In this article, we discuss the top 15 stock picks of billionaire Steve Cohen.
Steve Cohen is one of the most prominent and successful hedge fund managers in the world, known for his extraordinary trading acumen and ability to generate consistent returns. As the founder of Point72 Asset Management, Cohen has built a reputation as a pioneer in the hedge fund industry. He was born in 1956 into a middle-class family. His father worked in the garment industry, while his mother was a piano teacher. Cohen showed an interest in finance early on, even dabbling in poker, which honed his skills in risk-taking and probability analysis. He graduated from Wharton School of the University of Pennsylvania in 1978 with a degree in economics. Shortly after, he began his career on Wall Street as a junior trader at Gruntal & Co, where he quickly gained recognition for his ability to generate profits through equities trading.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
In 1992, Cohen founded SAC Capital Advisors with $25 million, including $10 million of his own savings. The hedge fund, named after his initials, focused on long/short equity strategies and became known for its aggressive trading style. Over the years, SAC Capital emerged as one of the most successful hedge funds in history, consistently delivering double-digit returns. At its peak, SAC Capital managed over $16 billion in assets. Cohen reportedly generated annualized returns of approximately 30% for his investors, an extraordinary achievement in the hedge fund industry. Cohen’s trading style emphasized speed, precision, and a deep understanding of market dynamics.
In 2014, Cohen launched Point72 Asset Management, a firm focused on managing his personal fortune and eventually reopening to external investors. Point72 has since grown into a major player in the hedge fund industry. As of the third quarter of 2024, Point72 manages over $39 billion in 13F securities. The firm employs over 1,800 people and operates across multiple global offices. Point72 combines Cohen’s expertise in active trading with investments in technology, data analysis, and artificial intelligence, positioning itself at the forefront of modern finance.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we selected stocks by combing through the 13F portfolio of Point72 Asset Management at the end of the third quarter of 2024. These stocks are also popular among other hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Steven Cohen of Point72 Asset Management
Billionaire Steve Cohen’s Top 15 Stock Picks
15. Evergy, Inc. (NASDAQ:EVRG)
Number of Hedge Fund Holders: 30
Point72 Asset Management’s Stake: $176.7 million
Evergy, Inc. (NASDAQ:EVRG) is a services provider that generates, transmits and distributes electricity and steam. This company presents a strong investment case based on the positive trend in adjusted earnings witnessed in the report for the third quarter of 2024. Adjusted earnings (non-GAAP) and adjusted earnings per share (non-GAAP) were $465.6 million and $2.02, respectively, compared to $432.3 million and $1.88 in 2023. Secondly, Evergy plans to retire nearly 1,200 megawatts of coal-based fossil generation and add 3,200 MW of renewable generation in the next 10 years. Within the next three years, the company will retire its Lawrence (KS) Energy Center and add 700 MW of solar energy. The plan prioritizes sustainability, reliability and cost competitiveness while advancing Evergy’s goal to reduce carbon emissions by 70% by 2030 (relative to 2005 levels) and achieve net-zero carbon emissions by 2045, which may hold great potential for investors. Moreover, the company has also announced plans to invest in two new 705 megawatt (MW) combined-cycle natural gas plants in Kansas, expected to begin operations in 2029 and 2030.
14. EQT Corporation (NYSE:EQT)
Number of Hedge Fund Holders: 48
Point72 Asset Management’s Stake: $179.4 million
EQT Corporation (NYSE:EQT) operates as a natural gas production company in the United States. These qualities position the company as a top investment choice. Firstly, as per the report of the third quarter of 2024, the sales volume was 581 Bcfe, above the high-end of guidance, driven by continued operational efficiency gains and strong good performance, despite approximately 35 Bcfe of total net curtailments. Secondly, EQT Corporation entered into a definitive agreement with funds managed by Blackstone Credit & Insurance to form a new midstream joint venture, consisting of EQT’s ownership interest in high-quality contracted infrastructure assets.
13. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 202
Point72 Asset Management’s Stake: $192.2 million
Alphabet Inc. (NASDAQ:GOOGL) is a California-based technology company that owns and runs the internet search engine Google. This company is positioned as a lucrative investment for the following reasons. Firstly, as per the report of the third quarter of 2024, the company reported an increase in revenue of 15%, or 16% in constant currency, year over year to $88.3 billion, reflecting strong momentum across the business. Also, net income increased by 34%, and EPS increased by 37% to $2.12. Secondly, Google Cloud has shown great growth, which reflects the rising reliance of enterprises on AI-driven insights. Google has rolled out ads in AI Overviews, which use generative AI to summarize content from a range of sources and display precise results for search queries.
12. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders: 66
Point72 Asset Management’s Stake: $192.9 million
ConocoPhillips (NYSE:COP) is an energy company based in Texas. The following factors demonstrate the company’s promise as a solid investment. The first prime factor that may attract investment is the company’s strong operational cash flow. As per the reports of the third quarter of 2024, in the first nine months of 2024, cash provided by operating activities was $15.7 billion, excluding a $0.8 billion change in working capital. Secondly, the company completed its acquisition of Marathon Oil Corporation, which would diversify its portfolio and expect to deliver synergies of over $1 billion on a run rate basis in the next 12 months. Moreover, ConocoPhillips signed another agreement with the German energy group Uniper to extend by 10 years their partnership for the supply of up to 10 bcm of natural gas to the German utility.
11. Gilead Sciences, Inc. (NASDAQ:GILD)
Number of Hedge Fund Holders: 59
Point72 Asset Management’s Stake: $193.2 million
Gilead Sciences, Inc. (NASDAQ:GILD) is a California-based biotechnology company founded in 1987. The following features make this company a strong investment case. Firstly, the report for the third quarter of 2024 indicates the company’s success in expanding its product offerings and capturing demand in critical healthcare segments, which may attract investment. For instance, as per the report, product sales increased 7% to $7.5 billion compared to the same period in 2023 and total third-quarter 2024 product sales, excluding Veklury, increased 7% to $6.8 billion compared to the same period in 2023, primarily due to higher sales in HIV as well as in Oncology and Liver Disease. Secondly, the company presented the results of the pivotal Phase 3 PURPOSE 2 trial, which is studying twice-yearly lenacapavir, the company’s injectable HIV-1 capsid inhibitor, for the investigational use of HIV prevention. This may attract investment as it holds the potential to increase revenue streams, estimated to be over $10 billion. Moreover, the company is also advancing its oncology pipeline, including therapies for multiple myeloma and breast cancer.
10. Coherent Corp. (NYSE:COHR)
Number of Hedge Fund Holders: 51
Point72 Asset Management’s Stake: $208.7 million
Coherent Corp. (NYSE:COHR) develops, manufactures, and markets engineered materials, optoelectronic components, and devices worldwide. The following factors make the company a prime candidate for investment. Firstly, better financial performance was witnessed in the report for the fourth quarter of 2024. For instance, revenue for the fourth quarter of fiscal 2024 was $1.31 billion, with a GAAP gross margin of 32.9% and a GAAP net loss of $0.52 per diluted share. On a non-GAAP basis, the gross margin was 37.2%, with net income per diluted share of $0.61. Secondly, the company has signed a non-binding preliminary memorandum of terms (PMT) with the US Department of Commerce under the CHIPS and Science Act for a proposed investment of up to $33 million to support the modernization and expansion of a state-of-the-art manufacturing cleanroom in Coherent’s existing 700,000 square-foot facility in Sherman, Texas. This project will expand the world’s first 150 mm indium phosphide (InP) manufacturing line by adding advanced wafer fabrication equipment to produce InP devices at scale.
9. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 158
Point72 Asset Management’s Stake: $209.6 million
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) makes and sells integrated circuits and semiconductors. The following highlights demonstrate why the company is a compelling investment opportunity. Firstly, for the entirety of 2024, TSM saw robust growth across its key segments. Revenue from high-performance computing surged 58%, while smartphone chip sales climbed 23%. Meanwhile, internet-of-things, automotive, and digital consumer electronics revenues grew modestly, each increasing by 2% to 4%. This makes this company a strong investment candidate, leading in the market and its ability to capture growth opportunities in multiple sectors. Secondly, the company has positioned itself at the forefront, producing advancement in the production of chips using the most advanced nodes, such as 5nm and 3nm processes.
8. Intuitive Surgical, Inc. (NASDAQ:ISRG)
Number of Hedge Fund Holders: 82
Point72 Asset Management’s Stake: $214.9 million
Intuitive Surgical, Inc. (NASDAQ:ISRG) develops, manufactures, and markets products that enable physicians and healthcare providers to enhance the quality of and access to minimally invasive care. The following aspects illustrate why the company stands out as an investment opportunity. To begin with, as per the reports of the third quarter of 2024, the company has placed 493 da Vinci surgical systems, of which 174 were da Vinci 5 systems, showing an increase of 19% compared with 415 in the fourth quarter of 2023. During 2024, the company placed 1,526 da Vinci surgical systems, of which 362 were da Vinci 5 systems, an increase of 11% compared with 1,370 systems in 2023. This growth in system installations boosts future revenue potential and reinforces the company’s leadership in the robotic surgery market. Secondly, the company plans to take the da Vinci 5 robot from a limited rollout to a broader launch in mid-2025. Moreover, Intuitive Surgical is also expanding its presence in emerging markets, including Asia-Pacific and Latin America. This expansion and integration of AI into the surgical process aims to capitalize on the growing demand for advanced medical technologies.
7. Lumentum Holdings Inc. (NASDAQ:LITE)
Number of Hedge Fund Holders: 36
Point72 Asset Management’s Stake: $252.8 million
Lumentum Holdings Inc. (NASDAQ:LITE) carries out the manufacturing business of optical, photonic and commercial laser products. The following reasons highlight the company’s strength as an investment target. Firstly, as per the report of the third quarter of 2024, net revenue was $1.36 billion and GAAP operating loss of 31.9%, non-GAAP operating margin of 2.8%. Also, GAAP diluted net loss per share of $8.12; non-GAAP diluted net income per share of $1.01. This demonstrates the company’s operational efficiency and suggests a better performance when excluding non-recurring or non-cash items, which may attract more investment. Secondly, the company provides advanced optical solutions for data centers, supporting artificial intelligence (AI) applications, and for this reason, the company has secured record orders for datacom chips used in data center applications. This may hold investment potential as the company intends to meet the growing demand for AI and cloud computing services, presenting a substantial market opportunity for Lumentum’s high-performance optical products. Moreover, the company has announced its participation in the European Conference on Optical Communication (ECOC) 2024 in Frankfurt, Germany, from September 23 – 25. At Stand #A24, Lumentum will showcase its latest photonic solutions, reinforcing its commitment to powering the artificial intelligence (AI) revolution through unparalleled speed, scalability, and energy efficiency, which may hold investment opportunities. In a nutshell, these features position the company as a rewarding investment choice.
6. Boston Scientific Corporation (NYSE:BSX)
Number of Hedge Fund Holders: 92
Point72 Asset Management’s Stake: $283.4 million
Boston Scientific Corporation (NYSE:BSX) is dedicated to transforming lives through innovative medical solutions that improve the health of patients around the world. The following reasons highlight the company’s strength as an investment target. Firstly, as per the report of the third quarter of 2024, the company generated net sales of $4.209 billion, growing 19.4% on a reported basis, 19.5% on an operational basis, and 18.2% on an organic basis, all compared to the prior year period. Secondly, the company has entered into a definitive agreement to acquire Silk Road Medical and develop an innovative platform of products to prevent stroke in patients with carotid artery disease through a minimally invasive procedure called trans carotid artery revascularization (TCAR). The purchase price is $27.50 per share, reflecting an enterprise value of approximately $1.16 billion.
5. MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI)
Number of Hedge Fund Holders: 23
Point72 Asset Management’s Stake: $284.3 million
MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) is an American developer and producer of radio, microwave, and millimeter wave semiconductor devices and components. The following reasons highlight the company’s strength as an investment target. First of all, as per the report of the third quarter of 2024, reported revenue was $729.6 million, up 13% from FY 2023, and net income was $76.9 million, down 16% from FY 2023. Secondly, the company has also announced its long-term investment plan to modernize its Massachusetts and North Carolina semiconductor wafer fabrication facilities. MACOM’s five-year strategic investment plan of up to $345 million is supported by a recently executed preliminary, non-binding agreement with the CHIPS Program Office, which would provide for proposed direct funding from the US Department of Commerce under the CHIPS and Science Act of up to $70 million. Moreover, the company has been selected to lead a development project to establish advanced gallium nitride on silicon carbide process technologies for radio frequency and microwave applications. The project will focus on developing semiconductor manufacturing processes for GaN-based materials and monolithic microwave integrated circuits operating efficiently at high voltage and at millimeter-wave frequencies.
4. Comcast Corporation (NASDAQ:CMCSA)
Number of Hedge Fund Holders: 72
Point72 Asset Management’s Stake: $315 million
Comcast Corporation (NASDAQ:CMCSA) operates as a media and technology company worldwide. The firm plans to expand by adding 1.2 million homes to its existing 63 million by 2025, focusing on its 1-gigabit product. This expansion may attract investment as it is expected to increase the customer base and revenue streams, strengthening Comcast’s position in the broadband market. Moreover, the company has also announced the creation of a new publicly traded company comprised of a strong portfolio of NBCUniversal’s cable television networks, including USA Network, CNBC, MSNBC, Oxygen, and Golf Channel, along with complementary digital assets including Fandango and Rotten Tomatoes, GolfNow and Sports Engine, through a tax-free spin-off. This may hold a significant opportunity as it streamlines operations, allowing the company to focus on core connectivity services.
3. Arista Networks, Inc. (NYSE:ANET)
Number of Hedge Fund Holders: 70
Point72 Asset Management’s Stake: $337 million
Arista Networks, Inc. (NYSE:ANET) engages in the development, marketing, and sale of data-driven, client to cloud networking solutions for data center, campus, and routing environments. The following attributes underline the company’s potential as an investment. Firstly, as per the report of the third quarter of 2024, revenue was $1.811 billion, an increase of 7.1% compared to the second quarter of 2024, and an increase of 20% from the third quarter of 2023, and GAAP gross margin was 64.2%, compared to GAAP gross margin of 64.9% in the second quarter of 2024 and 62.4% in the third quarter of 2023. This demonstrates effective cost control and successful product pricing strategies, which are crucial for sustaining profitability as the company expands. Secondly, Arista Networks announced the Arista Etherlink AI platforms, designed to deliver optimal network performance for the most demanding AI workloads, including training and inferencing. Powered by new AI-optimized Arista EOS features, the Arista Etherlink AI portfolio supports AI cluster sizes ranging from thousands to 100,000s of XPUs with highly efficient one and 2-tier network topologies that deliver superior application performance compared to more complex multi-tier networks while offering advanced monitoring capabilities including flow-level visibility.
2. Shell plc (NYSE:SHEL)
Number of Hedge Fund Holders: 48
Point72 Asset Management’s Stake: $361 million
Shell plc (NYSE:SHEL) is an energy and petrochemical firm. The following reasons highlight the company’s strength as an investment target. In addition to solid fundamentals, the firm is also making long-term strategic maneuvers. For example, CNOOC and Shell have begun a joint venture aiming to expand a petrochemical complex in China. This project positions Shell at the forefront of the hydrogen economy, potentially capturing significant market share in the growing renewable energy sector. Moreover, Shell Offshore, a subsidiary of Shell plc, has announced the start of the Shell-operated Whale floating production facility in the Gulf of Mexico. Whale replicates the simplified, cost-efficient host design of the Vito platform, which began production in early 2023 and may hold significant investment opportunities.
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
Point72 Asset Management’s Stake: $448 million
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. As per the report of the third quarter of 2024, GAAP earnings per diluted share was $4.93, up 33% from the previous quarter and up 765% from a year ago, and non-GAAP earnings per diluted share was $5.16, up 28% from the previous quarter and up 486% from a year ago. These higher earnings per share (EPS) reflect the company’s improved profitability per share, directly benefiting shareholders and potentially leading to higher dividends or share buybacks in the future. Secondly, NVIDIA released NIM microservices to safeguard applications for agentic AI – NVIDIA NeMo Guardrails includes new NVIDIA NIM microservices to enhance accuracy, security and control for enterprises building AI across industries. This initiative expands the market share of the company and reinforces its reputation as an innovator in the AI industry. Moreover, the company also plans to launch its first consumer CPU-GPU platform in 2025, integrating its AI and graphics expertise to offer a comprehensive computing solution. This initiative may hold potential for investors as it aims to challenge existing market leaders by providing high-performance alternatives for consumer PCs.
While we acknowledge the potential of NVIDIA Corporation (NASDAQ:NVDA) as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a stock that is more promising than NVIDIA Corporation (NASDAQ:NVDA) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
