In this article, we discuss the 5 most popular tech stocks to consider on Reddit. If you want to read our detailed analysis of these stocks, go directly to the Reddit Stock Portfolio: 10 Most Popular Tech Stocks To Consider.
5. Palantir Technologies Inc. (NYSE:PLTR)
Number of Hedge Fund Holders: 35
Palantir Technologies Inc. (NYSE:PLTR), which operates as an application software firm for the defense industry, has recently announced two partnerships that will help it gain further mainstream recognition as a pure software play. In early December, Palantir Technologies Inc. (NYSE:PLTR) revealed that it was partnering with German firm Merck to work on a data analytics platform to manage the chip shortage. The platform, dubbed Athinia, will use artificial intelligence to streamline supply chain operations.
Palantir Technologies Inc. (NYSE:PLTR) also recently teamed up with Hyundai Heavy Industries to develop a big data platform for the core business of the latter. The two firms have also agreed to commercialize new big data solutions. Hedge funds seem exceedingly bullish on Palantir Technologies Inc. (NYSE:PLTR). At the end of the third quarter of 2021, 35 hedge funds in the database of Insider Monkey held stakes worth $1.6 billion in Palantir Technologies Inc. (NYSE: PLTR), up from 26 in the preceding quarter worth $1.3 billion.
In its Q4 2020 investor letter, Guardian Fund, an asset management firm, highlighted a few stocks and Palantir Technologies Inc. (NYSE:PLTR) was one of them. Here is what the fund said:
“In October, we bought a stake in Palantir. Earlier, in June, our concentrated Tech Fund, which has a mandate to also buy shares in the secondary market, bought shares of Palantir from insiders, before the direct listing. At the price we bought, the equity had much more upside than downside. Palantir is operating a software platform that functions as the digital infrastructure for data-driven operations and decision making. The software helps to structure and capture context in data of large corporations. Governments are increasingly realizing that they have to deal with serious data challenges and cyber risk. As most governments cannot attract the most talented software engineers, they need private enterprises such as Palantir to help them build solid infrastructure. Foundry, Palantir’s software for enterprises, is used by companiesto make safer cars and airplanes or to accelerate cancer research. The speed to bring new clients on board is improving and revenues will grow faster than expenses. Palantir has a long runway of growth ahead.”
4. Coinbase Global, Inc. (NASDAQ:COIN)
Number of Hedge Fund Holders: 50
Bank of America analyst Jason Kupferberg recently upgraded Coinbase Global, Inc. (NASDAQ:COIN) stock to Buy from Neutral with a price target of $340, citing “increasing” signs of revenue diversification beyond retail crypto trading as one of the primary reasons behind the upgrade. The analyst further noted that the subscription and services revenue of Coinbase Global, Inc. (NASDAQ:COIN) seemed to be growing as well, an indicator of the accelerated trends away from retail coin trading.
Coinbase Global, Inc. (NASDAQ:COIN) has been on the radar of major hedge funds ever since it debuted on the market last year. Among the hedge funds being tracked by Insider Monkey, New York-based firm ARK Investment Management is a leading shareholder in Coinbase Global, Inc. (NASDAQ:COIN) with 6.9 million shares worth more than $1.5 billion.
In its Q3 2021 investor letter, Hayden Capital, an asset management firm, highlighted a few stocks and Coinbase Global, Inc. (NASDAQ:COIN) was one of them. Here is what the fund said:
“Coinbase (COIN): We established a new position in Coinbase, the dominant US crypto exchange and brokerage, this quarter. Given the misperceptions and early-stage nature of the industry, I thought it would be helpful for our partners’ understanding to share a report outlining our thesis, which we published on October 31st.
At a high level, we believe the crypto economy is in the middle of “crossing the chasm” into mainstream adoption & use cases, which will result in millions of mainstream users needing to transact in crypto in some form.
Coinbase is well positioned in the Western, regulated markets to capture this influx – considering their dominant market share / mindshare, their focus on the casual user and thus superior userexperience compared to alternatives, and their position as a “toll-booth” for this industry. Longer-term, we also believe Coinbase has “super-app” ambitions, and will be the primary gateway for both the general population and institutions to interact with the crypto economy…” (Click here to see the full text)
3. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 65
Advanced Micro Devices, Inc. (NASDAQ:AMD) makes and sells GPUs, CPUs, and server chips, all products that cater to different consumers in the computer markets. GPU prices have skyrocketed in the past few months because of a chip shortage. In the fourth quarter results due in a couple of weeks, analysts expect Advanced Micro Devices, Inc. (NASDAQ:AMD) to report an increase in shipments and average selling price for this segment, which comprises a significant portion of overall revenue for Advanced Micro Devices, Inc. (NASDAQ:AMD).
Advanced Micro Devices, Inc. (NASDAQ:AMD) has been one of the best-performing stocks of the year and hedge funds have duly noted this performance. Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Advanced Micro Devices, Inc. (NASDAQ:AMD) with 19.6 million shares worth more than $2 billion.
In its Q4 2020 investor letter, Artisan Partners Limited Partnership, an asset management firm, highlighted a few stocks and Advanced Micro Devices, Inc. (NASDAQ:AMD) was one of them. Here is what the fund said:
“We also exited our positions in Advanced Micro Devices. Our investment campaign in Advanced Micro Devices (AMD) began in the second half of 2018, and we have seen a new management team reinvigorate the company’s product portfolio of microprocessors for PCs and servers, graphics processors, and video game consoles. These new, higher-margin products have helped the company partially close its margin gap with peers and capture share from market leader Intel. While we believe there is meaningful runway for further share gains and margin expansion, AMD has appreciated far beyond our mid-cap market cap mandate, and we exited our position.”
2. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 74
Canaccord analyst Michael Walkley recently reiterated a Buy rating on CrowdStrike Holdings, Inc. (NASDAQ:CRWD) stock with a price target of $330, noting that the recent pullback in share price of the firm had created a compelling entry point for “long-term oriented” investors. The analyst also lauded CrowdStrike Holdings, Inc. (NASDAQ:CRWD) as a foundational name in the cybersecurity business, backing the firm to perform well in 2022 given the “defensible technology moat and accelerating platform uptake”.
The bullish analyst sentiment around CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is reflected in hedge fund data too. Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Tiger Global Management LLC is a leading shareholder in CrowdStrike Holdings, Inc. (NASDAQ:CRWD) with 7.5 million shares worth more than $1.8 billion.
In its Q1 2021 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and CrowdStrike Holdings, Inc. (NASDAQ:CRWD) was one of them. Here is what the fund said:
“CrowdStrike provides cloud-based software used in the security of computers, servers, and mobile phones. The stock pulled back a bit during the quarter as investor sentiment shifted away from stocks with higher valuation multiples. We remain shareholders, as the protection of enterprise assets and cloud workloads from various forms of cyberattacks remains more important than ever for many enterprises, and we believe this will continue to result in a strong demand environment for CrowdStrike’s innovative products and services.”
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 83
NVIDIA Corporation (NASDAQ:NVDA) has witnessed increased hedge fund activity since supply chain issues created a chip shortage and led to a dramatic increase in prices. At the end of the third quarter of 2021, 83 hedge funds in the database of Insider Monkey held stakes worth $10 billion in NVIDIA Corporation (NASDAQ:NVDA), compared to 86 the preceding quarter worth $9 billion.
Even as analysts predict that chip shortages will last well into 2022, there are several other reasons to invest in NVIDIA Corporation (NASDAQ:NVDA) as well. The company is expanding the suite of products it presently offers in the metaverse and artificial intelligence domains, two high-growth sectors that are expected to witness over $1 trillion in investment over the next few years.
In its Q1 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and NVIDIA Corporation (NASDAQ:NVDA) was one of them. Here is what the fund said:
“NVIDIA Corp. is the dominant supplier of Graphics Processing Units (GPUs) worldwide. NVIDIA’s GPUs are at the intersection of a number of important computing trends including the movement to the Cloud, artificial intelligence, autonomous vehicles, edge computing, gaming, and more. We previously owned NVIDIA and sold it in the third quarter of 2020 as the price to value gap closed and our margin of safety was reduced. As with all our MVP companies, we continued to follow NVIDIA closely. Since that time, NVIDIA reported excellent results and its value has compounded rapidly. The technology selloff at the beginning of the year negatively affected the stock price while our estimate of NVIDIA’s value per share increased. This happy combination of events created a margin of safety and an opportunity to once again add NVIDIA to the portfolio.”
You can also take a peek at 10 Best Healthcare Dividend Stocks to Buy Now and 10 Dividend Stocks with Over 20 Years of Dividend Increases.
