In this article, we discuss 10 best blue chip stocks to buy for 2025.
Both conservative and risk-tolerant investors favor blue chip stocks due to their solid business models, impressive track records, and attractive risk-reward profiles. These stocks are backed by companies with strong brand names and reputations that generate dependable earnings and consistent dividends, which provide stability and passive income during turbulent market conditions.
In recent years, Wall Street has become reliant on the best blue chip stocks. While the S&P 500 was up by about 24% in 2024, most of the gains were driven by gains in seven of the biggest blue chip stocks. The “Magnificent 7” stocks, which include seven of the biggest companies by market cap, accounted for a 13.7% point gain in the S&P 500. Therefore, investors who focused on these stocks ended up generating significant gains.
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The trend is not expected to change in 2025. Blue chip companies should be the biggest beneficiary as the Federal Reserve cuts interest rates and the new administration under Donald Trump pushes for fewer regulations. The easing of regulatory pressure that has taken a significant toll on tech giants should be a boon to see blue chip stocks edge even higher. David Miller, co-founder at Catalyst Funds, expects blue chip stocks to continue leading the way in 2025.
“The Mag 7 stocks are generating significant growth in terms of revenue and earnings power,” he said earlier this month. “These companies are massive monopoly businesses with strong fundamental tail winds. I have no reason to believe that the Mag 7 names won’t continue to dominate the S&P in 2025.”
Valuations among the blue-chip stocks have gotten out of hand after two years of blockbuster gains amid the artificial intelligence frenzy. Blue chip companies boast significant profits and a competitive edge to back their valuations up, however.
“The Magnificent Seven are not pie-in-the-sky companies: They’re generating “tremendous” revenue for investors”, said Fitzgerald, principal and founding member of Moisand Fitzgerald Tamayo. “How much more gain can be made is the question,” he added.
Therefore, any well-diversified investment portfolio should include some of the best blue chip stocks. It’s the only way investors can take advantage of the market rally that’s driven by various factors, including the artificial intelligence frenzy, robust economic growth and friendly monetary policy.
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Our Methodology
To make our list of the 10 best blue chip stocks to buy for 2025, we analyzed the market, focusing on large market cap companies (more than $100 billion) with well-established, financially sound businesses. We then examined their performance over the past year, focusing on the underlying fundamentals that make them stand out. Finally, we ranked these companies in ascending order based on their 12-month return in 2024.
At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. 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 Blue Chip Stocks to Buy for 2025
10. Microsoft Corporation (NASDAQ:MSFT)
Market Cap as of January 8: $3.16 Trillion
Past Year Gain (2024): 13%
Number of Hedge Fund Holders: 279
Microsoft Corporation (NASDAQ:MSFT) is a technology company that develops and provides software, services, and devices worldwide. While the company underperformed other blue chip stocks by appreciating just 13% in 2024, the massive artificial intelligence growth potential affirms its long-term prospects.
Microsoft Corporation (NASDAQ:MSFT) is in a strong position to profit from a number of AI-centric end markets, including cloud computing, personal computers (PCs), and workplace productivity. Its AI business is on track to surpass an annual revenue run rate of $10 billion, which will make it the fastest company in history to reach the milestone.
Furthermore, the increasing use of AI services in the cloud is already benefiting its cloud unit Azure. In the first quarter of fiscal 2025, Microsoft’s Intelligent Cloud revenue climbed 20% year-over-year to $24.1 billion, primarily due to a 23% increase in revenue from the Azure cloud service. AI already has a big impact on Microsoft’s cloud business, as evidenced by the fact that it accounted for 12 percentage points of Azure’s growth during the quarter. While global cloud spending is expected to hit $2 trillion by 2030, Microsoft Corporation (NASDAQ:MSFT) should be one of the biggest beneficiaries as it commands a 25% market share. Consequently, its revenue in the industry could rise to about $400 billion, allowing it to generate more shareholder value.
9. Visa Inc. (NYSE:V)
Market Cap as of January 8: $605.34 Billion
Past Year Gain (2024): 19%
Number of Hedge Fund Holders: 165
Visa Inc. (NYSE:V) is a payment technology company that offers VisaNet, a transaction processing network that enables authorization, clearing, and settlement of payment transactions. While the company operates in a highly cyclical sector susceptible to varying economic conditions, its stock has remained resilient.
The competitive edge stems from the company’s focus on payment facilitation and operating the world’s biggest credit card network. It collaborates with 14,500 financial institution partners and powers 4.5 billion cards globally. The massive network allowed the company to process almost $16 trillion in payments last year.
Visa Inc. (NYSE:V) generates significant revenues in fees regardless of prevailing economic conditions. In contrast, its other peers that engage in lending suffer immensely during recessions on having to cover for loan losses and delinquencies. Additionally, Visa’s edge stems from expanding its footprint across the globe. It remains one of the best blue chip stocks to buy, as the company has enjoyed sustained double-digit growth in cross-border volume in emerging markets.
Since going public in 2008, the company has distributed dividends. It currently distributes a quarterly dividend of $0.52 per share, translating to a 0.73% yield. Although the yield might not seem impressive, Visa Inc. (NYSE:V) has a solid dividend-raising history, 15 years and counting.
Montaka Global Investments stated the following regarding Visa Inc. (NYSE:V) in its Q3 2024 investor letter:
“Montaka owns several duopolists in the financial services industry, including Visa Inc. (NYSE:V) and Mastercard 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.”
8. Eli Lilly and Company (NYSE:LLY)
Market Cap as of January 8: $707.96 Billion
Past Year Gain (2024): 26%
Number of Hedge Fund Holders: 106
Eli Lilly and Company (NYSE:LLY) is a company that discovers, develops, and markets human pharmaceuticals worldwide. It is one of the best blue chip stocks for 2025 amid growing demand for weight loss and diabetes treatment options. The company boasts of a robust pipeline of glucagon-like peptide-1 (GLP-1) receptor agonist drugs.
Eli Lilly and Company’s (NYSE:LLY) Mounjaro and Zepbound drugs are proving effective in helping patients lose weight, attracting billions of dollars in revenues. Mounjaro revenue more than doubled to $3.11 billion in Q3 as Zepbound added an additional $1.26 billion. Mounjaro stands out in helping patients with type 2 diabetes improve blood sugar, while Zepbound is effective in weight loss in obese adults.
Eli Lily’s long-term outlook remains solid, with management having projected a 50% year-over-year revenue increase for Q4. Strong demand for drugs is the catalyst behind the company’s increasing production capacity as it also looks to diversify its revenue streams with expansion into new international markets. Eli Lilly and Company (NYSE:LLY) is also in the process of investing $20 billion to build, upgrade and acquire manufacturing facilities as it looks to fulfill the ever-increasing drug orders.
7. Apple Inc (NASDAQ:AAPL)
Market Cap as of January 8: $3.67 Trillion
Past Year Gain (2024): 31%
Number of Hedge Fund Holders: 158
Apple Inc (NASDAQ:AAPL) is a leading player in designing, manufacturing, and marketing smartphones, personal computers, tablets, wearables, and accessories. It is also one of the best blue chips to buy for 2025, as it has built brand authority and pricing power on the development of some of the most sought-after products and services.
While growth around the flagship iPhone product line appears to have stagnated in recent years, things are poised to change. Apple Inc’s (NASDAQ:AAPL) investment in innovative areas like artificial intelligence has already introduced new features and services integrated into the smartphone.
Apple Intelligence, a collection of tools and services that assist users with a variety of tasks like writing emails, summarizing notifications, and managing appointments, was recently introduced on its newest devices. Therefore, AI integration in the iPhone is expected to be the catalyst that should accelerate the iPhone sales growth rate by giving people a reason to upgrade.
In addition to hardware sales, Apple Inc (NASDAQ:AAPL) also boasts of a robust service segment fronted by App Store, AppleCare, Apple Pay, iCloud storage, and subscription products. The company is increasingly monetizing the service sector and it has emerged as one of the fastest revenue growth drivers.
Parnassus Growth Equity Fund stated the following regarding Apple Inc. (NASDAQ:AAPL) in its Q3 2024 investor letter:
“Apple Inc. (NASDAQ:AAPL) shares rose during the quarter, making our underweight position a relative detractor. Investors reacted positively to the new iPhone 16 lineup and its advanced features, including generative artificial intelligence, greater durability and increased processing power.”
6. Alphabet Inc. (NASDAQ:GOOGL)
Market Cap as of January 8: $2.38 Trillion
Past Year Gain (2024): 38%
Number of Hedge Fund Holders: 202
Alphabet Inc. (NASDAQ:GOOGL) is an internet content and information giant that offers various products and platforms. It is one of the best blue chip stocks to buy for 2025 as it continues to take advantage of the over 2 billion users across all its products, including Search, Google Maps, Gmail and YouTube. Consequently, the company is able to rake in billions of dollars in advertising by monetizing the user base. As interest rates drop and the global economy stays clear of recession, the company continues to attract more advertising campaigns and generate more in ad revenues in 2025.
In addition to advertising, Alphabet Inc. (NASDAQ:GOOGL) is the third largest cloud solutions provider. Nevertheless, its cloud unit is the fastest growing, having grown by 35% in the third quarter, faster than Amazon’s 19% growth. The cloud unit is also contributing to the bottom line, with its operating profit having exploded to $1.9 billion in Q3 from $266 million a year ago.
Alphabet Inc.’s (NASDAQ:GOOGL) long-term prospects look solid as it invests in advanced technologies like artificial intelligence. Integrating new AI features in search and cloud should strengthen its competitive edge, generating more revenues. Likewise, it should continue generating more cash flow, having generated $55 billion last year.
5. Amazon.com, Inc. (NASDAQ:AMZN)
Market Cap as of January 8: $2.34 Trillion
Past Year Gain (2024): 47%
Number of Hedge Fund Holders: 286
Amazon.com, Inc. (NASDAQ:AMZN) is arguably one of the best blue chip stocks to buy, as it is a market leader in e-commerce and cloud computing. While the stock was up by about 47% in 2024, there is room for additional gains owing to the investments the company is making to strengthen its growth metrics and long-term prospects. While the company dominates e-commerce with over 200 million prime members, it’s also pursuing growth in other promising markets, including advertising and cloud computing.
The cloud services business has emerged as a key growth driver, following the 19% revenue increase in the third quarter. Amid the artificial intelligence revolution, companies are accelerating their migration to the cloud, much to the benefit of Amazon.com, Inc. (NASDAQ:AMZN) as the leading cloud solutions provider. Additionally, advertising is another frontier that affirms the company’s long-term prospects.
Merchants increasingly pay Amazon.com, Inc. (NASDAQ:AMZN) to buy sponsored ads and get their products to the over 200 million Prime members. Consequently, advertising has emerged as the fastest-growing revenue stream, having brought in $53 billion in revenues last year. Additionally, the company should continue generating robust sales as a leader in e-commerce, as the market is valued at over $4.1 trillion.
4. Tesla, Inc. (NASDAQ:TSLA)
Market Cap as of January 8: $1.27 Trillion
Past Year Gain (2024): 68%
Number of Hedge Fund Holders: 99
Tesla, Inc. (NASDAQ:TSLA) is an auto manufacturer that designs, develops, leases, and sells electric vehicles, energy generation and storage systems. It is one of the best blue chip stocks to buy for diversifying an investment portfolio amid growing demand for electric vehicles. The company’s outlook is looking increasingly positive especially on EV sales in China, increasing by 8.8% in 2024. The increase came in one of the most challenging years as the US EV giant faces regulatory challenges and stiff competition.
Tesla, Inc.’s (NASDAQ:TSLA) total EV deliveries in 2024 totaled 1.79 million vehicles. Robust sales have positioned the company to continue generating free cash flow. In the third quarter, its free cash flow increased 233% to $2.7 billion, pushing cash and investments to $33.6 billion. Investors are placing bets that the company’s development of hardware and artificial intelligence software will result in an autonomous network of Tesla cars, giving it a new source of income akin to Uber.
While electric vehicle sales continue to drive free cash flow growth, Tesla, Inc. (NASDAQ:TSLA) is also well positioned to capitalize on generational growth opportunities in categories including self-driving vehicles, batteries, and robotics.
3. Meta Platforms Inc (NASDAQ:META)
Market Cap as of January 8: $1.54 Trillion
Past Year Gain (2024): 71%
Number of Hedge Fund Holders: 235
Meta Platforms Inc (NASDAQ:META) is a communication services juggernaut that owns and operates four of the most used social networking apps. The company’s edge as one of the best blue chip stocks to buy for 2025 stems from its flagship apps commanding billions of daily active users. Facebook, Instagram, WhatsApp and Messenger are the apps that are strengthening the social networking juggernaut’s prospects in the burgeoning digital advertising sector.
The company’s advertising revenues are rising as the macro environment stabilizes on lower interest rates. Additionally, Meta Platforms Inc (NASDAQ:META) is attracting more spending from Chinese gaming and e-commerce companies looking to target its massive user base across various platforms. In addition, artificial intelligence greatly benefits the company’s advertising tools.
The fact that over 1 million advertisers are already using Meta Platforms Inc (NASDAQ:META) generative-powered tools affirms the company’s growth prospects in the lucrative digital advertising landscape. While the Reality Labs division is yet to turn profitable, things should change with the integration of AI features. The company is launching AI-powered Ray Ban smart glasses, which are expected to provide another solid revenue stream beyond digital advertising.
Here is what Hardman Johnston Global Equity said about Meta Platforms, Inc. (NASDAQ:META) in its Q3 2024 investor letter:
“During the quarter, we initiated one new position in Meta Platforms, Inc. (NASDAQ:META) and had no liquidations. Management at Meta has effectively addressed concerns about investment efficiency by shifting resources from Reality Labs towards broader AI initiatives with a clearer path to profitability. We believe management has successfully articulated the benefits of this strategy, highlighting how AI is driving user engagement and advertiser productivity. This, in turn, fuels continued revenue momentum and increases the likelihood of positive earnings surprises in the future. Additionally, the parent company of the social media platform, Facebook, has recently taken positive steps to enhance safety, which suggests to us a shift towards a more proactive and responsive approach to addressing important potential challenges and concerns. Weak oversight over data privacy protection was a key reason why we sold the position in the portfolio back in 2021. Removing this governance overhang allows us to feel comfortable to enter back into the stock at a time when we believe it is poised for strong earnings growth going forward.”
2. Netflix, Inc. (NASDAQ:NFLX)
Market Cap as of January 8: $374.03 Billion
Past Year Gain (2024): 81%
Number of Hedge Fund Holders: 121
Netflix, Inc. (NASDAQ:NFLX) is an entertainment giant that offers people the ability to stream TV series, documentaries, feature films, and games across various genres and languages through internet-connected devices. It stands out as one of the best blue chip stocks to buy, having invested billions of dollars into its original content and striking deals with some of the biggest stars to strengthen its streaming library.
In addition to focusing on developing original content, Netflix, Inc. (NASDAQ:NFLX) has also ventured into the world of live sporting events. The expansion drive has allowed it to attract more users to its platform, therefore attracting billions of dollars in subscriptions. With more than 283 million paid subscribers on the platform, Netflix’s revenue base is growing faster, which should allow it to generate more shareholder value.
In addition to generating revenues through subscriptions, Netflix, Inc. (NASDAQ:NFLX) is also looking to diversify its revenue base. It has already launched an advertising tier. The lower-price subscription plan has been the catalyst behind increased paid subscribers. In return, it has allowed the company to attract more advertisers to the platform, therefore generating advertising revenues. Although management stated that it does not anticipate advertising to be a significant driver of revenue growth in 2025, the company’s advertising business is beginning to scale and is expanding rapidly.
1. NVIDIA Corporation (NASDAQ:NVDA)
Market Cap as of January 8: $3.43 Trillion
Past Year Gain (2024): 164%
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) is a semiconductor company that provides graphics, computing and networking solutions. It remains one of the best blue chip stocks for 2025 as a market leader amid the artificial intelligence race. As a leading provider of graphics processing units used in powering data centres and other AI models, the company is reaping big in revenues and profits.
While the stock was up by over 164% in 2024 and trading close to it’s all-time highs, NVIDIA Corporation (NASDAQ:NVDA) still has some room for growth. It remains one of the top picks in the AI space as companies race against time to develop, invest, and offer customers various AI-related services. Demand for its Hopper chips has been off the charts, with the momentum showing no signs of slowing down.
Likewise, the launch of the Blackwell architecture is poised to take NVIDIA Corporation (NASDAQ:NVDA) to new heights, given the tremendous interest from customers. According to Chief Financial Officer Colette M. Kress Blackwell, demand is extremely high, prompting the company to scale supply. While the company achieved a 94% increase in revenue in the third quarter, the growth rate is poised to increase significantly as soon Blackwell hits the market. Similarly, Nvidia generates significant profits based on its 62% operating margin.
While we acknowledge the potential of NVIDIA Corporation (NASDAQ:NVDA) as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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