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In this article, we’ll take a look at 2 of the best technology stocks to buy that institutional investors are buying. Investing in technology stocks is a great way to capitalize on the growth of the tech sector and its potential for future growth. With so many technology companies to choose from, it can be difficult to know where to invest.

What are Technology Stocks?

Technology stocks are shares of publicly traded companies that specialize in the research and development, production, and marketing of technology products and services. These companies tend to have some of the highest potential for growth as the demand for their products and services increase.

Who are Institutional Investors?

Institutional investors are large organizations that pool together funds from numerous investors to invest in various financial assets, such as stocks, bonds, real estate, and commodities. Examples of institutional investors include pension funds, insurance companies, mutual funds, hedge funds, and endowments. These investors typically have significant financial resources and may have investment goals such as long-term growth, income generation, or risk management. They often have professional investment teams who use various investment strategies and tools to achieve their goals.

The Best 2 Technology Stocks to Buy

The 2 best technology stocks to buy are STMicroelectronics and SunPower, according to how much institutional investors are increasing their long positions over the previous 3-month period.

1. STMicroelectronics ($STM) – STMicroelectronics is a global semiconductor company that designs and manufactures a broad range of semiconductor products, including microcontrollers, sensors, analog and power management ICs, and other electronic components. The company serves a wide range of markets, including automotive, industrial, consumer electronics, telecommunications, and computer peripherals. STMicroelectronics is known for its high-quality products, innovative technologies, and commitment to sustainability.

The 3-month change in institutional investor ownership is 42.68% over the previous 3-month period. This suggests that institutional investors are accumulating $STM stock.

On February 21, 2023, STMicroelectronics expanded its STM32 family of advanced microcontrollers (MCUs) with extra STM32U5 devices that raise performance while squeezing power consumption for longer runtimes and energy efficiency. The STM32U5 has also received NIST embedded random-number entropy source certification; the industry’s first to receive this endorsement. The new MCUs extend the range of code and data storage to 128Kbyte Flash for cost-sensitive applications, while also adding high-density versions for complex applications and sophisticated smartphone-like user interfaces. Among these, the STM32U59x/5Ax with 4Mbyte Flash and 2.5Mbyte SRAM has the largest on-chip memory of any STM32 MCU to date. With their increased capabilities, the new MCUs enhance deeply embedded applications like environmental sensors, industrial actuators, building automation, smart appliances, wearable devices, eMobility controls, and others, especially in remote, difficult to access locations. As billions of such devices are being deployed worldwide for smart living and working, ST’s new MCUs accelerate progress by boosting performance, enhancing energy efficiency, and strengthening cybersecurity.

2. SunPower ($SPWR) – SunPower is a company that designs and manufactures high-performance solar panels and systems for residential, commercial, and utility-scale customers. They offer complete solar solutions, including solar panels, inverters, energy storage systems, and monitoring software. SunPower has a strong focus on sustainability and clean energy, and their products are designed to maximize energy efficiency and reduce carbon emissions. Additionally, they provide financing and installation services for their solar systems.

The 3-month change in institutional investor ownership is an incredible 141% over the previous 3-month period! This suggests that institutional investors are accumulating $SPWR stock with both hands! Institutional investors have picked this as one of their technology stocks to buy and if they are buying so should we.

On February 15, 2023, SunPower reported Q4 adjusted EPS of 15c versus the consensus estimate of 13c. The company reported Q4 revenueThe income statement provides a summary of a company's revenue and expenses over a specified period of time, typically a year or a quarter. It shows the company's total revenue, th... of $497M versus the consensus estimate of $488.31M. “Solar helps customers reduce and stabilize their escalating electricity bills while making a positive impact on the planet. With more consumers transitioning toward full home electrification, and new incentives to support that transition, the solar value proposition is more compelling than it’s ever been,” said Peter Faricy, SunPower CEO. “This is evident in our 2022 results: we beat our topline guidance for customer growth, closing the year with SunPower on more than half a million roofs in the U.S. We enter 2023 with our lowest level of net debt since first issuing convertible debt after the IPO over 15 years ago, diverse new supply agreements, and a clear strategy to remain the industry leader in customer experience.”

Conclusion

Technology stocks are a great way to capitalize on the growth of the tech sector and its potential for future growth. With so many technology companies to choose from, it can be difficult to know where to invest. However, by doing your research and picking stocks that institutional investors are buying, you can increase your chances of success.

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