In this article, we discuss billionaire Cliff Asness’ top 5 technology stock picks. If you want to see more of billionaire Cliff Asness’ top technology stock picks, go directly to Billionaire Cliff Asness’ Top 10 Technology Stock Picks.
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. (NASDAQ:AMZN) 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. (NASDAQ:AMZN) 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 (NYSE:TSM) 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 (NYSE:TSM) is the leader in making cutting edge semiconductors.
Baron Funds commented on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in a Q2 2022 investor letter,
“Semiconductor giant Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) 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. (NASDAQ:GOOG) 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. (NASDAQ:GOOG) at the end of 9/30. Growth has slowed for Alphabet Inc. (NASDAQ:GOOG) in 2022 given the ad market weakness. Nevertheless, Alphabet Inc. (NASDAQ:GOOG) 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 (NASDAQ:MSFT) 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 (NASDAQ:MSFT) 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 (NASDAQ:MSFT) recently. Nevertheless, Microsoft Corporation (NASDAQ:MSFT) 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 (NASDAQ:MSFT) in a Q3 2022 investor letter,
Also among our bottom contributors were media and technology giant Alphabet, software and IT services provider Microsoft Corporation (NASDAQ:MSFT) 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. (NASDAQ:AAPL) by 2% in Q3 to end September with a position worth almost $1.38 billion. Recently, Bloomberg reported that Apple Inc. (NASDAQ:AAPL) 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. (NASDAQ:AAPL) in a Q3 2022 investor letter,
“Apple Inc. (NASDAQ:AAPL) 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.”
You can also take a look at Warren Buffett’s Top 10 Dividend Stock Picks and 15 Largest Hotel Chains in the US in 2022.
