In this article, we will take a look at the 5 stocks that will make you rich in 2023. To see more such companies, go directly to 10 Stocks That Will Make You Rich in 2023.
5. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 131
Apple Inc. (NASDAQ:AAPL) is one of the evergreen stock picks that keeps on giving. Analysts believe Apple Inc. (NASDAQ:AAPL)’s soon-to-be-released iPhone 15 could see huge demand as there are over 250 million iPhones in the world that haven’t been replaced over the past four years. Apple Inc. (NASDAQ:AAPL) is also in the news due to its launch of Vision Pro mixed-reality headset. Wedbush’s Dan Ives recently said that the device is the first step in “generative AI-driven app ecosystem” for its installed base of more than 2 billion active devices of Apple Inc. (NASDAQ:AAPL). Ives thinks that Apple Inc. (NASDAQ:AAPL)’s fair valuation could be in the $3.5 trillion to $4 trillion range.
Ives estimates that Apple Inc. (NASDAQ:AAPL) could generate a whopping $100 billion in annual services revenue on double-digit growth this year. As of the end of the first quarter of 2023, 131 hedge funds tracked by Insider Monkey had stakes in Apple Inc. (NASDAQ:AAPL).
Manole Capital Management made the following comment about Apple Inc. (NASDAQ:AAPL) in its second quarter 2023 investor letter:
“Despite this, the S&P 500 is up 7% this year and the Nasdaq is up +11%. Technology rebounded from a challenging 2022 and many large tech companies are performing quite well this year. Through mid-May 2023, year-to-date performance of some of the most popular and largest names tech names is impressive. For tech companies with market capitalizations over $1 trillion, Apple Inc. (NASDAQ:AAPL) is up +35%, Microsoft +33%, Amazon +39%, and Google is +40%. In terms of contribution to the S&P 500’s year-to-date return, Apple and Microsoft represent roughly half of its 2023 performance. Apple, and Microsoft now account for 13.9% of the entire S&P 500 or 80% more concentrated than 2008. For additional perspective, Apple’s market cap is at $2.8 trillion and that is larger than the market cap of the entire Russell 2000. To conclude, it’s distinctly getting more concentrated at the top.
For our purposes, we are just going to focus on software digital wallets, as they are much more common and accessible. If you own an iPhone, then you have an Apple Pay pre-loaded digital wallet. If you have a Samsung phone, you have Samsung Pay available for use. Those two, along with Google Pay and PayPal, are the four most popular digital wallets today. According to the Payments Journal, PayPal has been used (over the last 12 months) by 62% of American consumers, followed by Apple Pay at 41% and Google Pay at 32%.
Digital wallets have tons of advantages, that we are embracing. When we attend Tampa Bay Lightning games, we love having our season tickets easily accessible on our phones (via the Apple Pay wallet), as well as our timed parking pass. When we travel, loading the airline ticket into our Apple Pay wallet is much more convenient than printing out a paper boarding pass. Others are using digital wallets to track their expenses, budget properly, and even help them easily pay their bills. Digital wallets are still in their infancy and have decades of future growth; we believe the smartphone is simply the best interface and platform for digital wallets…” (Click here to read the full text)
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 132
NVIDIA Corporation (NASDAQ:NVDA) shares have already gained about 194% year to date through July 7 but analysts believe the stock is poised to grow amid the AI boom. For now, NVIDIA Corporation (NASDAQ:NVDA) dominates the AI market when it comes to hardware and chips. Whenever a company decides to use or deploy generative AI apps like ChatGPT, chances are that they are giving money to NVIDIA Corporation (NASDAQ:NVDA) directly or indirectly since Nvidia’s chips are powering most of the mainstream AI systems.
Recently, Daiwa Capital’s Louis Miscioscia upgraded the stock to Outperform from Neutral citing his recent checks that show NVIDIA Corporation (NASDAQ:NVDA)’s strength in the AI domain. The analyst also upped his price target for NVIDIA Corporation (NASDAQ:NVDA) to $475 from $408.
The analyst said that NVIDIA Corporation (NASDAQ:NVDA)’s dominance is hard to match for competitors like Intel and AMD.
“Many reports suggest AMD/Intel GPUs are pretty darn powerful, they are, but it is not just about silicon, it is about everything combined,” Miscioscia said in a note.
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 220
Meta Platforms, Inc. (NASDAQ:META) is making headlines after its Threads app crossed 50 million users. Wells Fargo analyst Ken Gawrelski recently said that Meta Platforms, Inc. (NASDAQ:META) could see a long-term boost in revenue from the Threads app.
“Framing imminent launch of Instagram Threads, we see [opportunity] for incremental revenue and EPS contribution at maturity between 1-3% annualized,” Gawrelski said in a note.
The analyst thinks that the app could create an additional 13 to 64 cents per share on an annualized basis for Meta Platforms, Inc. (NASDAQ:META).
ClearBridge Large Cap Value Strategy made the following comment about Meta Platforms, Inc. (NASDAQ:META) in its first quarter 2023 investor letter:
“The standout contributor for the quarter was Meta Platforms, Inc. (NASDAQ:META), which we bought in the fourth quarter of 2022. We still feel good about Meta shares after the rally, with positive drivers that we found attractive in late 2022 — large scale advantages in driving user engagement, the ability to invest in tools to monetize its audience, cost discipline and a strong balance sheet — still in play.”
2. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 243
Amazon.com, Inc. (NASDAQ:AMZN) would benefit from the AI revolution in a variety of ways. Amazon.com, Inc. (NASDAQ:AMZN)’s AWS business offers various technologies that help companies take advantage of the true powers of generative AI. Bank of America recently shared its list of top growth and value picks for July. Amazon.com, Inc. (NASDAQ:AMZN) made it to the growth picks list.
Last month Amazon.com, Inc. (NASDAQ:AMZN) shares gained after Loop Capital analyst Rob Sanderson said he expects the slowdown of AWS to “bottom in the next 2-quarters.” The analyst said that generative AI will accelerate the recovery of AWS.
AWS recently revealed that it will invest $100 million in AWS Generative AI Innovation Center, a new program to help customers build and deploy generative artificial intelligence solutions.
Alphyn Capital Management made the following comment about Amazon.com, Inc. (NASDAQ:AMZN) in its second quarter 2023 investor letter:
“In my 2002 Q4 letter, I outlined quantitative reasoning for why I believe the company’s financials mask its true earnings power. More qualitatively, Amazon.com, Inc. (NASDAQ:AMZN) continues to make strategic strides that enhance its appeal as an investment. Firstly, Amazon’s willingness to streamline costs and shutter underperforming initiatives demonstrates prudent financial management. The company’s overhaul of its fulfillment network, transitioning from a national to a regional model, will improve efficiency and delivery speed, resulting in lower costs and increased customer satisfaction, both critical drivers of revenue growth. Second, Amazon’s unparalleled scale, leading e-commerce platform position, and technology investments attract advertisers eager to engage with its vast customer base and provide consumers with highly targeted ads. This strategy has propelled Amazon’s advertising business to surpass broader market trends. Finally, Amazon remains a long-term growth entity. With retail, 80% of shopping is still offline, and Amazon has been steadily expanding its business sales (currently at $35 billion) and international presence. With AWS, despite near-term conservative enterprise spending, 90% of global IT spending remains on-premise. With other bets, Amazon has ambitious forays into diverse sectors such as grocery, healthcare, and satellite internet connectivity.”
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 289
Microsoft Corporation (NASDAQ:MSFT) is one of the best stocks to ride the AI wave. Microsoft Corporation (NASDAQ:MSFT) has gained about 41% year to date through July 7. Analysts believe Microsoft Corporation (NASDAQ:MSFT) still has a lot of room to run as the company is just getting started with its AI launches. Microsoft Corporation (NASDAQ:MSFT)’s partnership with OpenAI, its integration of AI with Bing search engine and Office products and other ambitious AI ventures are expected to bear fruit in the weeks and months to come.
Morgan Stanley’s Keith Weiss recently said in a note that Microsoft Corporation (NASDAQ:MSFT) enjoys a “pole position” in the AI race and is best positioned in the enterprise software space to benefit from the generative AI opportunity. The analyst upped his 2025 earnings per share estimate for Microsoft Corporation (NASDAQ:MSFT) to $13.84 from $13.59 and also increased his price target for the stock to $415, which implies a $3 trillion market cap for the company.
Microsoft Corporation (NASDAQ:MSFT) is also the most popular stock among the 943 hedge funds tracked by Insider Monkey.
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