On April 15, Monica Guerra, Morgan Stanley Wealth Management Head of US Policy, joined ‘Closing Bell Overtime’ on CNBC to discuss how investors should avoid knee-jerk reactions when it comes to volatility. Monica Guerra pointed out the significance of focusing on President Trump’s statements, as they contribute to market volatility despite their mixed and unclear nature. She acknowledged that deciphering his comments is challenging because they lack clarity but staying attentive to both presidential statements and congressional actions is still crucial. She stressed that policy certainty might emerge once Congress finalizes the budget, which is expected around August this year.
She also emphasized that while the day started positively with markets up by 0.79%, the situation otherwise remains uncertain. She reminded clients that the 90-day reprieve on tariffs is not the end of the story and the ongoing studies on semiconductors could lead to additional pressures related to tariffs and market volatility. Guerra noted that tariff revenues are being considered as funding sources for tax cuts and this interplay between tariffs and taxes could influence market volatility. On discussing future developments in tariff policy, she mentioned that more than 70 countries have approached President Trump in attempts to renegotiate the universal 10% tariff and reciprocal tariffs. She cautioned that even if reciprocal tariffs are eliminated and only the universal tariff remains, additional increases could be highly inflationary. China’s effective tariff rate is already at 145% and adding reciprocal tariffs could push inflationary pressures further.
Guerra advised clients against reacting impulsively to such news and encouraged them to focus on long-term investment goals. That being said, we’re here with a list of the 12 Reddit stocks with high potential.
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Our Methodology
We sifted through Reddit threads to make a list of the top stocks with the highest analysts’ upside potential (at least 30%) as of April 15. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 1000 elite money managers.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12 Reddit Stocks with High Potential
12. ASML Holding (NASDAQ:ASML)
Number of Hedge Fund Holders: 86
Average Upside Potential as of April 15: 33.38%
ASML Holding (NASDAQ:ASML) provides lithography solutions to develop, produce, market, sell, upgrade, and service advanced semiconductor equipment systems. It offers lithography, metrology, and inspection systems. It also offers hardware, software, and services to chipmakers to produce the patterns of integrated circuits.
On March 14, TD Cowen analyst Krish Sankar reaffirmed a Buy rating on the company while maintaining an €825 price target. The rating came from ASML’s strong position in lithography, which is essential for producing cutting-edge chips for applications like AI and HPC. ASML drives most of its revenue from its EUV Lithography Machines segment, where it holds a 100% market share.
In the full year 2024, EUV system sales reached €8.3 billion at ASML. This accounted for 44 systems, which included High NA EUV.In Q4 2024 alone, EUV sales generated €2.9 billion, with revenue recognized on two High NA systems. The NXE:3800E (Low NA EUV) also showed strong performance. In the long-term, ASML Holding (NASDAQ:ASML) projects a 2030 revenue opportunity of €44 to €60 billion, with EUV systems driving this expectation.
Baron Fifth Avenue Growth Fund is optimistic about ASML Holding (NASDAQ:ASML) due to its monopoly in critical lithography and stated the following in its Q4 2024 investor letter:
“ASML Holding N.V. (NASDAQ:ASML) is a Dutch company that designs and manufactures photolithography equipment for semiconductor manufacturing. While ASML is the leader across all types of lithography, most importantly, it is the only manufacturer of extreme ultra-violet lithography tools, which are critical for the manufacturing of leading-edge chips. Shares fell 16.6% during the fourth quarter (finishing the year down 7.7%) on reduced guidance for 2025 as well as growing investor concerns about the potential impact of U.S. government restrictions on Chinese demand and the possibility of peaking lithography intensity. Despite near-term noise, we believe that the growing demand for chips in general and AI chips in particular will continue to support long-term growth for the wafer fab equipment industry with ASML’s competitive positioning remaining unassailable. While lithography as a percentage of capital expenditure may decrease from current levels, the chip layer count requiring lithography will continue to increase, in our view, as chips continue to become more complex. As a monopoly on critical lithography tools supporting an industry with growing demand fueled by the proliferation of AI, we see strong long-term upside for ASML.”
11. ServiceNow Inc. (NYSE:NOW)
Number of Hedge Fund Holders: 110
Average Upside Potential as of April 15: 34.72%
ServiceNow Inc. (NYSE:NOW) offers cloud-based solutions for digital workflows. It operates the Now platform, which is an AI platform for digital transformation ML, robotic process automation, process mining, analytics, and low/no-code development tools. With 7,400+ customers, which includes 85% of the Fortune 500, it’s involved in critical operations across IT, HR, customer service, and security.
The company is developing AI agents to automate enterprise processes to deliver efficiency and drive customer value. This is backed by a $275 billion TAM projected by 2026. The Now Platform is also integrating AI which fuels its adoption. On January 30, Baird analyst Rob Oliver reaffirmed a Buy rating on the company with a $1200 price target due to its focus on integrating GenAI products.
ServiceNow is seeing higher adoption of its AI-powered Pro Plus offerings. It prioritizes adoption over immediate revenue generation. In Q4 2024, ServiceNow Inc.’s (NYSE:NOW) AI-related deals improved by 150% sequentially. The company focuses on high-value clients and closed 170 deals in the fourth quarter that crossed $1 million in net new ACV. 19 of these deals were over $5 million, 3 were over $20 million, and 2 customers exceeded $100 million in total ACV.
Lakehouse Global Growth Fund stated the following regarding ServiceNow, Inc. (NYSE:NOW) in its January 2025 investor letter:
“US-based software company ServiceNow, Inc. (NYSE:NOW) delivered another impressive quarterly result. Revenues grew 21% year-on-year in constant currency terms to $2.9 billion and net income grew 30% year-on-year to $384 million. The company’s key performance indicators remained healthy, with their backlog (remaining performance obligations) growing 23% year-on-year to $22.3 billion (i.e. greater than 2x annual revenue) and renewal rates held firm at 98%. As we have noted in the past, the company’s renewal rates are remarkable as not only are they best-in-class, but they are also extremely consistent, typically in the range of 97% to 99%. These industry-leading renewal rates speak to the mission critical nature of the platform and are a key driver of the long-term annuity value in the business. Zooming out, we continue to believe ServiceNow is one the highest quality software businesses globally as the combination of consistent growth at scale, robust free cash flow generation and a large addressable market make it a compelling opportunity.”
10. Wyndham Hotels & Resorts Inc. (NYSE:WH)
Number of Hedge Fund Holders: 42
Average Upside Potential as of April 15: 36.40%
Wyndham Hotels & Resorts Inc. (NYSE:WH) operates as a hotel franchisor. It licenses its lodging brands and provides related services to third-party hotel owners and others along with full-service international managed business services. It is also involved in the guest loyalty program business. It has a vast hotel brand portfolio.
In Q4 2024, the company’s direct franchising system in China achieved a 16% increase in net rooms, which added 60+ new hotels to Wyndham’s portfolio within China. These were both new additions and conversions of existing properties. Wyndham secured 150 new direct franchise agreements in China in 2024, which built a total pipeline of ~400 direct franchise hotels in the region. These hotels are projected to generate greater revenue per available room (PAR), with an average FeePAR that is 40% higher than the current average for Wyndham’s direct franchise hotels in China.
Wyndham Hotels & Resorts Inc. (NYSE:WH) highlighted that its overall net room growth for the year would have been 0.4% higher without the slower growth of legacy agreements. Direct franchising in China showed a 13% average annual growth rate over the last 3 years, while the company’s older master franchise agreements in the same region showed around 1% growth.
9. Tesla Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 126
Average Upside Potential as of April 15: 36.71%
Tesla Inc. (NASDAQ:TSLA) deals in electric vehicles and energy generation and storage systems through its two segments. The Automotive segment offers EVs and related products and services. The Energy Generation and Storage segment offers solar energy generation and energy storage products and services.
The company’s autonomous driving and AI-related initiatives are anticipated to eventually make up 90% of its valuation. Optimus alone can generate more than $10 trillion in revenue for Tesla. On April 14, Deutsche Bank reiterated a Buy rating on the company because it expects Tesla to do well in the long run because of these advancements and the ability to utilize AI in its products. However, the bank does acknowledge the short-term volatility that the business faces right now.
Still, Tesla Inc. (NASDAQ:TSLA) is somewhat insulated from the current tariff environments when compared to other major automakers in the US. This is because Tesla has a higher degree of vertical integration and makes the majority of its parts itself, something that traditional automakers lack. However, Tesla heavily relies on international sources, mainly China, for a significant amount of its parts and batteries.
JDP Capital Management initiated the stock in June 2024 and stated the following regarding Tesla Inc. (NASDAQ:TSLA) in its Q4 2024 investor letter:
“Tesla, Inc. (NASDAQ:TSLA) is new core position that I wrote about in 2024 Half Year Letter. The stock was up 115% in 2024. We benefited from the June 2024 timing of our purchase, buying after the stock had declined about 30% in the first part of the year.
We repurchased TSLA at a time when the market had [again] become overly bearish based on slowing vehicle orders despite the company having just achieved a breakthrough in Full Self Driving (FSD v12). If you haven’t had a chance to experience the most recent Full Self Driving software (FSD 13.3) I suggest you try it for yourself. If you’ve had a Tesla for a while, you know that the trajectory of FSD improvement has been nothing less than astounding.
It has become clearer to me that Tesla’s leadership position in the infrastructure layer underpinning mega-trends in robotics, smart vehicles and battery storage will unlock earnings growth that we can ride for years. Similar to AWS or the iPhone, Full-Self-Driving and Optimus will enable new business models to be built across a wide range of industries over time…” (Click here to read the full text)
8. Meta Platforms Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 262
Average Upside Potential as of April 15: 40.17%
Meta Platforms Inc. (NASDAQ:META) develops products that enable people to connect and share with friends and family through mobile devices, personal computers, VR and mixed reality headsets, AR, and wearables. It operates through two segments: Family of Apps (FoA) and Reality Labs (RL). It was formerly known as Facebook Inc. until October 2021.
Meta’s total FoA revenue surged by 21% in Q4 2024. Notable, ad revenue for FoA alone rose by 21% as well. FoA recorded $47.3 billion in Q4 revenue, while FoA ad revenue was $46.8 billion in the same quarter. The total number of ad impressions also increased by 6%, and the average price per ad rose by 14%. Meta is further improving its revenue performance through better monetization efficiency.
On April 10, Thomas Champion from Piper Sandler maintained a Buy rating on the company with a $610 price target. This sentiment was fueled by performance checks with an Ad Buyer and an evaluation of Meta’s upcoming financial performance. Meta now anticipates generating $42.5 to $45.5 billion in revenue in the second quarter of the year. This will be a 9% to 16.5% improvement year-over-year.
Nightview Capital highlighted the company’s strong growth potential, due to its AI leadership with Llama model, advertising ecosystem, and AR capabilities. It stated the following regarding Meta Platforms Inc. (NASDAQ:META) in its Q4 2024 investor letter:
“Core Opportunity: Meta Platforms, Inc.’s (NASDAQ:META) platforms—Instagram, Facebook, WhatsApp, and Messenger—reach nearly half the world’s population daily, making it one of the most powerful advertising ecosystems globally. With investments in AI and augmented reality (AR), we believe Meta is also creating significant optionality for long-term growth.
Competitive Advantage: Thriving Core Platforms: In Q3, we saw Meta achieve a 23% YoY revenue growth,—a testament to strong user engagement across its ecosystem. The advertising landscape as a whole continues to evolve and we believe Meta’s existing platforms offer a defined advantage in this new world. Existing platforms in the age of AI continue to be the most powerful indicator of future success in our opinion.
AI Leadership: Meta’s AI capabilities and the Llama AI model are driving efficiency and product innovation. In our view, these assets have been under-appreciated by the market while enhancing Meta’s ability to further scale and innovate its leading advertising business…” (Click here to read the full text)
7. Amazon.com Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 339
Average Upside Potential as of April 15: 43.31%
Amazon.com Inc. (NASDAQ:AMZN) engages in the retail sale of consumer products, advertising, and subscription services through online and physical stores internationally. It operates through three segments: North America, International, and Amazon Web Services (AWS). It also manufactures and sells electronic devices, such as Kindle and Fire TVs.
Revenue for the company’s AWS segment was up 19% year-over-year in Q4 2024. AWS is heavily investing in data centers for AI and expects similar spending in 2025. Amazon’s Tranium 2 AI chips are 30% to 40% cheaper than competitors, which helps the company attract clients like Anthropic (an AI safety/research company). However, Amazon has been currently struggling due to market volatility.
Because of these negative macro developments, JMP lowered the company’s price target to $240 from $285. Despite this move, the investment bank anticipates growth at Amazon.com Inc. (NASDAQ:AMZN) driven by its ad business and cloud infrastructure unit. Still, Amazon’s growth will be slowing down due to its e-commerce business deceleration, although its share of the e-commerce market will potentially increase according to JMP.
Nightview Capital is bullish on the company and stated the following regarding Amazon.com Inc. (NASDAQ:AMZN) in its Q4 2024 investor letter:
“Artificial intelligence is no longer just a promise—it’s becoming the defining force of the modern economy. From self-driving vehicles to humanoid robotics, intelligent systems are not only enhancing efficiency but unlocking entirely new markets. These systems process and learn from vast amounts of real-world data, iterating and improving at a scale no human could achieve.
In our view, this isn’t just innovation; it’s exponential evolution. Companies leading the AI revolution are building formidable data moats, making it nearly impossible for latecomers to compete. Every mile driven by an autonomous vehicle, every task completed by an industrial robot—these actions feed a cycle of continuous improvement.
Amazon.com, Inc. (NASDAQ:AMZN): Core Opportunity: Amazon’s growth is anchored by three high-potential areas: retail margin expansion, a rapidly growing advertising business, and the continued growth and need for Amazon Web Services (AWS). Together, these pillars position Amazon for the next leg of growth and profitability.
Competitive Advantage: Retail Margin Expansion: With e-commerce still accounting for only 16% of retail sales in the United States (per the U.S. Census Bureau)—and even less globally—Amazon has significant room for growth. CEO Andy Jassy’s emphasis on AI-driven efficiencies, such as a possible 25% reduction in cost-to-serve, underscores the company’s ability to unlock new profitability in their now three-decade-old core business. More than a decade after the Kiva robotics acquisition, we see the potential for the next wave of automation to reduce variable cost per unit (VCPU) on the “pick and pack” and transportation side of the business as the decade progresses. Overall, we see EBIT margins expanding steadily throughout the next several years…” (Click here to read the full text)
6. JD.Com Inc. (NASDAQ:JD)
Number of Hedge Fund Holders: 78
Average Upside Potential as of April 15: 44.95%
JD.Com Inc. (NASDAQ:JD) is a supply chain-based technology and service provider. It offers computers, communication, consumer electronics products, home appliances, and general merchandise products. It also provides integrated data, technology, business, and user management industry solutions for digitizing enterprises. It operates tech-driven supply chain solutions and logistics services as well.
The company’s CAGR from 2019 to 2024 was 15%, recent years have shown a slowdown, with growth of 3.7% in 2023 and 6.8% in 2024. However, on March 10, Mizuho raised its price target for JD.Com Inc. (NASDAQ:JD) from $43 to $50 while maintaining an Outperform rating. JD.com ended 2024 with a 7% year-over-year improvement in its overall revenue, which exceeded the total retail sales and online physical goods growth.
The company’s Electronics and Home Appliances category generated RMB 174.1 billion in Q4 2024 revenue. This was a 15.8% increase year-over-year. This was fueled by JD.com’s well-established supply chain, its focus on providing high-quality service, and the trust that the company’s consumers place in the platform for these types of products. Government stimulus policies, such as trade-in programs, have also improved consumer demand within the electronics and home appliances sector.
Ariel Global Fund stated the following regarding JD.com, Inc. (NASDAQ:JD) in its Q3 2024 investor letter:
“China-based E-commerce company, JD.com, Inc. (NASDAQ:JD) was the top contributor in the quarter as the People’s Bank of China’s (PBOC) comprehensive stimulus measures bolstered investor confidence in the Chinese economy. The improving economic sentiment is fueling consumer spending which benefits the company’s retail operations. Additionally, the company’s strategic decision to diversify general merchandise product offerings, expand its third-party marketplace business and monetize advertising streams has contributed to consecutive quarterly earnings beats. JD.com is also poised to capitalize on the home appliance trade-in program, which is one of its largest product categories. Given the favorable market environment, the company’s strategic positioning and supply chain efficiency improvements, we continue to like its long-term growth prospects.”
5. Alibaba Group Holding Ltd. (NYSE:BABA)
Number of Hedge Fund Holders: 107
Average Upside Potential as of April 15: 47.83%
Alibaba Group Holding Ltd. (NYSE:BABA) offers technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses engage with their users and customers. It has a total of seven segments: China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media & Entertainment, and Innovation Initiatives & Others.
On March 28, Mizuho analyst James Lee pointed out Alibaba’s strong AI strategy. This strategy prepares it for enhanced internal productivity and product experiences. The company has planned substantial AI infrastructure spending over the next 3 years. One instance of this includes the development of Qwen 2.5 Max, which is Alibaba’s most advanced LLM to date with applications across various AI tasks.
The company’s cloud computing division also grew by 13% in FQ3 2025 due to rapid AI expansions. Barclays particularly noted that the growth of Alibaba’s cloud business is accelerating. As the company continues to sell AI-related services to its customers, Barclays anticipates that the margins of Alibaba’s cloud unit are likely to improve going forward, according to Barclays. The firm kept a $180 price target and an Outperform rating on the stock.
4. Advanced Micro Devices Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 96
Average Upside Potential as of April 15: 48.15%
Advanced Micro Devices Inc. (NASDAQ:AMD) is a semiconductor company that operates through four segments: Data Center, Client, Gaming, and Embedded. It offers products like AI accelerators, x86 microprocessors, and GPUs. It serves OEMs and design manufacturers, public cloud service providers, system integrators, independent distributors, and add-in-board manufacturers, among other customers.
On April 8, TD Cowen analyst Joshua Buchalter maintained a Buy rating on the stock while lowering its price target to $110 from $135. The buy rating comes from AMD’s potential for growth despite negativity in the computing sector. Analysts believe that AMD’s upcoming launch of the MI355X mid-year will likely drive growth in its data center GPU segment. Although tariffs are a concern as well, the company is focused on capturing value in the AI sector.
AMD recorded a revenue of $7.7 billion in Q4 2024, which was 24% improvement year-over-year. This was driven by the company’s Data Center segment where revenue almost doubled year-over-year due to the rapid adoption of EPYC processors. On March 31, Advanced Micro Devices Inc. (NASDAQ:AMD) also completed its acquisition of ZT Systems, which provides AI and compute infrastructure to major hyperscale providers. This acquisition is expected to accelerate the design and deployment of AMD-powered AI infrastructure at scale optimized for the cloud.
3. Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM)
Number of Hedge Fund Holders: 186
Average Upside Potential as of April 15: 56.25%
Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) manufactures, packages, tests, and sells integrated circuits and other semiconductor devices. It provides various wafer fabrication processes, such as processes to manufacture complementary metal-oxide-semiconductor (CMOS) logic, mixed-signal, radio frequency, embedded memory, bipolar CMOS mixed-signal, and others.
The company’s dominance in the market is evident as it increased its market share from 63% to 67% in Q4 2024 while maintaining over 90% market share in advanced chip manufacturing. TSMC’s 3nm and 2nm process yields outperform its closest competitor, which is Samsung, by 20% and 40%, respectively. These advanced process technologies are needed to develop high-performance AI chips.
In 2024, the company’s HPC segment made up 51% of its total revenue. The segment’s revenue rose by 58% year-over-year which was driven by AI-related applications. The company’s AI accelerators, which contributed a mid-teens percentage to its total revenue, include AI GPUs, AI ASICs, and HBM controllers. Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) forecasts that revenue growth from AI accelerators will reach a mid-40% CAGR for five years starting from 2024.
The company’s results and guidance showcased strong AI chip demand, which is why Sands Capital Technology Innovators Fund stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q4 2024 investor letter:
“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) third-quarter 2024 results and guidance showcased strong continued demand for artificial intelligence (AI) chips. Revenue increased by 29 percent, and earnings saw a 54 percent rise year-over-year. Gross margins were at their highest since 2022, bolstered by price hikes and record utilization at both the 3 nanometer (nm) and 5nm nodes. TSMC’s full-year revenue outlook was revised upward from 25 percent to 30 percent growth. The company also anticipates higher capital expenditure in 2025, a leading indicator for revenue.
Meanwhile, TSMC’s competitive position within the leading-edge chip fabrication industry has improved. The company noted that demand for its next-generation 2nm (N2) node is considerably higher than for its predecessor, N3. Additionally, TSMC has more capacity for N2 than N3. This situation contrasts with Intel and Samsung, which both recently disclosed struggles in ramping up their leading-edge nodes. Together, Intel and Samsung account for approximately $25 billion of foundry revenue, which could potentially migrate to TSMC over time…” (Click here to read the full text)
2. NVIDIA Corp. (NASDAQ:NVDA)
Number of Hedge Fund Holders: 223
Average Upside Potential as of April 15: 58.07%
NVIDIA Corp. (NASDAQ:NVDA) is a computing infrastructure company that provides graphics and compute & networking solutions. Its products are used in gaming, professional visualization, data center, and automotive markets. It sells its products to OEMs, original device manufacturers, system integrators & distributors, tier-1 automotive suppliers, and other similar customers.
NVIDIA specializes in AI-driven solutions and offers platforms for data centers, self-driving cars, robotics, and cloud services. In FY2025, the company’s total revenue doubled year-over-year and recorded an amount of $115.2 billion. A lot of this growth was supported by Blackwell sales, which reached $11 billion alone in FQ4 2025.
Blackwell is designed for AI inference, with 25 times higher throughput and 20 times lower cost than the previously made models. It is deployed by major cloud providers like Azure and AWS. On April 14, Bank of America reiterated a Buy rating on the company because of its belief that NVIDIA is relatively protected from the China-US tariff war. Wall Street analysts currently have a consensus Buy rating on the stock with an average price target of $175.
Guinness Global Innovators is highly bullish on NVIDIA Corp. (NASDAQ:NVDA) due to its dominant AI chip market position. It stated the following in its Q4 2024 investor letter:
“For a second year running, NVIDIA Corporation (NASDAQ:NVDA) was the Fund’s top performing stock, delivering a stellar return of +177.7% over the year. Since the beginning of last year, Nvidia’s ‘Hopper’ GPUs have been at the centre of exploding demand for chips powerful and efficient enough to facilitate the energy intensive requirements of AI processes within datacentres. Initially possessing over 95% of market share in these types of chips, Nvidia have been quick to entrench their position as the technological leader in the space, launching the successor to the current ‘Hopper’ GPU in March, Blackwell, inhibiting the likes of AMD and Intel making meaningful inroads in taking share of the fast-growing market. Compared to the previous iteration (Hopper) which is continuing to fuel Nvidia’s extreme revenue growth, the Blackwell chip is twice as powerful for training AI models and has 5 times the capability when it comes to “inference” (the speed at which AI models respond to queries). Throughout the year, Nvidia’s financial performance has remained resilient. Quarterly revenues hit $35.1 billion in their most recent quarter, beating consensus expectations by 6% and representing a +94% year-over-year increase. Additionally, Nvidia’s data centre segment, driven by the Hopper (H100) chip, grew fivefold over the past year, underscoring the sustained demand for advanced AI infrastructure. The H100 chip, priced at around $40,000, continues to see significant adoption due to its ability to enhance AI model training efficiency while lowering overall costs. This growth is expected to continue as companies invest in upgrading existing data centres and building new ones, with Nvidia well-positioned to capture a significant share of the estimated $2 trillion market opportunity over the next five years. There have been some concerns over Blackwell production delays causing share price volatility however, Nvidia has recovered swiftly, driven by positive earnings results through the year and assurances from management regarding future supply. Additionally, the release of the H200 chip promises to extend Nvidia’s technological leadership, ensuring continued momentum into 2025. While Nvidia’s valuation remains a topic of debate, the stock is not at a significant premium to history, and it still appears reasonable given its dominant market position, innovative prowess, and exposure to long-term secular growth trends in AI, cloud computing, and data infrastructure. As a result, Nvidia remains well-positioned to deliver sustained outperformance over the long term, making it a cornerstone of growth-oriented portfolios.”
1. Strategy Incorporated (NASDAQ:MSTR)
Number of Hedge Fund Holders: 44
Average Upside Potential as of April 15: 76.59%
Strategy Incorporated (NASDAQ:MSTR) provides AI-powered enterprise analytics software and services. It offers these services through Strategy One, HyperIntelligence, and Enterprise Semantic Graph. It offers its services through direct sales force and channel partners. It serves the US government, state and local governments, and government agencies, as well as a range of industries.
The company also engages in Bitcoin development. On February 6, Maxim raised its price target on Strategy Incorporated (NASDAQ:MSTR) to $500 from $480, while maintaining a Buy rating. Maxim believes that the company is better aligned with its dual focus as a Bitcoin treasury company as well as a business intelligence software company. In 2024, the company acquired 258,320 Bitcoin.
As of February 2, the company had a total of 471,107 Bitcoins, which were valued at $46 billion. In 2025, Strategy Incorporated (NASDAQ:MSTR) will prioritize issuing fixed-income securities, with an aim for at least a 15% increase in its Bitcoin holdings and a $10 billion increase in the dollar value of those holdings. The company also plans to raise $42 billion over the next 3 years, particularly the company’s Bitcoin holdings.
While we acknowledge the growth potential of Strategy Incorporated (NASDAQ:MSTR), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MSTR but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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