In this article, we’ll discuss Jim Cramer’s most favorite tech stocks to buy now. You can skip our detailed analysis of Cramer’s background and tech stocks, and go directly to read Jim Cramer’s 5 Most Favorite Tech Stocks to Buy Now.
Jim Cramer is one of the most prominent names in the investment world. His show, Mad Money, is watched by hundreds of thousands of young investors online. Cramer’s expertise in the market flourished during his job at Goldman Sachs, after which, he started his own hedge fund, Cramer Levy Partners. As of 2021, Cramer’s real-time net worth stands at $150 million.
Jim Cramer recently launched his subscriber-based CNBC Investing Club to help investors gain long-term benefits from their portfolios. Through this club, he aims to provide easy investment decisions to his followers.
Recently, Jim Cramer named some tech stocks that have shown solid quarterly earnings and project higher growth in the future. The list includes NVIDIA Corporation (NASDAQ:NVDA), Palo Alto Networks, Inc. (NASDAQ:PANW), and Cloudflare, Inc. (NYSE:NET). Moreover, the former hedge fund manager also focused on cloud software companies, raising the sector’s sales estimates for the fiscal year 2023.
In this article, we will focus on some of the best Jim Cramer stocks in the tech space. Some of the notable names in this regard are Amazon.com, Inc. (NASDAQ:AMZN), PayPal Holdings, Inc. (NASDAQ:PYPL), and Square, Inc. (NYSE:SQ).
Our Methodology:
These stocks are taken from the various segments of the broader tech category, such as fintech, electric vehicles, cloud computing, cybersecurity, and software.
Jim Cramer mentioned the following stocks in his recent programs.
Jim Cramer’s Most Favorite Tech Stocks to Buy Now
10. Lucid Group, Inc. (NASDAQ:LCID)
Number of Hedge Fund Holders: 18
Lucid Group, Inc. (NASDAQ:LCID) is an American electrical vehicle manufacturer that also specializes in energy storage and original equipment manufacturing. According to Cramer, the company provides solid growth opportunities to investors as it recently won the Motor Trend Car of the Year award. Moreover, Lucid Group, Inc. (NASDAQ:LCID) is up 324.3% year-to-date, as of the close of December 5.
Highlighting the company’s strong electric vehicle tech credentials, Citigroup lifted its price target on Lucid Group, Inc. (NASDAQ:LCID) to $57, with a Buy rating on the shares.
At the end of Q3, 18 hedge funds tracked by Insider Monkey held a $432.6 million worth of stake in Lucid Group, Inc. (NASDAQ:LCID).
Like Amazon.com, Inc. (NASDAQ:AMZN), PayPal Holdings, Inc. (NASDAQ:PYPL), NVIDIA Corporation (NASDAQ:NVDA) and Square, Inc. (NYSE:SQ), Lucid Group, Inc. (NASDAQ:LCID) is also one of the notable tech stocks to buy now.
9. Affirm Holdings, Inc. (NASDAQ:AFRM)
Number of Hedge Fund Holders: 39
Cramer recently appreciated Affirm Holdings, Inc. (NASDAQ:AFRM)’s strategy to build software that caters to the ever-changing consumer demands.
Due to the recent popularity of installment plans, analysts and investors are bullish on Affirm Holdings, Inc. (NASDAQ:AFRM). As per Insider Monkey’s data for Q3, the number of hedge funds having stakes in the company grew to 39, from 25 in the previous quarter. These stakes hold a consolidated value of roughly $1.5 billion, up from $823.6 million in Q2. With 3.2 million shares, Melvin Capital Management was the largest shareholder of Affirm Holdings, Inc. (NASDAQ:AFRM) in Q3.
In its fiscal Q1 2022, Affirm Holdings, Inc. (NASDAQ:AFRM) reported $269.3 million in revenues, presenting a 54.8% growth from the same period last year. Due to the company’s new expanded relation with Amazon, RBC Capital raised its price target on Affirm Holdings, Inc. (NASDAQ:AFRM) to $175, with an Outperform rating on the shares. The stock’s six-month returns stood at 85.4%, as of the close of December 5.
8. Cloudflare, Inc. (NYSE:NET)
Number of Hedge Fund Holders: 50
Cloudflare, Inc. (NYSE:NET) is an American web infrastructure and web security company, headquartered in California. Jim Cramer recently placed the company in his list of ‘red hots’ stocks, which project solid growth opportunities in their respective sectors.
In Q3, Cloudflare, Inc. (NYSE:NET) earned $172.3 million in revenues, up 50.9% from the prior-year quarter. Moreover, the company also added 170 new customers during the quarter.
In November, both Cowen and Mizuho raised their price targets on Cloudflare, Inc. (NYSE:NET), to $250 and $190, respectively, owing to the company’s new growth initiatives.
Insider Monkey’s data for Q3 showed a positive hedge fund sentiment for Cloudflare, Inc. (NYSE:NET), as 50 hedge funds tracked by Insider Monkey were bullish on the stock in Q3, up from 43 in the previous quarter. These stakes are valued at over $958.4 million, compared with $862.5 million in Q2.
Some other stocks that remain the most favorite of hedge funds include Amazon.com, Inc. (NASDAQ:AMZN), PayPal Holdings, Inc. (NASDAQ:PYPL), NVIDIA Corporation (NASDAQ:NVDA) and Square, Inc. (NYSE:SQ).
7. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 50
Broadcom Inc. (NASDAQ:AVGO) is an American semiconductor manufacturing company that also provides network, software, and storage services to its consumers. Recently, UBS named the company as one of its top picks in the 5G sector as it witnesses demand in its 5G-related solutions, data center storage, and industrial applications.
In his recent video, Jim Cramer lauded the consistent returns of Broadcom Inc. (NASDAQ:AVGO) along with its 12-year track record of dividend growth, which, according to him, is rare for a tech company. As of the close of December 5, the stock’s year-to-date returns stood at 32.8%, while it surged 34.2% in the past year. Recently, JP Morgan lifted its price target on Broadcom Inc. (NASDAQ:AVGO) to $655, representing a 17% upside. The firm maintained an Overweight rating on the shares.
At the end of Q3, Citadel Investment Group was the leading shareholder of Broadcom Inc. (NASDAQ:AVGO), holding over 1.1 million shares. Overall, 50 hedge funds in Insider Monkey’s database were bullish on the company in Q3, up from 47 in the previous quarter. These stakes are valued at over $2.7 billion.
ClearBridge Investments mentioned Broadcom Inc. (NASDAQ:AVGO) in its Q2 2021 investor letter. Here is what the firm has to say:
“A good way to conceptualize how we think about portfolio construction is to picture a pyramid. At the bottom of the pyramid are the durable compounding growth companies that form the strong foundation, resilience and consistency for the Strategy. We think these companies should comprise just under half of portfolio assets and feature annual revenue growth rates ranging from two times GDP up to 20% as well as healthy free cash flow generation.
Broadcom has delivered similar long-term appreciation through a combination of organic growth, capital deployment into new and adjacent opportunities through merger and acquisition activity as well as returning capital to shareholders through buybacks and dividends.”
6. Roblox Corporation (NYSE:RBLX)
Number of Hedge Fund Holders: 50
Roblox Corporation (NYSE:RBLX) is an online gaming platform and game creation system. The company remains a favorite of Jim Cramer in the tech space as it helps major organizations, like Meta Platforms, to enhance their digital experiences.
On November 18, Roblox Corporation (NYSE:RBLX) gained 3% as Morgan Stanley appreciated the company on nearly all accounts, including its Q3 earnings beat and its metaverse leadership, which is driven by major investments to improve user experience. The firm lifted its price target on Roblox Corporation (NYSE:RBLX) to $150, with an Overweight rating on the shares. In Q3, the company reported a 28% growth in its bookings at $637.8 million, versus the estimates of $624 million.
At the end of Q3 2021, 50 hedge funds tracked by Insider Monkey reported owning stakes in Roblox Corporation (NYSE:RBLX), up from 49 in the previous quarter. The consolidated value of these stakes is over $3.5 billion. With a $1.3 billion worth of stake, Tiger Global Management LLC was the largest shareholder of the California-based company.
In addition to Roblox Corporation (NYSE:RBLX), hedge funds and growth investors piled into Amazon.com, Inc. (NASDAQ:AMZN), PayPal Holdings, Inc. (NASDAQ:PYPL), NVIDIA Corporation (NASDAQ:NVDA) and Square, Inc. (NYSE:SQ) in 2021.
In its recently-published Q3 investor letter, Jefferies Group mentioned Roblox Corporation (NYSE:RBLX). Here is what the investment management firm has to say:
“If we look at the Metaverse concept with more lenient guidelines for interoperability, then it becomes easier to see why certain companies are being referred to as Metaverse. On the virtual side, we’d point to companies like Epic Games, TakeTwo and Roblox. In augmented reality, it would be Niantic and SNAP. These are the large capitalized players in the space but albeit, not the only ones. We expect new mulit-billion dollar companies will rise as the
Metaverse becomes more mature.Roblox is a good example. The content is almost entirely user generated, the engine that powers the developer studio is provided by Roblox and developers/creators share in almost all the money that users spend on the platform. In addition, many of the items that you purchase in the avatar marketplace, or even a branded experience like Vans World, can be taken across experiences. Roblox talks a lot about platform extension, which would move the platform beyond just gaming/leisure experiences and into education and workplace offerings. The developer community has the capability to build tools for other developers, there are professional studios being built on the platform and many consumer-facing brands/content are partnering with Roblox to ensure a virtual presence. Roblox actually has a lot of the pieces for our utopian definition of Metaverse, but things like technology, interoperability with outside platforms and a dynamic, two-way economy are what’s missing. However, given our thesis that full interoperability is somewhat unrealistic, it’s easy to see how Roblox fits the definition…
Many already consider RBLX a Metaverse, or at least an early iteration of one, and here’s why. The platform offers all the tools required for content creation in a low-code / no code format and handles publication, language translations, billing, collections, safety and security of the environment and more. It’s hard to find a platform that makes the creative process easier for developers than Roblox; we see this as very supportive of creator
economy.The content is almost entirely user generated and developers/creators share in almost all the money that users spend on the platform. The developer community has the capability to build tools for other developers, there are professional studios being built on the platform and many consumer-facing brands/content are partnering with Roblox to ensure a virtual presence. Roblox talks a lot about platform extension, which would move the platform beyond just gaming/leisure experiences and into education and workplace offerings. Lastly, many of the items that you purchase in the avatar marketplace, or even a branded experience like Vans World, can be taken across experiences. In essence, the RBLX ecosystem includes creator economy, a virtual platform, picks and shovels of the Metaverse and some interoperability – many of the key enablers for Metaverse.
However, there’s always work to be done. We would expect to see a more dynamic economy emerge with resale moving beyond limited items and premium members, particularly with newer gaming models such as play-to-earn. Increasingly, gamers are going to want somereturn for the time and money invested on a platform. Advancements in technology will allow for truly shared experiences among a larger and larger group of people. We remain skeptical on the reality of interoperability; RBLX could very well end up being one of many Metaverses.”
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Disclosure. None. Jim Cramer’s Most Favorite Tech Stocks to Buy Now is originally published on Insider Monkey.
