In this article, we will take a detailed look at Israel Englander’s Stock Portfolio: Top 10 Stocks to Invest in.
Millennium Management is a globally recognized investment firm specializing in multi-strategy hedge fund offerings. Founded in 1989, the firm has established itself as one of the largest alternative asset management firms. With headquarters in New York, Millennium Management has expanded its operations across North America, Europe, and Asia, with 18 primary offices in financial hubs such as London, Dubai, Singapore, and Tokyo. The firm employs a platform-based investment approach, consisting of approximately 330 investment teams operating under a decentralized model. These teams deploy diverse strategies across various asset classes, including equities, fixed income, commodities, and derivatives. Millennium’s core strategies encompass fundamental equity research, equity arbitrage, macroeconomic-driven fixed-income investments, and commodity-based trades. By leveraging a data-driven and diversified approach, the firm seeks to generate consistent, high-quality returns for its investors while effectively managing risk across global markets.
Millennium was co-founded by Israel A. Englander and Ronald Shear, both of whom had extensive experience in the American Stock Exchange (AMEX). The firm initially launched with $35 million in capital, with Englander contributing $5 million and securing additional investment from Canadian financiers, the Belzberg brothers. However, the firm faced early struggles, leading to Shear’s departure just six months after its inception. Despite these challenges, Millennium Management evolved into a powerhouse in the hedge fund industry, consistently ranking among the top-performing firms. Over the years, Millennium has adopted an institutionalized structure, attracting seasoned executives such as Bobby Jain, who served as co-CIO alongside Englander until his departure in 2023. By implementing a disciplined risk management framework and continuously refining its investment strategies, Millennium has remained at the forefront of alternative asset management.
Israel Englander, the driving force behind Millennium, has built a reputation as one of the most successful hedge fund managers in modern finance. A graduate of New York University, Englander pursued an MBA before leaving early to trade at AMEX, where he gained valuable experience in market-making and derivatives trading. His expertise and strategic vision enabled Millennium to grow rapidly, managing approximately $13 billion in assets by 2011. In recent years, Englander has explored opportunities to sell a minority stake in the firm, signaling a shift towards institutional ownership. His approach to hedge fund management prioritizes capital allocation to specialized teams rather than making direct investment decisions himself. This model has allowed Millennium to maintain a highly competitive edge, attracting top talent and fostering a dynamic investment environment.
Millennium’s outstanding performance has positioned it as one of the most successful hedge funds globally. As of Q4 2024, the firm reported $204.64 billion in managed 13F securities, with its top ten holdings comprising 15.5% of its portfolio. Notably, Millennium has consistently ranked among the highest-grossing hedge funds, posting the fourth-largest net gains of any fund since its inception. Its commitment to risk-adjusted returns, diversification, and strategic innovation has earned it a strong reputation among institutional investors. With a proven track record, an expansive global presence, and a disciplined investment approach, Millennium Management continues to be a dominant force in the hedge fund industry.
Israel Englander of Millennium Management
Our Methodology
The stocks discussed below were picked from Millennium Management’s Q4 2024 13F filings. They are compiled in the ascending order of the hedge fund’s stake in them as of December 31, 2024. To assist readers with more context, we have included the hedge fund sentiment regarding each stock using data from 1,008 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Israel Englander’s Stock Portfolio: Top 10 Stocks to Invest in
10. Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders as of Q4: 144
Millennium Management’s Equity Stake: $634.31 Million
Netflix, Inc. (NASDAQ:NFLX) has reached record highs following its strong fourth-quarter earnings report, surpassing estimates for subscribers, revenue, and earnings. For Q4 2024, the company reported earnings of $4.27 per share, a 102% increase year over year, on $10.25 billion in revenue, up 16% from the same quarter in 2023. It added 18.91 million subscribers in the quarter, bringing its total to 301.63 million, well above Wall Street’s projections. For 2025, the company expects revenue to grow 13% to $44 billion. However, it will stop reporting quarterly subscriber numbers, shifting investor focus to revenue and operating margins. Netflix, Inc. (NASDAQ:NFLX) stock remains strong, having broken out of a flat base in January, and has received multiple price target upgrades from analysts following its robust performance.
The American streaming giant is reportedly considering expanding its programming to include Sunday afternoon NFL games, building on the success of its Christmas Day NFL broadcasts. Chief Content Officer Bela Bajaria confirmed Netflix’s interest in acquiring these media rights, which could become available earlier than expected. Additionally, Netflix, Inc. (NASDAQ:NFLX) is exploring new content avenues such as video podcasts and live Formula 1 racing events, signaling a broader strategy to enhance its platform and attract a wider audience.
Despite a crowded streaming market, Netflix, Inc. (NASDAQ:NFLX)’s extensive content library and consistent new releases continue to attract and retain subscribers, with significant global expansion opportunities still available. Additionally, the stock’s valuation remains reasonable relative to its projected earnings growth, with a price-to-earnings (P/E) ratio of 53 and an estimated long-term growth rate of 24%, resulting in a price/earnings-to-growth (PEG) ratio of 2.2. This balanced valuation, combined with its strong market position and continued subscriber growth, reinforces Netflix’s potential for long-term success.
Polen Focus Growth Strategy stated the following regarding Netflix, Inc. (NASDAQ:NFLX) in its Q2 2024 investor letter:
“Finally, we trimmed Netflix, Inc. (NASDAQ:NFLX) mostly due to valuation but also as a source of funds to add to the new position in Shopify. As a reminder, we added to our position in August 2022 amid broad concerns about the company’s ability to grow and monetize shared passwords. We expected Netflix to show progress in monetizing shared passwords, leading to robust free cash flow generation. This is now playing out and is appreciated by the market. Hence, given the balance of growth and valuation, we felt it was appropriate to reduce our exposure to a more normal weight.”
9. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Holders as of Q4: 113
Millennium Management’s Equity Stake: $760.38 Million
Bank of America Corporation (NYSE:BAC) is a leading global financial institution, offering a comprehensive range of banking, investment management, and financial services to individuals, businesses, and governments. Headquartered in Charlotte, North Carolina, with investment banking operations in Manhattan, the company operates in over 35 countries and provides access to more than 140 currencies. With a strong presence in both retail and commercial banking, it has consistently expanded its customer base while maintaining a solid financial foundation.
In Q4 2024, Bank of America Corporation (NYSE:BAC) exceeded expectations, reporting $25.3 billion in revenue, demonstrating a 15.2% year-over-year increase and surpassing analysts’ estimates by $170 million. Net income surged to $6.7 billion, or $0.82 per share, more than doubling from the previous year’s $3.1 billion, reflecting strong operational performance. The bank also added 213,000 new consumer checking accounts, marking six consecutive years of quarterly growth, and ended the year with $953 billion in liquidity. Returning $2 billion to shareholders through dividends further demonstrates its commitment to investor value. Given its financial strength, consistent growth, and strategic investments in digital banking and global operations, Bank of America Corporation (NYSE:BAC) remains a strong investment choice.
As of Q4 2024, Millennium Management significantly increased its holdings in Bank of America Corporation (NYSE:BAC) to more than 17.3 million shares, marking a 92% rise from over 9 million shares in Q3. The fund’s stake in the company is now valued at approximately $760.38 million.
Insider Monkey’s database indicated that 113 hedge funds held stakes in Bank of America Corporation (NYSE:BAC) at the end of Q4 2024, with a value of nearly $40.22 billion, as opposed to 98 funds in Q3. This surge in institutional interest underscores strong confidence in the stock’s long-term stability and growth and suggests optimism about the bank’s ability to navigate economic challenges, capitalize on rising interest rates, and maintain profitability in a competitive financial sector.
8. Boston Scientific Corporation (NYSE:BSX)
Number of Hedge Fund Holders as of Q4: 96
Millennium Management’s Equity Stake: $770.72 Million
Founded in 1979 and based in Marlborough, Massachusetts, Boston Scientific Corporation (NYSE:BSX) is a global biomedical engineering company specializing in medical devices for interventional procedures across various fields, including cardiology, neuromodulation, and oncology. It is particularly known for developing the Taxus Stent, a drug-eluting stent designed to treat clogged arteries. In Q4 2024, the company demonstrated strong financial growth, with revenue rising 22% year-over-year to $4.56 billion and net income surging 12% to $566 million. Operating profit improved by 28% to $790 million, reflecting increased efficiency and profitability. The company reported earnings per share (EPS) of $0.70, surpassing analyst expectations of $0.66 by 6.7%.
In the fourth quarter of 2024, Millennium Management held over 9 million shares in Boston Scientific Corporation (NYSE:BSX), which is valued at over $770 million and represents 0.37% of the fund’s portfolio. Institutional interest in the stock also surged, with 96 out of 1,008 hedge funds tracked by Insider Monkey holding positions worth nearly $7.22 billion by the end of Q4, up from 92 funds in the prior quarter. The growing hedge fund investment underscores strong confidence in Boston’s growth potential, strengthening its position as a top stock choice.
Boston Scientific Corporation (NYSE:BSX) has demonstrated strong growth momentum despite macroeconomic challenges, surpassing market expectations with its robust fourth-quarter 2024 results and issuing an optimistic outlook for 2025. As of February 20, 2025, its stock price has risen 17.8% year-to-date, outperforming the broader medical sector and key competitors like Abbott, Medtronic, and Becton Dickinson. The company continues to expand in emerging markets, particularly in EMEA and APAC, with notable success in China, Japan, Australia, and New Zealand. For 2025, Boston Scientific Corporation (NYSE:BSX) projects organic revenue growth of 10% to 12%, with first-quarter adjusted EPS expected between $0.66 and $0.68. Analysts predict a 10.83% upside in stock value, with an average price target of $117.63, reinforcing confidence in its long-term potential. Despite economic headwinds, the company’s strong execution, strategic investments, and operational efficiencies position it for continued success in the medical device industry.
Baron Health Care Fund stated the following regarding Boston Scientific Corporation (NYSE:BSX) in its Q4 2024 investor letter:
“Boston Scientific Corporation (NYSE:BSX) is a global manufacturer of devices used in a broad range of interventional medical specialties. Shares climbed steadily throughout the quarter on solid company fundamentals, including a double-digit EPS growth profile and cost discipline that produces more than 50 basis points of annual operating margin expansion. We believe Boston Scientific can see sustainable organic growth in the high single digits, driven by differentiated products in electrophysiology and structural heart, in particular, the emerging field of pulsed field ablation (PFA), where the company is well positioned. Temperature-based methods (either hot or cold) to disable heart tissue responsible for irregular heartbeats can damage surrounding tissue. PFA relies on electricity to damage aberrant tissue, and because different types of tissue have different electrical thresholds, the surrounding tissue can be selectively spared. In our opinion, Boston Scientific is a compelling name within the large-cap medical device universe.”
7. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders as of Q4: 126
Millennium Management’s Equity Stake: $794.26 Million
Tesla, Inc. (NASDAQ:TSLA), headquartered in Austin, Texas, generates revenue through multiple streams, primarily from its automotive and energy businesses. The majority of its earnings come from vehicle sales, which include the design, manufacturing, and sale of electric models such as the Model 3, Model S, Model X, and Model Y, along with leasing, used vehicle sales, retail merchandise, insurance, energy generation, vehicle servicing, non-warranty after-sales services, and public charging. Another key source of income for Tesla, Inc. (NASDAQ:TSLA) is from the sale of carbon and automotive regulatory credits, further diversifying its financial portfolio.
Tesla’s Q4 2024 earnings report showed mixed results, with net sales rising 2.15% year-over-year to $25.71 billion, and operating profit falling 23.3% to $1.58 billion. Earnings per share of $0.73 missed analyst expectations by 4.8%. Despite a stock rally fueled by speculation of policy benefits under President Trump’s administration, Tesla, Inc. (NASDAQ:TSLA) faced significant challenges, including its first annual decline in vehicle deliveries, totaling 1.8 million units. In response, the company introduced aggressive discounts, particularly in North America and China, to stimulate demand. Musk remains focused on autonomy and robotics, but Tesla continues to trail competitors like Waymo and Chinese firms WeRide and Pony.ai in the robotaxi space. While Musk has announced plans to launch “unsupervised” Full Self-Driving (FSD) in Austin by June and hinted at licensing deals, Tesla’s brand value dropped by $15 billion in 2024, partly due to Musk’s controversial political statements. However, the company’s energy division provided a bright spot, generating $3.06 billion in revenue, a 113% increase from the previous year.
Investor concerns about Tesla, Inc. (NASDAQ:TSLA)’s future are mounting, with shareholder Ross Gerber warning of a potential 50% stock decline in 2025. He attributes this to multiple factors, including the company’s lagging FSD technology, Musk’s divided attention across multiple ventures, slowing vehicle sales, rising competition from China’s BYD, and potential reputational damage linked to Musk’s political affiliations. Gerber further argues that the company’s $1.1 trillion market capitalization is unsustainable given its lower profitability compared to rivals. His concerns are echoed by JPMorgan, which maintains a bearish outlook with a price target of $135, suggesting a potential 60% decline in Tesla, Inc. (NASDAQ:TSLA)’s stock value.
6. Wells Fargo & Company (NYSE:WFC)
Number of Hedge Fund Holders as of Q4: 96
Millennium Management’s Equity Stake: $940.64 Million
Wells Fargo & Company (NYSE:WFC), founded by Henry Wells and William Fargo in 1852 and headquartered in San Francisco, California, is a major multinational financial services firm with operations in 35 countries and a customer base exceeding 70 million. Recognized as one of the Big Four Banks in the United States, it is classified as a systemically important financial institution by the Financial Stability Board, underscoring its significant role in the global financial system.
Wells Fargo & Company (NYSE:WFC) reported strong Q4 2024 earnings, surpassing expectations and driving a 5% stock increase. Net income rose 47% year-over-year to $5.1 billion, or $1.43 per share, while revenue reached $20.4 billion. Growth was fueled by a 59% surge in investment banking fees, driven by increased deal-making activity as companies took advantage of improved economic confidence to raise capital and pursue mergers and acquisitions. The bank’s home loan business saw mixed results as mortgage rates remained high. Wells Fargo’s stock performance has been volatile over the past four years, but 2025 looks promising as the bank forecasts net interest income growth of 1% to 3%, supported by stronger loan demand and lower deposit costs. The Trump administration’s expected deregulation policies could further benefit the financial sector by easing banking oversight, reducing compliance costs, and encouraging lending and deal-making activities.
In the fourth quarter of 2024, Millennium Management significantly boosted its investment in Wells Fargo & Company (NYSE:WFC), increasing its holdings to 13.4 million shares—a 42% rise from over 9.4 million shares held in the previous quarter. This expansion brought the fund’s total stake in the company to an estimated $940.64 million. Additionally, data from Insider Monkey revealed that by the end of Q4 2024, 96 hedge funds had positions in Wells Fargo, collectively holding nearly $6.64 billion in shares. This marked a significant increase from Q3 when only 72 hedge funds had investments in the company.
Wells Fargo & Company (NYSE:WFC)’s strong financial performance, highlighted by a 47% increase in net income and a surge in investment banking fees, reflects its resilience and ability to capitalize on improving economic conditions. Additionally, growing institutional confidence, as seen in Millennium Management’s 42% increase in holdings and the rising number of hedge funds investing in the company, reinforces its potential as a solid long-term investment.
5. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders as of Q4: 338
Millennium Management’s Equity Stake: $949.44 Million
As of Q4 2024, Millennium Management held over 4.3 million shares of Amazon.com, Inc. (NASDAQ:AMZN), valued at over $949 million. Hedge fund interest in the company also increased, with 338 funds tracked by Insider Monkey holding positions worth nearly $69.02 billion by the end of the quarter, up from 286 funds in Q3.
The stock price of Amazon.com, Inc. (NASDAQ:AMZN) stood at approximately $216.58 per share as of February 24, 2025, reflecting ongoing market fluctuations. Despite its strong market capitalization of $2.23 trillion, shares recently dipped nearly 3% to a low of $214.74, the lowest since early December. The decline followed the company’s Q4 2024 earnings report, which, while showcasing solid EPS of $1.86 that exceeded analyst expectations by 25.3% and an impressive revenue of $187.8 billion, a 10% year-over-year increase, also revealed a Q1 2025 sales forecast of $151 billion to $155.5 billion, falling short of Wall Street’s $158.5 billion expectations. Investor concerns were further fueled by Amazon’s ambitious $100 billion spending plan for AWS and AI, up from $83 billion in 2024, alongside a $2.1 billion foreign exchange headwind.
Amazon.com, Inc. (NASDAQ:AMZN)’s long-term performance remains impressive, with its stock rising over 226,744% since its 1997 IPO. In Q4 2024, the company’s operating income surged to $21.2 billion from $13.2 billion the previous year, while net income doubled to $20 billion. AWS continued to drive growth, with a 19% increase in quarterly revenue to $28.8 billion. For the full year, the company’s net sales grew by 11% to $638 billion, with operating income nearly doubling to $68.6 billion and net income reaching $59.2 billion. While Amazon.com, Inc. (NASDAQ:AMZN) stock soared 44% in 2024, outperforming the broader market’s 23% gain, early 2025 has been more volatile due to conservative forward guidance. Despite short-term market concerns, the company’s strong financials and continued dominance in e-commerce and cloud computing position it for long-term growth.
4. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders as of Q4: 317
Millennium Management’s Equity Stake: $1.09 Billion
In February 2025, Microsoft Corporation (NASDAQ:MSFT) announced a major breakthrough in quantum computing with the development of a topological qubit, a milestone that could significantly impact artificial intelligence, medicine, and cryptography. While some experts remain skeptical, this innovation intensifies global competition in quantum research. Meanwhile, Microsoft Corporation (NASDAQ:MSFT) CEO Satya Nadella has emphasized the transformative role of AI in reshaping knowledge work. In a recent interview, he likened AI’s impact to past technological advancements, such as the introduction of spreadsheets and email, which revolutionized workplace processes. Nadella predicts that AI agents will take over repetitive tasks like email triage, allowing humans to focus on higher-level cognitive work. However, he envisions a future where AI still requires oversight, with knowledge workers evolving into supervisors managing intelligent agents rather than performing routine tasks themselves.
Microsoft Corporation (NASDAQ:MSFT)’s push into AI-driven automation and quantum computing positions it at the forefront of technological innovation, potentially giving it a competitive edge over rivals in enterprise solutions and cloud computing. As AI continues to integrate into workplace processes, reducing inefficiencies and creating new productivity models, the stock could see long-term growth driven by increased demand for its AI-powered tools and infrastructure.
The company’s financial performance supported this outlook, as it reported $69.63 billion in revenue for Q4 2024, surpassing market expectations of $68.81 billion and marking a 12.27% year-over-year increase. Additionally, earnings per share reached $3.23, exceeding analyst projections by 3.5%.
As of Q4 2024, Millennium Management held over 2.5 million shares of Microsoft Corporation (NASDAQ:MSFT), valued at just over $1.09 billion. Institutional investment in the company continued to grow, with 317 hedge funds tracked by Insider Monkey holding nearly $21 billion in shares collectively, as of Q4 2024, up from 279 funds in the previous quarter. This increasing interest highlights strong investor confidence in Microsoft’s long-term growth and dominance in the technology sector.
Mairs & Power Growth Fund stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its Q4 2024 investor letter:
“Unlike the dot-com companies that operated at the turn-of-the-century, many of today’s technology companies are established businesses with significant cash flows. We have argued, and continue to argue, that many of these investments are perfectly aligned with our investments process in that they embody durable competitive advantages, above-average growth prospects, and excellent management teams.
A perfect example is Microsoft Corporation (NASDAQ:MSFT), which has grown to become the largest holding in the Growth Fund. Microsoft has a near monopoly on the office software productivity market with its Microsoft Office Suite. The company’s Azure platform is a leader in cloud computing and has been steadily gaining share. Thanks to its Office and Azure products, the company is deeply embedded within many enterprise IT ecosystems. Therefore, it should be well-positioned to expand its presence within its customer base, as it rolls out premium-price AI solutions. The company is not resting on its laurels and plans on spending an astounding $80 billion in 2025 to build out AI data centers.”
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders as of Q4: 223
Millennium Management’s Equity Stake: $1.34 Billion
NVIDIA Corporation (NASDAQ:NVDA) posted remarkable financial results for the quarter ending October 27, 2024, with revenue surging 94% year over year to $35.08 billion and earnings per share increasing 103% to $0.81. This growth underscores the company’s strong leadership in AI, gaming, and data center technologies. Additionally, the company declared a quarterly cash dividend of $0.01 per share, reflecting its commitment to shareholder value while sustaining its rapid expansion. These results reinforce NVIDIA’s dominant position in the evolving semiconductor industry.
NVIDIA Corporation (NASDAQ:NVDA) recently recovered from a market dip triggered by concerns over competition from Chinese AI company DeepSeek, with its stock rebounding after a temporary 21% decline. Investors are now focused on Nvidia’s upcoming fiscal Q4 2025 earnings report expected on February 26, with analysts estimating revenue of $38.13 billion and earnings per share (EPS) of $0.85, representing year-over-year growth of 72.5% and 63.5% respectively. The company’s management has projected Q4 revenue of $37.5 billion, plus or minus 2%. Key factors supporting Nvidia’s strong performance include high demand for its Blackwell GPU chips and continued AI infrastructure investments from major clients like Amazon, Microsoft, Alphabet, and Meta Platforms.
Alger Spectra Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q4 2024 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) is a leading supplier of graphics processing units (GPUs) for a variety of end markets, such as gaming, PCs, data centers, virtual reality, and high-performance computing. The company is leading in most secular growth categories in computing, and especially artificial intelligence and super-computing parallel processing techniques for solving complex computational problems. In our view, Nvidia’s computational power is a critical enabler of AI and therefore essential to AI adoption. Shares contributed to performance during the quarter, driven by strong demand for its data center products, especially the Hopper H200 chips, which generated double-digit billions in revenue, marking the fastest product ramp in the company’s history. Management provided fiscal fourth-quarter revenue guidance above analyst estimates, along with resilient operating margins supported by robust demand and limited competition. In our view, Nvidia’s leadership in scaling AI infrastructure, including advancements in inference and test-time scaling (i.e., reasoning during inference), is driving adoption among enterprises and startups, providing continued demand for its high-performance chips and software solutions. As older-generation chips are repurposed for inference and new clusters are deployed, we believe Nvidia is well-positioned to capitalize on growing compute needs across AI applications.”
2. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders as of Q4: 262
Millennium Management’s Equity Stake: $1.50 Billion
Meta Platforms, Inc. (NASDAQ:META), formerly known as Facebook, is a leading multinational technology conglomerate based in Menlo Park, California. The company owns and operates major social media platforms, including Facebook, Instagram, Threads, and WhatsApp, alongside various digital services. In Q4 2024, the company reported exceptional financial results, with revenue rising 21% year-over-year to $48.4 billion, surpassing Wall Street’s forecast of $47 billion. Diluted earnings per share (EPS) saw an impressive 50% increase, reaching $8.02, well above the expected $6.76. This strong performance initially boosted Meta’s stock by nearly 9%, though some of those gains were later pared back. The company’s core digital advertising business remains a key driver of growth, while its advancements in artificial intelligence (AI), including AI-driven content recommendations and marketing tools, have further solidified its competitive position.
Investor confidence in Meta Platforms, Inc. (NASDAQ:META) continues to grow, with institutional interest in the stock surging. As of Q4 2024, Millennium Management held over 2.5 million META shares, valued at almost $1.50 billion, ranking it among Israel Englander’s top investment picks. Hedge fund interest in Meta has also increased, with 262 funds tracked by Insider Monkey holding stakes worth over $59.38 billion by the end of the fourth quarter, up from 235 funds in Q3. This heightened institutional backing reflects strong expectations for the company’s long-term growth, driven by its expanding AI capabilities and dominant presence in the social media and digital advertising markets.
Meta Platforms, Inc. (NASDAQ:META) is expanding its digital ad market share through AI-driven solutions, boosting 2024 revenue by 22%, double the industry’s growth rate. AI tools enhance ad targeting, creativity, and efficiency, increasing advertiser ROI by 32% and reducing acquisition costs by 17%. Advertiser adoption has quadrupled in six months, while ad prices rose 14% in Q4. With new AI innovations like video generation and a projected $513 billion digital ad market by 2027, Meta is poised for continued growth.
1. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders as of Q4: 161
Millennium Management’s Equity Stake: $1.70 Billion
Broadcom Inc. (NASDAQ:AVGO), a leading global technology company, is famous for its strategic acquisitions, including LSI, Brocade, CA Technologies, Symantec’s enterprise security business, and VMware. With headquarters in Palo Alto, California, Broadcom operates across hardware and software segments. Its hardware division provides network storage solutions for cloud computing, Wi-Fi systems for mobile connectivity, and optical products like LED displays. On the software side, the company develops mainframe computing tools, business automation software, and cybersecurity solutions, solidifying its position as a major player in the tech industry.
Broadcom Inc. (NASDAQ:AVGO) is well-positioned to capitalize on the growing demand for AI-driven technologies, particularly in data center connectivity and network infrastructure. The company’s diversified portfolio has enabled it to benefit from the rapid adoption of high-performance AI models, which require advanced semiconductor solutions. In fiscal 2024, the company’s revenue surged by 44% year-over-year, primarily fueled by the successful integration of VMware and a significant increase in AI-related revenue. AI revenue alone grew 220% to $12.2 billion, accounting for 41% of the company’s total semiconductor revenue. This impressive growth underscores Broadcom’s strategic focus on AI and its ability to leverage emerging market trends.
Looking ahead, Broadcom Inc. (NASDAQ:AVGO) sees AI as a major driver of future growth, with management projecting a serviceable addressable market of $60 billion to $90 billion by fiscal 2027. During the Q4 2024 earnings call, executives highlighted expectations for Broadcom’s AI semiconductor business to outpace the growth of its non-AI semiconductor division. As demand for AI-powered computing accelerates, the company’s investments in AI infrastructure are expected to strengthen its competitive edge and further solidify its leadership in the semiconductor industry.
Aristotle Atlantic Core Equity Strategy stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its Q4 2024 investor letter:
Broadcom Inc. (NASDAQ:AVGO) contributed to performance in the fourth quarter as the company’s third quarter results demonstrated continuing strength for its AI networking and custom accelerator semiconductor business. The company also gave long-term guidance for the service addressable market (SAM) opportunity for its AI-related business, indicating a market opportunity of $60 billion to $90 billion, which only includes contributions from its current three customers. This long-term outlook for AI semiconductor content exceeded investor expectations. Broadcom’s quarterly results also showed the company is ahead on its VMware integration timeline to achieve $8.5 billion in EBITDA, which will support long-term gross and operating margin expansion for the company.
Overall, Broadcom Inc. (NASDAQ:AVGO) ranks first on our list of the top 10 stocks to buy according to Millennium Management. While we acknowledge the potential for AVGO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AVGO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stock 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.
