In this article, we will be taking a look at the top 5 stocks to buy for the next 3 months. To go through our detailed analysis of changing stock market dynamics today, you can go directly to see the 11 Best Stocks to Buy for the Next 3 Months.
5. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 167
Headquartered in San Francisco, California, Visa Inc. (NYSE:V) is a multinational financial services corporation specializing in global electronic funds transfers. Its primary instruments include Visa-branded credit cards, debit cards, and prepaid cards. Recognized as one of the most valuable companies globally, Visa Inc. (NYSE:V) presently provides a quarterly dividend of $0.52 per share, translating to a dividend yield of 0.82% as of November 23.
According to Insider Monkey’s data as of the end of the third quarter of 2023, a total of 167 hedge funds held positions in Visa Inc. (NYSE:V), a slight decrease from the 171 in the previous quarter. The combined value of these stakes exceeds $24.4 billion. At the close of Q3 2023, Chris Hohn’s TCI Fund Management proved to be the leading shareholder, owning roughly 16.78 million shares in Visa Inc. (NYSE:V), worth nearly $3.86 billion.
Ensemble Capital Management made the following comment about Visa Inc. (NYSE:V) in its Q3 2023 investor letter:
“Mastercard is a company that pretty much everyone has heard of. In fact, when we meet with Ensemble’s clients, we occasionally tell them that we’re nearly certain that they are carrying a Mastercard in their wallet or purse as we speak, and if not, they are carrying a Visa Inc. (NYSE:V). Most people carry both.
People carry Mastercard and Visa because they are accepted nearly everywhere in developed markets. And they are accepted in most emerging economies, at least at locations where higher income people spend money. As a shopper you can show up at a bodega in Peru, a high end hotel in Tokyo, a truck stop in Alabama, or an ice cream cart in Milan, show them a piece of plastic and they’ll let you walk away with goods and services without any worry that they aren’t going to get paid…” (Click here to read the full text)
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 180
Based in Santa Clara, California, Nvidia Corporation (NASDAQ:NVDA) is an American multinational technology company incorporated in Delaware. Renowned for its proficiency in the development of integrated circuits, Nvidia’s expertise extends to a diverse array of devices, ranging from electronic game consoles to personal computers (PCs).
On November 21, NVIDIA Corporation (NASDAQ:NVDA) disclosed its financial results for the third quarter, concluding on October 29, 2023. The company reported a revenue of $18.12 billion, reflecting a substantial increase of 206% compared to the same period last year and a notable 34% rise from the previous quarter. In terms of GAAP earnings per diluted share, the quarter recorded $3.71, marking a more than 12-fold increase from a year ago and a 50% uptick from the previous quarter. Non-GAAP earnings per diluted share were $4.02, representing an almost 6-fold rise from a year ago and a 49% increase from the previous quarter.
Insider Monkey took a look at hedge fund portfolios for NVIDIA Corporation (NASDAQ:NVDA)’s Q3 2023 investments and found out that 180 had a stake in NVIDIA Corporation (NASDAQ:NVDA). Citadel Investment Group was its biggest stakeholder which has roughly 21.85 million stakes for about $9.5 billion of NVIDIA Corporation (NASDAQ:NVDA).
Baron Opportunity Fund made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2023 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) is a leading semiconductor company that sells chips and software for accelerated computing and gaming. Shares have nearly tripled year-to-date, as the company continues reporting unprecedented growth because of the acceleration in demand for its data center chips. After reporting revenue of $7 billion in the first quarter and providing guidance of $11 billion for the second quarter, NVIDIA reported second quarter revenue of $13.5 billion and guided for another step up in the third quarter to $16 billion, with its CFO declaring “[d]emand for our Data Center platform for AI is tremendous and broad-based across industries and customers.” We are at the tipping point of a new era of computing with NVIDIA at its epicenter. This is how CEO and founder Jensen Huang put it (during the company’s August 23 earnings call):
“[T]he easiest way to think about the demand is the world is transitioning from general purpose computing to accelerated computing…[W]hat you’re seeing companies do now is recognizing this…tipping point…recognizing the beginning of this transition, and diverting their capital investment to accelerated computing and generative AI…This isn’t a singular application that is driving the demand, but this is a new computing platform…a new computing transitioning that’s happening…A new computing era has begun. The simultaneously going through two platform transitions, accelerated computing and generative AI.””
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 234
Meta Platforms, Inc. (NASDAQ:META), formerly known as Facebook, Inc. and TheFacebook, Inc., is a prominent American multinational technology conglomerate headquartered in Menlo Park, California. The company oversees a diverse array of products and services, including Facebook, Instagram, Threads, WhatsApp, and various others. Recently, Meta Platforms, Inc. (NASDAQ:META) introduced AI tools for image editing on Instagram, alongside new chat stickers. Analysts at Barclays express optimism that these AI-driven initiatives could lead to increased engagement across Meta’s social apps in 2024, potentially resulting in a significant boost to the company’s core advertising revenue, estimated at $16 billion.
As of the conclusion of the third quarter in 2023, 234 out of the 910 hedge funds tracked by Insider Monkey revealed holdings in Meta Platforms, Inc. (NASDAQ: META). Citadel Investment Group, led by Ken Griffin, emerged as the largest stakeholder during this period.
Weitz Investment Management Large Cap Equity Fund made the following comment about Meta Platforms, Inc. (NASDAQ:META) in its Q3 2023 investor letter:
“As for other quarterly contributors, Alphabet, Inc., (GOOG) and Meta Platforms, Inc. (NASDAQ:META) added to their exceptional year-to-date returns. Meta Platforms and Alphabet were the true year-to-date standouts. After steep declines in 2022, both stocks rebounded sharply due to a combination of solid fundamentals, disciplined operational execution, and improved sentiment. Despite outsized gains and attention, we think both Alphabet and Meta remain undervalued.”
2. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 286
Amazon.com, Inc. (NASDAQ:AMZN), a prominent American multinational technology company, boasts a diverse range of business interests, including e-commerce, cloud computing through Amazon Web Services (AWS), online advertising, digital streaming, and artificial intelligence.
On November 2, HSBC initiated coverage of Amazon.com, Inc. (NASDAQ:AMZN) with a “Buy” rating and a price target of $160. The analysts at the firm highlight that Amazon’s potential in the cloud computing space exceeds the strong customer loyalty in e-commerce. HSBC also emphasizes that Amazon Web Services (AWS) continues to be one of the most compelling narratives in the technology sector. In addition, the firm asserts that any short-term growth challenges do not undermine the long-term growth prospects of the company.
Based on data from Insider Monkey’s database, a total of 286 elite hedge funds held positions in Amazon.com, Inc. (NASDAQ:AMZN) stock, with a collective stake value of $38.8 billion. This represents an increase from the 278 hedge funds that collectively held a stake valued at $34.9 billion previously. Notably, Ken Fisher’s Fisher Asset Management emerged as the most significant stakeholder in the company, with 41.35 million shares valued at $5.25 billion.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 306
Microsoft Corporation (NASDAQ:MSFT), an American multinational technology company headquartered in Redmond, Washington, is widely recognized for its software products, including the Windows line of operating systems, the Microsoft 365 suite of productivity applications, and the Edge web browser.
In a recent announcement, Microsoft Corporation (NASDAQ:MSFT) unveiled its financial results for the first quarter of the 2024 fiscal year. The technology giant reported impressive revenue of $56.5 billion, accompanied by a net income of $22.3 billion in Q1. These figures signify substantial growth, with revenue increasing by 13% and net income surging by 27%. While the Devices segment faced some challenges during this quarter, there was a modest recovery observed in the Windows division. Notably, Microsoft Corporation (NASDAQ:MSFT)’s cloud services and Office suite experienced significant growth, with the company’s Cloud revenue reaching $31.8 billion, demonstrating a 24% year-over-year increase.
According to Insider Monkey’s Q3 2023 database, Microsoft Corporation (NASDAQ: MSFT) was the most popular stock among hedge funds, with 306 funds holding stakes in the company, collectively valued at nearly $72.1 billion.
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