In this article, we’ll take a look into Goldman Sachs’ top 5 stock picks for 2024. If you wish to go through our introduction regarding the investment bank and its recent business developments, feel free to dive straight into Goldman Sachs’ Top 15 Stock Picks for 2024.
5. Alphabet Inc (NASDAQ:GOOG)
Goldman Sachs’ Q4 2023 Investment Value: $6.5 billion
Number of Hedge Fund Holders: 166
Alphabet Inc. (NASDAQ:GOOG), a dominant player in the technology sector, is celebrated for its flagship product, Google, the world’s leading search engine handling billions of daily queries. Moreover, the company boasts a diverse portfolio, including video streaming and productivity platforms, with YouTube being a standout asset.
On January 24, Raymond James, an investment advisory firm, maintained an Outperform rating on Alphabet Inc. (NASDAQ:GOOG) stock while increasing the price target to $160 from $150.
According to Insider Monkey’s research covering hedge funds through December 2023, 166 out of 933 hedge funds held positions in Alphabet Inc. (NASDAQ:GOOG). The largest shareholder of the company is Fisher Asset Management, led by Ken Fisher, with holdings valued at $6.3 billion.
4. NVIDIA Corporation (NASDAQ:NVDA)
Goldman Sachs’ Q4 2023 Investment Value: $7.08 billion
Number of Hedge Fund Holders: 173
NVIDIA Corporation (NASDAQ:NVDA), an American multinational technology company headquartered in Delaware, is renowned for its expertise in integrated circuit development. Its proficiency spans various devices, from electronic game consoles to personal computers (PCs).
In Q4 2023, 173 out of the 933 hedge funds tracked by Insider Monkey held a stake in NVIDIA Corporation (NASDAQ:NVDA). Rajiv Jain’s GQG Partners emerged as the largest stakeholder, with investments totaling $6.8 billion in the company.
SaltLight Capital stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its fourth quarter 2023 investor letter:
“We were fortunate to have some exposure to some of the ‘Magnificent Seven’ – Amazon, NVIDIA Corporation (NASDAQ:NVDA), Meta Platforms and Google (although in aggregate, we still hold a smaller weighting than the S&P 500).
While we are cautious in AI infrastructure, we do think there are mispriced opportunities in areas of application software where AI can be infused to make a step change improvement. Posted in our office is this chart that ASML provides at each of its investor days. This chart is a little outdated from 2021, but we think illustrates how value (in operating profit) was distributed across semiconductors, hardware, and then software & services. It’s very clear that most of the economic value in the past has accrued to the software services (in gray) built on the backs of highly technical companies run by extremely smart people.
Why is this? We think it is due to a combination of distribution and network effects. Our working hypothesis right now is that this will likely remain a similar outcome in the AI epoch. One outlier right now is Nvidia which is capturing 80% margins..” (Click here to read the full text).
3. Amazon.com, Inc. (NASDAQ:AMZN)
Goldman Sachs’ Q4 2023 Investment Value: $8.09 billion
Number of Hedge Fund Holders: 293
Amazon.com, Inc. (NASDAQ:AMZN), a leading American multinational technology company, boasts a diverse portfolio spanning e-commerce, cloud computing via Amazon Web Services (AWS), online advertising, digital streaming, and artificial intelligence. Its e-commerce platform offers a wide array of products, from gourmet food to consumer electronics.
Insider Monkey’s database, monitoring 933 elite hedge funds, indicates a favorable sentiment towards Amazon.com, Inc. (NASDAQ:AMZN) in Q4. The number of hedge funds with investments in the stock increased to 293, up from 286 in the previous quarter.
Alphyn Capital Management stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its first quarter 2024 investor letter:
“My previous analysis (Q4 2022 letter) highlighted the significant growth in Amazon.com, Inc.’s (NASDAQ:AMZN) fulfillment expenses since 2015, masking the true earnings potential of its retail business. Though initially costly, the recent restructuring into regional fulfillment centers has yielded lower fulfillment costs and faster shipping times, leading to increased purchase frequency, especially among Prime members.
Following the regionalization effort, over the last couple of years, Amazon prioritized cost control and reduced capital expenditures. At a high level, the North American segment’s operating income swung from a $240 million loss in 2022 to a healthy $6.4 billion profit (6% margin) in 2023. Combined with continued strength in AWS and advertising, Amazon’s free cash flow (as reported, excluding equipment finance leases and principal repayments) surged from negative $13 billion to positive $36 billion.
Amazon stands out for pioneering the public market strategy of prioritizing long-term growth through sustained low margins and reinvestment, with the ability to later “turn on the taps” for profit. While many public tech companies have tried to replicate this approach, Amazon’s scale and execution capabilities make it one of the few that have successfully pulled it off.”
2. Apple Inc. (NASDAQ:AAPL)
Goldman Sachs’ Q4 2023 Investment Value: $15.98 billion
Number of Hedge Fund Holders: 131
Based in Cupertino, California, Apple Inc. stands as a prominent American multinational corporation and technology company renowned for its consumer electronics, software, and online services.
On March 5, investment advisory firm Wedbush reaffirmed an Outperform rating on Apple Inc. (NASDAQ:AAPL) stock, setting a price target of $250.
Insider Monkey’s analysis of 933 hedge fund holdings for the December quarter of 2023 revealed that 131 had held a stake in Apple Inc. (NASDAQ:AAPL). Notably, Warren Buffett’s Berkshire Hathaway emerged as the company’s largest shareholder, boasting a $174 billion investment.
1. Microsoft Corporation (NASDAQ:MSFT)
Goldman Sachs’ Q4 2023 Investment Value: $16.64 billion
Number of Hedge Fund Holders: 302
Headquartered in Redmond, Washington, Microsoft Corporation (NASDAQ:MSFT) is a prominent American multinational corporation specializing in technology. Renowned for its Windows line of operating systems, the Microsoft 365 suite of productivity applications, and the Edge web browser, Microsoft holds a prominent position in the software industry.
As of March 26, analysts at Wedbush maintain an Outperform rating on Microsoft Corporation (NASDAQ:MSFT), accompanied by a $500 price target.
Insider Monkey’s analysis of 933 hedge fund holdings for Q4 2023 revealed that 302 shareholders held stakes in Microsoft Corporation (NASDAQ:MSFT). Notably, Michael Larson’s Bill & Melinda Gates Foundation Trust emerged as the firm’s largest hedge fund shareholder, with holdings valued at $14.3 billion.
Disclosure: None. You can also take a look at 13 Best Momentum Stocks To Buy Now and 15 Biggest Silver Mining Companies in the World.
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