In this article, we will take a detailed look at Joe DiMenna’s Stock Portfolio: Top 10 Stocks to Buy.
Zweig-DiMenna Associates Inc. is a U.S.-based hedge fund with a legacy spanning four decades. Established in 1984 by Joseph A. DiMenna and Martin Zweig, the firm specializes in absolute return investing. Its strategies encompass fundamental long/short equities and global macro approaches, positioning it among the longest-running hedge funds in the industry. DiMenna serves as the Managing Director and Chief Investment Officer, overseeing the firm’s partnerships and investment funds.
DiMenna’s initiation into the financial world began as a college student in 1977 when he became a research assistant for renowned investor Martin Zweig. A keen student of stock markets since his early teens, DiMenna had been an avid reader of financial newsletters, particularly Zweig’s highly regarded The Zweig Forecast. He earned a B.S. in Finance from Fairfield University’s Dolan School of Business in 1980. Beyond his work in finance, he has contributed to various organizations, serving on the boards of the Harlem Children’s Zone, Orchestra of St. Luke’s, The Brearley School, The Gilder Lehrman Institute of American History, and the New York Historical Society.
Zweig, a Ph.D. in finance, was known for his data-driven market analysis and the development of key investor sentiment indicators, including the Put/Call ratio. His well-known investment maxims, such as “Don’t fight the Fed” and “Don’t fight the tape,” significantly influenced DiMenna’s approach. Their professional relationship began when DiMenna, impressed by Zweig’s insights, reached out to him with market ideas and a request for a college recommendation. This correspondence led to his recruitment as a research assistant, a role that involved extensive data analysis, often delving into market trends spanning over 50 years. Zweig remained a key figure in DiMenna’s career until his passing in 2013.
After graduating in 1980, DiMenna continued working with Zweig, refining market research techniques and stock selection strategies. He took on editorial responsibilities for a stock-focused newsletter and co-developed a mutual fund trading business based on market timing principles. By 1983, DiMenna proposed leveraging their expertise to launch a hedge fund, a relatively rare venture at the time, with fewer than ten such funds in existence. In 1984, they established the first Zweig-DiMenna partnership, followed by the launch of Zweig-DiMenna International Limited in 1987. Their approach combined long/short equity investing with macroeconomic risk management. DiMenna led the stock selection and investment process, while Zweig focused on broader market conditions, shaping strategies that DiMenna implemented.
The fund quickly gained prominence for its strong returns. In 1999, BusinessWeek recognized DiMenna as “one of the best stock-pickers no one has ever heard of,” highlighting the fund’s impressive 15-year annualized return of 25% after fees, significantly outperforming the broader market’s 18.6% annualized total return.
DiMenna’s achievements earned him several accolades. In 2002, the National Foundation for Teaching Entrepreneurship named him “Entrepreneur of the Year” for his contributions to financial education. The Zweig-DiMenna International hedge fund won Absolute Return Magazine’s “U.S. Equity Fund of the Year” award in 2007 after delivering an 82.25% annual return, far surpassing industry peers. In 2008, Alpha Magazine ranked DiMenna 13th on its list of top moneymakers, citing his $450 million earnings in 2007 and his fund’s consistent double-digit annual returns between 2002 and 2007.
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The stocks discussed below were picked from Zweig-DiMenna Associates’ 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 1008 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).
Joe DiMenna’s Stock Portfolio: Top 10 Stocks to Buy
10. Everest Group, Ltd. (NYSE:EG)
Number of Hedge Fund Holders as of Q4: 47
Zweig-DiMenna Associates’ Equity Stake: $28.96 Million
Everest Group, Ltd. (NYSE:EG) is a well-established global reinsurance and specialty insurance provider with a strong underwriting discipline and a focus on long-term intrinsic value growth. With expertise spanning business process services, engineering services, IT services, technology, and sourcing in the regions of North America, Latin America, Europe, and Asia, the company delivers research-backed strategies that drive growth and resilience. It benefits from its scale, risk management expertise, and ability to capitalize on industry cycles, positioning it for sustained profitability.
The stock of Everest Group, Ltd. (NYSE:EG) is currently undervalued compared to industry peers, with a P/E ratio of 10.59 and a P/B ratio of 1.03, both below sector averages. Its forward P/E of 6.64 indicates strong earnings growth potential, while historical valuation trends support its discounted status. Although its combined ratio spiked to 135.5% in Q4 2024 due to reserve adjustments, the company’s long-term profitability remains stable. Return on equity reached 18.8% in 2023 before slightly dipping to 17.9% in 2024, reflecting continued financial strength. Investment income contributed 13.6% of earned premiums, further reinforcing stability. A DCF analysis estimates its intrinsic value between $1,684 and $2,534 per share, with a substantial margin of safety, making EG an attractive investment with strong growth potential.
Zweig-DiMenna Associates owns 79,909 shares of Everest Group, Ltd. (NYSE:EG) as of Q4 2024, with a total value of $28.96 million, representing 2.16% of DiMenna’s portfolio. Insider Monkey’s database indicated that 47 hedge funds held stakes in the company as of the end of Q4 2024, with a total value of $1.17 billion, as opposed to 35 funds in Q3.
Vulcan Value Partners stated the following regarding Everest Group, Ltd. (NYSE:EG) in its Q4 2024 investor letter:
“We purchased one new position during the quarter: Everest Group, Ltd. (NYSE:EG). Everest Group is a global reinsurance and insurance business known for its disciplined cost structure and high quality underwriting. Insurance is an inherently cyclical business. “Hard markets” occur when premium prices are high relative to insured risks. Hard markets inevitably attract more capital to the industry, causing premium prices to fall relative to insured risks, which results in a “soft market.” Soft markets lead undisciplined underwriters to post underwriting losses, removing capital from the industry, and the cycle repeats. In evaluating insurance companies, we believe that growth in tangible book value per share more closely approximates growth in intrinsic value per share than does growth in earnings per share. Compounding book value per share requires underwriting discipline. Moreover, given the cyclical nature of the business, a disciplined underwriter will have more volatile earnings in the short run than an undisciplined underwriter. Everest Group underwrites aggressively in hard markets and builds underwriting capacity during soft markets. During the most recent hard market, the company has significantly grown book value per share. We applaud Everest Group’s emphasis on growing intrinsic value per share over the long term instead of managing short-term earnings per share. We first purchased Everest Group, then called Everest Re, in our Small Cap portfolio where we held it for over thirteen years. It grew into a large cap company, and we owned it in our Large Cap portfolio for over ten years. We are pleased to be able to add Everest Group to our Focus portfolio with a margin of safety to our estimate of intrinsic value.”
9. Vertiv Holdings Co (NYSE:VRT)
Number of Hedge Fund Holders as of Q4: 92
Zweig-DiMenna Associates’ Equity Stake: $34.66 Million
Vertiv Holdings Co (NYSE:VRT) is a global leader in providing critical infrastructure solutions for data centers, communication networks, and industrial environments. By integrating hardware, software, analytics, and continuous support services, the company ensures that its customers’ essential operations remain uninterrupted and perform at peak efficiency. With a comprehensive portfolio spanning power, cooling, and IT infrastructure, Vertiv addresses key industry challenges, offering solutions that extend from cloud computing to the edge of the network. Headquartered in Westerville, Ohio, the company operates in over 40 countries with a workforce of approximately 31,000 employees and maintains regional hubs in Italy, the United States, the Philippines, China, and India.
In Q4 2024, Vertiv Holdings Co (NYSE:VRT) reported strong financial performance, achieving $2.35 billion in net sales, a 25.8% increase from the previous year. The company’s operating profit rose by 60% to $457 million, showcasing operational efficiency and improved margins. Earnings per share surged to $0.99, marking a 77% increase from Q4 2023 and surpassing analyst projections by 20%. These impressive results highlight the company’s strong market position and continued expansion.
As of Q4 2024, Zweig-DiMenna Associates significantly increased its position in Vertiv Holdings Co (NYSE:VRT) to 305,075 shares, marking a 10% rise from 278,450 shares in Q3. This is a relatively new stock in the portfolio as Zweig-DiMenna Associates first purchased its shares in the quarter ended 31st March 2024 and the hedge fund has been steadily increasing its stake in the company ever since Q1 2024. This stake is now valued at approximately $34.66 million, making Vertiv Holdings Co (NYSE:VRT) the 9th most valuable company in Joe DiMenna’s portfolio. Insider Monkey’s database indicated that 92 hedge funds held stakes in the company as of the end of Q4 2024, with a collective value of nearly $3.45 billion, as opposed to 91 funds in Q3.
8. Vistra Corp. (NYSE:VST)
Number of Hedge Fund Holders as of Q4: 120
Zweig-DiMenna Associates’ Equity Stake: $34.82 Million
Vistra Corp. (NYSE:VST), a Fortune 500 company headquartered in Irving, Texas, is a leading integrated retail electricity and power generation provider. In Q3 2024, the company demonstrated strong financial performance, with revenue surging 54% year-over-year to $6.29 billion. Operating profit saw an even more significant increase of 207%, reaching $2.59 billion, highlighting improved operational efficiency and expanded margins. However, despite these positive results, earnings per share (EPS) came in at $0.11, falling short of analyst projections of $2.24 by 50%.
On February 21, 2025, Vistra Corp. (NYSE:VST)’s board of directors declared a quarterly dividend of $0.22 per share on its common stock, amounting to approximately $75 million in total payouts. Shareholders of record as of March 20, 2025, will receive their dividends on March 31, 2025. Additionally, the company announced a semi-annual dividend of $40.00 per preferred share for its 8.0% Series A Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Stock, payable on April 15, 2025. These consistent dividend payments underscore Vistra’s commitment to returning value to shareholders and maintaining financial stability.
Investors eagerly anticipate Vistra’s upcoming earnings report, scheduled for release on February 27, 2025. Analysts predict the company will report EPS of $1.59, reflecting a remarkable 431.25% year-over-year increase, alongside revenue projections of $4.38 billion, marking a 42.34% rise from the previous year. Despite the recent EPS miss, Vistra Corp. (NYSE:VST) remains a compelling investment due to its strong revenue growth, significant profit expansion, and commitment to shareholder returns. The company’s ability to capitalize on the rising demand for electricity while maintaining operational efficiency positions it well for long-term value creation.
Meridian Hedged Equity Fund stated the following regarding Vistra Corp. (NYSE:VST) in its Q3 2024 investor letter:
“Vistra Corp. (NYSE:VST) is an integrated retail electricity and power generation company, primarily serving Texas and the Midwest. We own Vistra because we expect power markets to continue tightening as baseload supply declines, coupled with rising demand from data centers, electric vehicles, and manufacturing reshoring. These factors create a favorable pricing environment for Vistra’s generation fleet, especially its nuclear and gas assets. The stock performed well during the period for three key reasons: tightening energy markets and strengthened pricing in forward-year energy contracts, the continuation of Vistra’s aggressive share repurchase program, and the company’s announced plan to acquire the remaining interest in Vistra Vision at an attractive valuation. Additionally, the company reaffirmed its 2024 guidance, indicating that results are trending toward the upper end of the previously projected range. We took advantage of the stock’s strength this quarter to trim our position.”
7. Natera, Inc. (NASDAQ:NTRA)
Number of Hedge Fund Holders as of Q4: 77
Zweig-DiMenna Associates’ Equity Stake: $36.31 Million
Natera, Inc. (NASDAQ:NTRA), based in Austin, Texas, is a leading clinical genetic testing company specializing in non-invasive, cell-free DNA testing for women’s health, oncology, and organ health. As of Q4 2024, Zweig-DiMenna Associates held 229,365 shares of the company, valued at approximately $36.31 million, making it the firm’s seventh-largest holding. The stock has seen growing interest from institutional investors, with 77 hedge funds tracked by Insider Monkey holding stakes worth over $4.29 billion by the end of the fourth quarter, a notable increase from 62 funds in Q3. This rise in hedge fund participation suggests increasing confidence in Natera’s long-term potential and growth prospects.
Natera, Inc. (NASDAQ:NTRA) recently announced that it will release its Q4 and full-year 2024 financial results on February 27, 2025, followed by a conference call and webcast. The company’s latest earnings report for the quarter ended September 2024 exceeded expectations, with revenue reaching $440 million, 22% higher than analyst forecasts, while reported losses of $0.26 per share were lower than anticipated. Looking ahead, analysts predict the company will generate $1.79 billion in revenue for 2025, reflecting a 17% year-over-year increase, while losses are expected to decline by 20% to $1.30 per share. However, despite the optimistic revenue outlook, analysts slightly raised loss projections, indicating a mixed consensus on the company’s near-term profitability. Following these results, the consensus price target for Natera, Inc. (NASDAQ:NTRA) increased by 18% to $158 per share, with the most bullish analyst valuing the stock at $185 and the most bearish at $37, highlighting the uncertainty surrounding its future performance.
Despite the variation in price targets, the company remains an attractive investment due to its strong revenue growth, leadership in genetic testing, and expanding market presence. The company’s ability to outperform expectations while steadily reducing losses suggests it is on a solid trajectory toward profitability. With continued advancements in genetic testing and growing demand for precision medicine, Natera, Inc. (NASDAQ:NTRA) is well-positioned to capitalize on long-term industry trends, making it a compelling stock for investors seeking exposure to the healthcare innovation sector.
6. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders as of Q4: 262
Zweig-DiMenna Associates’ Equity Stake: $40.11 Million
Formerly named Facebook, Inc., Meta Platforms, Inc. (NASDAQ:META) is an American multinational technology conglomerate based in Menlo Park, California. The company owns and operates Facebook, Instagram, Threads, and WhatsApp, among numerous other products and services.
Meta Platforms, Inc. (NASDAQ:META) delivered outstanding financial results for Q4 2024, surpassing analyst expectations with a 21% year-over-year revenue increase to $48.4 billion, exceeding Wall Street’s projection of $47 billion. Diluted earnings per share (EPS) surged 50% year over year to $8.02, well above the estimated $6.76. This strong performance drove Meta’s stock up nearly 9% in the following days, although some of those gains have since been relinquished. Investors remain optimistic about Meta’s core digital advertising and social media businesses, which continue to thrive despite economic challenges. The company’s expanding artificial intelligence (AI) initiatives, including AI-powered content recommendations and marketing strategies, have further strengthened its market position.
Rowan Street Capital stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q4 2024 investor letter:
“Meta Platforms, Inc. (NASDAQ:META): Investment Initiated: April 2018: Internal Rate of Return (IRR*): 22% *IRR represents the annualized rate of return on an investment, accounting for the timing and magnitude of cash flows over the holding period.
For META, our 22% IRR aligns closely with the company’s compounded growth in earnings per share (EPS) and free cash flow per share during the 6 years holding period.
Looking ahead, Meta is expected to grow its revenues, earnings, and free cash flow per share at mid-teens rates over the next two years. There’s a good possibility that it could exceed these estimates, considering the breadth of growth initiatives currently in place, such as advancements in Al, monetization of Reels, expansion into business messaging, and the ongoing development of the metaverse…” (Click here to read the full text)
Looking ahead, Meta Platforms, Inc. (NASDAQ:META) plans to invest between $60 billion and $65 billion in fiscal 2025, primarily in AI infrastructure, generative AI development, and data center expansion to support advanced AI models. The company’s AI-powered Meta assistant, with over 700 million monthly users by the end of 2024, underscores its growing presence in AI-driven consumer applications. Additionally, Meta’s Family of Apps, which includes Facebook, Instagram, Messenger, Threads, and WhatsApp, continues to demonstrate significant engagement, with over 3.3 billion daily active users in December 2024. While trading at 27.5 times forward earnings may seem high, the company’s dominance in social media, digital advertising, and AI innovation justifies its valuation. With revenue and EPS projected to grow by 14.6% and 5.4% in fiscal 2025, Meta Platforms, Inc. (NASDAQ:META) remains a compelling investment opportunity, offering both technological leadership and long-term financial strength.
5. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders as of Q4: 317
Zweig-DiMenna Associates’ Equity Stake: $40.77 Million
In February 2025, Microsoft Corporation (NASDAQ:MSFT) announced a breakthrough in quantum computing with the creation of a new state of matter, leading to the development of a topological qubit. This advancement is likely to accelerate progress in fields such as artificial intelligence, medicine, and cryptography. While some scientists remain skeptical about the achievement, the company believes its technology could surpass rivals like Google, which recently demonstrated a quantum computer capable of solving problems in minutes that would take classical supercomputers trillions of years. This development has intensified global competition, with China and the European Union investing billions in quantum research. Although still in an experimental phase, experts see quantum computing as a transformative technology with the potential to revolutionize various industries and national security.
As of Q4 2024, Zweig-DiMenna Associates held 96,728 shares of Microsoft Corporation (NASDAQ:MSFT), valued at approximately $40.8 million, making it the firm’s fifth-largest holding. Institutional interest in Microsoft continued to rise, with 317 out of 1,008 hedge funds tracked by Insider Monkey holding positions worth nearly $21 billion as of Q4 2024, an increase from 279 funds in the previous quarter. This growing investment from major financial institutions underscores confidence in Microsoft’s long-term growth potential and its strong position in the technology sector. MSFT remains a top choice for investors looking for stability and consistent returns.
Microsoft Corporation (NASDAQ:MSFT)’s financial performance in Q4 2024 further solidified its reputation, with revenue reaching $69.63 billion, exceeding market expectations of $68.81 billion and reflecting a 12.27% year-over-year increase. Earnings per share also outperformed forecasts, coming in at $3.23, 3.5% higher than consensus estimates. This impressive growth has been fueled by advancements in cloud computing, artificial intelligence, and groundbreaking developments in quantum computing. The company’s recent breakthrough in creating a topological qubit positions it at the forefront of next-generation computing, which could revolutionize industries and further strengthen its competitive edge. As Microsoft Corporation (NASDAQ:MSFT) continues to lead in innovation, its stock presents a strong investment opportunity with significant long-term growth.
4. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders as of Q4: 338
Zweig-DiMenna Associates’ Equity Stake: $62.09 Million
In Q4 2024, Amazon.com, Inc. (NASDAQ:AMZN) reported $187.79 billion in revenue, a 10% year-over-year increase, while earnings per share (EPS) of $1.86 exceeded analyst expectations by 25%. As of Q4 2024, Zweig-DiMenna Associates held 283,009 shares of the company, valued at approximately $62.09 million. Hedge fund interest in Amazon.com, Inc. (NASDAQ:AMZN) 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. This growing institutional investment reflects strong confidence in Amazon’s continued growth and market dominance.
Amazon.com, Inc. (NASDAQ:AMZN) has outperformed the broader market over the past year, with analysts projecting further upside driven by its strong position in e-commerce, cloud computing, and artificial intelligence. Jefferies analyst Brent Thill has set a target price of $275 per share, implying a 20% gain from its current level, while Wall Street’s median target price of $270 suggests a 17% increase. Despite reporting strong Q4 results— with revenue rising 10% to $188 billion and GAAP net income surging 86%—the stock declined due to lower-than-expected guidance. Amazon.com, Inc. (NASDAQ:AMZN) anticipates a 7% revenue increase in Q1, impacted by currency exchange headwinds and AI-related investments affecting margins. However, these expenses are expected to fuel long-term growth, solidifying the company’s dominance in cloud computing and logistics. While the stock’s valuation appears high at 41 times earnings, it has consistently surpassed earnings estimates, suggesting analysts may be underestimating its potential.
Amazon.com, Inc. (NASDAQ:AMZN)’s strong financial performance, expanding dominance in multiple high-growth sectors, and increasing hedge fund interest make it a top stock to buy. Its leadership in e-commerce, cloud computing, and artificial intelligence, coupled with strategic investments in logistics and AI infrastructure, positions it for sustained long-term growth, making it an attractive choice for investors seeking both stability and upside potential.
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders as of Q4: 223
Zweig-DiMenna Associates’ Equity Stake: $63.19 Million
NVIDIA Corporation (NASDAQ:NVDA) delivered an exceptional financial performance in its latest quarter, ending October 27, 2024, with revenue soaring 94% year over year to $35.08 billion. Earnings per share also experienced substantial growth, rising 103% to $0.81 compared to the same period in 2023. This impressive expansion highlights the company’s strong market position and continued dominance in AI, gaming, and data center technologies. Additionally, the company announced a quarterly cash dividend of $0.01 per share, reinforcing its commitment to shareholder returns while maintaining a trajectory of rapid growth.
In the fourth quarter of 2024, Zweig-DiMenna Associates expanded its stake in NVIDIA Corporation (NASDAQ:NVDA) to 470,545 shares, reflecting a 2% increase from the previous quarter. This holding, now valued at approximately $63.19 million, represents 4.72% of the firm’s portfolio, making NVIDIA its third-largest investment. Institutional interest in the stock also surged, with 223 hedge funds tracked by Insider Monkey holding positions worth nearly $61.15 billion by the end of Q4, up from 193 funds in the prior quarter. The growing hedge fund investment underscores strong confidence in NVIDIA’s growth potential, solidifying its position as a top stock choice.
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.”
NVIDIA’s exceptional financial growth, with a 94% year-over-year revenue surge and a 103% rise in earnings per share, underscores its dominance in AI, gaming, and data centers. With increasing institutional investment and strong demand for its cutting-edge GPUs—especially in AI and high-performance computing, NVIDIA Corporation (NASDAQ:NVDA) remains a top stock choice, poised for continued expansion in key growth sectors.
2. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders as of Q4: 161
Zweig-DiMenna Associates’ Equity Stake: $70.80 Million
Broadcom Inc. (NASDAQ:AVGO) is a major global technology company with roots in AT&T, Lucent, and Hewlett-Packard, expanding its presence through strategic acquisitions such as LSI, Brocade, CA Technologies, Symantec’s enterprise security business, and VMware. Headquartered in Palo Alto, California, the company operates in two key segments: products and solutions. Its hardware portfolio includes network storage components for cloud computing, Wi-Fi systems for mobile connectivity, and optical products like LED displays for consumer electronics. On the software front, the company develops mainframe computing tools, business automation software, and cybersecurity solutions.
Broadcom Inc. (NASDAQ:AVGO) delivered strong financial results in Q4 2024, with revenue reaching $14.05 billion, a 51.2% increase from the prior year. Earnings per share rose to $1.42, surpassing analyst expectations of $1.39. The company also distributed a cash dividend of $0.53 per share on September 30, totaling $2.48 billion. For the full fiscal year 2024, Broadcom Inc. (NASDAQ:AVGO) reported record-breaking revenue of $51.6 billion, driven by the successful integration of VMware, which contributed to a significant rise in infrastructure software revenue to $21.5 billion. Meanwhile, semiconductor revenue reached an all-time high of $30.1 billion, fueled by AI-related sales of $12.2 billion—marking a 220% year-over-year increase, largely attributed to the company’s AI XPUs and Ethernet networking portfolio.
In addition to its revenue growth, Broadcom Inc. (NASDAQ:AVGO) saw a 37% rise in adjusted EBITDA to $31.9 billion, with strong free cash flow of $21.9 billion, excluding restructuring costs. As a result, the company announced an 11% increase in its quarterly dividend to $0.59 per share for fiscal 2025, continuing its 14-year streak of annual dividend hikes. Broadcom’s expanding AI-driven semiconductor business and robust infrastructure software segment position it as a compelling investment opportunity. Its strong financial performance, commitment to shareholder returns, and leadership in AI and networking technology make Broadcom Inc. (NASDAQ:AVGO) a top stock choice for long-term growth.
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.
1. Invesco Ltd. (NYSE:IVZ)
Number of Hedge Fund Holders as of Q4: 39
Zweig-DiMenna Associates’ Equity Stake: $153.37 Million
Founded in 1935, Invesco Ltd. (NYSE:IVZ) is an independent investment management firm headquartered in Atlanta, Georgia, with a global presence in over 20 countries. The company operates under the Invesco, Invesco Perpetual, and PowerShares brands, offering a diverse range of financial services. The company is a recent addition to Joe DiMenna’s portfolio, with the hedge fund acquiring shares for the first time in Q4 2024. Despite being a new holding, Zweig-DiMenna Associates invested significantly, purchasing 300,000 shares valued at $153.37 million, making it the most valuable position in the fund’s 13F holdings for the quarter ending in December 2024.
On February 20, 2025, Invesco Ltd. (NYSE:IVZ) introduced the Invesco SteelPath MLP & Energy Infrastructure ETF (PIPE), an actively managed fund providing exposure to energy infrastructure equities and midstream Master Limited Partnerships (MLPs). PIPE aims to capitalize on growing global energy demand by investing in companies involved in gathering, processing, transporting, and storing hydrocarbons, benefiting from a fee-based revenue model with strong distribution potential. According to Brian Hartigan, Global Head of ETFs & Index Investments, the fund leverages Invesco’s expertise to expand its high-demand offerings. With a strong track record in midstream investments since 2004, Invesco continues to develop innovative strategies tailored to evolving market trends, reinforcing its commitment to delivering unique investment opportunities.
In the fourth quarter of 2024, Invesco Ltd. (NYSE:IVZ) reported robust financial growth, with revenue climbing 12.7% year-over-year to $1.59 billion. Net income experienced a substantial rise, reaching $268.5 million, an increase of 139.31% compared to the same period in 2023. Operating profit improved by 86.76%, totaling $311.7 million, reflecting enhanced efficiency and higher margins. Additionally, the company announced earnings per share (EPS) of $0.52, exceeding analyst expectations of $0.48 by 8.6%. Invesco’s strong financial performance highlights its operational efficiency and profitability.
Overall, Invesco Ltd. (NYSE:IVZ) ranks first on our list of the top 10 stocks to buy according to Zweig-DiMenna Associates. While we acknowledge the potential for IVZ 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 IVZ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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