On December 12, President-elect Donald Trump rang the opening bell at the New York Stock Exchange, an event rich with symbolism for his pro-business economic agenda and his commitment to revitalize the US economy. During the event, Trump reiterated his promises to lower the corporate tax rate from 21% to 15% for companies that manufacture in the US. He also mentioned plans to reduce taxes on capital gains and dividends, a move designed to attract investor support and drive market growth. Addressing the crowd at the NYSE, Trump emphasized the importance of his economic policies in creating jobs and strengthening the economy. He said that the stock market’s performance is the barometer of his economic success and promised that the country’s economy would be very strong under his administration. Investors have responded positively to Trump’s election, with the S&P 500 experiencing gains since his victory. His plans for tax cuts and deregulation have been welcomed by Wall Street and business leaders.
In an interview with Bloomberg on December 13, Mike Wilson, Chief US Equity Strategist at Morgan Stanley, discussed his outlook for the stock market and the economy. Wilson noted that the market has traded well over the past few months due to favorable developments, including a definitive election outcome, the Federal Reserve’s monetary policy adjustments, and steady economic growth without a hard landing. He mentioned that Morgan Stanley’s target for the S&P 500 to reach 6,100 by the end of 2024 has been met and revealed the updated projection for the S&P 500, forecasting it to reach 6,500 by the end of 2025. This outlook is based on the base assumption of stable economic growth, softening inflation, and the Fed gradually cutting interest rates.
However, Wilson cautioned that there is a potential for inflation to reaccelerate, which could limit the Fed’s ability to cut rates. He acknowledged that financial conditions have loosened significantly, driven by improved market sentiment following the election. Wilson described 2025 as likely to be another volatile year for markets, similar to 2024. He anticipates heightened uncertainty in the first half of the year, with clarity potentially emerging in the second half.
Wilson’s overall view is that the economy is still late-cycle and his team is narrow and focusing on large-cap quality stocks rather than small-caps or low-quality stocks. This approach is based on the belief that in a late-cycle economy with high rates, smaller and lower-quality companies are more vulnerable and less likely to outperform.
Favorable developments have brought a sense of optimism to the financial markets. While there are still some risks, like potential inflation, investors are optimistic about the future, especially about large-cap companies. With that in context, let’s take a look at the 12 stocks most held by hedge funds.
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Our Methodology
To compile our list of the 12 most promising gold stocks according to hedge funds. We scanned Insider Monkey’s Hedge Fund database to rank 12 stocks according to the largest number of hedge fund holders, as of Q3 2024. The list is sorted in ascending order of hedge fund sentiment.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
12 Stocks Most Held by Hedge Funds
12. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Investors: 123
Adobe Inc. (NASDAQ:ADBE) is a leading global software company that specializes in digital media and digital marketing solutions. With a rich history of innovation, Adobe Inc. (NASDAQ:ADBE) has become synonymous with creative tools, document management, and customer experience management. The company’s flagship products, including Creative Cloud, Document Cloud, and Experience Cloud, serve millions of users and businesses worldwide.
Adobe Inc. (NASDAQ:ADBE) is heavily investing in artificial intelligence (AI) to drive innovation and enhance its product offerings. The company has introduced a comprehensive suite of generative AI models under the Adobe Firefly family and has integrated Firefly across its flagship applications, such as Photoshop, Premiere Pro, and Lightroom. Additionally, the company has launched Firefly Video Model in Premiere Pro which has generated substantial interest with a 70% increase in beta users since its introduction. Adobe Inc. (NASDAQ:ADBE) is also introducing a new higher-priced Firefly offering that includes video models.
Adobe Inc. (NASDAQ:ADBE) is revolutionizing the content supply chain for enterprises through its innovative platform, Adobe GenStudio, a generative AI-powered application for creating and delivering high-performing, cross-channel content. This platform seamlessly integrates multiple Adobe applications and enables agencies and enterprises to achieve new heights of creativity and efficiency in content creation. Adobe Inc. (NASDAQ:ADBE) is expanding its GenStudio portfolio with the introduction of GenStudio for Performance Marketing. This addition provides a comprehensive solution for creating paid social ads, display ads, banners, and marketing emails using pre-approved, on-brand content. Adobe Inc. (NASDAQ:ADBE) is also focusing on expanding its freemium offerings, including Express, Lightroom, and Acrobat on web and mobile, to attract new users and convert them into paying customers.
11. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Investors: 128
Broadcom Inc. (NASDAQ:AVGO) is a leading global technology company that designs, develops, and supplies a broad range of semiconductor and infrastructure software solutions. The company’s portfolio spans a wide array of products, including networking, server storage, wireless, and broadband semiconductors, as well as infrastructure software solutions for data center virtualization and enterprise security.
Broadcom Inc. (NASDAQ:AVGO) has been at the forefront of the artificial intelligence (AI) revolution, leveraging its expertise in custom AI accelerators (XPUs) and networking to capture significant market opportunities. In 2024, which ended on September 30, the company’s AI revenue grew by 220% to $12.2 billion. This growth has been driven by increased shipments to hyperscale customers and the development of next-generation XPUs in 3-nanometer technology. This strong momentum is expected to continue, with management projecting a Serviceable Addressable Market for AI XPUs and networking to be in the range of $60 billion to $90 billion in fiscal year 2027 alone.
This projection is based on the company’s major AI application-specific integrated circuit (ASIC) customers including Google, Meta Platforms, and Amazon. Analysts from leading firms such as Jefferies, Morgan Stanley, and Evercore ISI have all expressed strong bullish sentiment on Broadcom Inc. (NASDAQ:AVGO) and have raised their price targets. On December 13, Evercore ISI analyst Mark Lipacis reiterated their bullish stance on Broadcom Inc.’s (NASDAQ:AVGO) stock, giving a Buy rating with a new price target of $250.
10. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Investors: 131
Mastercard Incorporated (NYSE:MA) is a leading global technology company in the payments industry, connecting consumers, financial institutions, merchants, governments, and businesses worldwide. The company’s robust global network and diverse portfolio of products and services facilitate billions of transactions annually.
Mastercard Incorporated (NYSE:MA) is leveraging its global footprint and innovative technologies to drive the adoption of electronic payments. The company has effectively doubled its acceptance network over the past five years, expanding into new transaction flows such as transit systems and small businesses. The company’s contactless technology is now available in over 110 markets, with the number of tap-on-phone locations almost doubling since the beginning of the year. Additionally, Mastercard Incorporated (NYSE:MA) is scaling its cross-border payment services, integrating with Citi’s network to facilitate secure, near real-time cross-border transfers to 14 receiving markets worldwide.
Mastercard Incorporated (NYSE:MA) is investing heavily in value-added services and solutions to further differentiate its offerings and address the evolving needs of its customers. The company has announced the acquisition of Recorded Future, which will add threat intelligence capabilities to its cybersecurity portfolio, enhancing its ability to provide real-time visibility into potential threats. Additionally, the acquisition of Minna Technologies will enable consumers to manage subscriptions more effectively, providing transparency and control while benefiting merchants through re-engagement opportunities.
9. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Investors: 136
Founded in 2009, Uber Technologies, Inc. (NYSE:UBER) has revolutionized urban transportation and delivery services through its innovative app-based platform. The company offers a wide range of services, including ride-hailing, food delivery, and freight logistics, making it a key player in the gig economy.
Historically, Uber Technologies, Inc. (NYSE:UBER) has been most successful in major urban centers like New York, Sao Paulo, and London. However, recent trends show that growth in suburban and secondary cities is outpacing core urban areas. Recognizing this, Uber Technologies, Inc. (NYSE:UBER) has shifted its focus to improving service in these less dense regions. This involves enhancing the selection of available options, building increased supply and demand, and optimizing delivery and ride times. For instance, in the U.S., non-core cities account for 60-70% of the delivery market, and this segment is growing faster than city centers. By investing in these areas, Uber Technologies, Inc. (NYSE:UBER) aims to tap into a vast, underpenetrated market and drive sustainable growth over the next 2-3 years.
Another significant area of focus for Uber Technologies, Inc. (NYSE:UBER) is the integration of autonomous vehicle (AV) technology. The company has partnered with 14 different AV companies, including Google’s Waymo, to deploy self-driving vehicles in various markets. Uber Technologies, Inc. (NYSE:UBER) is planning to expand this partnership to other cities like Austin and Atlanta, where the number of AVs will significantly increase. By leveraging its global platform and fleet operations expertise, Uber Technologies, Inc. (NYSE:UBER) aims to enhance the efficiency and cost-effectiveness of AV deployments, ultimately driving greater adoption and incremental volume.
8. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Investors: 158
Apple Inc. (NASDAQ:AAPL) is a global technology leader renowned for its innovative and user-friendly products, including the iPhone, iPad, Mac, and the Apple Watch, and a suite of services.
Apple Inc. (NASDAQ:AAPL) continues to prioritize innovation as a core driver of growth. On October 28, the company launched Apple Intelligence, an intelligence system that combines generative models in a personal context and offers features such as systemwide Writing Tools, a more natural and conversational Siri, and advanced photo capabilities. The company plans to roll out additional features and support for more languages in the coming months to further enhance user experience and differentiation in the market. Apple Inc. (NASDAQ:AAPL) is also focusing on expanding its Services segment by introducing new features and enhancing existing ones.
The company’s Services segment, which includes the App Store, Apple Music, Apple TV+, and Apple Pay, among others, set an all-time revenue record of $25 billion in the September quarter, up 12% year-over-year. Apple Inc. (NASDAQ:AAPL) is enhancing the Apple Pay experience with features like redeeming rewards and accessing loans at checkout. The company is also actively expanding its presence in key markets and introducing new products to meet diverse customer needs. New products such as the iPhone 16, the M4-powered Mac lineup, and the Apple Watch Series 10, along with AirPods Pro 2 with end-to-end hearing health capabilities, are all part of the company’s strategy to cater to a wide range of consumer segments and maintain its competitive edge.
7. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Investors: 158
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a leading global semiconductor foundry, renowned for its cutting-edge technology and manufacturing capabilities. The company has pioneered the dedicated foundry business model, enabling the rapid growth of the semiconductor industry by providing advanced process technologies and high-quality manufacturing services to a diverse range of customers.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has consistently maintained its position at the forefront of the semiconductor industry, driving advancements in areas such as high-performance computing (HPC), artificial intelligence (AI), and mobile technologies. The company is actively expanding its global manufacturing footprint to meet the growing demand for advanced semiconductor technologies and to provide geographic flexibility to its customers. In the United States, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) plans to build three fabs in Arizona, with the first expected to start volume production in early 2025. The second and third fabs are scheduled to begin production in 2028 and by the end of the decade, respectively. This expansion not only enhances Taiwan Semiconductor Manufacturing Company Limited’s (NYSE:TSM) capacity but also aims to strengthen its strategic partnership with U.S. customers and the U.S. semiconductor industry.
In Japan, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is preparing for the construction of a second fab, which will support consumer, automotive, industrial, and HPC-related applications, with volume production targeted by the end of 2027. Additionally, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has held a groundbreaking ceremony in Dresden, Germany, for a specialty technology fab focused on automotive and industrial applications, with volume production scheduled to begin by the end of 2027.
6. Visa Inc. (NYSE:V)
Number of Hedge Fund Investors: 165
Visa Inc. (NYSE:V) is a global leader in digital payments, connecting consumers, businesses, financial institutions, and governments in more than 200 countries and territories. The company operates the world’s most advanced payment network, processing trillions of dollars in transactions annually. The company’s innovative solutions and robust infrastructure support a wide range of payment methods, from traditional credit and debit cards to emerging technologies like account-to-account (A2A) payments and digital wallets.
Visa Inc. (NYSE:V) is focusing on driving innovation and making strategic investments to stay ahead in a rapidly evolving payments landscape. The company has launched Visa A2A, an industry-driven solution for account-to-account transactions, initially targeting bill payments in the UK. Visa Protect for A2A payments, which won the Juniper Research Platinum Award for Fraud and Security Innovation, will be piloted on 10 new networks in 2025. Visa Inc. (NYSE:V) is also investing in flexible credentials, which enable multiple payment options from a single Visa credential. The company already has hundreds of issuers in the pipeline for launches in 2025.
Additionally, Visa Inc. (NYSE:V) is also expanding tap-to-pay capabilities globally, with penetration rates in 2024 reaching 82% outside the US and 54% in the US. The company is also adding new transit systems to its global network. In the fiscal year 2024, the company’s tap-to-ride transactions exceeded 2 billion for the first time, up 25% year-over-year.
5. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Investors: 193
NVIDIA Corporation (NASDAQ:NVDA) specializes in the design and manufacture of advanced graphics processing units (GPUs), system-on-a-chip units (SoCs), and artificial intelligence (AI) hardware. The company is known for its innovative contributions to the fields of computing and the AI revolution, particularly with the development of large language models and generative AI.
To maintain its leadership in the AI and accelerated computing market, NVIDIA Corporation (NASDAQ:NVDA) is continuously expanding its ecosystem and driving innovation. The company is investing heavily in research and development (R&D) to ensure that its products and solutions remain at the cutting edge of technology. This includes the development of new HGX GPUs, such as the B100 and B200, and the upcoming Blackwell Ultra, which will further enhance the company’s capabilities in AI and inferencing. Additionally, NVIDIA Corporation (NASDAQ:NVDA) is focusing on the integration of hardware and software, providing end-to-end solutions that optimize total cost of ownership (TCO) for its customers. The company’s software platform, which includes CUDA libraries and a wide range of applications, is essential for enterprises, helping them get started and scale their AI initiatives. NVIDIA Corporation (NASDAQ:NVDA) is also exploring new business models and potential acquisitions to further strengthen its position in the AI market.
Despite the strong demand for its products, NVIDIA Corporation (NASDAQ:NVDA) is facing supply constraints, particularly with the new Blackwell architecture. The company is working closely with its suppliers and partners to scale production and meet the growing demand. Looking ahead, the company is optimistic about future growth opportunities, including the expansion of its networking business, the development of Edge AI solutions, and the increasing demand for AI projects.
4. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Investors: 202
Alphabet Inc. (NASDAQ:GOOGL), the parent company of Google, has grown to become one of the world’s most influential and innovative companies, driving advancements in search, advertising, cloud computing, and artificial intelligence (AI). With a diverse portfolio that includes Google Search, YouTube, Google Cloud, and Waymo, Alphabet Inc. (NASDAQ:GOOGL) is at the forefront of the digital transformation, shaping the way people interact with information, entertainment, and technology.
Alphabet Inc. (NASDAQ:GOOGL) is integrating AI across its core products and platforms to enhance user experiences and drive growth. In search, recent advancements such as AI Overviews, Circle to Search, and Lens are transforming how users interact with information. These AI-driven features are not only enhancing user experiences but also creating new opportunities for advertisers as the company introduced shopping ads within Lens and AI Overviews. Alphabet Inc. (NASDAQ:GOOGL) is also expanding its AI capabilities to YouTube, where the integration of Google DeepMind’s video generation model, VO, into YouTube Shorts will help creators produce more engaging content.
Alphabet Inc. (NASDAQ:GOOGL) is also investing in state-of-the-art infrastructure, from data centers in the US, Thailand, and Uruguay to clean energy initiatives, such as the corporate agreement to purchase nuclear energy from small modular reactors. These investments are not only aimed at supporting AI efforts but also at driving efficiencies and sustainability. For instance, Alphabet Inc. (NASDAQ:GOOGL) has significantly reduced the cost per query for AI Overviews by more than 90% in just 18 months.
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Investors: 235
Meta Platforms, Inc. (NASDAQ:META), formerly Facebook, Inc., is a leading global technology company that operates a family of social media and messaging applications, including Facebook, Instagram, WhatsApp, and Threads. Founded in 2004 by Mark Zuckerberg, the company has grown to become one of the world’s most influential tech giants, connecting over 3.2 billion people daily through its various platforms. Meta Platforms, Inc. (NASDAQ:META) is not only a pioneer in social media but is also at the forefront of emerging technologies such as artificial intelligence (AI), augmented reality (AR), and virtual reality (VR).
Meta Platforms, Inc. (NASDAQ:META) is optimizing its monetization strategies and improving operational efficiency. The company is exploring new ways to monetize its platforms, including through the introduction of more ads on lower-monetizing surfaces like video and the development of new ad formats that deliver better performance for advertisers. Meta Platforms, Inc. (NASDAQ:META) is also using AI to optimize ad placement and timing, ensuring that ads are shown in the most effective and user-friendly way. Additionally, the company is focused on streamlining its operations and reducing costs where possible. The company is leveraging AI to improve coding productivity, content moderation, and other internal processes.
Additionally, Meta Platforms, Inc. (NASDAQ:META) is integrating AI into wearable devices, such as the Ray-Ban Meta AI glasses. These glasses offer a seamless blend of the physical and digital worlds, providing users with real-time information, translation, and interactive experiences. The company is also developing Orion, its first full holographic AR glasses, which represents a significant step forward in the company’s vision for the next computing platform. These innovations are part of the company’s broader strategy to create a more immersive and connected digital experience for users.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Investors: 279
Microsoft Corporation (NASDAQ:MSFT) is a leading technology company headquartered in Washington. The company has grown to become one of the world’s most influential and innovative technology companies, offering a wide range of software, services, and devices. The company’s core products include the Windows operating system, Microsoft Office, Azure Cloud services, and the Xbox gaming platform.
Microsoft Corporation (NASDAQ:MSFT) is at the forefront of the AI revolution, leveraging its extensive cloud infrastructure and strategic partnerships to drive innovation across various industries. The company’s AI business is on track to surpass an annual revenue run rate of $10 billion in the next quarter, making it the fastest business in the company’s history to reach this milestone. Key initiatives include the expansion of Azure AI, which offers a broad selection of AI accelerators and models, and the integration of AI into Microsoft 365, GitHub, and Dynamics 365. Additionally, the company is building an end-to-end app platform to help customers create their own AI-driven applications.
On December 13, Mizuho increased its price target for Microsoft Corporation (NASDAQ:MSFT) to $510 from $480 and maintained an Outperform rating on the stock. This adjustment is part of Mizuho’s 2025 outlook for the software industry, where the firm highlighted key trends including digital transformation, generative artificial intelligence, data and analytics, contact center cloud migrations, DevOps, and next-generation security are benefiting software vendors.
To meet the growing demand for cloud services, Microsoft Corporation (NASDAQ:MSFT) is making significant investments in its Azure platform, including the expansion of data centers and the development of next-generation AI infrastructure. The company has announced new cloud and AI infrastructure investments in Brazil, Italy, Mexico, and Sweden, and is committed to building out its fleet to optimize for AI workloads. Microsoft Corporation (NASDAQ:MSFT) is also prioritizing security across all its products and services.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Investors: 286
Amazon.com, Inc. (NASDAQ:AMZN) is a leading global technology company, initially known for its online retail platform. The company has expanded into a wide array of sectors, including cloud computing, digital streaming, advertising, and artificial intelligence.
Amazon.com, Inc. (NASDAQ:AMZN) is focusing on improving customer experience and operational efficiency. In the retail segment, the company has introduced several initiatives to enhance customer satisfaction, with the recent addition of unlimited grocery delivery from Whole Foods Market, Amazon Fresh, and other grocery partners for $9.99 a month, along with fuel savings of $0.10 a gallon at designated stations in the US. Additionally, Amazon.com, Inc. (NASDAQ:AMZN) is focusing on reducing delivery times and costs. The company has re-architected its fulfillment network to spread inventory more efficiently across regional centers. The company is expanding its Prime services, which offer a range of benefits like fast and free delivery, streaming services, and exclusive deals.
Amazon.com, Inc. (NASDAQ:AMZN) is also investing in new advertising offerings, such as Prime Video advertising and Generative AI-powered creative tools, which are expected to drive further growth. For consumers, AI-powered shopping assistants like Rufus have been expanded to multiple countries, which enhances the shopping experience with personalized recommendations and real-time pricing information. Additionally, Amazon.com, Inc. (NASDAQ:AMZN) is rearchitecting the brain of Alexa with new foundation models and integrating AI into its devices, such as the new Kindle Scribe. In Amazon Web Services (AWS), the company has released nearly twice as many machine learning and Generative AI features as its competitors in the past 18 months.
While we acknowledge the potential of Amazon.com, Inc. (NASDAQ:AMZN) to grow, 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 AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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