In this article, we will discuss the 10 most buzzing stocks to buy now.
Stock Market Volatility
September and October tend to be the most volatile months for the stock market, particularly during election years. This was recently discussed by Sam Stovall, the chief investment strategist at CFRA Research, who expects the volatility to stay until the end of October.
Stovall says that while the S&P 500 recovered all its 2022 bear market losses by January this year, and reached 22 new all-time highs by March, equities have digested some of these gains and experienced sector rotation away from 2023 high flyers into more defensive areas of the market. Hence, the year started great, but the markets are declining once again. The S&P 500’s average volatility in October 2023 was 35% higher than the average for the remaining 11 months of the year.
Investors are concerned that the Fed will be slower to lower interest rates while inflation remains sticky and GDP growth begins to cool. Stovall expects three 25-basis point cuts this year, followed by another four in 2025. He thinks that while a 50 basis point cut is rare since it only ever happened twice, in 2001 and then 2007, it is still not unlikely given that the economy is worse than expected.
According to Stovall, investors need to be prepared for this increased volatility as the market digests the Fed’s actions and the potential impact on the economy. The market will likely remain uncertain until the Fed can find the right balance between slowing down the economy and stopping inflation, without causing a recession.
Tom Lee, Fundstrat Global Advisors managing partner and head of research, is of a similar idea, suggesting that investors should remain cautious over the next 8 weeks, due to both uncertainty surrounding elections and the September cuts. He says that the stock market may experience a 7-10% pullback, considering there have already been two 7% corrections this year.
Lee thinks at least a 5% pullback can be anticipated, but if it’s only 1-2%, then that’s negligible. But despite the recommended caution for the 8 weeks starting September, he thinks the volatility does not translate into a tough full-year. He views this pullback as a buying opportunity, believing that the market has not yet reached its peak for 2024.
As Lee encourages investors to be ready to buy the dip, we are here with a list of the 10 most buzzing stocks to buy now.
Methodology
To compile our list, we sifted through Yahoo Finance’s list of stocks that are experiencing high trading volumes. We looked at the analyst and investor sentiment for each stock and narrowed down our selection to 10 stocks that were the most popular among elite hedge funds. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q2 2024.
Note: All price/volume data is as of September 6.
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 Most Buzzing Stocks To Buy Now
10. Nu Holdings Ltd. (NYSE:NU)
Volume: 48.735 million
Average Volume (3-Month): 41.735 million
Number of Hedge Fund Holders: 59
Nu Holdings Ltd. (NYSE:NU) is a Brazilian digital bank and fintech company that provides financial services to the underserved and unbanked population in Brazil and other Latin American countries. The product offerings are across spending, saving, investing, borrowing, and protecting.
During the second quarter of 2024, the company’s customer base grew strongly, with 5.2 million new customers joining the platform, taking the total customer count to 104.5 million, a 25% increase year-over-year. The active base increased by 27%. There are established primary banking relationships with about 60% of this active customer base
Brazil added an average of 1.2 million new customers monthly bringing the total to 95.5 million at the end of Q2. Mexico experienced strong growth with 1.2 million net ads in the quarter resulting in 7.8 million customers. Colombia surpassed the 1 million customer mark with almost 1.3 million customers following the successful launch of the Cuenta product.
All of this resulted in a revenue of $2.85 billion, recording a 52.45% year-over-year rise. Revenue from credit cards increased by 39% year-over-year, reaching a total of $14.3 billion. The lending portfolio expanded by 92% year-over-year, reaching a total of $4.6 billion.
Interest-earning installments now represent 28% of the credit card portfolio, up from 26% last quarter. PIX and Boleto financing products drove this growth. These products offer attractive returns and meet customer needs.
With 59 hedge funds long in the company, it is evident that the company is expected to be well-positioned for growth. The largest stake amounts to $257,140,883 by Atmos Capital.
Baron FinTech Fund stated the following regarding Nu Holdings Ltd. (NYSE:NU) in its first quarter 2024 investor letter:
“Nu Holdings Ltd. (NYSE:NU) is a digital bank with operations in Brazil, Mexico, and Colombia. Shares appreciated during the quarter after the company reported strong balance sheet growth and improving margins. New product launches and expansion in newer countries are yielding favorable results. Nu also benefited from inclusion in the MSCI Brazil Index, which prompted buying from passively managed funds. We continue to own the stock because Nu is disrupting the financial services industry in Latin America with its digital distribution and intense focus on user experience. The company has grown to serve over 90 million customers in less than 10 years, largely through word-of-mouth referrals. We believe the company’s superior product offering will drive continued share gains in large and growing markets.”
9. AT&T Inc. (NYSE:T)
Volume: 52.499 million
Average Volume (3-Month): 32.828 million
Number of Hedge Fund Holders: 71
AT&T Inc. (NYSE:T) is the world’s third-largest telecommunications holding company by revenue and the second-largest wireless carrier in the US behind Verizon but ahead of T-Mobile. Its portfolio spans wireless, wireline, and broadband services, both domestically and internationally.
It has nearly 28 million consumer and business locations with fiber and remains on track to pass more than 30 million fiber locations by the end of 2025.
It’s a compelling investment due to its focus on modern connectivity solutions, expanding its 5G and fiber networks, and offering superior broadband speeds and reliability.
The company has strong pricing power which allows it to generate healthy revenue and maintain profitability. 71 hedge funds hold it currently. As of June 30, the highest stake holder was Citadel Investment Group with a value of $518,594,606.
However, in Q2 2024, there was a decline of 0.4% in the company’s year-over-year revenue. The earnings per share still managed to stay at $0.57.
Consumer Wireline in Mexico drove more than 80% of the total revenue offset by continued declines in Business Wireline. Mobility service revenues grew by 3.4%. It delivered 419,000 postpaid phone net adds in this quarter.
Postpaid phone average revenue per user was up 1.4% year-over-year. Broadband revenues grew 7% due to strong fiber revenue growth of 18%. It also added 239,000 AT&T Fiber, and 139,000 AT&T Internet Air subscribers in Q2.
For the full year, broadband revenue growth guidance is more than 7%. The mobile business is performing well and is expected to grow in the remaining 2024. The focus on selling both mobile and internet services is driving strong returns on investment, making it a top buzzing stock.
Miller Value Income Strategy made the following comment about AT&T Inc. (NYSE:T) in its Q3 2023 investor letter:
“Our third-largest holding at quarter end was AT&T Inc. (NYSE:T), a leading provider of communications and connectivity services in the US. At $15/share, the stock trades at the same price it did almost thirty years ago. The share price is much less interesting to us in relation to where it has traded in the past than in relation to how much cash the company generates and what management is doing with it. At just over 6x earnings, the stock trades near its lowest price-to-earnings (P/E) multiple ever, also representing close to its largest-ever P/E discount to the stock market. The business converts most of its earnings to free cash flow, implying a forward free cash flow yield north of 15%. Just under half of free cash flow is going toward the dividend (7.5% yield), while much of the balance is going to debt paydown. In other words, if the stock does not fall below its lowest-ever valuation, investors clip a rock-solid 7.5% in cash, while owning a growing portion of a very steady business as management reduces debt outstanding. A discounted cash flow model will suggest that intrinsic value for shares begins with a “2,” suggesting the stock is undervalued on an absolute basis. The lack of volatility in the underlying fundamentals also makes it unique when compared to many other things we own, which reduces the probability of permanent capital impairment and argues for a significant weight in the portfolio.
AT&T looks particularly attractive when compared to some of the larger names dominating the S&P 500. Compare the stock to Apple, for instance, whose revenues and profits are likely to shrink this year, even as it trades at 29x this year’s earnings estimate. The ongoing return to rationality and capital accountability, along with extreme valuations in the megacap tech stocks, have us more excited about our portfolio’s prospects than we can remember for quite some time. As always, we remain the largest investors and welcome any questions or comments.”
8. Intel Corp. (NASDAQ:INTC)
Volume: 85.307 million
Average Volume (3-Month): 64.564 million
Number of Hedge Fund Holders: 75
Intel Corp. (NASDAQ:INTC) is one of the world’s leading semiconductor chip manufacturers by revenue, playing a significant role in advancing the x86 series of instruction sets, widely utilized in personal computers. The company’s foray into augmented reality focuses on using its chips to power AR devices.
Earlier this year, the Japanese division partnered with 14 domestic firms to establish a research body focused on automating “back-end chipmaking processes,” such as packaging, as Japan and the US work to strengthen their chip supply chains amidst geopolitical tensions.
In Q2, it introduced its new Xeon 6 artificial intelligence chips designed to compete with industry competitors NVIDIA and AMD. Despite that, the company recorded a 0.9% year-over-year revenue decline in this quarter, with the total revenue amounting to $12.83 billion.
In August, the company announced it was cutting 15% of the 125,000-strong workforce and suspended dividends to cut spending and streamline the company.
Even with these massive layoffs, the inventory problem won’t be resolved anytime soon because the company has 137 days of inventory, worth over $11.2 billion. This is much higher than the industry average of 90 days.
CTO Greg Lavender stated that the company’s cumulative software revenue could reach $1 billion by the end of 2027. Such an outlook brings investor trust to Intel Corp. (NASDAQ:INTC). 75 hedge funds hold it as of June 30, with the largest stake at $742,084,558 by Citadel Investment Group.
Ariel Global Fund stated the following regarding Intel Corporation (NASDAQ:INTC) in its Q2 2024 investor letter:
“Alternatively, several positions weighed on performance. One of the world’s largest semiconductor chip manufacturers by revenue, Intel Corporation (NASDAQ:INTC), underperformed in the period on news of a longer than expected turnaround in profitability within the Foundry business. This was exacerbated by disappointing near-term guidance due to a weakening demand environment signaling an extended replacement cycle. We view the quarter as a temporary trough that should dissipate as we see signs of a cyclical recovery for personal computers (PCs) and central processing units (CPUs), driven by the Windows 11 upgrade. In our view, the market is overlooking the progress Intel is making to advance its manufacturing process. Not to mention, the company’s efforts to serve as a viable second source foundry partner of leading-edge silicon. We believe the separation of the design and manufacturing businesses will be a key catalyst in unlocking improved financial performance while also enhancing the competitiveness of the foundry business.”
7. Pfizer Inc. (NYSE:PFE)
Volume: 23.383 million
Average Volume (3-Month): 32.17 million
Number of Hedge Fund Holders: 84
Pfizer Inc. (NYSE:PFE) is a pharmaceutical and biotech company, greatly known for its success with the coronavirus vaccine, Comirnaty. In 2022, the vaccine helped generate over $100 billion in revenue, the highest in the company’s history. But the demand for the vaccine hasn’t materialized after the pandemic years.
Comirnaty sales in the second quarter of 2024 were only $195 million, a sharp 87% decline from the previous year, with no signs of a rebound expected. Pfizer Inc. (NYSE:PFE) still has strong potential for success as its patent-protected drugs give it strong pricing power.
In the second quarter of 2024, the company reported $13.28 billion in revenue, a 4.31% year-over-year improvement. There was also a 14% rise in operational revenue from non-COVID products.
It currently markets 3 oncology therapies: Ibrance for breast cancer, Xtandi for prostate cancer, and Inlyta for kidney cancer. These along with others contribute significantly to the annual sales. What sets Pfizer apart in the oncology field is its commitment to innovation and strategic acquisitions.
In March, it acquired Seagen for $43 billion, a biotechnology firm specializing in antibody-drug conjugates (ADCs). This alone will help contribute over $10 billion in risk-adjusted revenues by 2030.
In August, the FDA allowed Moderna Inc., Pfizer Inc. (NYSE:PFE), and its partner BioNTech SE (NASDAQ:BNTX) to roll out their new shots over the coming days, both of which plan to offshoot Omicron known as the KP. Therefore, before respiratory illness season arrives this fall, there will be new COVID-19 shots.
84 hedge funds are long in the company so it is popular among elite money managers. Citadel Investment Group was the company’s leading stakeholder as of June 30, with a position of $827,944,988.
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.”
6. Tesla Inc. (NASDAQ:TSLA)
Volume: 80.182 million
Average Volume (3-Month): 96.093 million
Number of Hedge Fund Holders: 85
Tesla Inc. (NASDAQ:TSLA) is the world’s largest pure-play EV manufacturer, with significant contributions to the renewable energy sector. In 2023, 100% of its revenue was generated from sustainable products and services, all while delivering 1.81 million electric vehicles.
Its innovation extends beyond vehicles, as evidenced by its Gigafactory, a key manufacturing site for EV components such as lithium-ion batteries. The company’s Energy Generation and Storage segment includes products like the Powerwall, Powerpack, and Megapack, which are battery solutions that cater to residential, commercial, and utility-scale applications, allowing users to store renewable energy for future use.
Global EV sales are slowing down due to high battery replacement costs, higher interest rates, and growing competition but the company managed to produce over 410,000 units and deliver 444,000 units in Q2. It aims to scale its production to 3 million vehicles by 2025.
In this period, it reported revenue of $25.50 billion, a 2.3% increase from the previous year. Automotive revenue saw a rise of 14% compared to the first quarter. Energy storage revenue doubled to reach $3 billion.
Tesla Inc.’s (NASDAQ:TSLA) diversification into the robotaxi business presents a compelling investment opportunity. The unveiling event will be on October 10. Cathie Wood, a longtime investor, believes that this business could make up 86% of its earnings by 2029.
85 hedge funds held stakes in the company in the second quarter. Valued at $8,252,723,916, Citadel Investment Group is the largest shareholder of the company.
As the world shifts towards sustainable energy and electric vehicles, Tesla Inc.’s (NASDAQ:TSLA) focus on innovation and technology positions it well to capitalize on these trends. Elon Musk’s vision is also essential for its success.
Baron Partners Fund stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q2 2024 investor letter:
“Tesla, Inc. (NASDAQ:TSLA) manufactures electric vehicles, related software and components, and solar and energy storage products. The stock contributed as Tesla continued to drive vehicle manufacturing costs lower, accelerate the launch of new models, and invest heavily in its lucrative AI initiatives. Shareholders reaffirmed the CEO’s compensation plan, alleviating personnel and legal uncertainties. Despite material operational complexities resulting in significant shutdowns of key manufacturing facilities and lower sales volume, Tesla presented better-than-expected margins in the quarter. It expects to launch a lower cost model as soon as late 2024, which should result in accelerated revenue growth, reduced manufacturing costs, and increased factory utilization. The company continued to advance its autonomous driving capabilities, expanding its already significant data centers and developing its humanoid robot Optimus. These investments increased confidence in the attractive growth opportunities that remain ahead.”
5. Bank of America Corp. (NYSE:BAC)
Volume: 39.612 million
Average Volume (3-Month): 39.586 million
Number of Hedge Fund Holders: 92
Bank of America Corp. (NYSE:BAC) is an investment bank and financial institution that offers a range of products and services, such as banking, investment management, and risk management solutions to individuals, businesses, and governments. It has around 3,800 retail financial centers and 15,000 ATMs.
It is expecting strong earnings and revenue growth over the coming years due to the switching costs it has created, and lower customer acquisition costs. In Q2 2024, the company generated a revenue of $25.38 billion, recording a year-over-year improvement of 0.71%. Fees grew 6% year-over-year and represented 46% of total revenue. Car and Service charge revenue also grew by 6%.
It was able to add around 278,000 net new consumer checking accounts in the Consumer Banking business. The consumer mobile banking app now serves more than 47 million active users. 23 million consumers are now using Zelle.
87% of global banking clients also are digitally active. This is especially important because in the second quarter, digital sales represented 53% of the total sales.
92 hedge funds are long in the company, as of Q2 2024.
ClearBridge Value Equity Strategy stated the following regarding Bank of America Corporation (NYSE:BAC) in its first quarter 2024 investor letter:
“We added several new positions during the quarter. Our largest new addition was Bank of America Corporation (NYSE:BAC), one of the world’s leading financial institutions, serving some 66 million consumer and small business clients across the U.S. as well as large corporations, financial institutions and governments globally. We believe that the interest rate pressure that Bank of America faced in early 2023 has subsided, and risks surrounding deposit outflows have abated, which should allow the company to improve its book value and capital growth as well as benefit from a rebound of capital markets activity.”
4. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Volume: 39.618 million
Average Volume (3-Month): 52.122 million
Number of Hedge Fund Holders: 108
Advanced Micro Devices, Inc. (NASDAQ:AMD) produces semiconductor products and devices, such as microprocessors, chipsets, graphics, video, and multimedia products. It supplies these products to third-party foundries, providing assembling, testing, and packaging services.
The 2023 launch of its Instinct™ MI300 Series accelerators became a major contributor to the company’s growth. The year-over-year revenue growth in Q2 2024 was 8.88%, where the data center revenue alone grew 49%, offset by the 59% decline in gaming revenue due to a fall in PlayStation and Xbox sales.
Radeon 6000 GPUs saw a year-over-year sales increase. Ryzen CPU sales also increased 49% over the year. The company now plans on releasing new AI chips annually, including the MI325X by the end of 2024, the MI350 in 2025, and the MI400 in 2026.
In August, the company acquired Silo AI in a deal valued at $665 million, aiming to offer end-to-end AI solutions to customers using Silo AI’s expertise in developing LLMs . It also announced the definitive agreement to acquire privately held ZT Systems for $4.9 billion, which is expected to provide the company with expertise in AI infrastructure systems and services.
The PC market is currently growing because of the excitement around AI-enabled PCs. International Data Corporation (IDC) said that the PC market saw a 3% year-over-year increase in Q2. Advanced Micro Devices, Inc. (NASDAQ:AMD) will likely benefit from this trend. 108 hedge funds held long positions in this company by June 30. Fisher Asset Management had the largest stake, valued at $3,755,355,818.
Alger Spectra Fund stated the following regarding 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. NVIDIA Corp. (NASDAQ:NVDA)
Volume: 367.867 million
Average Volume (3-Month): 345.252 million
Number of Hedge Fund Holders: 179
NVIDIA Corp. (NASDAQ:NVDA) provides graphics, computing, and networking solutions, and is majorly known for manufacturing graphics processing units (GPUs). These chips are essential for rendering graphics, but they’re also used in AI, machine learning, and data centers.
Recently, Elon Musk announced that Colossal, an AI training system, had been brought online by his AI startup, xAI. The system is powered by 100,000 H100 GPUs made by NVIDIA Corp. (NASDAQ:NVDA). For comparison, Google’s AI model uses 90,000 GPUs while Meta’s uses 70,000. H200 and the rumored Blackwell-based GPUs are slowly replacing the H100 GPUs.
Musk has already announced that Colossal would double in size by shifting to H200 GPUs in the coming months. He claims only 50,000 replacement H200 GPUs would achieve size doubling. The Blackwell chips are even faster and more efficient, the top-end capacity being 36% higher than the H200 and 66% higher in total bandwidth.
In FQ2 2025, the company recorded a year-over-year improvement of 122.40% in revenue. Data center revenue was up 54% year-on-year, driven by strong demand for NVIDIA Hopper, GPU computing, and networking platforms. Cloud service providers represented roughly 45% of data center revenue.
179 hedge funds held the company’s shares. Fisher Asset Management is the biggest shareholder with shares worth $11.54 billion, as of June 30. In late August, management also approved a buyback of $50 billion in equity shares.
NVIDIA Corp. (NASDAQ:NVDA) faces pressure to launch new products to maintain investor confidence. Delays in Blackwell chip production and concerns about high GPU prices impact the demand. The company’s future success depends on effective AI monetization. By the end of fiscal year 2025 and each year after, it aims to achieve and maintain 100% renewable electricity for its offices and data centers.
Alger Spectra Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2024 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) is a leading supplier of graphics processing units (GPUs) for a variety of end markets, such as gaming, PCs, data centers, virtual reality, and high-performance computing. The company is leading in most secular growth categories in computing, and especially artificial intelligence and super-computing parallel processing techniques for solving complex computational problems. Simply put, Nvidia’s computational power is a critical enabler of AI and therefore essential to AI adoption, in our view. During the quarter, the company reported better-than-expected fiscal first quarter results driven by strong demand from data centers. Additionally, management noted that large cloud service providers, contributing approximately 45% of data center sales, recognize the high return on investment offered by Nvidia’s computing solutions, which are driving AI spending. The company also introduced its next-generation H200 chip, which nearly doubles the inference performance compared to the H100 chip, enhancing how trained AI models process new data. Lastly, management raised their fiscal second quarter guidance, noting that demand for their current H100 chips remains strong, and that demand for their next generation products is estimated to outstrip supply over the next year. We continue to believe the company is well positioned to potentially benefit from the growing AI data center workloads, which are driving demand for the increased interconnections and fully accelerated software stacks, thereby enabling leading application performance and fast result times.”
2. Apple Inc. (NASDAQ:AAPL)
Volume: 43.617 million
Average Volume (3-Month): 63.905 million
Number of Hedge Fund Holders: 184
Apple Inc. (NASDAQ:AAPL) is a consumer electronics firm, known as the company behind iPhones. These iPhones alone make up 46% of the company’s net sales. It also offers services including iCloud, Apple Pay, Apple Music, and Apple TV+.
In FQ3 2024, the company launched Apple Intelligence, a personal intelligence system backed by AI, integrated into all new iPhone, iPad, and Mac models.
It plans to launch the next generation of the iPhone lineup in September. This annual event is receiving a lot of attention because the company is expected to unveil new AI features for these phones. Lagging iPhone sales in recent years have slowed the revenue growth for the company, and this AI upgrade is expected to change its growth outlook. However, even more advanced AI features will not roll out earlier than 2025.
On August 29, 2024, The Wall Street Journal reported that Apple Inc. (NASDAQ:AAPL) is eyeing a major investment in OpenAI, along with NVIDIA, as part of a funding round led by Thrive Capital that would value OpenAI at $100 billion.
The revenue for this fiscal quarter was up 4.87% year-over-year. Of this, the iPhone reported revenue worth $39.3 billion and Mac revenue was $7 billion, up by 2% from a year ago.
Apple Inc. (NASDAQ:AAPL) is also a great choice for ESG investors, given its commitment to labor rights, environmental responsibility, and ethical business practices. It has reduced its overall greenhouse gas emissions by over 55% since 2015, marking progress toward its 2030 goal of achieving carbon neutrality across its entire value chain.
Currently, 184 hedge funds are long in Apple Inc. (NASDAQ:AAPL). Berkshire Hathaway has the highest stake in the company, with a position of $84,248,000,000.
Mar Vista Focus strategy stated the following regarding Apple Inc. (NASDAQ:AAPL) in its Q2 2024 investor letter:
“Investors were reminded of the strength of the Apple Inc. (NASDAQ:AAPL) ecosystem as management demonstrated how generative AI solutions would be integrated into Apple’s 1.2 billion iPhone installed base. Apple plans to integrate generative AI features into its iOS 18, which will be broadly released in the fall with the iPhone 16. We believe Apple should benefit from generative AI as it will spur a meaningful iPhone upgrade cycle and create new avenues of monetization through its app store and advertising offerings. We believe this will support intrinsic value growth that will range between high-single-digits and low-double-digits over our investment horizon.”
1. Amazon.com Inc. (NASDAQ:AMZN)
Volume: 28.588M million
Average Volume (3-Month): 42.624 million
Number of Hedge Fund Holders: 308
Amazon.com Inc. (NASDAQ:AMZN) specializes in e-commerce, online retail, streaming, and data cloud services. The e-commerce platform works in 20 countries and ships to over 100. Its global cloud platform operates under the name of Amazon Web Services (AWS).
It captures over 40% of the e-commerce market in the US. AWS increased its revenue from 18.8% year-over-year in Q2 2024. The overall company revenue in the second quarter was $147.98 billion, representing a 10.12% year-over-year improvement. However, there was a loss per share of $1.26 in this period.
AWS is projected to grow annually by 15% to 21% through 2028, making its performance a crucial factor in future profit forecasts.
Over the past months, the company partnered with AI startups like Anthropic and signed deals with the US government to test new AI models.
In July, it processed a new server design, similar to the ones produced by NVIDIA. It has invested in hardware for long, considering that its non-AI computing chip, Graviton, has been under development for almost a decade. More recent chips by the company include Trainium and Inferentia. On Prime Day, Amazon.com, Inc. (NASDAQ:AMZN) deployed a quarter million Graviton Chips and 80,000 custom AI chips to manage the surging activity on its platforms.
In August, it launched Room Decorator, which allows users to visualize various furniture pieces in their space. Commitment to such advancements is a testament to the company’s long-term growth, making it a top buzzing stock.
It should benefit from the early-September expected rate cuts by the US Federal Reserve. Even the slightest reduction in borrowing costs should support the consumer purchasing power.
Amazon.com, Inc. (NASDAQ:AMZN) is held by 308 hedge funds, of which the highest stake is valued at $8,460,561,806 by Fisher Asset Management.
Ithaka US Growth Strategy stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q2 2024 investor letter:
“Founded in 1994, Amazon.com, Inc. (NASDAQ:AMZN) has evolved from its early roots as an online bookstore to become one of the world’s largest eCommerce retailers. At the end of 2023 Amazon stood poised to capture ~40% of all US e-commerce sales, representing five times more share than the next closest competitor. In addition to eCommerce, Amazon Web Services (“AWS”) has become the market leader in outsourced cloud infrastructure. Further, Amazon Advertising is garnering significant share in digital advertising, particularly product placement ads, thanks to consumers beginning their product searches on Amazon’s site. Amazon’s stock appreciated on the back of stabilization of the company’s cloud computing segment and increased confidence management would be able to contain expenses and push operating margins above prior peaks in the near-to-medium term.”
While we acknowledge the growth potential of Amazon.com Inc. (NASDAQ:AMZN), our conviction lies in the belief that AI stocks hold great promise for delivering high 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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