<div id="readability-page-1">In this article, we will take a detailed look at the Top 10 Tech Stocks with Strong Return on Equity.The stock market exploding from April lows and rallying to record highs is a point of concern. That’s the sentiment echoed at UBS, with the implied intra-day index volatility close to the bottom end of a range, signaling a potential reversal.UBS expects US economic data to deteriorate, which will put significant pressure on the market’s bull run. With the stock market Bull Run likely to pause as economic growth slows, Andrew Garthwaite, Chief Global Equity Strategist at UBS, is calling for caution.<blockquote> “We continue to think August will be a down month as US growth slows but the Fed can’t cut until September,” Garthwaite said. </blockquote>The S&amp;P 500, rebounding from April lows by more than 30% and rallying to record highs, has already given rise to premium valuations. Finding gems that are significantly cheaper than the S&amp;P 500, which is trading at 23 times forward earnings, is already proving to be a challenge, with warnings of a potential reversal.Amid the sky-high valuation, focus is increasingly shifting to companies with an impressive track record of generating and returning value to shareholders. Nevertheless, picking stocks amid the sky-high valuations and looking for value is not easy, according to BNY’s head of market strategy, Robert Savage.Some of the best stocks in an equity market trading at historical highs are those of companies with a return on equity that is equal to or just above the average of the underlying sector. A higher return on equity ratio affirms a company’s ability to generate returns on its shareholders’ capital regardless of the underlying economic cycle.With that in mind, let’s take a look at the Top 10 Tech Stocks with Strong Return on Equity.<img src="https://imageproxy.pbkrs.com/https://imonkey-blog.imgix.net/blog/wp-content/uploads/2021/05/05075445/christina-wocintechchat-com-2JDDn7iSGH8-unsplash-1.jpg/query-YXV0bz1mb3J0bWF0JmV4cGlyZXM9MTc4NjU3OTIwMCZmaXQ9Y2xpcCZoZWlnaHQ9MzIwJndpZHRoPTQ4MA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="830" height="554" original-src="https://imageproxy.pbkrs.com/https://imonkey-blog.imgix.net/blog/wp-content/uploads/2021/05/05075445/christina-wocintechchat-com-2JDDn7iSGH8-unsplash-1.jpg/query-YXV0bz1mb3J0bWF0JmV4cGlyZXM9MTc4NjU3OTIwMCZmaXQ9Y2xpcCZoZWlnaHQ9MzIwJndpZHRoPTQ4MA"/>Our MethodologyTo compile the list of the Top 10 Tech Stocks with Strong Return on Equity (ROE), we scanned the Finviz stock screener for technology companies with a solid track record in generating profits on shareholders capital. We narrowed our focus on stocks with a ROE of more than 40% and that were popular among elite hedge funds (as of Q1 2025). Finally, we ranked the stocks in ascending order based on the stocks return on equity.Why are we interested in the stocks that hedge funds pile into? The reason is straightforward: our research has demonstrated that we can outperform the market by replicating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every.<h2>Top Tech Stocks with Strong Return on Equity</h2><h3>10. CDW Corporation (NASDAQ:CDW)</h3>Return on Equity: 46.39%Number of Hedge Fund Holders: 44CDW Corporation (NASDAQ:CDW) is one of the top tech stocks with a strong return on equity. On August 6, the company declared a quarterly dividend of $0.63 a share. The dividend is to be paid on September 10 to shareholders of record as of August 25. The stock’s dividend yield stands at 1.53%.The quarterly dividend comes on CDW Corporation, delivering impressive second-quarter 2025 results, whereby sales totaled $5.98 billion, representing a 10.2% year-over-year increase. Non-GAAP net income per diluted share increased 3.9% year over year to $2.60 from $2.50 a share a year ago.<blockquote> “We continue to optimize cash flow generation through effective management of our working capital, enabling flexibility across our capital priorities – as shown by our commitment to returning cash to shareholders,” said Albert J. Miralles, chief financial officer, CDW. </blockquote>CDW Corporation (NASDAQ:CDW) is a leading provider of information technology (IT) solutions to businesses, governments, educational institutions, and healthcare organizations. It offers a wide range of products and services, including hardware, software, and IT solutions. It helps customers navigate the complexities of the IT market and maximize their technology investments.<h3>9. Lam Research Corporation (NASDAQ:LRCX)</h3>Return on Equity: 58.24%Number of Hedge Fund Holders: 91Lam Research Corporation (NASDAQ:LRCX) is one of the top tech stocks with a strong return on equity. On July 31, analysts at Stifel reiterated a ‘Buy’ rating on the semiconductor equipment maker and raised the price target to $115 from $110.The stock price target hikes follow Lam Research delivering impressive quarterly results that exceed consensus estimates on revenues and earnings. The solid results were driven by record foundry segment results, backed by strong demand from China and increased NAND upgrades.Stifel expects the strong momentum from Lam Research’s results to continue into the second half of the year. The research firm is projecting higher quarter-over-quarter revenue supported by higher China wafer fabrication equipment spending. Likewise, the research firm expects the company’s revenue to grow by approximately 30% this year, with systems revenue increasing at a significantly higher rate.Lam Research Corporation (NASDAQ:LRCX) is a technology company that designs, manufactures, and services semiconductor processing equipment used in the fabrication of integrated circuits. It focuses on wafer fabrication, providing tools and services for chipmakers to produce smaller, faster, and more efficient electronic devices.Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal! AI is eating the world—and the machines behind it are ravenous. Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink. Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking: Where will all of that energy come from? AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse. Even Sam Altman, the founder of OpenAI, issued a stark warning: “The future of AI depends on an energy breakthrough.” Elon Musk was even more blunt: “AI will run out of electricity by next year.” As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity. And that’s where the real opportunity lies… One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike. As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity. The “Toll Booth” Operator of the AI Energy Boom <ul> <li>It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.</li> <li>It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.</li> <li>It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.</li> </ul> Trump has made it clear: Europe and U.S. allies must buy American LNG. And our company sits in the toll booth—collecting fees on every drop exported. But that’s not all… As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities. AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together. While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes. AI needs energy. Energy needs infrastructure. And infrastructure needs a builder with experience, scale, and execution. This company has its finger in every pie—and Wall Street is just starting to notice. Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation. 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LRCX

This article highlights the Top 10 Tech Stocks with Strong Return on Equity (ROE), emphasizing the importance of ROE in evaluating companies amid high market valuations. UBS warns of a potential market reversal due to expected economic deterioration, urging caution. The list includes companies like CDW Corporation and Lam Research Corporation, both showing impressive ROE and strong financial performance. CDW announced a quarterly dividend, while Lam Research received a price target increase from analysts following strong quarterly results. The focus is on stocks favored by hedge funds to potentially outperform the market.