Microsoft

This is a top old-school technology stock has posted all-time highs this year and has a massive $138.6 billion sitting on the balance sheet. Microsoft Inc. (NASDAQ: MSFT) continues to find an increasing amount of support from portfolio managers, who have added the software giant to their holdings at an increasingly faster pace all of this year and last.

Many Wall Street analysts feel that Microsoft has become a clear number two in the public or hyper-scale cloud infrastructure market with Azure, which is its cloud computing platform offering. Some have flagged Azure as a solid rival to Amazon’s AWS service, while others maintain that Microsoft is discounting Azure for large enterprises, such that Azure may be cheaper than AWS for larger users. The cloud was big in the recent earnings report which was outstanding.

Microsoft shareholders currently receive a 1.59% dividend. The consensus price objective for the stock $121.64, and the shares closed most recently at $107.06.

Alphabet

The search giant continues to expand and is even working on a driverless car now. Alphabet Inc. (NASDAQ: GOOGL) is a global technology company focused on key areas, such as search, advertising, operating systems and platforms, enterprise and hardware products. It generates revenue primarily by delivering online advertising and by selling apps and contents on Google Play, as well as hardware products. The company provides its products and services in more than 100 languages and in 190 countries, regions and territories.

Alphabet offers performance and brand advertising services. It operates through Google and Other Bets segments. The Google segment includes principal internet products, such as Search, Ads, Commerce, Maps, YouTube, Apps, Cloud, Android, Chrome and Google Play, as well as technical infrastructure and newer efforts, such as virtual reality.

The posted consensus price target estimate of $1,375.58 compares with the most recent closing share price of $1,221.75.

NXP Semiconductors

This company recently almost merged with Qualcomm, but the deal fell through. The NXP Semiconductors N.V. (NASDAQ: NXPI) merger with Freescale Semiconductor in 2016 was widely applauded on Wall Street, and it made NXP the fourth largest semiconductor company in the industry.

It is also important to note that the combined company has become the number one supplier in auto semiconductors, number one supplier in global microcontrollers, as well as a dominant supplier in mobile payments.

NXP is getting its chips into high-growth areas such as contactless mobile payments, the Internet of Things, mobile-phone charging, increased cellular data consumption and LED lighting. The two business segments that cover these products have grown substantially over the past few years, and many on Wall Street feel the company is extremely cheap at current levels.

The consensus price target is set at $107, while the stock closed trading at $91.22 a share on Wednesday.

Get Our Free Investment Newsletter

I have read, and agree to the Terms of Use

While the dominance of the tech sector at hedge funds has dropped, investors looking to add these stocks to their holdings may want to look for a fall correction for better entry points.