As artificial intelligence reshapes the technology landscape, billionaire investors are not spreading their bets evenly. While some software names have faced sharp selloffs and questions linger over heavily leveraged AI infrastructure builders, capital continues to concentrate in companies providing the essential tools, software, and systems that underpin the AI boom.
Heading into 2027, three tech stocks stand out for their appeal among elite investors. All three carry Buy ratings from Wall Street analysts, with mean price targets suggesting meaningful upside over the next 12 months.
Synopsys: The Semiconductor Design Powerhouse
Synopsys (SNPS) is held by 29 billionaire investors and 85 hedge funds, making it one of the most widely owned tech names among the wealthy. Notable holders include Philippe Laffont's Coatue Management and Jeremy Grantham's GMO, both known for focusing on long-term technology trends rather than short-term market swings.
What likely attracts them is Synopsys' central role in semiconductor development. Each new generation of advanced chips requires increasingly sophisticated design software and intellectual property, giving the company exposure to AI, high-performance computing, and data-center growth without the risk of manufacturing chips itself. Investors also appreciate its recurring software revenue and the expanded footprint from the Ansys acquisition, even as integration and regulatory risks remain.
Datadog: The Cloud Monitoring Leader
Datadog (DDOG) counts 29 billionaire investors and 92 hedge funds among its shareholders, the highest hedge-fund participation of the three. Well-known growth investors such as Coatue Management and Fidelity's investment arm (FMR) have historically favored businesses with durable growth runways.
The attraction is straightforward: as cloud environments and AI applications become more complex, companies need deeper visibility into performance, reliability, and security. Datadog sits directly in that workflow. Strong revenue expansion, rising adoption among large enterprise customers, and substantial cash generation strengthen the bull case. The lingering question is whether GAAP profitability can eventually catch up with the rapid top-line growth.
Hewlett Packard Enterprise: AI Infrastructure with Cash Flow
Hewlett Packard Enterprise (HPE) is also owned by 29 billionaire investors and 85 hedge funds, reflecting continued institutional confidence in its enterprise technology role. Notable investors include activist heavyweight Paul Singer's Elliott Investment Management and quantitative giant Ken Griffin's Citadel Advisors, firms that often seek companies with identifiable catalysts for value creation.
HPE's appeal stems from its combination of AI-linked infrastructure exposure and established cash-generating operations. Demand for AI servers, networking equipment, and hybrid-cloud solutions has helped drive growth, while improving margins suggest management is converting revenue gains into stronger profitability. Investors are also watching whether the Juniper acquisition can create lasting strategic benefits beyond the initial boost to reported results.
These three companies illustrate a broader trend: billionaire investors are favoring firms with tangible AI exposure, recurring revenue, and clear paths to profitability, rather than speculative plays. As the AI cycle matures, such selectivity is likely to persist.
This article is for informational purposes only and does not constitute financial advice.
