3 Blue-Chip Tech Stocks Attracting Institutional Investor Attention


  • These three blue-chip tech stocks are attracting significant institutional investor interest due to their strong fundamentals and growth prospects.
  • Amazon (AMZN): The e-commerce and cloud giant received 41 ratings from analysts recently – all were “Buy.”
  • Fiserv (FI): This fintech leader’s long-term bank partnerships are fueling institutional attention.
  • NetApp (NTAP): Data infrastructure player NetApp is riding the AI wave and drawing investments.
blue-chip tech stocks - 3 Blue-Chip Tech Stocks Attracting Institutional Investor Attention

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Institutional investment into a particular stock can be seen as a very bullish indicator by many investors. When large funds and financial institutions invest capital into a company all at once, it shows they see real long-term potential and have done extensive research validating that thesis. While individual retail traders will never match the immense resources dedicated to research by these professional investment firms, we can gain useful insight by paying attention to the blue-chip tech stocks attracting their interest.

However, it’s important to remember that even institutions with armies of analysts sometimes get it wrong. Simply following the herd should not be an investment strategy on its own. A closer look at a few names drawing heavy institutional buying can provide valuable perspective. Retail traders can gain knowledge by examining the business fundamentals and competitive positioning that led sophisticated funds to invest, even if we do not mimic every move.

The tech sector has handily outperformed the broader market in recent years, delivering some of the largest returns, so it makes sense for investors to take note. Here are three blue-chip stocks that have secured significant attention from institutions recently:

Amazon (AMZN)

Closeup of the Amazon logo at Amazon campus in Palo Alto, California. The Palo Alto location hosts A9 Search, Amazon Web Services, and Amazon Game Studios teams. AMZN stock
Source: Tada Images / Shutterstock.com

Amazon (NASDAQ:AMZN) is one of the biggest blue-chip tech stocks out there, so it naturally sees a lot of buying from institutional investors. I will move on to cover more under-the-radar companies, but I think the bullish sentiment here is very impressive. This company received 41 ratings from institutional analysts in the past three months, and every single one was a “Buy.” I cannot think of any tech stock that receives this much positivity from many analysts.

And rightly so, since Amazon has a very transparent growth runway ahead with solid profits. It is a diversified company that benefits from e-commerce, cloud, and AI, with EPS expected to quadruple over the next decade. It beat EPS estimates by 17.6% in Q1.

AMZN EPS. blue-chip tech stocks
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Source: Chart courtesy of GuruFocus.com

Moreover, investors purchased 676,766 call options on Thursday. This represents an increase of 27% compared to the average volume of 533,724 call options. Cambridge Trust Co., Western Wealth Management LLC, Gray Wealth Management Inc., Dock Street Asset Management Inc. and AIA Group have recently boosted their AMZN holdings.

Fiserv (FI)

Fiserv (NYSE:FI) is a financial technologies company specializing in payment processing. The broader fintech sector has performed poorly over the past few years due to banks’ unwillingness to experiment and rate hikes, dampening payment volumes. However, Fiserv has been a standout performer as the company already has long-standing contracts with large banks and has outperformed the broader market by gaining 81.5% over the past five years.

Fiserv outperformance
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Source: Chart courtesy of GuruFocus.com

Its recent earnings report did miss revenue by 0.8%, but its EPS beat by 5%, and better EPS guidance has kept Wall Street bullish. Van ECK Associates Corp, International Assets Investment Management LLC, Kestra Private Wealth Services LLC, and Victory Capital Management Inc. bought more FI stock. Citigroup also recently raised its price target to $180. It’s definitely one of the blue-chip tech stocks institutions like!

NetApp (NTAP)

7 Tech Industry Dividend Stocks for Growth and Income
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NetApp (NASDAQ:NTAP) is a cloud data infrastructure company. It should be easy to see why the market is bullish here. The AI hype wave over the past year and a half has caused the data sector to boom, and this explosive growth has been going on way before AI even became a mainstream topic. With new AI models like OpenAI’s Sora and Microsoft’s (NASDAQ:MSFT) own MAI-1 coming along, I expect to see even more demand for data in the coming years.

NTAP segments. blue-chip tech stocks
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Source: Chart courtesy of GuruFocus.com

The stock has gained over 71% in the past year alone. However, I will point out that the growth going forward is unlikely to be as stellar. Analysts actually expect revenue to dip by 1.7% this year before growing by around 4.2% next year. EPS growth is better, but it is still not something I would be excited about. This company can still greatly outperform due to its presence in the AI space. First Horizon Advisors Inc., Van ECK Associates Corp, and First Trust Direct Indexing L.P. were some recent institutions that invested in the stock.

On the date of publication, Omor Ibne Ehsan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor with a focus on growth and cyclical stocks that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as cryptocurrencies and penny stocks. You can follow him on LinkedIn.

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