In this article, we will take a look at the 13 best tech stocks to buy according to billionaire Laffont. To see more such companies, go directly to 5 Best Tech Stocks to Buy According To Billionaire Laffont.
Starting as an analyst at McKinsey and Company, billionaire Philippe Laffont has established himself as a top fund manager. A net worth of over $6 billion affirms his success and has come on focusing on technology-themed investing strategies.
The legendary investor has an overwhelming inclination towards technology, receiving a Master’s in Computer Science from the Massachusetts Institute of Technology. Technology stocks account for more than 60% of the legendary investor portfolio, a concentration that allows him to profit from some of the fastest-growing companies and market leaders in various segments.
According to Laffont, every investor should ask themselves what will be relevant in the next five to ten years and then try to pick stocks that offer solid exposure.
“I truly believe that in every portfolio you need to ask yourself what is going to be more relevant 5 to 10 years versus today[…]The most interesting trend is that technology, which used to be mostly software and semiconductors and obscure things, it’s coming everywhere, it’s the future of cars and the future of transportation and every sector,” Laffont said at the Forbes and Shook Research Top Advisors Summit in Las Vegas.
Laffont’s picking skills came to light when the tech sector slumped in winter of 2017. Instead of being cautious and taking it slow, he opted to take advantage of the discounted valuation levels and increased his exposure to some of the top picks. In the end, he benefited when the stocks surged a year on.
The famous venture capital investor, who started Coatue Management in 1999, has been one of the biggest beneficiaries of the overall stock market turning bullish in 2023. His portfolio has racked up significant gains from exposure to some of the biggest tech plays that have benefited from the artificial intelligence boom. With the tech-heavy Nasdaq 100 index up by more than 30% for the year, Laffont has every reason to smile owing to exposure to some of the biggest tech plays.
Philippe Laffont of Coatue Management
According to billionaire Laffont, NVIDIA Corporation (NASDAQ:NVDA) has emerged as the best tech stock to buy for anyone looking to benefit from the artificial intelligence boom. The chip giant is already up by more than 200% for the year, generating significant returns for Coatue Management.
He has also taken out stakes in Microsoft Corporation (NASDAQ:MSFT) and Alphabet Inc. (NASDAQ:GOOG), up by more than 40% for the year, strengthening his portfolio with exposure to a software giant and search engine conglomerate. Meta Platforms has also emerged as one of the best tech stocks to buy, according to billionaire Laffont, going by the 100% plus rally in 2023 as the social networking giant also benefits from the technology stock boom.
The 2023 tech boom should add to the 191.3% Coatue Management has generated over the past decade. The hedge fund has returned over 18% over the last 12 months, outperforming the S&P 500, and has only recouped the losses accrued in 2022 at the height of the bear run in the overall market.
With a portfolio worth over $20 billion, Coatue Management is one of the hedge funds closely followed for insights on the overall market’s direction. In addition to having significant exposure in the technology sector, Laffont is also a substantial investor in the consumer goods sector, services, and financials.
Our Methodology
Laffont is best known for his knack for predicting crises, selling positions, and making significant changes to a portfolio to avoid losses. Likewise, he is a revered tech stock investor, always ready to take advantage of any discounted valuation in case of a blood bath in the market.
After scanning the Coatue Management 13F Portfolio, we have settled on Laffont’s top stock picks in the technology sector as of the end of the second quarter. We have listed the stocks in ascending order of their value in the Coatue Management portfolio. We also used Insider Monkey’s database of 910 funds to determine how many hedge funds had invested in their shares by June 2023.
Best Tech Stocks to Buy According To Billionaire Laffont
13. Uber Technologies, Inc. (NYSE:UBER)
Coatue Management’s Stake Value: $298.28 Million
Percent of Portfolio: 1.46%
Number of Hedge Fund Holders: 144
An improvement in fortunes has seen Uber Technologies, Inc. (NYSE:UBER) emerge as one of the best tech stocks, according to billionaire Laffont. The technology company that develops applications enabling ride-sharing delivery and freight services is up by 80% for the year after crashing 41% last year. The rally comes on the company delivering its first-ever operating profit of $326 million in the second quarter on record cash flow of $1.14 billion.
Headquartered in San Francisco, Uber Technologies, Inc. (NYSE:UBER) offers a range of transportation modalities, including ridesharing, carsharing, and micro-mobility. Its Delivery segment allows the search and discovery of restaurants and grocery stores. Coatue Management started investing in the technology company in 2019 and increased its stakes in the second quarter to account for 1.46% of the portfolio.
According to Insider Monkey’s second-quarter database, 144 hedge funds were bullish on Uber Technologies, Inc. (NYSE:UBER). Altimeter Capital Management is the leading stakeholder of the company, with 13.34 million shares worth $ 575.74 million.
12. Applied Materials, Inc. (NASDAQ:AMAT)
Coatue Management’s Stake Value: $312.58 Million
Percent of Portfolio: 1.53%
Number of Hedge Fund Holders: 72
Applied Materials, Inc. (NASDAQ:AMAT) has been one of the tech stocks to buy, according to billionaire Laffont, if a 39% rally year to date is anything to go by. As a manufacturer of equipment services and software for semiconductor displays and related industries, Applied Materials, Inc. (NASDAQ:AMAT) has also benefited from the growing demand, use, and adoption of artificial intelligence.
In July, Applied Materials, Inc. (NASDAQ:AMAT) introduced the Vistara wafer manufacturing platform, a significant advancement in chip-making designed to accelerate its push for AI-powered chips.
72 out of the 910 hedge funds part of Insider Monkey’s Q2 2023 database had bought Applied Materials, Inc. (NASDAQ:AMAT)’s shares. David Blood and Al Gore’s Generation Investment Management is the biggest investor among these due to its $1.22 billion stake.
11. Adobe Inc. (NASDAQ:ADBE)
Coatue Management’s Stake Value: $487.88 Million
Percent of Portfolio: 2.38%
Number of Hedge Fund Holders: 109
Adobe Inc. (NASDAQ:ADBE) is a diversified software company that offers products, software, and solutions that allow people, teams, and enterprises to create, publish, and promote content. It is the go-to company for content creators, students, workers, and consumers. Adobe Inc. (NASDAQ:ADBE) also operates a Digital Experience segment that allows brands and businesses to create, manage, execute, and monetize customer experiences.
Laffont took advantage of a tech stock sell-off in 2022 to acquire stakes in Adobe Inc. (NASDAQ:ADBE) at the end of 2022. The investment has raked in significant returns, going by the 60% plus rally in 2023. The rally has come on Adobe Inc. (NASDAQ:ADBE) emerging as one of the plays for gaining exposure to the AI boom.
Adobe Inc. (NASDAQ:ADBE) was a part of 109 investors’ portfolios at the end of Q2 2023 compared to 99 in the previous quarter. As of June 30, Citadel Investment Group is the largest investor in Adobe Inc. (NASDAQ:ADBE) and has a position worth $657.61 million.
10. Lam Research Corporation (NASDAQ:LRCX)
Coatue Management’s Stake Value: $513.82 Million
Percent of Portfolio: 2.51%
Number of Hedge Fund Holders: 69
Lam Research Corporation (NASDAQ:LRCX) is arguably one of the best tech stocks to buy, according to billionaire Laffont, in the semiconductor business. The company designs, manufactures, and services semiconductor processing equipment to fabricate integrated circuits. Amid the growing demand for chips to power systems capable of handling vast troves of data amid the artificial intelligence revolution, the company’s services have been in high demand.
The company is experiencing booming business in China and expects revenue in the second quarter to average $3.7 billion, above the average estimate of $3.65 billion. Amid the booming business, Lam Research Corporation (NASDAQ:LRCX) sentiments have improved, going by the 42% gain in the market.
According to Insider Monkey’s second-quarter database, 69 hedge funds were long Lam Research Corporation (NASDAQ:LRCX), compared to 64 funds in the prior quarter. Rajiv Jain’s GQG Partners is the largest stakeholder of the company, with 2.35 million shares worth $1.51 billion.
9. Oracle Corporation (NYSE:ORCL)
Coatue Management’s Stake Value: $519.68 Million
Percent of Portfolio: 2.54%
Number of Hedge Fund Holders: 84
Oracle Corporation (NYSE:ORCL) is arguably one of the best tech stocks to buy, according to billionaire Laffont, as the company offers products and services that address enterprise information technology. Oracle Corporation (NYSE:ORCL) offers cloud ERP and EPM software.
Oracle Corporation (NYSE:ORCL) has been adding generative artificial intelligence capabilities to software solutions to add new features and stay competitive in the industry. AI integration has strengthened the company’s prospects and sentiments, going by the 21% plus stock rally year to date. In the second quarter, Laffont added the stock into Coatue Management’s portfolio, betting on its long-term prospects.
According to Insider Monkey’s second-quarter database, 84 hedge funds were bullish on Oracle Corporation (NYSE:ORCL), compared to 67 funds in the prior quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the leading shareholder of the company with shares worth $2.23 billion.
8. Block, Inc. (NYSE:SQ)
Coatue Management’s Stake Value: $565.25 Million
Percent of Portfolio: 2.76%
Number of Hedge Fund Holders: 66
Based in San Francisco, Block, Inc. (NYSE:SQ) creates and offers tools that allow sellers to accept card payments. It also provides reporting analytics and next-day settlement. Its flagship product is Square Register, which combines hardware point-of-sale software and payments technology.
Block, Inc. (NYSE:SQ) has emerged as one of Laffont’s top stock picks as it offers exposure to the cryptocurrency sector. Block has diversified its footprint into the cryptocurrency sector and is believed to hold a tremendous amount of Bitcoin on its balance sheet. Coatue Management has been buying and selling shares in Block, Inc. (NYSE:SQ) since 2016.
Insider Monkey surveyed 910 hedge funds to look at their Q2 2023 portfolios and discovered that 66 had held Block, Inc. (NYSE:SQ)’s shares. Block, Inc. (NYSE:SQ)’s largest hedge fund investor in our database is Catherine D. Wood’s ARK Investment Management with a $714.09 million stake.
7. Alphabet Inc. (NASDAQ:GOOG)
Coatue Management’s Stake Value: $664.14 Million
Percent of Portfolio: 3.25%
Number of Hedge Fund Holders: 152
Alphabet Inc. (NASDAQ:GOOG) is one of the best tech stocks to buy, according to billionaire Laffont, having made a name for itself on internet search and cloud computing. The company generates billions of dollars through advertising through its various apps. In addition, it operates a cloud segment that offers infrastructure cybersecurity and analytics, AI, and machine learning.
Alphabet Inc. (NASDAQ:GOOG) is one of the players in artificial intelligence, having already unveiled its AI-powered chatbot, Bard. Laffont started investing in the stock in the fourth quarter of last year after valuation levels had decreased significantly. The stock is up 52.44% year to date.
Insider Monkey surveyed 910 hedge funds to look at their Q2 2023 portfolios and found that 152 had held Alphabet Inc. (NASDAQ:GOOG)’s shares. The company’s largest hedge fund investor in our database is Natixis Global Asset Management’s Harris Associates, with a $3.21 billion stake.
6. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Coatue Management’s Stake Value: $682.09 Million
Percent of Portfolio: 3.34%
Number of Hedge Fund Holders: 121
Headquartered in Hsinchu City, Taiwan, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) designs, manufactures, and sells integrated circuits and other semiconductor devices.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has been gaining lots of love on Wall Street as it develops chips for enabling artificial intelligence. In addition, the company boasts some of the biggest clients, including Apple and Qualcomm. While Coatue Management initiated the first trade in the stock in the first quarter, it increased its stake in the second quarter, benefiting from the 9% plus rally year to date.
During Q2 2023, 121 out of the 910 hedge funds part of Insider Monkey’s database held a stake in Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM). Out of these, the firm’s biggest investor is Jean-Marie Eveillard’s First Eagle Investment Management since it owns 9.06 million shares worth $914.18 million.
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Disclosure: None. 13 Best Tech Stocks to Buy According To Billionaire Laffont is originally published on Insider Monkey.