In this article, we will look at the 15 Best Blue Chip Stocks to Buy According to Billionaires.
Is A Potential Trade War on the Horizon?
The US stock market is showing volatility after President Donald Trump’s recent announcement of sweeping 10% tariffs on all US trading partners and higher tariffs on countries with a trade deficit with the US.
Economists and investors believe President Trump’s tariff policies could potentially lead to a trade war with America’s trading partners, propelling inflation even higher. These two factors could plunge the US into an economic slowdown, and the markets could potentially sell off quickly if a recession materializes among its looming threats.
On April 10, CNBC reported that stock prices rose sharply a day before after declining for four days straight following President Trump’s announcement of a pause in a significant part of his tariff plan. The White House said that Democratic lawmakers were indulged in partisan games by inquiring if any stock market purchases conducted in recent days were undertaken with prior knowledge of the fact that President Trump would authorize a pause in his tariff plans. Trump announced higher tariffs on China even after he announced a 90-day pause for steeper-than-baseline rates for several other countries.
READ ALSO: 10 Best Medical Stocks to Buy According to Billionaires and 10 Best Organic Food Stocks to Buy According to Billionaires.
Record High Tariffs in the US
On April 11, Erica York, economist and the vice president of federal tax policy at the Tax Foundation’s Center for Federal Tax Policy, talked to CNBC’s “The Exchange” about the ongoing scenario and said that the imposition of around 145% total tariff on Chinese goods would result in a suspension of most trade between the US and China. She said:
“It depends on how narrowly the tariff is applied or how broadly it’s applied, but generally, if you get north of a triple-digit tariff, you are cutting off most trade.”
She further opined that:
“There may still be some things without any substitutes that companies just have to foot the bill, but for the most part, that cuts it off.”
The economist said that Trump’s new China tariffs, along with the others he implemented, would raise the average tariff rate to record highs the country hasn’t seen since the 1940s. The current market volatility has created numerous remarkable investment opportunities, so let’s look at the 15 best blue chip stocks to buy according to billionaires.
15 Best Blue Chip Stocks to Buy According to Billionaires
Our Methodology
We reviewed financial media reports and ETFs to compile an initial list of blue chip stocks and selected stocks that have a 5-year revenue growth rate of at least 10%. We have also considered the popularity of these stocks among billionaire investors. These billionaires are founders or managers of some of the world’s leading hedge funds and companies. We also added the number of hedge fund holders for each stock as of fiscal Q4 2024, and sourced the hedge fund sentiment data from Insider Monkey’s database.
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).
15 Best Blue Chip Stocks to Buy According to Billionaires
15. The Charles Schwab Corporation (NYSE:SCHW)
Number of Billionaire Investors: 19
Number of Hedge Fund Holders: 91
The Charles Schwab Corporation (NYSE:SCHW) is a savings and loan holding company that engages in securities brokerage, wealth management, custody, asset management, and financial advisory services. Its operations are divided into Advisor Services and Investor Services segments.
The company reported EPS of $1.01 in fiscal Q4 2024, surpassing analyst estimates of $0.91. Its total revenue also grew 20% to $5.329 billion, exceeding the expected $5.195 billion. These trends reflect strong financial management and client engagement. The Charles Schwab Corporation (NYSE:SCHW) is focusing on improving its cost management and operating efficiency, which are significant areas supporting its strong profit margins and competitive pricing.
On April 8, Jefferies analyst Daniel Fannon maintained a Buy rating on the company and set a price target of $89.00. According to billionaires, the company takes the 15th spot on our list of the best blue chip stocks to buy. Nightview Capital, an investment management company, also talked about The Charles Schwab Corporation (NYSE:SCHW) in its Q4 2024 investor letter. Here is what the fund said:
“Finance is transforming. Technology is democratizing access, reshaping wealth management, and enabling entirely new models of investing. From algorithmic trading to digital-first advisory platforms, the sector is evolving rapidly. Investors demand smarter, more sustainable options. The potential is significant, and we are focused on companies shaping how people save, invest, and transact in the years to come.
The Charles Schwab Corporation (NYSE:SCHW): Core Opportunity: Schwab is rebounding after a challenging period, supported by leadership stability, operational improvements, and client retention gains.
Key Highlights: Leadership Transition: Incoming CEO Rick Wurster continues the strategic vision of Schwab’s founder and most recent CEO…” (Click here to read the full text)
14. Walmart Inc. (NYSE:WMT)
Number of Billionaire Investors: 20
Number of Hedge Fund Holders: 116
Walmart Inc. (NYSE:WMT) is an omnichannel retailer operating retail and wholesale stores, clubs, e-commerce websites, and mobile applications. It offers an elaborate array of items, including food, beverages, general merchandise, electronics, and more.
Walmart Inc.’s (NYSE:WMT) global advertising business is continually showing positive results and is expected to be one of the largest drivers of operating income for the company, even faster than sales. Over the last year, the company’s global advertising grew 27% to about $4.4 billion. Global membership income also rose 21% to about $3.8 billion.
Overall, the company is showing solid operations. It reported sales growth of 5.2% in fiscal Q4 2025, along with a 9.4% adjusted operating income growth in constant currency. Walmart Inc. (NYSE:WMT) is continually gaining market share across income levels and countries. Unit volumes and transaction counts were up across all its markets in the year’s first three quarters, reflecting its healthy top line. The company’s prices are low, and it is becoming increasingly convenient, resulting in its growing popularity.
On April 11, Mizuho initiated coverage of Walmart Inc. (NYSE:WMT) with an Outperform rating and a $105 price target. In a research note, the firm told investors that Walmart’s transformation into a tech-led player in the industry has “finally reached a tipping point,” where its convenience and delivery are comparable to those of anyone in the consumer sector.
13. Apple Inc. (NASDAQ:AAPL)
Number of Billionaire Investors: 21
Number of Hedge Fund Holders: 166
Apple Inc. (NASDAQ:AAPL) designs, manufactures, and sells smartphones, personal computers, wearables, accessories, and related products and services worldwide. The company’s stock is facing turbulence and skepticism after Trump imposed 125% tariffs on China, which is where much of Apple Inc.’s (NASDAQ:AAPL) products come from.
Morgan Stanley analyst Erik Woodring released a note on April 10, speculating that Apple Inc. (NASDAQ:AAPL) could experience a $7 billion to $8 billion drop on next year’s iPhone sales even if the company manages to reroute around 60% of its production to India. The analyst maintained an overweight rating on the stock and set a one-year price target of $220 per share, based on the expectations that it would route around 50% of the tariff costs to suppliers, lowering the effect on its EPS.
Apart from these circumstances, Apple Inc. (NASDAQ:AAPL) holds a significant premium brand and market position, supported by highly in-demand hardware devices. It is also a financially sound company, generating a notable $36.3 billion in net income in fiscal Q1 2025, resulting in a sizable free cash flow. Analysts are bullish on the stock, and its median price target of $198.15 implies an upside of 26.17% from current levels.
12. Mastercard Incorporated (NYSE:MA)
Number of Billionaire Investors: 22
Number of Hedge Fund Holders: 151
Mastercard Incorporated (NYSE:MA) is a technology company that provides payment solutions for developing and implementing debit, credit, prepaid, commercial, and payment programs via its brands. Its portfolio includes Mastercard, Cirrus, and Maestro. The company also offers intelligence and cyber solutions.
Mastercard Incorporated (NYSE:MA) processed transactions worth $9.8 trillion in 2024, atop a 10% growth in transaction value in 2023. It also experienced a 12% rise in its value of transactions in 2022, highlighting the company’s continued growth numbers and one of the reasons behind positive analyst sentiment.
While a potential recession may dip Mastercard Incorporated’s (NYSE:MA) transaction volume, experts estimate it to be a temporary circumstance. The company has strong operations, with net revenues in fiscal Q4 2024 showing a 16% growth. Adjusted net income also rose 19% versus a year ago on a non-GAAP currency-neutral basis, supported by the company’s diverse capabilities in payments, services, and solutions. The acquisition of Recorded Future in the quarter also supported the company’s operations, positioning it for long-term growth. Mastercard Incorporated (NYSE:MA) is the 12th best blue chip stock to buy according to billionaires.
11. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Billionaire Investors: 23
Number of Hedge Fund Holders: 150
UnitedHealth Group Incorporated (NYSE:UNH) provides healthcare coverage, data consultancy, and software services. It operates through the OptumRx, OptumInsight, OptumHealth, and UnitedHealthCare segments, which have solid operations. UnitedHealthCare, its insurance division, added millions of customers during fiscal 2024 and is continuing to expand its operations. Its OptumHealth division grew revenues to around $105 billion in fiscal 2024 and is expected to touch $117 billion in fiscal 2025.
UnitedHealth Group Incorporated (NYSE:UNH) employed around $17 billion in growth capital in fiscal 2024 to strengthen its capabilities and returned over $16 billion to shareholders through share repurchases and dividends. It expects cash flow from operations to reach $33 billion in fiscal 2025, or 1.2 times net income.
On April 10, Truist raised the firm’s price target on UnitedHealth Group Incorporated (NYSE:UNH) to $660 from $610, keeping a Buy rating on the shares, as reported in a research note previewing Q1 results in Healthcare Services. The company ranks 11th on our list of the top blue chip stocks to buy according to billionaires.
Vulcan Value Partners stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its Q4 2024 investor letter:
“UnitedHealth Group Incorporated (NYSE:UNH), a company that we have owned several times in the past, is the largest health insurer in the United States. UnitedHealth Group also owns Optum, which is a rapidly growing healthcare services company. The environment for the health insurance business remains positive as growth in healthcare spending, driven by chronic diseases and an aging population, will continue to outpace overall economic growth. The insurance business benefits from powerful network effects as more members attract more providers and vice versa, which reinforces United’s value proposition and bargaining power with each side of the network. We respect UnitedHealth Group’s management team and have been very pleased with their long-term vision and execution.”
10. Salesforce, Inc. (NYSE:CRM)
Number of Billionaire Investors: 23
Number of Hedge Fund Holders: 162
Salesforce, Inc. (NYSE:CRM) designs and develops cloud-based enterprise software for customer relationship management. Its solutions encompass customer service and support, sales force automation, digital commerce, marketing automation, collaboration, community management, industry-specific solutions, and salesforce platforms. It also offers training, guidance, support, and advisory services.
The company is strengthening its AI and data protection capabilities through various initiatives, including the 2024 acquisition of Own Company. The strategic move coincides with the market trends around growing enterprise priorities associated with security and automation.
Analysts are bullish on the stock because of Agentforce, which presents a significant opportunity for the company to capitalize on the elevated demand for AI-powered customer support solutions. Agentforce is an autonomous, proactive AI application that offers specialized support to customers and employees. Since the platform integrates generative AI agents into business workflows, Salesforce, Inc. (NYSE:CRM) holds a strong position in this rapidly evolving market.
In a report released on April 9, Terry Tillman from Truist Financial reiterated a Buy rating on Salesforce, Inc. (NYSE:CRM). On April 6, Jefferies analyst Brent Thill also maintained a buy rating for the company and set a price target of $375.00.
Montaka Global Investments, an investment management company, said the following about Salesforce, Inc. (NYSE:CRM) in its Q4 2024 investor letter:
“There are multiple structural trends in the enterprise software space, including (i) the ongoing cloud migrations and digital transformations of enterprises, and (ii) the infusion of AI into software applications.
While the former remains in its early innings (80-85% of enterprise workloads still reside ‘on-premise’ – many of which will ultimately move to public clouds), the latter remains in its infancy.
Given all the hype of late, it’s hard to fathom that large-scale deployments of AI-based enterprise applications have barely even started. It’s all still to come. And we believe 2025 will be the first year that we really start to see meaningful deployments and adoption of these kinds of applications.
Consider another of our top 10 holdings, Salesforce, for example. Its revenue growth is at a cyclical low. Indeed, at just +8% per annum, as reported in the company’s most recent quarter, its rate of revenue growth has never been lower.
But in 2025, not only will price increases that were announced two years ago boost Salesforce, Inc.’s (NYSE:CRM) revenue growth, but the year will also mark the early stages of adoption of the company’s new ‘Agentforce’ (released only weeks ago). This is a new platform that lets businesses build and deploy their own custom AI agents to automate tasks, improve efficiency, and enhance customer experiences…” (Click here to read the full text)
9. Eli Lilly and Company (NYSE:LLY)
Number of Billionaire Investors: 23
Number of Hedge Fund Holders: 115
Eli Lilly and Company (NYSE:LLY) develops, manufactures, discovers, and sells pharmaceutical products. These products span oncology, diabetes, immunology, neuroscience, and other therapies. Investors are bullish on Eli Lilly and Company (NYSE:LLY) due to its in-demand GLP-1 drugs, used to treat diabetes and obesity, which are still in their early growth stages, and the company’s strong financials.
On February 10, the company announced a collaboration with AdvanCell to advance cancer treatment through targeted alpha therapies. By combining Eli Lilly and Company’s (NYSE:LLY) expertise in drug manufacturing with AdvanCell’s Pb-212 production technology and infrastructure, the collaboration aims to expedite clinical progress for innovative radiopharmaceuticals. This is expected to be a significant opportunity for the company to further strengthen its cancer treatment portfolio and explore Pb-212-based therapies.
The company also has strong operations. It reported a 32% revenue growth in fiscal 2024 compared to fiscal 2023, exceeding its first-time guidance by $4 billion. Eli Lilly and Company (NYSE:LLY) also made substantial progress across its strategic deliverables in fiscal Q4 2024, with revenue growing by 45% in the quarter, supported by strong uptake of its Mounjaro and Zepbound drugs.
In a report released on April 9, Tim Anderson from Bank of America Securities maintained a Buy rating on Eli Lilly and Company (NYSE:LLY). The company ranks ninth on our list of the best blue chip stocks to invest in, and its median price target of $732.41 implies an upside of 39.27% from current levels. Aristotle Atlantic Partners, LLC highlighted LLY in its Q4 2024 investor letter. Here is what the firm said:
“Eli Lilly and Company (NYSE:LLY) contributed to performance in the fourth quarter. While shares underperformed, our underweight position versus the benchmark resulted in a positive contribution to relative returns. Lilly shares were weak following an uncharacteristic third-quarter earnings miss driven by softer-than-expected sales of its blockbuster diabetes and obesity drugs. The company blamed this partly on wholesaler destocking. Lilly reinforced its view that end demand for the drugs remains strong”.
8. Broadcom Inc. (NASDAQ:AVGO)
Number of Billionaire Investors: 26
Number of Hedge Fund Holders: 161
Broadcom Inc. (NASDAQ:AVGO) is a leading multinational technology company specializing in semiconductor and infrastructure software products. Broadcom Inc. (NASDAQ:AVGO) has estimated considerable growth in its AI-related revenue, projecting a serviceable addressable market of $60–90 billion by fiscal 2027, driven primarily through partnerships with major hyperscalers like Google, Meta Platforms, and ByteDance. It underwent a 77% year-over-year growth in its AI revenue in fiscal Q1 2025, reaching $4.1 billion. Management expects a considerable rise in its AI revenue in the current quarter as well, as its “hyperscale partners continue to invest in AI XPUs and connectivity solutions for AI data centers.”
One of the company’s most substantial growth opportunities comes from its application-specific integrated circuits (ASICs) used in AI data center infrastructure. Broadcom Inc. (NASDAQ:AVGO) estimates the serviceable addressable market (SAM) for its AI chips to rise to between $60 billion and $90 billion over three fiscal years.
In a report released on April 11, Christopher Danely from Citi maintained a Buy rating on Broadcom Inc. (NASDAQ:AVGO) and set a price target of $210.00. Aristotle Atlantic Core Equity Strategy stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its Q4 2024 investor letter:
“Broadcom Inc. (NASDAQ:AVGO) contributed to performance in the fourth quarter as its third-quarter results demonstrated continuing strength for its AI networking and custom accelerator semiconductor business. The company also gave long-term guidance for the service addressable market (SAM) opportunity for its AI-related business, indicating a market opportunity of $60 billion to $90 billion, including contributions from its current three customers. This long-term outlook for AI semiconductor content exceeded investor expectations. Broadcom’s quarterly results also showed the company is ahead on its VMware integration timeline to achieve $8.5 billion in EBITDA, which will support long-term gross and operating margin expansion for the company.”
7. Visa Inc. (NYSE:V)
Number of Billionaire Investors: 26
Number of Hedge Fund Holders: 181
Visa Inc. (NYSE:V) offers digital payment services, including credit cards, debit cards, prepaid products, global automated teller machines, and commercial payment solutions. The company reported revenue of $9.51 billion in fiscal Q1 2025, beating estimates by $170.7 million. Its EPS was $2.75, while EBITDA reached $6.81 billion. Visa Inc. (NYSE:V) also experienced a surge in the new card issuance rate in the quarter, reaching nearly 4.7 billion compared to 4.5 billion in the same quarter last year. Its transactions also grew from 57.47 billion to 63.0 billion for the same period.
According to Allied Market Research, the global credit card payment market is expected to grow at a CAGR of 8.8%. Therefore, analysts expect Visa Inc. (NYSE:V) to continue its growth trajectory and expand its market share in the coming years.
On April 2, Baird raised the firm’s price target on Visa Inc. (NYSE:V) to $400 from $390 and kept an Outperform rating on the shares. Baird previewed its Q2 report and reported that the firm liked the stock. Visa Inc. (NYSE:V) takes the seventh spot on our list of the best blue chip stocks to invest in now.
Meridian Hedged Equity Fund stated the following regarding Visa Inc. (NYSE:V) in its Q4 2024 investor letter:
“Visa Inc. (NYSE:V) is the world’s largest retail electronic payments network. We hold Visa in the portfolio because of its formidable competitive moat, built on network effects spanning billions of cards and millions of merchants globally. The company continues to benefit from the secular shift toward electronic payments while expanding its portfolio to include high-growth adjacent offerings. While US market penetration is mature, international markets—particularly in emerging economies, where cash usage remains prevalent— offer significant growth opportunities. Visa’s operating model demonstrates strong leverage, with incremental revenue efficiently flowing to the bottom line. This quarter, Visa outperformed expectations across key metrics, with payment volumes and transaction growth proving resilient despite macro uncertainties. Looking ahead, we anticipate continued momentum into fiscal 2025, driven by the ongoing transition to digital payments, international expansion, and the scaling of newer business lines.”
6. NVIDIA Corporation (NASDAQ:NVDA)
Number of Billionaire Investors: 29
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA) designs and manufactures computer graphics processors, chipsets, and other multimedia software. It operates in the Compute & Networking and Graphics Processing Unit (GPU) segments.
NVIDIA Corporation (NASDAQ:NVDA) reported a record full-year revenue of $130.5 billion for fiscal 2025, up 114% from last year. Non-GAAP diluted EPS was $2.99, increasing 130% from a year ago. Fiscal Q4 2025 marked another record quarter for the company, with a revenue of $39.3 billion, up 12% sequentially and 78% year on year. These trends highlight the company’s continued profitability. It expects to continue this profitability in the future, supported by products based on its new Blackwell GPU architecture.
On April 11, Citi analyst Atif Malik cut his price target for NVIDIA Corporation (NASDAQ:NVDA) to $150 from $163 but maintained a Buy rating. The analyst expects the company to partially pass down the tariffs-led potential increase in GPU expense amid the ongoing uncertainty, supported by AI GPU price inelasticity and NVIDIA Corporation’s (NASDAQ:NVDA) technology leadership.
Columbia Threadneedle Global Technology Growth Strategy expressed bullish sentiments regarding the company in its Q4 2024 investor letter, especially because it is on schedule to satisfy the substantial demand for its new product, Blackwell, which will enter the market next year. Here is what it said about the company:
“NVIDIA Corporation (NASDAQ:NVDA) continued to outperform the market during the fourth quarter. The technology giant and top position in the fund delivered on sky-high expectations during the quarter and reported quarterly expectations that exceeded expectations. The red-hot company provided forward-looking expectations which were regarded as slightly lackluster as compared to prior quarters that smashed expectations. While the stock did churn a bit in the quarter, the AI giant remains top of mind for investors, especially as the company is on pace to satisfy the ‘staggering’ demand for its new product, Blackwell, which is poised to enter the market over the next year. The company’s position of owning all the major pieces of the evolving AI data center enables it to strengthen its competitive position and to define the technology roadmap for generations to come.”
5. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Billionaire Investors: 30
Number of Hedge Fund Holders: 186
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the largest contract semiconductor manufacturer in the world. Some of its prominent customers include semiconductor companies that outsource all or a part of their chip production, including Advanced Micro Devices, Nvidia, Broadcom, and more.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) reported notable growth in its net revenue in March 2025, reaching around NT$285.96 billion. This reflects a 10% rise compared to February 2025 and a 46.5% growth compared to March 2024. Its revenue for fiscal Q1 2025 also underwent a 41.6% surge compared to fiscal Q1 2024, reaching NT$839.25 billion. These trends reflect solid market demand for Taiwan Semiconductor Manufacturing Company Limited’s (NYSE:TSM) semiconductor products and robust growth.
Demand for the company’s services is one of the primary reasons investors are bullish on the stock. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has plans to grow its capital expenditures (capex) to between $38 billion and $42 billion in 2025, which translates to an annual growth of 28% to 41%.
The company also pays a dividend, unlike most companies in the semiconductor industry. Wedgewood Partners stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q4 2024 investor letter:
“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was another top contributor to performance during the quarter and for the year. The Company’s earnings growth dramatically accelerated compared to last year as the Company’s wafer fabrication and packaging volumes soared in 2024. In addition, the Company customer prices rebounded in the face of more normalized capital expenditures. The Company maintains a near-monopoly in the fabrication of nearly every new AI accelerator brought to market over the past two years. They continue investing tens of billions to build and 7ill future capacity with orders for what seems to be insatiable hyperscale demand for accelerated computing. The stock ended the year trading at a consensus forward earnings multiple that is several points lower than large-cap growth benchmarks, despite the Company’s dominant position in the most important industry that is driving one of the largest technological shifts in a generation.”
4. Alphabet Inc. (NASDAQ:GOOG)
Number of Billionaire Investors: 33
Number of Hedge Fund Holders: 174
Alphabet Inc. (NASDAQ:GOOG) is a holding company with segments including Google Services, Google Cloud, and Other Bets. The Google Services segment operates various services and products, including Android, Google Maps, Google Play, Chrome, Search, and YouTube. Alphabet Inc. (NASDAQ:GOOG) also has sound operations. Fiscal Q4 2024 showed a 12% growth in overall revenue and a 12.5% growth in search revenue. YouTube grew by 13.8%, while revenue from Google Cloud rose by around 30% to $12 billion.
On March 18, Alphabet Inc. (NASDAQ:GOOG) announced a definitive agreement to acquire Wiz, Inc., a leading cloud security platform, for $32 billion. Wiz will join Google Cloud, with the acquisition reflecting Google Cloud’s notable investment in accelerating the two rising trends in AI: the ability to use multiple clouds and enhanced cloud security.
Alphabet Inc. (NASDAQ:GOOG) ranks fourth on our list of the top blue chip stocks to invest in according to billionaires. Analysts are bullish on the stock, and its median price target of $159.40 implies an upside of 31.74% from current levels.
Merion Road Capital Management stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q4 2024 investor letter:
“Alphabet Inc. (NASDAQ:GOOG): We have held GOOG for a long time (since 2018) on the basis of its immense business quality paired with an undemanding valuation, improving treatment of minority shareholders, and multiple options for value creation. Recently we have seen Alphabet bashed for losing the AI race to now heralded for its progress. I remain excited about their prospects with several near-term, mid-term, and long-term tailwinds. Near-term, Google Cloud continues its rapid growth and their latest large language model, Gemini 2.0, appears to have made significant progress to better serve consumer needs and improve GOOG’s other product offerings. Mid-term, Waymo is on the cusp of becoming a real value driver for the company; there are abundant articles discussing Waymo stealing share from the ride-share economy and launching in new geographies. Long-term, GOOG’s recently announced quantum computing chip positions it well for a future (many, many years away) where computing process are fundamentally different than today. All of these options are embedded in a company that already has an established and dominant earnings stream.”
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Billionaire Investors: 36
Number of Hedge Fund Holders: 262
Meta Platforms, Inc. (NASDAQ:META) builds technological products that allow people to share, connect, grow businesses, and find communities. These products help people connect through personal computers, mobile devices, virtual reality (VR), mixed reality (MR) headsets, and wearables. Most of Meta Platforms, Inc.’s (NASDAQ:META) revenue comes from its advertising business.
The company is employing AI to boost engagement on its social platforms. At the end of 2024, Meta CEO Mark Zuckerberg told investors that this tool was raising the amount of time users spend on Instagram and Facebook. Meta Platforms, Inc. (NASDAQ:META) generated a record $164.5 billion in total revenue in 2024, reflecting a 22% growth compared to 2023. Its net income also rose by 59% to a record $62.3 billion for 2024, translating to $23.86 in EPS.
In addition, fiscal Q4 2024 saw the total number of ad impressions served across Meta Platforms, Inc.’s (NASDAQ:META) services increase by 6%, while the average price per ad increased by 14%.
In a report released on April 10, Thomas Champion from Piper Sandler maintained a Buy rating on Meta Platforms, Inc. (NASDAQ:META), with a price target of $610.00. The company takes the third spot on our list of the best blue chip stocks to buy according to billionaires.
Rowan Street Capital stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q4 2024 investor letter:
“Meta Platforms, Inc. (NASDAQ:META): Investment Initiated: April 2018: Internal Rate of Return (IRR*): 22% *IRR represents the annualized rate of return on an investment, accounting for the timing and magnitude of cash flows over the holding period.
For META, our 22% IRR aligns closely with the company’s compounded growth in earnings per share (EPS) and free cash flow per share during the 6 years holding period.
Looking ahead, Meta is expected to grow its revenues, earnings, and free cash flow per share at mid-teens rates over the next two years. There’s a good possibility that it could exceed these estimates, considering the breadth of growth initiatives currently in place, such as advancements in Al, monetization of Reels, expansion into business messaging, and the ongoing development of the metaverse…” (Click here to read the full text)
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Billionaire Investors: 39
Number of Hedge Fund Holders: 317
Microsoft Corporation (NASDAQ:MSFT) is a technology company and the largest software producer in the world in terms of revenue. It develops and supports services, software, devices, and solutions. It operates through the Intelligent Cloud, Productivity and Business Processes, and More Personal Computing segments. The company sells its products through OEMs, distributors, resellers, and directly through digital marketplaces, online, and retail stores.
The company reported $69.6 billion in revenue in fiscal Q2 2025, up 12%. Its gross margin dollars grew 13% and 12% in constant currency, while operating income increased 17% and 16% in constant currency. Earnings per share also experienced a 10% growth, reaching $3.23. These strong results were attributed to the strong demand for Microsoft Corporation’s (NASDAQ:MSFT) cloud and AI offerings.
On April 11, Bank of America Securities analyst Bradley Sills maintained a Buy rating on Microsoft Corporation (NASDAQ:MSFT). The company takes the second spot on our list of the best blue chip stocks to buy according to billionaires.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Billionaire Investors: 40
Number of Hedge Fund Holders: 339
Amazon.com, Inc. (NASDAQ:AMZN) is a multinational technology company that offers online retail shopping services. It operates through the North America, International, and Amazon Web Services (AWS) segments. AWS’s segment covers global sales of storage, computers, databases, and other services for government agencies, academic institutions, startups, and enterprises.
The company is investing heavily in AI. Its capital expenditures (capex) for 2025 are anticipated to be around $100 billion, most of which would go to AI. The company also said that falling AI inference expenses would fuel increased AI infrastructure spending.
Amazon.com, Inc.’s (NASDAQ:AMZN) e-commerce standing also lends it a significant competitive advantage, as it holds nearly 38% of all e-commerce sales in the US. According to the Boston Consulting Group, e-commerce is expected to continue growing as a percentage of retail sales, reaching around 41% of global retail sales by 2027. This is anticipated to prove substantially beneficial for Amazon.com, Inc. (NASDAQ:AMZN).
On April 10, Telsey Advisory analyst Joe Feldman maintained a Buy rating on Amazon.com, Inc. (NASDAQ:AMZN) and set a price target of $275.00. Analysts are bullish on the stock, and its median price target of $184.87 implies an upside of 43.88% from current levels.
Ariel Appreciation Fund stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2024 investor letter:
“During the quarter, we initiated three new investments, each in companies we have followed closely for a considerable time. At various points, we viewed them as missed opportunities; however, our experience with Mr. Market has taught us that patience often creates inevitable entry points. This quarter, some exciting opportunities presented themselves. The three investments are Amazon.com, Inc. (NASDAQ:AMZN), Diageo (NYSE: DEO), and Uber (NASDAQ: UBER). We will discuss each in detail below.
Amazon is one of the most widely followed companies in the world. While the “Magnificent 7” (of which Amazon is a key member) is often seen as a runaway freight train, we were able to purchase Amazon shares at prices last seen in 2021—three years ago. How is this possible if the “Mag7″ has been so dominant? We believe it largely reflects the increasing prevalence of narratives driving market sentiment…” (Click here to read the full text)
Overall, AMZN ranks first among the 15 best blue chip stocks to buy according to billionaires. While we acknowledge the potential of blue chip stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher 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 AMZN 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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