13 Best American Tech Stocks To Buy According to Analysts
In this article, we will be taking a look at the 13 best American tech stocks to buy according to analysts. To skip our detailed analysis of the US tech industry, you can go directly to see the 5 Best American Tech Stocks To Buy According to Analysts.
US Tech Stocks Continue to Attract Investors
For most of 2023, the tech sector seemed to have established itself as a safe haven for many investors with its prolonged rallies, helped by the rising interest in artificial intelligence (AI) and the growing profitability of several large tech companies. It seems as though these positive trends are continuing in 2024, with many investors remaining faithful to their tech holdings and expecting higher profitability from their investments as the year progresses. With such strong optimism driving up the tech stocks, many are beginning to wonder whether this obsession with tech stocks ever come to an end and whether other names in the market will ever gain investor attention again.
On February 1, Mizuho Americas' Farzin Azarm joined CNBC's "Street Signs Asia" to discuss current trends in the US tech sector and this investor obsession with tech stocks. Here are some of his comments:
"Everybody is in the US tech names, everybody, and nobody's selling these names because why would they? Every day you come in, NVIDIA's making a new all time high, look at what Meta is doing after hours look at what Amazon is doing after hours. It's been a safe haven and people are saying 'why should I abandon these names that have given me a return every day? Why should I move away from something like this and invest in something that risky, that hasn't given me any kind of a return?'"
The Impact of the Tech Rally on China
According to Azarm, this continued preference for US tech stocks is resulting in other stocks, notably those originating in China, being ignored. He believes that a "crack" in the US tech and AI trade is the only thing that will rotate money back into Chinese stocks at the end of the day. He added that because investors have already committed huge amounts to expensive American stocks, they do not have the appetite to invest further in more expensive companies. As such, he believes that when the US tech rally slows down, cheaper valuation Chinese companies may begin to attract investor attention. On this front, here's what Azarm had to say:
"People are looking for underperformance, people are looking for... cheaper valuation companies. The US names are trading at 30-35 times now, some of these names. They're priced to perfection. They're not going down, it's amazing to me, but once it does, and it's gonna come, I think that money may go to China."
In light of the above, it is unsurprising that major names such as Alphabet Inc. (NASDAQ:GOOGL), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN) continue to be considered some of the best American tech stocks to buy according to analysts and investors alike. These companies are some of the best long-term tech stocks to invest in and have been dubbed the best tech stocks to buy for several years, all due to their stellar performance. But they have been joined by many other notable names, which our list below will highlight.
Our Methodology
We have selected the best American tech stocks to buy according to analysts by using a stock screener to identify American tech stocks and then shortlisting the top stocks based on their upside potential according to Wall Street analysts. The stocks are ranked from the lowest to the highest upside potential as of February 5. We have also mentioned the number of hedge funds holding stakes in each stock. Some leading companies, such as NVIDIA Corporation (NASDAQ:NVDA), had to be excluded from our list because of their low upside potential.
Best American Tech Stocks To Buy According to Analysts
13. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 70
Upside Potential According to Analysts: 8.53%
Average Price Target: $46.42
Intel Corporation (NASDAQ:INTC) is a semiconductor company based in Santa Clara, California. It develops, manufactures, markets, and sells computing and related products and services.
A Buy rating was maintained on shares of Intel Corporation (NASDAQ:INTC) on January 26 by Vijay Rakesh at Mizuho, alongside a price target of $55.
In the third quarter of 2023, 70 hedge funds were long Intel Corporation (NASDAQ:INTC), with a total stake value of $2.1 billion.
Upslope Capital Management mentioned Intel Corporation (NASDAQ:INTC) in its fourth-quarter 2023 investor letter:
“Intel Corporation (NASDAQ:INTC) – New Long: This is not a traditional long for Upslope in any sense. Intel is outside of the box in terms of typical sector and market cap focus, and the position is really a portfolio hedge (and structured as such). The thesis is very simple: Intel is uniquely positioned to benefit in two important scenarios, both of which require “protection” for Upslope’s portfolio: a continued melt-up in technology stocks and/or rising tensions over Taiwan. Combined with expectations and sentiment around Intel that were incredibly low, this nudged me to add exposure via long-dated INTC call options. While still material in terms of delta-adjusted exposure, the position has been reduced repeatedly and is much more modest today.”
Like Alphabet Inc. (NASDAQ:GOOGL), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN), Intel Corporation (NASDAQ:INTC) is one of the best American tech stocks to buy according to analysts.
12. Roper Technologies, Inc. (NYSE:ROP)
Number of Hedge Fund Holders: 42
Upside Potential According to Analysts: 8.54%
Average Price Target: $590.50
Brian Gesuale at Raymond James maintained a Strong Buy rating and a $620 price target on Roper Technologies, Inc. (NYSE:ROP) on February 2.
Roper Technologies, Inc. (NYSE:ROP) is an application software company that designs and develops software and technology-enabled products and solutions. It is based in Sarasota, Florida.
There were 42 hedge funds long Roper Technologies, Inc. (NYSE:ROP) in the third quarter of 2023, with a total stake value of $2.5 billion.
Ayrshire Capital Management was the largest shareholder in Roper Technologies, Inc. (NYSE:ROP) at the end of the third quarter, holding 12,437 shares in the company.
11. ServiceNow, Inc. (NYSE:NOW)
Number of Hedge Fund Holders: 99
Upside Potential According to Analysts: 9.09%
Average Price Target: $846.93
A total of 99 hedge funds held stakes in ServiceNow, Inc. (NYSE:NOW) at the end of the third quarter. Their total stake value of $4.9 billion.
ServiceNow, Inc. (NYSE:NOW) is a systems software company based in Santa Clara, California. It provides end-to-end intelligent workflow automation platform solutions for digital businesses.
A Buy rating and an $896 price target were maintained on ServiceNow, Inc. (NYSE:NOW) on January 26 by Tyler Radke at Citigroup.
Here's what Polen Capital had to say about ServiceNow, Inc. (NYSE:NOW) in its fourth-quarter 2023 investor letter:
“ServiceNow, Inc. (NYSE:NOW) continues to grow revenue and earnings at above a 20% rate, as they have for many years. The company has a software automation platform that efficiently builds applications on top of and across many enterprise functions. The NOW platform can automate almost any workflow previously done through email, spreadsheets, or some other less-than-efficient method. Its addressable market is very large because of the sheer breadth and depth of the tasks that can be automated by using its software. ServiceNow’s offerings tend to save customers money and make their workflows less prone to error. The company’s growth has been among the most consistent in our Portfolio prior to, during, and after the pandemic.”
10. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 134
Upside Potential According to Analysts: 9.48%
Average Price Target: $205.75
Markel Gayner Asset Management was the most prominent shareholder in Apple Inc. (NASDAQ:AAPL) at the end of the third quarter, holding 1.2 million shares in the company.
Apple Inc. (NASDAQ:AAPL) is an information technology company that designs, manufactures, and markets smartphones, computers, and other electronic gadgets. It is based in Cupertino, California.
Martin Yang at Oppenheimer holds an Outperform rating and a $200 price target on Apple Inc. (NASDAQ:AAPL) as of February 2.
Apple Inc. (NASDAQ:AAPL) was found in the 13F holdings of 134 hedge funds in the third quarter of 2023, with a total stake value of $179.01 billion.
9. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 57
Upside Potential According to Analysts: 9.61%
Average Price Target: $72.54
Marvell Technology, Inc. (NASDAQ:MRVL) is another semiconductor company in our list of the best American tech stocks to buy according to analysts. It is based in Wilmington, Delaware.
We saw 57 hedge funds long Marvell Technology, Inc. (NASDAQ:MRVL) in the third quarter, with a total stake value of $1.8 billion.
Cantor Fitzgerald's C.J. Muse initiated coverage on Marvell Technology, Inc. (NASDAQ:MRVL) on January 23 with an Overweight rating and an $80 price target.
8. Synopsys, Inc. (NASDAQ:SNPS)
Number of Hedge Fund Holders: 57
Upside Potential According to Analysts: 11.21%
Average Price Target: $618
In total, 57 hedge funds were long Synopsys, Inc. (NASDAQ:SNPS) in the third quarter. Their total stake value was $2.6 billion.
Gary Mobley at Wells Fargo maintains an Overweight rating and a $630 price target on Synopsys, Inc. (NASDAQ:SNPS) as of December 13.
Synopsys, Inc. (NASDAQ:SNPS) is an application software company based in Sunnyvale, California. It provides electronic design automation software products used to design and test integrated circuits.
This is what Carillon Tower Advisers said about Synopsys, Inc. (NASDAQ:SNPS) in its fourth-quarter 2023 investor letter:
“Synopsys, Inc. (NASDAQ:SNPS) provides software for the development of semiconductors. Investors have appreciated the continued strength in demand from major semiconductor companies and the company’s new product announcements leveraging artificial intelligence.”
7. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 234
Upside Potential According to Analysts: 11.23%
Average Price Target: $513.63
At the end of the third quarter, ARK Investment Management was the largest shareholder in Meta Platforms, Inc. (NASDAQ:META), holding 309,363 shares in the company.
Meta Platforms, Inc. (NASDAQ:META) is a big tech company engaged in the development of connectivity products and virtual/augmented reality products and is among the best American tech stocks to buy according to analysts. It is based in Menlo Park, California.
Meta Platforms, Inc. (NASDAQ:META) was seen in the portfolios of 234 hedge funds in the third quarter. Their total stake value was $35.2 billion.
Eric Sheridan at Goldman Sachs maintains a Buy rating and a $500 price target on Meta Platforms, Inc. (NASDAQ:META) as of February 5.
First Pacific Advisors mentioned Meta Platforms, Inc. (NASDAQ:META) in its fourth-quarter 2023 investor letter:
“Meta Platforms, Inc. (NASDAQ:META) saw a welcome recovery in engagement and revenue year-to-date following a tough 2022. The company has continued to offer new solutions that allow advertisers to target customers effectively and efficiently via one of the world’s leading digital platforms. Moreover, operating profits are rising due to an organization-wide focus on improving productivity and accelerating the time to market for new products. However, overall profitability continues to be weighed down by losses in the Reality Labs segment. But, there is positive optionality that Meta will emerge from the AI arms race as one of the leading players in the industry.”
6. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 110
Upside Potential According to Analysts: 11.82%
Average Price Target: $194.16
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a semiconductor company offering x86 microprocessors and graphics processing units. It is based in Santa Clara, California.
Our hedge fund data for the third quarter shows 110 hedge funds long Advanced Micro Devices, Inc. (NASDAQ:AMD), with a total stake value of $9.2 billion.
Goldman Sachs' Toshiya Hari maintains a Buy rating and a $180 price target on Advanced Micro Devices, Inc. (NASDAQ:AMD) as of February 1.
White Falcon Capital Management mentioned Advanced Micro Devices, Inc. (NASDAQ:AMD) in its fourth-quarter 2023 investor letter:
“It is important to note that the returns depicted above actually originated in the market turmoil of 2022 and were only realized in 2023. We assess that about 75% of the returns in 2023 were derived from just 35% of the portfolio. Notably, the technology companies we acquired in 2022 – Advanced Micro Devices, Inc. (NASDAQ:AMD), Amazon, Docebo, NU, Rover – performed exceptionally well. In hindsight, the decision to allocate to technology stocks appears straightforward; but it actually demanded courage and conviction to buy and add to these stocks during the fear and uncertainty of the 2022 bear market.
The top 5 positions in the portfolio were: Precious Metals royalty basket, Nu Holdings, AMD Amazon.com and Converge Technology Services. AMD has worked out great for us but we must admit that it has gotten expensive. AI was not part of our original investment thesis and AMD is a great reminder of how one can get ‘lucky’ investing in quality businesses run by competent management teams (ditto for Amazon).”
Like Alphabet Inc. (NASDAQ:GOOGL), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN), Advanced Micro Devices, Inc. (NASDAQ:AMD) is among the best American tech stocks to buy according to analysts.
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Disclosure: None. 13 Best American Tech Stocks To Buy According to Analysts is originally published on Insider Monkey.
