In this article, we will take a look at the 10 best future stocks for the long term.
A Soft Landing is More than Likely
The Fed plans to initiate rate cuts for the first time in over four years and investors do not know what to expect of the financial markets moving forward. On September 17, Stephen Juneau, Bank of America US economist, appeared in an interview on Yahoo Finance to discuss the impact of an unexpected growth in consumer spending on the economy.
Juneau reiterated that economic data is highly volatile and that the retail data released this morning will not impact the Fed’s rate cut decision tomorrow, and he expects the Fed to stick to a 25-basis point cut. As for consumer behavior, the economy is finally moving toward normalization and the consumer’s basket of goods reflects that. These indications, the increasing labor demand, and a stable investment outlook hint that a hard landing is highly unlikely.
The Outlook of Investing Amid Rate Cuts
On September 17, Eric Freedman, US Bank Asset Management Group CIO, appeared in an interview on Yahoo Finance to discuss the rate cut and how investors view investing. Freedman said that the rate cut depends on the Fed’s path, therefore an accurate prediction may not be possible at the moment.
Freedman talks about investment from an individual perspective, suggesting investors must move out of the front end of the yield curve. He then pointed to sectors that are currently providing value to investors, including the consumer discretionary sector, some parts of the energy sector, and tech, especially because investments in the sector are predicted to grow rapidly, well into 2025.
He then discussed what companies need to do to attract investors. Freedman emphasized the need for strong financials and suggested that companies should engage in buybacks or consider increasing dividends. The perfect combination of stocks, according to Freedman, includes companies that are returning cash and seeing strong organic growth.
The future of the economy and the financial market is quite unpredictable. However, some stocks can influence the market not just now, but also in the future. With that, let’s take a look at the best future stocks for the long term.
A senior executive looking up at a large boardroom filled with the stocks their company manages.
Our Methodology
To come up with the 10 best future stocks for the long term we looked up growth stocks in the AI, Cloud, Cybersecurity, Biotechnology, Electric Vehicle, and Renewable Energy industries. We then ranked the stocks with the highest number of hedge funds as of Q2 2024.
Why are we interested in 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 Future Stocks For The Long-Term
10. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 69
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a cybersecurity company that ranks 10th on our list of the best future stocks for the long term. The company provides a range of security products including identity management, threat intelligence, and threat detection.
The company provides services to more than 29,000 clients across the globe in multiple sectors including healthcare, retail, technology, and the government. Some of its major clients include tech giants like Amazon and Google, reiterating its strong position in the market. Its AI native cybersecurity platform, Falcon is its primary product. The company’s cloud security segment logged $515 million in revenue, growing at a rapid pace of 80% year-over-year, in FQ2 2025.
The July 19 incident changed everything for the company. Despite that, CrowdStrike Holdings, Inc. (NASDAQ:CRWD) has been resilient and showcased transparency and accountability to its customers. Annual recurring revenue for the second quarter of 2024 was $3.86 billion, up by 32% year-over-year. While the company may face delays in closing deals in the second half of 2024, the deals shall remain in the pipeline.
Analysts are bullish on CRWD and their 12-month median price target of $315 points to a 17% upside from current levels. Overall, CRWD was held by 69 hedge funds at the close of Q2 2024 with total stakes amounting to $3.01 billion. As of June 30, Citadel Investment Group was the largest shareholder with a position worth $574.6 million.
9. NextEra Energy, Inc. (NYSE:NEE)
Number of Hedge Fund Holders: 73
NextEra Energy, Inc. (NYSE:NEE) is a prominent renewable energy company and we say that because at the end of Q2 2024, 73 hedge funds were bullish on the stock with total stakes amounting to $2.1 billion. The company generates, transmits, distributes, and sells electric power, generated through wind, solar, nuclear, and natural gas, across North America.
NextEra Energy, Inc. (NYSE:NEE) provides its services across two major segments including Florida Power & Light (FPL), an electric utility business, and NextEra Energy Resources (NEER), a clean energy producer. FPL accounts for the majority of its revenue. It delivers reliability 66% better than the national average and has residential bills 40% below the national average.
The company is on our list because of the value it provides to customers. Since 2001, NextEra Energy’s (NYSE:NEE) modernizations have saved customers more than $16 billion in fuel costs. During the second quarter of 2024, the company added more than 3,000 megawatts of new renewables and storage. Of this, 860 megawatts came from its agreements with Google to meet its data center power demand. To capitalize on its strategic investments, NextEra Energy (NYSE:NEE) plans to invest somewhere between $8 billion and $8.8 billion in capital expenditures for the fiscal full year 2024.
ClearBridge Investments’ ClearBridge Large Cap Growth Strategy stated the following regarding NextEra Energy, Inc. (NYSE:NEE) in its Q2 2024 investor letter:
“AI-related momentum was a key driver of performance in the second quarter, lifting the enablers in technology as well as holdings like renewable power producer NextEra Energy, Inc. (NYSE:NEE) that supply the increasing energy needs of data centers. Parts of the market lacking an AI connection, like our medical device holdings, underperformed despite no change to fundamentals. We have managed through several similar momentum periods over our tenure and have delivered long-term results for shareholders by staying true to an approach that emphasizes diversification across three buckets of growth companies (select, stable and cyclical) and seeks to take advantage of attractive entry points into quality growth businesses.”
8. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 80
Johnson & Johnson (NYSE:JNJ) is a leading pharmaceutical company that ranks eighth on our list of the best future stocks in the long term. Johnson & Johnson’s (NYSE:JNJ) also has stakes in biotechnology and medical technologies.
In the second quarter of 2024, the company reported sales of $22.4 billion, up 4.3%. Johnson & Johnson (NYSE:JNJ) not only saw success with regulatory approvals for some medications but expanded its footprint in biotechnology. Previously in April, Johnson & Johnson (NYSE:JNJ) acquired Shockwave Medical, a cardiovascular medical device company, enhancing the company’s position in cardiovascular intervention and medical technology. Overall, its MedTech segment logged $8 billion in sales worldwide, up by 4.4% year-over-year.
Johnson & Johnson (NYSE:JNJ) is one of the best future stocks to buy because of its role in medical technology and its growth trajectory across all its departments over the years. The company is expected to deliver over 20 novel therapies and has over 50 product expansions in-store by 2030.
In addition to that, its segments are expected to grow at a compound annual growth rate of 5% to 7%, explaining why analysts are bullish on the company. Analysts 12-month median price target of $170 points to a 2% upside from current levels. Overall, JNJ was held by 80 hedge funds at the close of Q2 2024 and Fisher Asset Management was the largest shareholder with a position worth $1.02 billion.
7. ASML Holding N.V. (NASDAQ:ASML)
Number of Hedge Fund Holders: 81
ASML Holding N.V. (NASDAQ:ASML) is a semiconductor equipment company headquartered in the Netherlands. Companies use ASML’s extreme ultraviolet (EUV) lithography machines to develop AI chips. The growing demand for AI explains why EUV bookings increased by 56% year-over-year and total bookings increased by 24% year-over-year. By the end of the quarter, ASML Holding N.V. (NASDAQ:ASML) had $39 billion in backlog.
In the second quarter of 2024, ASML Holding N.V. (NASDAQ:ASML) logged $6.91 (EUR 6.2 billion) in revenue and expects net sales to grow to somewhere between $7.47 billion (EUR 6.7 billion) and $8.14 billion (EUR 7.3 billion) in Q3 2024. ASML Holding N.V. (NASDAQ:ASML) believes 2024 is a transition year where they will continue to invest in increasing their capacity and improving their technology to be prepared to meet the surging demand in 2025.
For its 2030 guidance, ASML Holding N.V. (NASDAQ:ASML) projected between EUR 44 billion and EUR 60 billion in revenue, in its investor day meeting in November 2022. The company has an 83% market share in lithography, explaining why 81 hedge funds were long on the stock at the end of Q2 2024. Of those, Fisher Asset Management was the largest shareholder with a position worth $3.23 billion.
Polen Capital Polen International Growth Strategy stated the following regarding ASML Holding N.V. (NASDAQ:ASML) in its fourth quarter 2023 investor letter:
“Netherlands-based ASML Holding N.V. (NASDAQ:ASML) and Japan-based Lasertec play dominant roles within different segments of the global semiconductor industry. In both cases, shares rallied significantly in the fourth quarter of 2023, prompting our positions to grow as a percentage of the overall portfolio. We believe both companies will see demand for their products as extreme ultraviolet (EUV) lithography and soon high-numerical aperture lithography must be utilized to manufacture the world’s smallest chips. However, in our estimation, 2024 could deliver a year of less exciting growth for the semiconductor industry, which prompted us to trim these positions back.”
6. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 84
Pfizer Inc. (NYSE:PFE) is one of the best future stocks for the long-term and we say that because at the end of Q2 2024, 84 hedge funds were bullish on PFE with total stakes amounting to $3.62 billion. Pfizer Inc. (NYSE:PFE) is a leading pharmaceutical and biotechnology company based in New York, United States.
Pfizer Inc. (NYSE:PFE) is a leader in biotechnology. Previously in March, the company acquired Seagen, a biotechnology firm, for $43 billion. The acquisition is projected to deliver more than $10 billion in revenues by 2030. Fast forward to August, Pfizer and its biotechnology partner were granted approval by the FDA to roll out their new shots before winter arrives.
On the operational front, the company is currently undergoing a Manufacturing Optimizing Program focused on enhancing efficiency. By the end of phase 1, Pfizer Inc. (NYSE:PFE) will be able to deliver $1.5 billion in savings by the end of 2027. It currently has over 25,000 clinical researchers who test new and innovative medicines every day.
Overall, Pfizer Inc. (NYSE:PFE) is not just a biotechnology leader. The company is also capitalizing on improving its operations, making it one of the best stocks in the long run. During the second quarter of 2024, the company logged $13.3 billion in revenue, representing operational revenue growth of 3%.
Parnassus Investments’ Parnassus Value Equity Fund stated the following regarding Pfizer Inc. (NYSE:PFE) in its first quarter 2024 investor letter:
“During the quarter, we added new positions in Pfizer Inc. (NYSE:PFE), NICE and Charter Communications. We purchased Pfizer to capture the potential upside from any turnaround following the COVID-induced boom-bust cycle of the last few years. Pfizer’s stock price sank by more than 40% in 2023 as COVID-19 vaccine revenues rolled off, providing an attractive entry point for us. The company completed its acquisition of Seagen, which should strengthen Pfizer’s pipeline in antibody-drug conjugates (ADC). Pfizer also offers an attractive dividend yield.”
5. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 85
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that specializes in the production of electric cars and solar-integrated renewable energy solutions. The company is one of the largest EV manufacturers and accounted for nearly 50% of EV sales between April and June, in the United States.
Electric vehicles accounted for 84% of Tesla’s revenue in the second quarter of 2024, pointing to its reliance on the industry. Its energy segment, logged $3 billion in sales, doubling year-over-year. During the second quarter of 2024, Tesla, Inc. (NASDAQ:TSLA) launched a new lineup, to boost the launch of new models. Its new lineup and extensive production line will deliver over 3 million vehicles of capacity when optimized fully.
Despite sluggish growth in its electric vehicle segment, the company’s investments in AI make autonomous driving a reality, contributing to its position as one of the best future stocks for the long term. Its FSD v12 vehicle is purely AI-based self-driving and has driven 300 billion miles so far. In addition to AI-based self-driving and AI training chips, the company also made headlines for its Tesla Bot, a humanoid autonomous robot capable of performing miscellaneous tasks.
Overall, TSLA was held by 85 hedge funds at the close of Q2 2024 with total stakes amounting to $4.97 billion. As of June 30, Citadel Investment Group was the largest shareholder.
Baron Funds mentioned Tesla, Inc. (NASDAQ:TSLA) in its Q2 2024 investor letter:
“As discussed in the Fund’s prior shareholder letter, the fears about Tesla’s products were misplaced. Instead of the company being exclusively dependent on limited vehicle models and software advancement, the company announced it will more rapidly introduce products that appeal to a wider audience. It also demonstrated that its price reductions were the result of efficiencies rather than only to spur demand. Margins exceeded expectations. And the company’s integration of its hardware with proprietary AI software should facilitate full self-driving capabilities and subsequent new revenue streams. This integration of hardware with software creates a dynamic growth company as it more fully explores its potential with Optimus, humanoid robotics. The combination of these catalysts resulted in Tesla’s stock increasing meaningfully and rapidly in the second half of the quarter. This stock price momentum has continued into the next period.”
4. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 108
Advanced Micro Devices, Inc. (NASDAQ:AMD) ranks fourth on our list of the best future stocks to buy for the long term. The company is responsible for manufacturing semiconductor devices that are used in computer processing. Some of its products include microprocessors, graphic processors, embedded processors, and motherboard chipsets.
Advanced Micro Devices, Inc. (NASDAQ:AMD) is catching up to Nvidia to become a market leader in artificial intelligence. Such can be attributed to its strategic partnerships and acquisitions. In August alone, the company closed two acquisition deals. On August 12, the company completed the acquisition of Silo AI to speed up the development and deployment of AI models on AMD hardware. On August 19, AMD acquired ZT Systems, a provider of AI infrastructure, to accelerate its data center AI capabilities.
Advanced Micro Devices, Inc. (NASDAQ:AMD) logged $5.8 billion in revenue, during the second quarter of 2024, up by 9% year-over-year. Of this, its data center revenue accounted for $2.8 billion, up by 115%, making up almost 50% of total sales. During this quarter, the company also bagged significant companies as customers including Adobe, Boeing, Optiver, and Seimens.
The company expects to post strong financial results in the second half of 2024 as it delivers top-notch AI solutions to the market. In the third quarter of 2024, Advanced Micro Devices, Inc. (NASDAQ:AMD) expects revenue to reach $6.7 billion, representing a 16% growth rate from Q3 2023.
Analysts are bullish on AMD and their 12-month median price target of $190 points to a 26% upside from current levels. Overall, AMD was held by 108 hedge funds at the close of Q2 2024 with total stakes amounting to $10.3 billion. As of June 30, Fisher Asset Management was the largest shareholder with a position worth $3.8 billion.
Fred Alger Management mentioned Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q2 2024 investor letter:
“Advanced Micro Devices, Inc. (NASDAQ:AMD) is a major global supplier of PC microprocessors and graphics processors to computing original equipment manufacturers (OEMs). The company’s product range spans desktops, notebooks, servers, graphics, and embedded/semi-custom chips. AMD operates in a large addressable market, covering areas such as PCs, servers, high-end gaming, and deep learning. Additionally, AMD has introduced competitive AI technologies, including powerful accelerators poised to capture a share in a market worth several hundred billion dollars. During the quarter, the company reported fiscal first-quarter operating results that met analyst estimates, with strengths in data center GPUs and server CPUs offsetting weaknesses in their gaming and embedded businesses. Moreover, management raised their fiscal second-quarter revenue guidance, albeit slightly below consensus estimates, where they expected double digit growth in data center revenues, while projecting a decline in their gaming segment, driven by weaknesses in both desktop GPUs and Semi-Custom Systems-on-a-Chip (SoC). While weaker-than-expected near-term results weighed on shares during the quarter, we believe the company is positioning itself to potentially benefit from long-term growth in AI infrastructure spending. Specifically, the company continues to gain server CPU market share, which could potentially accelerate as traditional compute deployments begin to recover.”
3. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 130
Broadcom Inc. (NASDAQ:AVGO) is a semiconductor manufacturing company that designs, develops, and supplies semiconductor and software infrastructure products. Some of its products include cable modems, networking processors, and storage adapters.
Broadcom Inc. (NASDAQ:AVGO) is one of the most prominent future stocks and we say that because in 2024, the company extended its AI workload to deliver the industry’s first switch platform for scalable AI systems. The company also launched a new technology, Retimers, that helps computers process huge amounts of data for AI tasks. Both these innovations are breakthroughs for AI infrastructure. The company’s futuristic approach is not recent. Previously, in 2023, Broadcom Inc. (NASDAQ:AVGO) launched the industry’s first highest-performance fabric for AI networks and the industry’s first switch with an on-chip neural network.
In the fiscal third quarter of 2024, the company’s revenue was $13.1 billion, up by 47% year-over-year, driven by the growing demand for AI and its cloud platform, VMware. In the fourth quarter of 2024, Broadcom expects revenue from AI to grow by 10% sequentially reaching $3.5 billion, bringing the full-year total to $12 billion. Overall, VMware, its proprietary cloud platform logged $3.8 billion in revenue during FQ3 2024. Last month, Broadcom Inc. (NASDAQ:AVGO) unveiled additions to its cloud platform making it a unified and integrated private cloud platform.
Aristotle Atlantic Partners mentioned Broadcom Inc. (NASDAQ:AVGO) in its Q2 2024 investor letter. Here is what the firm said:
“Broadcom is a global technology leader that designs, develops and supplies a broad range of semiconductor and infrastructure software solutions. The company strategically focuses its research and development resources to address niche opportunities in target markets and leverage its extensive portfolio of U.S. and other patents and other intellectual property to integrate multiple technologies and create system-on-chip component and software solutions that target growth opportunities. Broadcom designs products and software that deliver high performance and provide mission-critical functionality. The company has a history of innovation in the semiconductor industry and offers thousands of products that are used in end products such as enterprise and data center networking, home connectivity, “set-top boxes broadband access”, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. Broadcom differentiates itself through its high-performance design and integration capabilities and focuses on developing products for target markets where it believes it can earn attractive margins.
We view Broadcom’s semiconductor business as being very well positioned to benefit from secular growth in data center networking, which is being driven by AI and cloud computing. The company continues to invest in research and development, and we see this as a competitive advantage for the company. Broadcom’s infrastructure software business is a recurring revenue business model that provides mission-critical mainframe support software to its customer base. The recent VMware acquisition will enhance this business strategy and accelerate the growth rate of this business unit, as VMware’s product suite includes key tools for AI server upgrades. Our long-term investment thesis is supported by Broadcom’s success in its strategy of maintaining technology and market share leadership in mission-critical markets with high switching costs and deep profit pools.”
2. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 156
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) ranks second on our list of the best future stocks for the long term. TSMC is a semiconductor manufacturing and design company. The company is a leading fabrication partner that makes chips for tech giants including Nvidia and AMD.
In the second quarter of 2024, the company’s revenue increased by 13.6% sequentially, led by growing demand for its nanometer technologies. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) expects revenue from AI chips to increase at a compound annual growth rate (CAGR) of 50% by 2027. For the year ended 2024, TSMC projects a 20% growth in revenue, again driven by the demand for chips used in artificial intelligence.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) will be successful as long as technology remains trending. Success does not come without dedicated strategic investments in technology and that is exactly what the company does. TMSC expects its 2024 capital expenditure budget to lie between $30 billion and $32 billion. Of this, 70% to 80% of the budget will be allocated to advanced process technologies, nearly 20% will be directed to specialty technologies, and 10% will be spent on advanced packaging, testing, and mass-making.
Despite macro headwinds and geopolitical turmoil in the country, analysts are bullish on the stock, and their 1-year median price target of $209 points to a 25% upside from current levels. Overall, TSM was held by 156 hedge funds at the close of Q2 2024 with total stakes amounting to $21.28 billion. As of June 30, Fisher Asset Management was the largest shareholder with a position worth $4.94 billion.
Wedgewood Partners’ Wedgewood Partners stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q2 2024 investor letter:
“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was a top contributor to performance during the quarter. The Company’s revenue growth continued to accelerate due to the rollout of its leading-edge N3 manufacturing node along with strong demand for chips used in artificial intelligence applications. Unlike in traditional CPUs, the Company has blue-chip customers, monopoly market share for manufacturing AI chips, such as GPUs. The Company’s aggressive investment in capital equipment several years ago should continue to pay off as fabless chip designers proliferate and require a manufacturing partner to shoulder capex risk. The Company’s continued aggressive investment and deployment in semiconductor manufacturing equipment is not an easily replicable competitive advantage.”
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 179
NVIDIA Corporation (NASDAQ:NVDA) is one of the most popular stocks at the moment, also referred to as the AI star. The GPU maker is known for its cloud solutions, chip systems, and growing role in producing artificial intelligence solutions.
The company logged $26.3 billion in data center revenue, up 16% from the previous quarter and 154% year-over-year. The revenue growth was driven by strong demand for Nvidia’s GPU Computing platform. Compute revenue grew by 2.5x and networking revenue expanded by 2x compared to the previous year. Overall, NVIDIA Corporation (NASDAQ:NVDA) logged $30 billion in revenue during the FQ2 of 2025, up by 122% year-over-year, well above its outlook of only $28 billion.
NVIDIA Corporation (NASDAQ:NVDA) is one of the best future stocks for the long term. Such can be attributed to its rapid advancements in technology and strategic partnerships. The company’s networking platform for AI, Spectrum X, is projected to become a multi-billion dollar entity in a year. Moreover, the company just closed a deal with Salesforce allowing organizations to benefit from advanced AI and data capabilities. Nvidia’s position in the market is solid and explains why it is referred to as the AI star.
Analysts are bullish on NVDA and their 12-month median price target of $150 points to a 30% upside from current levels. At the close of Q2 2024, 179 investors were bullish on NVDA, with total stakes amounting to $53.7 billion. Of those, Ken Griffin’s Citadel Investment Group was the highest stakeholder with a position of $18.35 billion.
Ithaka Group’s Ithaka US Growth Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2024 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) is the market leader in visual computing through the production of high-performance graphics processing units (GPUs). The company targets four large and growing markets: Gaming, Professional Visualization, Data Center, and Automotive. NVIDIA’s products have the potential to lead and disrupt some of the most exciting areas of computing, including: data center acceleration, artifi cial intelligence (AI), machine learning, and autonomous driving. The reason for the stock’s appreciation in the quarter was twofold: First, the stock benefi ted from tremendous excitement surrounding the further development of generative AI and the likelihood this would necessitate the purchase of a large number of Nvidia’s products far into the future; Second, Nvidia posted another strong beat[1]and-raise quarter, where the company upped its F2Q25 revenue guidance above Street estimates, showcasing its dominant position in the buildout of today’s accelerated computing infrastructure.”
Overall, at Insider Monkey, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
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