In this article, we will take a look at the 5 best big company stocks to buy. To see more such companies, go directly to 12 Best Big Company Stocks to Buy.
5. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 175
NVIDIA Corporation (NASDAQ:NVDA) remains the top semiconductor stock when it comes to the AI market segment. NVIDIA Corporation (NASDAQ:NVDA) has already gained about 212% year to date through October 6. Oppenheimer analysts recently conducted channel checks and came out with some top semiconductor picks. These stocks include NVIDIA Corporation (NASDAQ:NVDA), Monolithic Power (NASDAQ:MPWR), Broadcom (NASDAQ:AVGO) and Marvell Technology (NASDAQ:MRVL).
A total of 175 hedge funds tracked by Insider Monkey reported owning stakes in NVIDIA Corporation (NASDAQ:NVDA). The biggest stakeholder of NVIDIA Corporation (NASDAQ:NVDA) was Rajiv Jain’s GQG Partners which owns a $6 billion stake in the company.
Harding Loevner Global Equity Strategy made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2023 investor letter:
NVIDIA Corporation (NASDAQ:NVDA) has been the biggest beneficiary this year in terms of its stock run and projected revenue gains. More companies- including, perhaps, some not yet in existence-will certainly join the ranks over time.
In the meantime, NVIDIA has emerged as the unrivaled global leader in providing the technologies at the center of the Al arms race. NVIDIA’s competitive advantage is the result of investments that began two decades ago, when it recognized an early opportunity to repurpose its video-game graphics chips for the heavy-load computing done in scientific research. This led management to expand the GPU business. It also spent years and significant resources developing a free software platform that’s exclusive to its chips called CUDA that allows developers to easily program its GPUs for a variety of computationally intensive applications. Researchers then began using both NVIDIA’s chips and CUDA to train the human-brain-inspired neural networks that power Al models.
Now, due to an explosion of demand related to generative Al and LLMs from across its customer base, NVIDIA projects that data-center revenue for its fiscal second quarter ending in July will surge to US$11 billion. Not only is that more than double last quarter’s total, but the forecast also shattered the average analyst estimate that called for about US$7 billion. Taking advantage of the stock’s meteoric rise, we reduced our holding (it has risen tenfold since we first purchased in 2018)…” (Click here to read the full text)
4. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 204
Alphabet Inc. (NASDAQ:GOOGL) is one of the top big company stocks to buy according to hedge funds. Analysts are brooding over Alphabet Inc. (NASDAQ:GOOGL)’s initiatives around AI. Monness, Crespi, Hardt recently praised Alphabet Inc. (NASDAQ:GOOGL)’s “Made by Google” event as it likes new Pixel devices powered by AI.
“Alphabet is well positioned to capitalize on the digital ad trend, participate in the cloud’s growth, innovate with AI, benefit from digital transformation, and leverage a leaner cost structure. Given Google’s storied history developing AI innovations, we believe the company has an opportunity to differentiate itself in mobile devices,” Monness, Crespi, Hardt’s Brian White said.
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 225
Meta Platforms, Inc. (NASDAQ:META) is going all-in on AI and Wall Street analysts are appreciating this move. Meta Platforms, Inc. (NASDAQ:META) recently launched AI tools for image editing in Instagram and new chat stickers. Analysts at Barclays believe these AI initiatives could increase overall engagement on Meta Platforms, Inc. (NASDAQ:META) social apps in 2024 and could boost the company’s core ad revenue by $16 billion.
As of the end of the second quarter of 2023, 225 hedge funds out of the 910 funds tracked by Insider Monkey reported having stakes in Meta Platforms, Inc. (NASDAQ:META). The biggest stakeholder of Meta Platforms, Inc. (NASDAQ:META) during this period was
Artisan Global Value Fund made the following comment about Meta Platforms, Inc. (NASDAQ:META) in its Q2 2023 investor letter:
“Our best performing stocks this quarter were Meta Platforms, Inc. (NASDAQ:META), Alphabet and Heidelberg Materials. Meta was the largest contributor to performance. Its shares have almost fully recovered from last year’s declines, rising 35% during the quarter and 138% YTD. During the quarter, the company reported earnings that showed a return to growth and healthy user engagement metrics. Most importantly, profitability appears to have stabilized and is poised to improve as significant cost reduction actions implemented over the past six months begin to have an impact. Separate from fundamental performance, there is excitement over AI’s potential to help the company’s business. While Meta’s technology prowess and massively scaled media platform certainly position the company to take advantage of AI, we believe it’s far too early to estimate any discrete tangible benefits. Overall, we view AI as one of several drivers that will contribute to Meta’s continued growth.”
2. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 278
Amazon.com, Inc. (NASDAQ:AMZN) is one of the top big company stocks to buy now according to hedge funds. Amazon.com, Inc. (NASDAQ:AMZN) is currently facing a lawsuit from the FTC that alleges the company used an algorithm to raise prices to manipulate competition. But Wall Street analysts believe this is a temporary distraction and Amazon.com, Inc. (NASDAQ:AMZN) is a long-term pick. JPMorgan recently called Amazon.com, Inc. (NASDAQ:AMZN) one of its stop ideas and kept an Overweight on the stock.
As of the end of the second quarter of 2023, 278 hedge funds tracked by Insider Monkey had stakes in Amazon.com, Inc. (NASDAQ:AMZN). The biggest hedge fund stakeholder of Amazon.com, Inc. (NASDAQ:AMZN) was Natixis Global Asset Management’s Harris Associates which owns a stake worth over $2 billion in the company.
Diamond Hill Large Cap Strategy made the following comment about Amazon.com, Inc. (NASDAQ:AMZN) in its Q2 2023 investor letter:
“Among our top contributors were insurance company American International Group (AIG), auto retailer CarMax and global online retailer Amazon.com, Inc. (NASDAQ:AMZN).
Amazon’s management team has been working to improve retail profitability, and Q1 results showed progress. In the case of Amazon’s web services (AWS), the market has shifted its focus from where growth will bottom in the near term to how AI can help accelerate the adoption of public cloud services in the future. We believe Amazon’s competitive advantages will continue to grow and that the business has the potential to grow faster than the overall economy in the coming years.”
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 300
Microsoft Corporation (NASDAQ:MSFT) tops the list of the best big company stocks to buy now. Earlier this month BMO published a list of dividend stocks that it believes are suitable buys during market uncertainty and high interest rates. Microsoft Corporation (NASDAQ:MSFT) was one of these stocks.
As of the end of the second quarter of 2023, 300 hedge funds out of the 910 hedge funds tracked by Insider Monkey reported having stakes in Microsoft Corporation (NASDAQ:MSFT). The biggest stakeholder of Microsoft Corporation (NASDAQ:MSFT) during this period was Chris Hohn’s TCI Fund Management which owns a $4 billion stake in the company.
ClearBridge Value Equity Strategy made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its Q2 2023 investor letter:
“We initiated a small position in Microsoft Corporation (NASDAQ:MSFT) during the quarter, which may seem surprising given our concerns about index concentration. However, we seized the opportunity on a compelling entry point below our business value estimate, due to an anticipated acceleration of demand for Microsoft’s Azure cloud business and incremental revenues from integration of Microsoft’s AI Copilot program into its office platform. We believe this could support double-digit growth, while simultaneously solidifying Microsoft’s competitive position as an AI winner. Even as a small position, we believe Microsoft provides a large portfolio construction benefit given low correlation to the rest of the portfolio.”
You can also take a peek at 15 Most Innovative Companies in Canada and 15 Best Casino Stocks To Buy Heading Into 2024.
