Institutional Buyers Loading the Boat on 5 Red-Hot Tech Stocks

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You have heard the old adage, “follow the money,” and if there was ever a place to do that, it is when investors are trading stocks. Even though it seems like an oxymoron, there truly is “smart money” on Wall Street, and they have a million ways to find the top stocks to buy. Two of the newest are through big data and artificial intelligence.

We are always curious what stocks are being bought at some of the companies we cover on Wall Street. With tech continuing to be a top sector in the S&P 500, it seems as though the top mutual funds and hedge funds are not only sticking with their top holdings and riding the gains, but they are willing to add shares and defend the positions on a dip.

A new SunTrust research report noted the “Best to Buy” companies from the firm’s trade desk recently, and five top technology companies stand out. All are suitable for aggressive growth accounts with risk tolerance.

Applied Materials

Some on Wall Street feel this semiconductor capital equipment leader has the broadest range of exposure to 3D NAND and foundry display. Applied Materials Inc. (NASDAQ: AMAT) is the global leader in precision materials engineering solutions for the semiconductor, flat panel display and solar photovoltaic industries. Applied Material’s technologies help make innovations like smartphones, flat screen TVs and solar panels more affordable and accessible to consumers and businesses around the world.

Many analysts expect that the industry NAND supply will be up a high 30% in calendar 2017 and approaching near 50% in calendar 2018 as well, with underlying demand drivers remaining solid. Continued supply growth and technology transitions should bode well for semi-cap companies.

Shareholders receive a 0.71% dividend. The Wall Street consensus price target for the stock is $58.90. The shares closed Tuesday at $56.38.

Cypress Semiconductor

This stock traded in a tight range from March until last month, but it looks to be breaking out. Cypress Semiconductor Corp. (NASDAQ: CY) manufactures and sells embedded system solutions for the automotive, industrial, home automation and appliances, consumer electronics and medical markets.

Its product portfolio includes programmable-systems-on-chip (PSoC), general purpose microcontrollers, analog integrated circuits, USB controllers, connectivity chips (Bluetooth, Wi-Fi, Zigbee) and memory chips.

The company has continued an expansion of its automotive portfolio, which will help enable manufacturers to bring high-tech automotive systems historically available only in luxury models to mainstream vehicles. Leveraging a wide range of differentiated products that includes microcontrollers, power management integrated circuits, memories and touch-sensing solutions, the portfolio enables value-added systems for Cypress’s top-tier automotive customers.

Shareholders receive a 2.78% dividend. The posted consensus price target is $17.55. Shares closed most recently at $15.85.