, Taiwan Semiconductor Manufacturing Company Limited is the leader in making cutting edge semiconductors.

Baron Funds commented on Taiwan Semiconductor Manufacturing Company Limited in a Q2 2022 investor letter,

“Semiconductor giant Taiwan Semiconductor Manufacturing Company Limited detracted in the second quarter due to macroeconomic uncertainties and softening demand for consumer electronics. We retain conviction that Taiwan Semi’s technological leadership, pricing power, and exposure to secular growth markets, including high-performance computing, automotive, and IoT, will allow the company to deliver strong revenue growth over the next several years.”

3. Alphabet Inc. (NASDAQ:GOOG)

AQR Capital Management’s Stake Value as of 9/30: $518,882,000

Percentage of AQR Capital Management’s 13F Portfolio as of 9/30: 1.26%

Billionaire Cliff Asness’ fund basically established a new position in Alphabet Inc. by increasing its position by 1,786% in the third quarter. Given the increase, AQR Capital Management has a stake worth almost $519 million in Alphabet Inc. at the end of 9/30. Growth has slowed for Alphabet Inc. in 2022 given the ad market weakness. Nevertheless, Alphabet Inc. has a lot of potential in AI in the long term.

2. Microsoft Corporation (NASDAQ:MSFT)

AQR Capital Management’s Stake Value as of 9/30: $1,106,019,000

Percentage of AQR Capital Management’s 13F Portfolio as of 9/30: 2.69%

AQR Capital Management inched up its position in Microsoft Corporation by 2% in the third quarter to end the period with a stake worth over $1.1 billion. As a result of its large position, Microsoft Corporation ranks #2 on our list of Billionaire Cliff Asness’ Top 10 Technology Stock Picks.

Given higher inflation has led to some consumers postponing new purchases, growth has slowed for Microsoft Corporation recently. Nevertheless, Microsoft Corporation CEO Satya Nadella is optimistic long term. Nadella said, “In a world facing increasing headwinds, digital technology is the ultimate tailwind. In this environment, we’re focused on helping our customers do more with less, while investing in secular growth areas and managing our cost structure in a disciplined way.”

Diamond Hill commented on Microsoft Corporation in a Q3 2022 investor letter,

Also among our bottom contributors were media and technology giant Alphabet, software and IT services provider Microsoft Corporation and insurance company American International Group (AIG). Microsoft shares declined in Q3, along with other tech companies, as rising interest rates impacted the near-term outlook. We expect the business to continue to generate strong revenue growth and benefit from operating leverage. Microsoft’s cloud computing services business, Azure, is generating robust growth, confirming its competitive positioning.

1. Apple Inc. (NASDAQ:AAPL)

AQR Capital Management’s Stake Value as of 9/30: $1,377,056,000

Percentage of AQR Capital Management’s 13F Portfolio as of 9/30: 3.35%

AQR Capital Management inched up Apple Inc. by 2% in Q3 to end September with a position worth almost $1.38 billion. Recently, Bloomberg reported that Apple Inc. is preparing to begin to source chips from a facility under construction in Arizona to potentially reduce its reliance on Asian chips.

Wedgewood Partners commented on Apple Inc. in a Q3 2022 investor letter,

“Apple Inc. grew revenues +5% (foreign exchange adjusted and excluding Russia) driven by record iPhone revenues that were up about +3% on an exceptional year ago comparison of +50%. Apple’s installed base is over 1.8 billion devices which helps drive a software and services business that has generated almost $80 billion of revenue over the past 4 quarters. As we have highlighted in the past, Apple’s relentless focus on the development and integration between hardware (especially ICs) as well as software, continues to add significant value for customers of its products and services. We expect this favorable competitive dynamic to continue for the foreseeable future.”

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