This article looks at the 15 stocks ChatGPT predicts could make you wealthy in 10 years.
2024 was a stellar year for the US markets, driven by a strong performance in the technology sector. The broader market expanded by more than 23% during the year, marking two consecutive years of over 20% growth—something that had not happened in nearly three decades.
READ ALSO: 10 Best Single Digit Stocks To Buy Now and 10 Under-the-Radar Stocks with Massive Upside for 2025.
The stock market benefited from a resilient economy that avoided recession, declining interest rates, and waning inflation. Analysts are projecting continued growth in 2025 amid strong economic data and optimism about a business-friendly Trump administration returning to power.
In a note on December 30, Wedbush Securities analyst, Dan Ives, wrote that he expects a 25% surge in tech stocks as the new government focuses on slashing unnecessary regulations. On the other hand, Todd Rosenbluth, the head of research at VettaFi, anticipates that ETFs specializing in small-caps will make gains as investors broaden their market exposure with interest rates dropping.
While the general outlook for 2025 is encouraging, analysts are also cautious about the potential downsides of the new administration’s promised tariffs. Following his election victory, Trump has vowed to impose steep tariffs on imports from Canada, China, and Mexico, which could increase manufacturers’ costs. Ongoing geopolitical tensions in different parts of the world could also hurt the stock market.
Can ChatGPT predict the stock market?
A growing number of investors are turning to ChatGPT for stock suggestions. According to a 2023 survey, around 53% of the Millenials and 50% of Generation Z respondents had used the AI chatbot for investing advice. In contrast, older Americans were skeptical of the recommendations, with only 25% of the Baby Boomers saying they had used ChatGPT to buy stocks.
While most financial analysts question the reliability of ChatGPT for providing accurate and up-to-date information, Alejandro Lopez-Lira, a finance professor at the University of Florida, says that the chatbot may be able to predict stock movements. He used the platform to parse negative and positive headlines for stocks and predict returns for the following day. Lopez-Lira was surprised to find how good the results were.
Whether or not tools like ChatGPT are effective in recommending stocks and predicting their trajectory remains a debate. However, they can be useful for investors researching the companies they want to invest in or when looking up definitions of financial terms they are unfamiliar with.
With that said, let’s now head over to the list of 15 stocks ChatGPT predicts could make you wealthy in 10 years.
Methodology
We prompted ChatGPT to predict 15 stocks that could make investors wealthy in 10 years and cite the reasons behind its analysis. The stocks are ranked in this article in the same order as provided by ChatGPT. The platform said it based its rankings on several factors, including market dominance, revenue and earnings growth, innovation, and industry growth potential.
For perspective, we have also shared the hedge fund sentiment toward each stock, based on Insider Monkey’s database of over 900 prominent hedge funds as of Q3 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
15 Stocks ChatGPT Predicts Could Make You Wealthy in 10 Years:
15. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders: 131
Mastercard Incorporated (NYSE:MA) is an American payment card services company headquartered in Purchase, New York. It provides financial services to individual consumers, merchants, small and large businesses, and governments by facilitating electronic funds transfers.
The company has a robust network of digital and cross-border payments, facilitating transactions in over 150 currencies across more than 200 countries and territories. International tourism returning to pre-pandemic levels in 2024 and poised for further growth bodes well for Mastercard Incorporated (NYSE:MA)’s future outlook.
On October 31, the company announced results for the third quarter of fiscal 2024. Net revenues increased 14% from last year, while adjusted net income grew 13% year-over-year. The strong results were driven by healthy consumer spending, which included a cross-border volume growth of 17% compared to the same period last year. EPS for the quarter was $3.89, beating estimates of $3.74 per share.
Mastercard Incorporated (NYSE:MA) has also made two recent strategic acquisitions to expand into technology services, which has raised investor interest in the stock. In October 2024, it acquired Minna Technologies, a Swedish subscription management startup that makes it easier for users to manage their subscription plans. Later in the year in December, it enhanced its cybersecurity offerings with the $2.65 billion acquisition of Recorded Future, a global threat intelligence firm.
Wall Street analysts are bullish on Mastercard Incorporated (NYSE:MA) with a consensus Buy rating and an average share price upside potential of 8%. It is among the stocks ChatGPT predicts could make you wealthy in 10 years.
14. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 105
JPMorgan Chase & Co. (NYSE:JPM) is a financial services company that provides a range of investment banking and asset management solutions for a diverse client base. For the past four years, it has been the largest bank in the U.S. for retail deposits. JPM is among the stocks ChatGPT predicts could make you wealthy in 10 years.
On January 15, JPMorgan Chase & Co. (NYSE:JPM) declared financial results for the fourth quarter of 2024, topping estimates for both revenue and profit. The robust performance was driven by better-than-expected net interest income and strong investment banking results. Profit surged 50% year-over-year to reach $14 billion, helped by a 7% drop in non-interest expenses.
JPMorgan Chase & Co. (NYSE:JPM)’s profit for the full year 2024 was $58.5 billion, a record annual profit for the company. Industry analysts have credited the strong show during the fiscal year to an improving economy and an uptick in deal-making activities as interest rates drop.
The company anticipates a boost in net interest income in 2025 to $94 billion, against analysts forecasts of $91 billion. It is also hopeful that Trump’s lighter-touch regulatory regime will further spur dealmaking in the American economy. Mary Erdoes, the chief executive officer of JPM’s Asset & Wealth Management business, stated the following at the World Economic Forum in Davos on January 22.
If you look at the last administration and the number of new, significant regulations, it was eight times the number of significant new regulations versus the prior Trump administration. With that comes multiple millions of man-hours of paperwork. Work . . . that clogs up the system and stops the economy from continuing to have that very healthy flywheel. So we’re really looking forward to that.
The bank is also a generous dividend payer and was ranked first in a recent list of the Top 20 Dividend Stocks of 2024. During the recently concluded quarter, it distributed a common dividend of $3.5 billion or $1.25 per share. Given its solid financial position, analysts expect the company to continue sustaining strong shareholder returns.
13. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 68
The Procter & Gamble Company (NYSE:PG) is an American consumer goods multinational corporation, headquartered in Cincinnati, Ohio. It has operations in around 70 countries, while its products are sold in over 180 countries and territories. The company has five business segments: Baby, Feminine, and Family Care; Beauty; Health Care; Grooming; and Fabric and Home Care.
On January 22, the company announced results for the second quarter of fiscal year 2025. Net sales increased 2% year-over-year to reach $21.9 billion. The Procter & Gamble Company (NYSE:PG)’s organic revenue, excluding the impact of acquisitions, divestitures, and foreign currency, grew 3% compared to last year. Diluted net earnings per share stood at $1.88, up 34% against the prior year, beating analyst estimates by 2 cents.
The strong financial performance was driven by a surge in demand for household staples. However, P&G’s volume only grew by 1%. Like other players in the consumer industry, the company has been challenged by weaker demand because of price hikes. The highest volume growth, of 4%, was reported by The Procter & Gamble Company (NYSE:PG)’s Baby, Feminine, and Family Care division. It was followed by the Grooming segment, where volume expanded by 2% from last year.
The company also delivered acceleration in shareholder returns during the quarter, returning $4.9 billion back to shareholders through dividend payments and share repurchases. The Procter & Gamble Company (NYSE:PG) reiterated its outlook for fiscal 2025. It anticipates sales growth between two to four percent year-over-year, and core net earnings per share in the range of $6.91 to $7.05. It also expects to pay around $10 billion in dividends in fiscal 2025.
Wall Street analysts have a consensus Buy rating for P&G, with an average share price upside potential of over 11%. It is among the stocks ChatGPT predicts could make you wealthy in 10 years.
12. The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders: 82
The Home Depot, Inc. (NYSE:HD) is an American home improvement retail company that sells building materials, lawn and garden products, home improvement and decor products, tools, construction equipment, and other materials used for repair and maintenance. It operates 2,345 retail stores and approximately 780 branches across all 50 states, the District of Columbia, other U.S. territories, 10 provinces of Canada, and Mexico.
In June 2024, the company completed the acquisition of SRS Distribution, Inc., one of the fastest-growing building products distributors in the U.S., for approximately $18.25 billion. The move is expected to raise The Home Depot, Inc. (NYSE:HD)’s total addressable market to around $1 trillion, by helping accelerate growth with the residential professional customer.
During the Q3 2024 earnings call on November 12, the company reported that SRS generated $2.9 billion of revenue during the third quarter, and was on track to deliver $6.4 billion in sales contribution over seven months. Overall, the company-wide revenue was posted at $40.2 billion, up 6% year-over-year. However, comparable sales declined 1.3%. Its stores in the U.S. also had negative comps of 1.2%.
During the first nine months of 2024, The Home Depot, Inc. (NYSE:HD) experienced pressures on larger remodeling projects because of the general macroeconomic uncertainty and a higher interest rate environment. Despite the challenges, the financial performance in Q3 was better than what the management had anticipated, reflecting the company’s resilience.
The Home Depot, Inc. (NYSE:HD) is also committed to shareholder returns. On November 14, it declared a third-quarter dividend of $2.25 per share to be paid on December 12. Wall Street analysts are bullish on The Home Depot, Inc. (NYSE:HD) with a consensus Buy rating. It is among the stocks ChatGPT predicts could make you wealthy in 10 years.
11. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 112
UnitedHealth Group Incorporated (NYSE:UNH) is an American multinational health insurance company with a mission to enable people to live better and healthier lives. The company offers a range of health benefits designed to make healthcare more accessible and affordable for consumers.
This year, UNH will be expanding its individual and family plans available under the Affordable Care Act (ACA) to 139 new counties in Indiana, Iowa, Nebraska, and Wyoming. It is also expanding its Obamacare footprint in 119 new counties. With the addition of these new coverage areas, the UnitedHealth Group Incorporated (NYSE:UNH) will now have a presence in over 1,250 counties across 30 states.
During fiscal year 2024, it generated a revenue of $400.3 billion, up 8% from last year. Net earnings stood at $14.4 billion for the year, of which over $5.5 billion was contributed through the fourth quarter. Adjusted earnings per share for the year was $27.66, which fell well within the outlook shared by the company for 2024 a year ago. UnitedHealth Group Incorporated (NYSE:UNH) returned $16 billion to shareholders during the year through dividends and share repurchases.
For 2025, the insurance company expects full-year revenue in the range of $450 billion to $455 billion, with adjusted net earnings of $29.50 to $30.00 per share. Cash flow from operations is projected to be between $32 billion and $33 billion. Wall Street analysts are bullish on the stock, with a consensus Strong Buy rating and an average share price upside potential of 19%.
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.
UnitedHealth Group Incorporated (NYSE:UNH) is among the stocks ChatGPT predicts could make you wealthy in 10 years.
10. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 165
Visa Inc. (NYSE:V) is a payment technology company that facilitates electronic transactions worldwide in more than 200 countries and territories through its VisaNet network. Its share price surged 23% during the calendar year, 2024, making it one of the best stocks in the financial sector.
On December 19, Visa completed the acquisition of Featurespace, a software company that develops AI payment protection technology to prevent and mitigate financial crimes. This move is expected to further bolster the company’s reputation as a reliable financial services provider. A Sky News report in August 2024 had pegged the deal at $935 million.
Visa Inc. (NYSE:V) is also venturing into blockchain. On October 3, it introduced the Visa Tokenized Asset Platform (VTAP), a new product to help banks in issuing fiat-backed tokens on blockchain networks. Live pilots of the platform will commence in 2025. Through VTAP, the company hopes to integrate blockchain technology into incumbent financial infrastructures, with minimal technical integration via APIs.
Considering these developments, Visa Inc. (NYSE:V)’s future trajectory looks promising. Its financial performance also remains robust. On October 29, the company announced strong results for the fourth quarter to finish another impressive year. It generated $9.6 billion in revenue during Q4, up 12% from the prior year, to take the full-year revenue to $35.9 billion, growing 10% year-over-year. GAAP EPS grew by 17% each for the quarter and fiscal year.
CEO, Ryan McInerney, attributed the strong quarterly performance to stable growth in payments and cross-border volume, a surge in processed transactions, and momentum across the new value-added services. During the quarter, Visa Inc. (NYSE:V) signed over 650 commercial partnerships, up 30% year-over-year, positioning the company well for fiscal 2025.
Visa Inc. (NYSE:V) ranks tenth on our list of stocks ChatGPT predicts could make you wealthy in 10 years.
9. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 81
Johnson & Johnson (NYSE:JNJ) is a New Jersey-based multinational corporation, engaged in the research and development, and sale of a variety of healthcare products that serve over 52 million patients across 103 countries every day.
Over the last few years, the company has been shifting its focus from consumer health products toward the pharmaceuticals and medtech sectors, which offer significant opportunities for growth. On January 13, Johnson & Johnson (NYSE:JNJ) announced the acquisition of neurological drugmaker, Intra-Cellular, for $14.6 billion, through which the company will gain access to Caplyta, an oral drug to treat schizophrenia and bipolar disorder. The deal is part of a string of recent acquisitions by Johnson & Johnson (NYSE:JNJ) as it looks to drive growth in 2025 and beyond. In 2024, it acquired Proteologix, a biotech company focused on bispecific antibodies for immune-mediated diseases, for $850 million. During the same year, it bought the rights to Numab’s skin disorder drug for $1.25 billion. It also acquired heart device maker, Shockwave Medical, for $13.1 billion, bolstering the growth potential of its medical device business.
On January 22, Johnson & Johnson (NYSE:JNJ) reported financial results for the fourth quarter and full year 2024. It beat quarterly estimates for both revenue and profits, driven by strong sales of its cancer treatments. For the full year, the company posted sales of $88.8 billion, growing 4.3% year-over-year. Adjusted EPS stood at $9.98 per share. The strong results reflected the strength of JNJ’s high-growth strategy.
Wall Street analysts are bullish on Johnson & Johnson (NYSE:JNJ) with a consensus Buy rating and an average share price upside potential of over 21%. It is among the stocks ChatGPT predicts could make you wealthy in 10 years.
8. Berkshire Hathaway Inc. (NYSE:BRK-B)
Number of Hedge Fund Holders: 120
Berkshire Hathaway Inc. (NYSE:BRK-B) is an American multinational conglomerate holding company based in Omaha, Nebraska. Led by the legendary Warren Buffett, it engages in diverse business activities, including insurance, freight rail transportation, utilities, energy, manufacturing, services, and retailing.
Berkshire’s subsidiaries include BNSF, GEICO, International Dairy Queen, and See’s Candies, among others. It also holds major equity stakes in large companies such as Apple, American Express, and Coca-Cola, which has helped Berkshire Hathaway Inc. (NYSE:BRK-B) cement its reputation as a financially robust enterprise.
Buffett’s business acumen has been a cornerstone of the company’s success, reflected again with Berkshire outperforming the broader market in 2024. On November 2, the company announced financial results for the third quarter of fiscal 2024, reporting net earnings of $26.3 billion compared to a loss of $12.8 billion during the same period in 2023, driven by significant investment gains of $16.2 billion.
Operating income for the quarter stood at $10.1 billion, backed by a 48% surge in insurance-investment income from Q3 2023, to reach $3.7 billion. Results were also strengthened by growth in BNSF and Berkshire Hathaway Energy. Moreover, Berkshire Hathaway Inc. (NYSE:BRK-B) repurchased $2.9 billion worth of shares during the first nine months of 2024. It is among the stocks ChatGPT predicts could make you wealthy in 10 years.
7. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 99
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company, headquartered in Austin, Texas. It is a pioneer in the EV industry and has significantly contributed to the global shift toward sustainable transportation through its electric cars.
As of the close of day on January 21, the stock’s market value has surged by 75% since Donald Trump’s victory in the 2024 presidential elections, which has lifted the company back into the elite club of corporations with a market cap of $1 trillion. CEO Elon Musk pumped a whopping $277 million into Trump’s election campaign and now leads the Department of Government Efficiency under the new administration, giving him the powers to eliminate inconvenient regulations.
Investors are optimistic about the Robotaxi and FSD technology driving another phase of growth for Tesla, Inc. (NASDAQ:TSLA) ahead. Musk unveiled the Cybercab in October last year, and since then the company has been showcasing the self-driving two-seater at several locations across the country, with plans to deploy the autonomous services in California and Texas this year.
Tesla, Inc. (NASDAQ:TSLA)’s financial performance remains robust. During the third quarter of fiscal 2024, the automotive company reported a revenue of $25.18 billion, up 8% from the prior year, fueled by strong growth in vehicle deliveries. It also benefited from automotive regulatory credit revenue of $739 million, which helped improve profit margins. EPS was logged at $0.72, beating forecasts of 58 cents per share.
Looking ahead, Musk anticipates vehicle growth of at least 20% in 2025, due to the advent of autonomy and the lower cost of vehicles. He is also confident about Cybercab reaching volume production in 2026, aiming for at least 2 million units a year.
Considering the company’s encouraging future outlook, it comes as no surprise that Tesla, Inc. (NASDAQ:TSLA) is among the stocks ChatGPT predicts could make you wealthy in 10 years.
6. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) is a US-based full-stack computing infrastructure company. It is the go-to company for firms looking for GPUs and semiconductors as they increase spending on artificial intelligence, which has been a significant catalyst behind NVDA’s growth. Over the last five years, its share price has surged by over 2200%.
In 2024, the chipmaker was the biggest global gainer in market capitalization, with its market value increasing by more than $2 trillion to reach $3.28 trillion at the close of the year, up by over 170% from its market value at the end of 2023. The gains were driven by a growing interest in artificial intelligence and robust demand for its AI chips.
On November 20, NVIDIA Corporation (NASDAQ:NVDA) declared strong results for the third quarter of fiscal 2025. The quarterly revenue of $35.1 billion, was up 94% year-over-year, and 17% sequentially from Q2. This was also 8% above the company’s outlook of $32.5 billion. Non-GAAP diluted EPS was $0.81, beating expectations by six cents, and up 103% compared to a year ago.
Following the announcement of these results, several analysts raised their price targets for NVIDIA Corporation (NASDAQ:NVDA), citing various reasons, including the expected increase in global AI investments and the popularity of the stock among both institutional and individual investors. Wall Street analysts have a consensus Strong Buy rating for NVDA with an average share price upside potential of 14%.
Investor sentiment continues to improve as well. According to Insider Monkey’s database for Q3 2024, 193 hedge funds held a stake in the company, up from 179 at the end of Q2. Here is what Manole Capital Management had to say about the stock in its Q3 2024 investor letter:
As of this publication, Nvidia is up roughly 150% year-to-date. NVIDIA Corporation (NASDAQ:NVDA) was the largest gainer in the S&P 500 last year and has more than tripled in value over the last year. It hit an eye-opening market capitalization of $3 trillion in June, less than four months after it eclipsed the $2 trillion mark. Enthusiasm for everything AI-related, especially for the primary chip maker whose products are essential to powering AI technology, continues to fuel the market. Last quarter, and for the fifth consecutive quarter, Nvidia reported sales and profits that blew past Wall Street expectations. The stock rose +37% in the second quarter alone.
NVIDIA Corporation (NASDAQ:NVDA) is among the stocks ChatGPT predicts could make you wealthy in 10 years.
5. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 235
Meta Platforms, Inc. (NASDAQ:META) is one of the largest technology companies in the world. Headquartered in Menlo Park, California, it owns numerous popular social media platforms such as Facebook, WhatsApp, Instagram, and Threads. An estimated 3.2 billion people use at least one of Meta’s apps every day.
The company’s shares had an impressive return rate of 71% in 2024, comfortably outperforming the broader market on the back of strategic restructuring, advancements in AI integration, and successful streamlining of its operations. Moreover, Meta Platforms, Inc. (NASDAQ:META) has further enhanced its appeal to investors through its robust financial performance and commitment to shareholder returns.
On October 30, the company declared financial results for the third quarter of fiscal 2024. Total revenue was reported at $40.59 billion, increasing 19% year-over-year. Operating income stood at $17.4 billion, representing a margin of 43%. Net income for the quarter was $15.7 billion, growing 35% from last year. EPS was logged at $6.03, beating estimates of $5.25 per share.
CEO Mark Zuckerberg credited the results to the AI progress made on Meta’s apps and businesses, with the company seeing strong adoption of Meta AI and Llama. Advertising revenue for Q3 came in at $39.9 billion, up 18% from last year, and accounting for 98.3% of Meta Platforms, Inc. (NASDAQ:META)’s overall revenue. The company’s ability to generate handsome advertisement revenue despite the global economic slowdown continues to be a major driver behind its growth.
Meta Platforms, Inc. (NASDAQ:META) generated a free cash flow of $15.52 billion in Q3. It repurchased $8.86 billion of Class A common stock and paid $1.26 billion in dividends during the quarter. Wall Street analysts are bullish on the company with a consensus Strong Buy rating. Meta is among the stocks ChatGPT predicts could make you wealthy in 10 years.
4. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 160
Alphabet Inc. (NASDAQ:GOOG) is one of the world’s leading technology companies by revenue and owns several notable platforms such as Google Search, Google Maps, Gmail, YouTube, and more. It is also known for pioneering work and research in areas such as cloud computing, quantum computing, and artificial intelligence.
The company’s share price has surged 13% since the December 9 unveiling of its latest quantum computing chip, called Willow, which is expected to be useful for large-scale simulation and code-breaking when quantum computing matures. Alphabet Inc. (NASDAQ:GOOG) has said that the technology will help reduce errors exponentially as it scales up using more qubits. Field experts describe this as a major breakthrough that had been pursued for nearly three decades.
Before that, it announced the development of Trillium, its sixth-generation and most performant TPU, which will significantly enhance the efficiency and speed of AI computations. Alphabet Inc. (NASDAQ:GOOG) is well-positioned to thrive in the AI era, due to its world-class research teams, robust infrastructure, and broad global reach.
The company’s financial performance remains robust. On October 29, it reported a consolidated revenue of $88.3 billion for Q3 2024. This was up 15% year-over-year, driven by strong momentum across the business. Google Services contributed $76.5 billion of the revenue. The figure was 13% higher compared to Q3 2023. Google Cloud revenue surged 35% to $11.4 billion during the quarter. Net income increased 34% to reach $26.3 billion.
Alphabet Inc. (NASDAQ:GOOG) is among the stocks ChatGPT predicts could make you wealthy in 10 years. Wall Street analysts are bullish on GOOG, with a consensus Strong Buy rating.
3. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 286
Amazon.com, Inc. (NASDAQ:AMZN) is an American multinational technology company that engages in e-commerce, online advertising, cloud computing, artificial intelligence, and digital streaming. According to Insider Monkey’s database for Q3 2024, it is the most widely held stock by hedge funds.
On October 31, the company announced financial results for the third quarter of fiscal 2024. Net sales were reported at $158.9 billion, up 11% from the prior year’s quarter, excluding the impact of foreign exchange rates. Operating income surged 56% year-over-year to a total of $17.4 billion. Net income increased to $15.3 billion during the quarter, compared with $9.9 billion in Q3 2023. EPS was logged at $1.43, beating estimates by 29 cents.
The stock’s share price has gained 26% since the results were declared and is resulting in continued investor confidence. Ithaka US Growth Strategy stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN)’s recent financial performance in its Q4 2024 investor letter:
Founded in 1994, Amazon.com, Inc. (NASDAQ:AMZN) has evolved from its early roots as an online bookstore to become one of the world’s largest e-commerce retailers. At the end of 2023 Amazon stood poised to capture ~40% of all US e-commerce sales, representing five times more share than the next closest competitor. In addition to e-commerce, Amazon Web Services (“AWS”) has become the market leader in outsourced cloud infrastructure. Further, Amazon Advertising is garnering significant share in digital advertising, particularly product placement ads, thanks to consumers beginning their product searches on Amazon’s site. Amazon’s stock appreciated on the back of a strong 3Q earnings report that beat on the top line, saw significant earnings growth relative to expectations ($1.43 actual vs $1.15 expected), and exhibited continued operating margin improvement.
Investment experts expect Amazon.com, Inc. (NASDAQ:AMZN) to continue growing in 2025. Amid increasing confidence in the company’s dominance in e-commerce and cloud computing, Wall Street analysts are bullish on the stock, with a consensus Strong Buy rating and an average share price upside potential of 6%.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 279
Microsoft Corporation (NASDAQ:MSFT) is an American technology company, best known for its operating systems and software products. It is one of the most valuable companies in the world with a market cap above $3 trillion.
The Intelligent Cloud segment has become a major driver of growth for the company. During Q1 FY25, the segment contributed 37% of Microsoft’s overall revenue which stood at $65.6 billion. The segment’s revenue of $24.1 billion was up 20% year-over-year, driven by a 33% revenue growth in Azure and other cloud services.
Azure holds the second-largest share of the global cloud market after AWS. During the quarter, Microsoft Corporation (NASDAQ:MSFT) saw growth in both $10 million and $100 million contracts for Azure, which further solidified its significance in the company’s overall strategy.
The company also continues to thrive in its Productivity and Business Processes segment, whose revenue increased 12% during the quarter to $28.3 billion, fueled by Microsoft 365 Commercial cloud revenue growth of 15%. LinkedIn’s revenue was up 10%, while Dynamics products and cloud services revenue increased 14%, reflecting Microsoft Corporation (NASDAQ:MSFT)’s vital role in enterprise productivity and connectivity.
MSFT is also committed to shareholder returns and gave back $9 billion in dividends and share repurchases during Q1 FY25. Wall Street analysts are bullish on the stock, with a consensus Strong Buy rating and an average upside potential of 15%.
1. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 158
Apple Inc. (NASDAQ:AAPL) is a leading American technology company known for its consumer electronics, software, and other related products. Its premium line of products, which includes the iPhone, iPad, Mac computers, and a range of other accessories, has earned Apple widespread acclaim and customer loyalty.
On October 31, the company announced financial results for the fourth quarter of fiscal 2024, beating Wall Street expectations for both revenue and earnings. It posted a quarterly revenue of $94.9 billion, up 6% year-over-year. The iPhone, which accounts for nearly half of Apple Inc. (NASDAQ:AAPL)’s overall revenue, registered a 6% growth in revenue.
The company’s newest iPhone device, launched on September 20, gave Apple only a week of sales ahead of the earnings call. Despite that, the tech giant had a record business performance during the month, driving nearly $27 billion in operating cash flow. This allowed the company to return over $29 billion to shareholders for Q4 in dividends and repurchases.
The integration of artificial intelligence in the newly launched iPhone 16 has renewed investor confidence. Mar Vista Focus strategy stated the following regarding Apple Inc. (NASDAQ:AAPL) in its Q2 2024 investor letter:
Investors were reminded of the strength of the Apple Inc. (NASDAQ:AAPL) ecosystem as management demonstrated how generative AI solutions would be integrated into Apple’s 1.2 billion iPhone installed base. Apple plans to integrate generative AI features into its iOS 18, which will be broadly released in the fall with the iPhone 16. We believe Apple should benefit from generative AI as it will spur a meaningful iPhone upgrade cycle and create new avenues of monetization through its app store and advertising offerings. We believe this will support intrinsic value growth ranging between high-single-digits and low-double-digits over our investment horizon.
Wall Street analysts are bullish on the stock with a consensus Buy rating and average share price upside potential of 8%.
Overall, AAPL ranks first among the 15 Stocks ChatGPT Predicts Could Make You Wealthy in 10 Years. While we acknowledge the potential of technology companies, 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 AAPL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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