In this article, we will take a look at the 5 Reddit stocks with biggest upside . To see more such companies, go directly to 10 Reddit Stocks with Biggest Upside.
5. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 112
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a semiconductor giant that can become a significant competitor to NVIDIA Corporation (NASDAQ:NVDA) in the AI chips market in the future. Advanced Micro Devices, Inc. (NASDAQ:AMD) has a history of catching up quickly to its competition. Advanced Micro Devices, Inc. (NASDAQ:AMD) ranks 5th in our list of Reddit stocks with huge upside. Advanced Micro Devices, Inc. (NASDAQ:AMD) shares can also grow on the back of 5G catalysts.
L1 Capital International Fund made the following comment about Advanced Micro Devices, Inc. (NASDAQ:AMD) in its second quarter 2023 investor letter:
“During the June 2023 quarter the AI bubble continued to inflate. Advanced Micro Devices, Inc. (NASDAQ:AMD), as a key challenger to Nvidia, will benefit from increased demand for its next generation semiconductor chips. AMD’s share price is reflecting very bullish sentiment and the share price has run ahead of a reasonable base case valuation. Accordingly, we divested our entire position and moved AMD to our Bench.”
4. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 135
Apple Inc. (NASDAQ:AAPL) shares were not having a good time lately amid a Chinese ban on iPhones in government offices and a broader sentiment that the company’s new product event would be quieter and won’t create much buzz. The company has revealed the latest iPhone and only time would show the consumer response. Some analysts have also voiced concerns that Apple is a laggard in the AI race. But Apple Inc. (NASDAQ:AAPL) could be a great long-term stock pick and perhaps that’s why Redditors are excited about the stock.
Morgan Stanley analyst Erik Woodring, who has a $215 price target on Apple Inc. (NASDAQ:AAPL), recently said that he’s hopeful about the core iPhone product line of Apple.
“Despite concerns of a muted iPhone 15 cycle, we have conviction iPhone revs will grow [year-over-year in fiscal 2024] given a growing installed base, easy [year-over-year] comps, pent-up demand and positive mix shift driving ASP growth,” Woodring wrote in an investor note.
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 175
NVIDIA Corporation (NASDAQ:NVDA) remains one of the best stocks to buy according to Redditors. Despite huge gains NVIDIA Corporation (NASDAQ:NVDA) seems to have upside potential due to its dominance in the AI chips industry. Recently, it was reported that Samsung has gained the right to supply advanced memory chips to NVIDIA Corporation (NASDAQ:NVDA).
As of the end of the second quarter of 2023, 175 hedge funds tracked by Insider Monkey reported owning stakes in NVIDIA Corporation (NASDAQ:NVDA), up from 132 funds in the previous quarter. This shows the AI-led boom had smart money investors scramble to pile into NVIDIA Corporation (NASDAQ:NVDA) during the June quarter.
RiverPark Large Growth Fund made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2023 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA): NVDA shares were our next top contributor in reaction to blowout 1Q results and 2Q guidance. The company reported revenue of $7.2 billion and EPS of $1.09, 10% and 18% ahead of expectations. Revenue guidance for 2Q of $11 billion was 53% above expectations. The artificial intelligence arms race kicked-off by generative AI applications ChatGPT and Alphabet’s Bard has generated tremendous demand for Nvidia’s next generation graphic processors.
NVDA is the leading designer of graphics processing units (GPU’s) required for powerful computer processing. Over the past 20 years, the company has evolved through innovation and adaptation from a predominantly gaming-focused chip vendor to one of the largest semiconductor/software vendors in the world. Over the past decade, the company has grown revenue at a compound annual rate of over 20% while expanding operating margins and, through its asset light business model, producing ever increasing amounts of free cash flow. Following 1Q’s strong results, Jensen Huang, founder and CEO of NVIDIA stated in the company’s press release, “[a] trillion dollars of installed global data center infrastructure will transition from general purpose to accelerated computing as companies race to apply generative AI into every product, service and business process.”
2. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 225
Meta Platforms, Inc. (NASDAQ:META) has a strong upside potential due to several reasons. These include AI; its huge social reach via Facebook, Instagram, WhatsApp; and its AR/VR initiatives. The WSJ recently reported that Meta Platforms, Inc. (NASDAQ:META) is working on a powerful AI model to compete with GPT-4. Meta Platforms, Inc. (NASDAQ:META) aims to build a better model than its existing one called Llama.
As of the end of the second quarter of 2023, 225 hedge funds tracked by Insider Monkey reported owning stakes in Meta Platforms, Inc. (NASDAQ:META). The biggest stakeholder of Meta Platforms, Inc. (NASDAQ:META) during this period was Chase Coleman and Feroz Dewan’s Tiger Global Management LLC which owns a $2.5 billion stake in the company.
RiverPark Large Growth Fund made the following comment about Meta Platforms, Inc. (NASDAQ:META) in its Q2 2023 investor letter:
“Meta Platforms, Inc. (NASDAQ:META): META shares, continuing their rebound, were the top contributor for the second quarter. The company reported 1Q23 results, beating revenue expectations and lowering guidance for operating expenses and capital expenditures, while increasing revenue expectations.
META owns multiple social media platforms, each with more than one billion users, has an 80% gross margin, and generated $20 billion of FCF in 2022. Both its Facebook and its Instagram franchises have more than 2 billion Daily Active Users and generate the bulk of the company’s revenue. Recently, the company’s short form video offering, Reels, has gained mass user engagement and growing advertiser adoption, which we believe will return the company to strong revenue and free cash flow growth. After its advance, META shares trade at 19x Wall Street’s consensus estimates for 2024 EPS, estimates that we think could prove to be too low.”
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 278
Amazon.com, Inc. (NASDAQ:AMZN) is one of the best Reddit stocks with huge upside potential. Recently, Needham Securities called Amazon.com, Inc. (NASDAQ:AMZN) one of the top beneficiaries of the generative AI boom. AI developers are expected to turn to AWS services and applications that are offered for development and deployment of AI applications.
Amazon.com, Inc. (NASDAQ:AMZN) is one of the most popular stocks among the elite hedge funds tracked by Insider Monkey. As of the end of the second quarter of 2023, 278 hedge funds had stakes in Amazon.com, Inc. (NASDAQ:AMZN). The biggest stakeholder of Amazon.com, Inc. (NASDAQ:AMZN) was Natixis Global Asset Management’s Harris Associates which owns a $2 billion stake 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.”
You can also take a peek at 10 Best Blockchain and Bitcoin ETFs and 10 Small Cap Growth ETFs.
