In this article, we will look at the 10 Best American Stocks To Buy and Hold in 2025.
Will the Market Continue To Be Bullish in 2025?
Wall Street’s outlook for the stock market in 2025 reflects a cautious optimism following two consecutive years of substantial gains. Analysts predict continued growth, however at a more moderate pace compared to the explosive increases of 2023 and 2024. According to a report by CNN, published on January 1, strategists anticipate a 14.8% increase in the S&P 500 for 2025, which is significant but lower than the previous years’ performances. The Index saw gains of approximately 23% in 2024 and 24% in 2023. As per the report 2025 marks a return to typical growth rates after an extraordinary period of high returns, which has not been seen since the late 1990s.
While several factors are expected to contribute to the market growth, there are potential risks that can hinder it. One of the key factors contributing to growth is the anticipated business-friendly policies under President-elect Donald Trump. Dan Ives, who is a technology senior analyst at Wedbush Securities in his December 30 note mentioned his expectations that tech stocks can rise 25% in 2025 due to less regulation under the Trump administration. The analyst has picked Technology and Artificial Intelligence (AI) stocks as his best performers for the year.
On the other hand, there are potential risks that could negatively impact the stock market. For instance, the uncertainty surrounding Trump’s policy decisions may create a volatile environment for markets. Traders are particularly wary of how proposed tariffs could affect economic stability and investor confidence. David Sekera from Morningstar emphasizes that the implementation of tariffs is a significant wildcard that could sway market performance in either direction. We recently covered the analysis of Jurrien Timmer, Director of Global Macro at Fidelity Management & Research Company in our article titled, 12 High Growth International Stocks to Invest in Now. Here’s a piece from our coverage:
“While talking about large-cap stock performance, Timmer raises the question of whether this trend of narrow leadership will persist. He suggested that trends continue to move in the same direction until a significant change occurs. Given that large-cap growth stocks have dominated for years, it is reasonable to assume that they may continue to lead. However, he also cautioned the investors that as per the concept of mean reversion, asset prices will eventually return to their historical averages and when this happens, it could lead to sharp corrections in stock prices. Timmer believes that while 2024 was a “Goldilocks year,” for earnings and valuations, this year can be a tussle between higher earnings and rising long-term interest rates, thereby resulting in a volatile market.”
With that let’s take a look at the 10 best American stocks to buy and hold in 2025.
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Our Methodology
To get the list of the 10 best American stocks to buy and hold in 2025, we used Insider Monkey’s third-quarter hedge funds database. Using the database we ranked the top 10 American stocks in ascending order of the number of hedge funds holding stakes in them.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best American Stocks To Buy and Hold in 2025
10. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 128
Broadcom Inc. (NASDAQ:AVGO) is a technology giant based in America. It is known for its semiconductors and software solutions. The primary focus of the company has been to develop custom chips which are the powerhouse for data centers and the AI industry.
The year 2024, was good for the company as it experienced significant demand coming from artificial intelligence. As a result, the stock rallied more than 97%. During the fiscal fourth quarter of 2024, the demand for Broadcom Inc. (NASDAQ:AVGO) XPUs and networking solutions led its revenue higher by 51% year-over-year to $14.05 billion. More notably, its AI revenue grew more than 220% year-over-year driven by the acquisition of VMware. Vijay Rakesh, analyst at Mizuho, has raised his price target for the stock to $260 from the previous target of $245. The analyst has placed Broadcom Inc. (NASDAQ:AVGO) as his top pick for the year and we rank it as the 10th best American stock to buy and hold in 2025.
Munro Global Growth Fund stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its Q4 2024 investor letter:
“Broadcom Inc. (NASDAQ:AVGO) contributed 94bps to Fund performance for the quarter. Broadcom is a fabless semiconductor company that designs semiconductors for a range of different industries and applications, based in Palo Alto, California. The company plays an important role in providing semiconductors for AI, specifically, they provide hyperscale data center companies custom silicon chips. Over time, as companies such as Meta, Alphabet, Amazon, and Microsoft build out their AI offering, the critical semiconductor content will come from both custom silicon chips, designed by companies such as Broadcom, and merchant silicon chips, designed by Nvidia. Depending on the use case, or workload, the hyperscaler will use either a custom silicon semiconductor or a merchant silicon semiconductor. Therefore, over time we expect AI processes to be driven by both Nvidia-designed chips and custom-designed chips from Broadcom and its peers.
On their recent earnings call, Broadcom CEO Hock Tan confirmed that the company’s customers are rapidly pursuing the development of a 1 million XPU cluster of chips. To translate what this means for Broadcom, Hock laid out the Serviceable Addressable Market (SAM) opportunity for the company’s AI revenues over the next 3 years to 2027. In 2024, Hock noted that Broadcom’s SAM was $15-20bn USD, of which the company commanded an approximate 70% share. In 2027, that SAM is expected to grow to $60-90bn USD, and assuming Broadcom captures an approximate 60% share, this gives rise to $50bn USD of AI revenue opportunity for the company over the next 3 years. For the company overall, this means that revenue has the potential to double over the next 3 years. We believe the technology road map outlined by Broadcom and the resulting revenue opportunity gives rise to a multi-year runway of earnings growth backed by a large structural change.”
9. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders: 131
Mastercard Incorporated (NYSE:MA) is the second-largest payment processor in the world. The company handled more than $9 trillion in transactions in 2023 and has surged more than 21% over the past year, mainly on the back of increased digital and cross-border payments. It operates in more than 200 countries handling cross-border transactions in more than 150 currencies.
Arvind Ramnani, analyst at Piper Sandler on January 24 maintained his Buy rating on the stock and kept his price target of $591 for MA stock. During the fiscal third quarter of 2024, Mastercard Incorporated (NYSE:MA) noted that they are experiencing significant growth and are expanding their services. Management shared their plans of acquiring Recorded Future and Minna Technologies. The company has already finalized its deal to acquire Recorded Future for $2.65 billion. Recorded Future is a leading threat intelligence company with over 1,900 clients across 75 countries, including many Fortune 100 companies and government entities. The acquisition will enhance Mastercard Incorporated’s (NYSE:MA) capabilities in identifying and mitigating cyber threats, which are increasingly important as digital transactions grow.
The company is committed to capitalizing on the shift towards electronic payments. This includes enhancing its presence in commercial payments and exploring new payment flows. During the third quarter, it reported a 14% increase in net revenues and a 13% rise in adjusted net income compared to the previous year, driven by increased consumer spending and cross-border transactions. It is one of the best American stocks to buy and hold in 2025.
Montaka Global Investments stated the following regarding Mastercard Incorporated (NYSE:MA) in its Q3 2024 investor letter:
“Montaka owns several duopolists in the financial services industry, including Visa and Mastercard Incorporated (NYSE:MA) in payments; and S&P Global in credit ratings and financial data services. These businesses have competitively protected and reliably growing core businesses. But they also have newer, high-probability adjacent opportunities. The market, however, is underappreciating this powerful combination, in our view.
For Visa and Mastercard, their core businesses in global payment processing are being complemented by significant growth in two areas:
New processing opportunities in peer-to-peer, business-to-business, business-to-consumer, and government-to-consumer payments; and
Value-added services, including risk, fraud-detection, issuance, acceptance, and open banking.”
