5 Top Tech Stocks Hedge Funds Have Been Bullish On In Q4 (Hint: It's Not Nvidia)

While Nvidia Corp NVDA is an AI darling of the stock market, hedge funds had their sights elsewhere in the fourth quarter of 2024.

According to the latest 13F Heat Map for Technology stocks from WhaleWisdom.com, these were the five stocks that saw the most significant inflows from institutional investors:

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• The Technology Select Sector SPDR Fund XLK: Sometimes, the simplest move is the smartest one. Instead of betting on a single stock, hedge funds loaded up on XLK, a tech-heavy ETF that offers exposure to industry giants like Microsoft Corp (NASDAQ:MSFT( and Apple Inc (NASDAQ: AAPL) . With tech leading the market rally, this broad bet makes sense for institutions looking to ride the wave without taking on single-stock risk.

• CrowdStrike Holdings Inc. CRWD: Cybersecurity remains a high-growth sector, and CrowdStrike is leading the charge. The company's cloud-based security platform has made it a go-to for enterprises battling ever-evolving cyber threats. Hedge funds piled in, betting on the increasing demand for AI-driven security solutions.

• Palantir Technologies Inc. PLTR: Love it or hate it, Palantir has been one of the most polarizing stocks in recent years. Hedge funds, however, seem to be firmly in the “love it” camp. The company's dominance in AI-driven data analytics, particularly in government and enterprise contracts, has kept institutional money flowing in.

• ServiceNow Inc. NOW: Digital transformation isn't slowing down, and neither is ServiceNow. Its AI-powered workflow automation platform is becoming a staple for enterprises looking to streamline operations. Hedge funds are betting big that ServiceNow remains a critical player in the software-as-a-service (SaaS) boom.

• Microsoft: It's no surprise that Big Tech still commands attention. Microsoft, a leader in AI, cloud computing, and enterprise software, continues to be a hedge fund favorite. With Azure maintaining its strong growth and the company deeply entrenched in AI innovation, institutions aren't hesitating to increase their stakes.

While Nvidia has been the face of the AI revolution, hedge funds diversified their bets in the fourth quarter, favoring a mix of cybersecurity, software, and tech-heavy ETFs.

Whether this shift signals a more balanced approach to tech investing or just a strategic hedge, one thing is clear—institutions aren't putting all their chips on a single AI stock.

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