5 Best American Stocks To Buy In 2024

In this article, we discuss 5 best American stocks to buy. If you want to read our discussion on the US stock market trends and outlook, head directly to 12 Best American Stocks To Buy In 2024. 

5. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 173

NVIDIA Corporation (NASDAQ:NVDA) is a global provider of graphics, compute, and networking solutions. It ranks 4th on our list of the best American stocks. NVIDIA Corporation (NASDAQ:NVDA) is experiencing significant growth in the data center sector, with over 85% of total sales expected to come from this space, a substantial increase from the 25% five years ago. In the fourth quarter of 2023, GPU silicon unit sales surpassed 900,000, more than doubling the previous year’s figure. Nvidia holds a dominant 95% market share, with its Hopper, H100/HGX platform contributing significantly to data center revenue. Bank of America analyst Vivek Arya reiterated a Buy rating on February 28, anticipating further growth in the nearly $90 billion accelerator market.

According to Insider Monkey’s fourth quarter database, 173 hedge funds were long NVIDIA Corporation (NASDAQ:NVDA), compared to 180 funds in the prior quarter. Rajiv Jain’s GQG Partners is a significant position holder in the company, with 13.90 million shares worth $6.8 billion. 

Alger Spectra Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its fourth quarter 2023 investor letter:

“NVIDIA Corporation (NASDAQ:NVDA) is a leading supplier of graphics processing units (GPUs) for a variety of end markets, such as gaming, PCs, data centers, virtual reality and high-performance computing. The company is leading in most secular growth categories in computing, and especially artificial intelligence and super- computing parallel processing techniques for solving complex computational problems. Simply put, Nvidia’s computational power is a critical enabler of Al and therefore critical to Al adoption, in our view. During the period, shares contributed to performance as Nvidia reported solid fiscal third quarter results well above analyst expectations, driven by strong demand from data centers. Growing Al data center workloads are driving demand for the increased interconnections and fully accelerated software stacks, thereby enabling leading application performance and fast result times.”

4. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 214

Alphabet Inc. (NASDAQ:GOOGL) Class A shares come with voting rights, allowing shareholders to have a say in corporate decisions at shareholder meetings. Each Class A share typically comes with one vote per share. According to Insider Monkey’s fourth quarter database, 214 hedge funds were long Alphabet Inc. (NASDAQ:GOOGL), compared to 221 funds in the prior quarter. 

Madison Sustainable Equity Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its fourth quarter 2023 investor letter:

“Alphabet Inc. (NASDAQ:GOOG) was positive during the quarter but had a more modest gain in the fourth quarter following a strong third quarter and as a result, lagged the Technology sector more broadly. Alphabet’s third quarter included solid Search and YouTube results while Cloud growth was a bit softer, growing at 22% year-over-year. Google continues to incorporate AI in its core search businesses. It has been rolled out to a wide number of users across multiple geographies. We will continue to watch how Google adapts AI in its businesses and monitor cloud growth.”

3. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 242

Meta Platforms, Inc. (NASDAQ:META) ranks 2nd on our list of the best American stocks. On February 1, Meta Platforms, Inc. (NASDAQ:META) declared its first-ever quarterly dividend of $0.50 per share dividend. The dividend is distributable on March 26, to shareholders on record as of February 22. Meta also announced a $50 billion increase in share repurchase authorization.

According to Insider Monkey’s fourth quarter database, 242 hedge funds were bullish on Meta Platforms, Inc. (NASDAQ:META), compared to 234 funds in the prior quarter. Chase Coleman’s Tiger Global Management is one of the biggest stakeholders of the company, with 7.4 million shares worth $2.6 billion. 

Baron Fifth Avenue Growth Fund stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its fourth quarter 2023 investor letter:

“Improving unit economics: Many of our companies were able to significantly expand margins during 2023 even though revenue growth decelerated for some of them, showcasing the power of their capital-light, recurring revenue business models, and their increased focus on efficiency. One public example that was at least partially responsible for driving other companies (especially in IT) to become more efficient is X (formerly Twitter), which reduced headcount by a whopping 80% after Elon Musk’s acquisition, despite growing user engagement. Another well-known example is Meta Platforms, Inc. (NASDAQ:META), for which cost controls and margin expansion this year have been a key reason behind the stock’s outperformance (Mark Zuckerberg called 2023 the year of efficiency). Other less well-known examples include the commerce platform, Shopify, which is expected to expand its operating margins from breakeven to 10.9% in 2023 thanks to the sale of its money-losing logistics business, and a 23% reduction in its workforce. What is even more impressive is that the company was able to accelerate innovation velocity (with a lower headcount) as well as improve sales and marketing productivity.”

2. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 293

Amazon.com, Inc. (NASDAQ:AMZN) ranks 2nd on our list of the best American stocks. Amazon Web Services (AWS) is experiencing a revival in growth, overcoming seven consecutive quarters of stagnant sales. The rebound is attributed to increased benefits from artificial intelligence, leading to a resurgence in larger deals. Piper Sandler analyst Thomas Champion expressed confidence in AWS’s model, emphasizing the company’s commitment to offering more AI model options to customers. He maintained an Overweight rating on Amazon shares with a $220 price target on February 2.

According to Insider Monkey’s fourth quarter database, 293 hedge funds were bullish on Amazon.com, Inc. (NASDAQ:AMZN), compared to 286 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is the leading stakeholder of the company, with 41.78 million shares worth $6.3 billion.

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 302

Microsoft Corporation (NASDAQ:MSFT) ranks 1st on our list of the best American stocks to buy in 2024. On February 29, Goldman Sachs reaffirmed a Buy rating for Microsoft Corporation (NASDAQ:MSFT), praising its strategic investments in generative artificial intelligence. Microsoft is seen as a leader in the Gen-AI tech stack, poised for significant revenue growth without compromising profitability. The potential for Azure and Gen-AI services to become a $200 billion business, along with positive adoption rates of Copilot, contributes to Microsoft being viewed as a compelling investment opportunity in the tech industry.

According to Insider Monkey’s fourth quarter database, 302 hedge funds were long Microsoft Corporation (NASDAQ:MSFT), compared to 306 funds in the prior quarter. Bill & Melinda Gates Foundation Trust is the largest stakeholder of the company, with 38.2 million shares worth $14.3 billion. 

Alger Spectra Fund stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its fourth quarter 2023 investor letter:

“Microsoft Corporation (NASDAQ:MSFT) is a beneficiary of corporate America’s transformative digitization. Microsoft’s CEO expects technology spending as a percent of Gross Domestic Product (GDP) to jump from about 5% now to 10% in 10 years and that Microsoft will continue to capture market share within the technology sector. The company operates through three segments: Productivity and Business Processes (Office. LinkedIn, and Dynamics), Intelligent Cloud (Server Products and Cloud Services, Azure, and Enterprise Services), and More Personal Computing (Windows, Devices. Gaming, and Search). During the quarter, the company reported strong fiscal first quarter results, where revenues and earnings beat analyst estimates, driven in large part to growing Al demand. Regarding Intelligent Cloud segment, management noted Azure optimizations were similar to the previous quarter, but new Al and traditional workloads are helping drive greater consumption growth, which resulted in their first reacceleration since March 2022. We believe the strong Azure performance suggests diminishing cost optimization headwinds and growing strength in Al service consumption.”

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