The volatility in the tech names in the past weeks serve as a reminder that they can be risky investments. Berkshire Hathaway's (BRK.B - Get Report) Warren Buffett is well-known for his cautious outlook on tech names because he wants to understand a business before he invests in it. "We will not go into businesses where technology, which is way over my head, is crucial to the investment decision," he once said, according to Alice Schroeder's 2008 biography "The Snowball: Warren Buffett and the Business Life."
To help you decide which tech names are worth the risk, TheStreet teamed up with financial analyst ranking website TipRanks to bring you the top stock picks from the top 10 tech analysts. The top analysts were calculated by TipRanks according to their success rate, or the number of their ratings that have generated positive returns, as well as average return per rating and the statistical significance of these results.
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Benchmark's Mark Miller is the number one analyst on TipRanks across all sectors. He has an 84% success rate and 33.8% average return.
Miller reiterated his "buy" rating on computer data storage company Western Digital (WDC - Get Report) on June 21 and gave it a 12-month $135 price target, representing 45% upside from the current share price.
On May 24, Miller wrote a note to investors urging them to focus on the following positives for Western Digital: "The firm's leadership in storage, the double digit CAGR for storage demand and NAND flash, ability to lead the ramp of next generation 3D NAND chips, the execution of its projected synergistic savings, its strong cash generation and modest valuation while ignoring reports or data aimed at generating short-term and often contrived trading volatility."
Canaccord's Richard Davis has a 76% success rate and 25.4% average return. He reiterated a "buy" rating on Twilio (TWLO - Get Report) on June 21 with a $33 price target, representing an 11% upside from current share prices.
Davis wrote in the note that he expects another good September quarter for the company that offers cloud communications platforms. "This could be the catalyst for investors to realize that the end is not near, but in fact, we are still early days in what should be a good long-term fundamental story," he said.
Jefferies' Mark Lipacis has a 79% success rate and a 30.7% average return.
"We currently model that EPYC captures 7% of the server market by EoY18, and the customer announcements today give us a higher conviction in those estimates," he wrote in a note.
Oppenheimer's Glenn Greene has an 83% success rate and a 19.1% average return.
Cognizant is "highly attractive" as its offshoring services continue to gain market share in the IT services market, Green wrote in a recent note. In addition, the company has an advantage over competitors with its North American heritage and focus on customers, he said.
Oppenheimer's Brian Schwartz has a 77% success rate and a 23.7% average return.
Wall Street is underestimating the positive outlook for Instructure's story in the second half of 2017, he wrote in the note. "As our thesis plays out, it has the potential to re-rate INST's valuation multiples higher as sentiment catches up to an improving business story," he said.
Baird's Colin Sebastian has an 80% success rate and 24.2% average return.
Sebastian said that Amazon's ability to quickly build out its air cargo distribution strategy proves how good the company is at logistics and should give it a further competitive edge over other retailers that must rely on outside carriers.
Jefferies' Brian Fitzgerald has an 81% success rate and a 23.1% average return.
On June 22, Fitzgerald reiterated his "buy" rating on Match Group (MTCH - Get Report) , which owns several online dating sites, including Match.com, Tinder, OkCupid, and PlentyOfFish. He gave the company a $23 price target, representing 29% upside.
The recent weakness in Match Group represents a buying opportunity for investors, he wrote in the note. The company remains one of the firm's top mid-cap picks, Fitzgerald wrote. "We feel the discount is unwarranted given MTCH's consistent double-digit rev growth and strong margin profile, which places them in the top quartile of our coverage," he explained.
RBC Capital's Mark Mahaney has a 74% success rate and a 24.2% average return.
Netflix is one of the best companies to invest in to take advantage of the upward trend in online video viewing and in Internet-connected devices, he wrote in the note. In addition, the firm's surveys have picked up on increasing customer satisfaction levels for the company.
Mizuho's Vijay Rakesh has a 75% success rate and a 30% average return.
Cypress continues to be a prime M&A target due to its focus on the automotive and industrial sectors, which is driving improving margins and earnings for the company, he wrote in the note.
Needham's Rajvindra Gill has a 68% success rate and a 22% average return.
The company had a beat for its recent quarterly report that included positive commentary about the global memory pricing environment and demand outlook, he wrote in the note. The company's mobile memory business is also doing well, he said.
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