After a rough few months, I’m finding a good deal of top tech stocks to buy. Especially with a lot of negativity priced in, including fears of higher interest rates. Helping, the Federal Reserve has signaled that it’s largely done raising rates, and inflation has been easing in recent months. That being said, it’s a great time to hunt for top tech stocks to buy, including the three I’m diving into below.
Tech Stocks to Buy: ServiceNow (NOW)
Institutional interest in ServiceNow (NYSE:NOW) spiked last quarter. For example, State Street acquired 158,165 more shares, while Norway’s sovereign wealth fund, Norges Bank acquired 364,020. Even JPMorgan added 56,848 shares. Also increasing its stake in NOW last quarter was Fisher Asset Management, which acquired 63,726 more shares. Fisher Asset Management is owned by the renowned, multi-billionaire investor, Ken Fisher.
Moreover, according to investment bank Baird, NOW reported record second-quarter financial results in July, and the company is benefiting from strong spending by the federal government. Finally, NOW has introduced multiple, new software offerings which can, at customers’ request, be equipped with generative AI. These new products are likely to cause the growth of the company’s top and bottom lines to meaningfully accelerate over the medium term and the long term, making it one of the best tech stocks to buy.
Amazon (AMZN)
In Q2, institutions bought 333,390,875 shares of Amazon (NASDAQ:AMZN) stock, and sold 185,694,691 shares of the name. So it’s clear that the purchases of AMZN far outweighed the sales of it. Among the heavy buyers were T. Rowe Price, which added 27.245 million shares, Morgan Stanley, which scooped up 13.187 million shares, and Goldman Sachs (NYSE:GS), which. bought more than four million shares. Meanwhile, on Aug. 21, investment bank Wedbush added AMZN stock to its “Best Ideas List.” The bank believes that Amazon’s “core business is now well positioned,” as the growth of its largest units is “stabilizing.”
Allegro Microsystems (ALGM)
Allegro Microsystems (NASDAQ:ALGM) develops “power and sensing semiconductors for automotive, industrial and other markets,” according to Investor’s Business Daily. The company is highly leveraged to the rapidly growing automotive and clean energy sectors. In Q2, institutions acquired 9.16 million shares of ALGM stock and sold 8.49 million shares of the name. Moreover, 218 institutions bought shares, while only 141 sold them. Among large banks, JPMorgan acquired 190, 595 shares, State Street obtained 186,549 shares, and Morgan Stanley bought 447,634 shares. Last quarter, Allegro’s top line climbed 28% versus the same period a year earlier. Meanwhile, its earnings per share soared 63% year-over-year to 39 cents. The company’s automotive revenue jumped roughly 30% year-over-year. Its industrial sales, which includes its revenue from clean energy companies, soared 70% YOY.
On the date of publication, Larry Ramer’s wife was long NOW. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.