In this article we present the list of Top 10 Blue Chip AI Stocks to Buy According to Billionaire Cliff Asness.
Cliff Asness is one of Wall Street’s most respected hedge fund managers. The founder and managing principal of AQR Capital Management has often relied on various strategies to squeeze value in the equity markets. Right from relying on fundamental analysis, Asness has also etched his name by focusing on value and momentum strategies that have often generated solid returns.
AQR Capital Management has generated positive outcomes over the past three years, having recorded its best year in 2022, when it gained 43.5%. Its 16.8% gain in 2021, 18.4% in 2023 and 15.1% in 2024 affirm its status as the best-performing multi-stage hedge fund.
The hedge fund is increasingly deploying artificial intelligence to enhance its performance. The technology is used in the core parts of the investing process while helping combine and weigh the various investment factors. AI is also being used to speed up coding and create trading signals from text.
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“AI’s coming for me now. It turns out it’s annoyingly better than me. AI, to be honest, pushes us a little on the spectrum away from some of the traditional things we’ve talked about, and that was uncomfortable for me,” said Asness.
Even as Asness continues to integrate artificial intelligence into the overall investment strategy at AQR Capital Management, he remains wary that the markets have become less efficient over the past 35 years.
“One of my themes is that markets just don’t get efficient on their own. There are our tools, our institutions, our traditions, and ultimately markets are a voting mechanism. So anything we do to make that noisier is going to make markets less efficient,” Asness said.
In a less efficient market, rational value investors need to weather the ups and downs that come into being. Consequently, the AQR Capital Management chief believes rational investors prepared to stay in the game for the long term stand a better chance of navigating the less inefficient markets.
The longer an investor’s timeline, the better their capacity to endure the fluctuations of the market and benefit from its reduced efficiency, assuming they can weather elevated risk and potentially prolonged periods of discomfort. Several aspects can assist with this, such as not fixating on every single item in your portfolio, losing sight of the broader picture, and not believing that three to five-year trends are fixed.
Asness also advises investors to be wary of over-investing in private assets in an attempt to stabilize their returns. A consistent critic of private equity, Asness contends that firms which do not accurately assess assets against market value are obscuring the genuine level of risk investors are embracing. He expresses confusion as to why investors appear prepared to pay a premium for what he refers to as “volatility laundering,” arguing that by doing so, they are settling for diminished returns.
Cliff Asness of AQR Capital Management
Our Methodology
To make the list of 10 Blue Chip AI Stocks to Buy According to Billionaire Cliff Asness, we analyzed AQR Capital Management Q4 2024 13F filing. We settled on the top blue chip companies with significant exposure to artificial intelligence. We then analyzed them on why they stand out as Billionaire Cliff Asness’ top stock picks. Finally, we ranked the stocks in ascending order based on the value of AQR Capital Management equity stakes. Additionally, we have mentioned the broader hedge fund sentiment around each stock, as of Q4 2024.
At Insider Monkey, we are obsessed with 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).
Top 10 Blue Chip AI Stocks to Buy According to Billionaire Cliff Asness
10. Arista Networks Inc. (NYSE:ANET)
AQR Capital Management Equity Stakes: $336.17 Million
Number of Hedge Fund Holders: 78
Arista Networks Inc. (NYSE:ANET) is a technology company that specializes in data-driven, client-to-cloud networking for large data centers, campuses, and routing environments. It also focuses on AI networking by developing platforms like Etherlink, which offers high-performance Ethernet systems. The company delivered impressive fourth quarter and full year 2024 results that underlined strong momentum in AI networking and cloud infrastructure.
Arista Networks Inc. (NYSE:ANET) also logged a record $7 billion in revenue, up 19.5%, as net income increased to $2.9 billion or $2.27 a share compared to $2.19 billion or $1.73 a share delivered in 2023. The better-than-expected financial results came as Arista Networks experienced rapid AI workload growth, creating significant demand for specialized networking solutions.
Arista Networks Inc. (NYSE:ANET) has effectively diversified its revenue sources across several customer sectors and use cases while preserving strong ties with Microsoft and Meta. It is also expanding its value proposition and generating more steady revenue streams by developing a sizable software and subscription business. Arista has evolved from selling only hardware to generating higher-margin, recurring income streams that strengthen client relationships, as seen by the rise in software and subscription revenue.
9. Adobe Inc. (NASDAQ:ADBE)
AQR Capital Management Equity Stakes: $334.69 Million
Number of Hedge Fund Holders: 117
Adobe Inc. (NASDAQ:ADBE) is a software company that develops products for creative content, marketing, and document management, with a focus on enhancing user experience. The company is best known for iconic software like Photoshop and Illustrator. It is heavily integrating AI, particularly generative AI, into its products like Creative Cloud and Acrobat to enhance creativity, productivity, and user experience,
Adobe Inc. (NASDAQ:ADBE) has established itself as a world leader in software, including document management, marketing tools, and creative media. Consequently, its sales increased 11% year over year in the fourth quarter of fiscal 2024 as adjusted earnings per share (EPS) increased 13%. The momentum continued in the fiscal first quarter of 2025 as revenue increased by 10%, backed by better operating cash-flow generation.
The company’s AI-based stand-alone solutions and AI add-on products, such as its Firefly app and Acrobat AI Assistant, have already earned over $125 million in bookings. About 35% of monthly active Photoshop users are utilizing generative AI features, demonstrating how users are embracing AI features in Adobe’s current product lineup.
The management emphasized the tremendous demand for its AI products in markets including Document Cloud, Creative Cloud, and Digital Media. With an estimated adjusted EPS of $20.20 to $20.50 for 2025, Adobe Inc. (NASDAQ:ADBE) aims for revenue growth of 8.3% to 9.5%, representing a 10.5% increase at the halfway point over the previous year.
8. Tesla Inc. (NASDAQ:TSLA)
AQR Capital Management Equity Stakes: $445.38 Million
Number of Hedge Fund Holders: 126
Tesla Inc. (NASDAQ:TSLA) is an auto manufacturer accelerating the world’s transition to sustainable energy by designing and manufacturing electric vehicles (EVs). It also deals in solar energy products and battery storage solutions. The company also increasingly invests in artificial intelligence to enhance its autonomous driving solutions, robotics, and related technologies.
Tesla Inc. (NASDAQ:TSLA) is debuting an autonomous ride-sharing robotaxi in Austin as part of its AI integration. It also plans to build 10,000 Optimus humanoid robots as it looks to tap the $73 billion by 2029 opportunity in the robotics industry. Nevertheless, the company has been under immense pressure owing to Elon Musk’s alignment with President Donald Trump in the current administration.
However, Musk has the potential to use his political influence to ease tensions in China, one of Tesla’s most important markets. Last year, the company sold more than 675,000 units in China, affirming why it is one of its most important markets. Revenue in Q4 2024 rose by 2% to $27.5 billion, and non-GAAP earnings improved by just 3% to $0.73 per diluted share. Tesla Inc.’s (NASDAQ:TSLA) energy generation and storage business sector had a 67% year-over-year increase in revenue, driven by a strong increase in sales of its energy storage solutions for homes and utilities.
7. Alphabet (NASDAQ:GOOGL)
AQR Capital Management Equity Stakes: $555.98 Million
Number of Hedge Fund Holders: 234
Alphabet (NASDAQ:GOOGL) is a technology company that owns a diverse portfolio of companies engaged in internet search, advertising and cloud computing. It is one of the best blue chip AI stocks to buy, according to Billionaire Cliff Asness, as a market leader in digital advertising and the fact that it owns valuable internet brands YouTube and Google.
Alphabet (NASDAQ:GOOGL) has been investing in artificial intelligence as it looks to strengthen its search and digital advertising businesses. In the fourth quarter, advertising alone on Google Search generated $54 billion of the total $96 billion. Likewise, the business allowed the company to generate $100 billion in net profit in 2024 on $350 billion in revenue.
In a bid to accelerate growth in search and digital advertising, the company has been integrating AI into its service offerings. Its Gemini AI model currently powers Google’s products, which have over 2 billion users. Likewise, the tech giant is also integrating AI features as it looks to strengthen its edge in cloud computing. Google Cloud posted a 30% year-over-year growth in the fourth quarter, attributed to strong demand for the company’s AI-powered data analytics solutions. Analysts expect the company’s earnings to grow at an annualized rate of 17%, which affirms robust underlying growth.
6. Broadcom Inc. (NASDAQ:AVGO)
AQR Capital Management Equity Stakes: $660.47 Million
Number of Hedge Fund Holders: 161
Broadcom Inc. (NASDAQ:AVGO) is a technology company that designs, develops, and supplies semiconductor and infrastructure software solutions. Its products and services serve data centers, networking, software, broadband, wireless, storage, and industrial sectors. It is one of the best blue chip AI stocks to buy, according to billionaire Cliff Asness, as it is not dependent entirely on the AI market.
Broadcom Inc. (NASDAQ:AVGO) sells plenty of networking, optical, and custom accelerator chips for AI-oriented data centres. Additionally, it boasts a robust and solid customer pipeline that includes Meta and Alphabet for its custom chips for data centers. As IT companies create vast AI infrastructure to compete with each other, demand for AI data centers should drive growth in the upcoming years.
Analysts predict that once Broadcom Inc. (NASDAQ:AVGO) completes its VMware acquisition integration, its sales and adjusted EPS will increase by 21% and 36%, respectively, in fiscal 2025. Broadcom’s AI-related revenue increased 77% to $4.1 billion in the first quarter, with earnings per share of $1.14. Given that Broadcom’s entire addressable market may reach $90 billion in just two years, the strong growth is anticipated to continue.
5. Meta Platforms Inc. (NASDAQ:META)
AQR Capital Management Equity Stakes: $964.99 Million
Number of Hedge Fund Holders: 262
Meta Platforms Inc. (NASDAQ:META) is a technology conglomerate that connects people through social media platforms and develops the metaverse. It owns some of the biggest social networking platforms, including Facebook, Instagram, WhatsApp, and Oculus VR. It has emerged as one of the most prominent investors in AI, a technology it expects to strengthen its high-profile brand portfolio.
The tech giant is increasingly integrating AI features into its social networking apps to enhance user experience. Likewise, the technology is helping enhance engagement levels, allowing Meta Platforms Inc. (NASDAQ:META) to support some of the most effective advertising campaigns. That was the catalyst behind the company posting record revenue of $164.5 billion, a 22% increase in 2024. Similarly, earnings skyrocketed 60% to $23.86 a share.
Meta Platforms Inc. (NASDAQ:META) plans to spend between $60 billion and $65 billion in capital expenditures in 2025 as it looks to come up with game-changing AI innovations that strengthen its core business. As of the end of January, Meta’s generative AI ad creation tools were being used by over 4 million advertisers. Additionally, the company served more advertising to users last quarter, resulting in a 14% increase in average ad pricing.
4. Amazon.com, Inc. (NASDAQ:AMZN)
AQR Capital Management Equity Stakes: $1.18 Billion
Number of Hedge Fund Holders: 338
Amazon.com, Inc. (NASDAQ:AMZN) is an internet giant engaged in e-commerce, cloud computing and digital streaming. It also provides artificial intelligence services through Amazon web services, among other offerings. It is one of the best blue chip AI stocks to buy, according to billionaire Cliff Asness, given the diversified nature of its core business.
Amazon.com, Inc. (NASDAQ:AMZN) has integrated AI into every aspect of its business, including targeted advertisements, e-commerce search, and Amazon Web Services (AWS). With revenue climbing 19% year over year in the fourth quarter, Amazon Web Services (AWS) is the top cloud service provider and one of Amazon’s fastest-growing units. AI-related services that enable companies to create AI apps and automate business procedures are in high demand.
Last year, Amazon.com, Inc. (NASDAQ:AMZN) generated $59 billion in net income and $638 billion in net revenue. Analysts expect earnings to expand at a compound annual rate of 21% over the next three years as the tech giant experiences robust growth in its key business segments, including AWS.
3. Microsoft Corporation (NASDAQ:MSFT)
AQR Capital Management Equity Stakes: $1.77 Billion
Number of Hedge Fund Holders: 317
Microsoft Corporation (NASDAQ:MSFT) is a technology company that develops, licenses, and supports a wide range of software products, services, and hardware. It is also a big player in the burgeoning cloud computing sector. It also invests in artificial intelligence to develop capabilities to strengthen its software products and cloud offerings.
The tech giant has invested close to $14 billion in OpenAI as it looks to gain access to crucial AI features and solutions. It has already integrated some Bing search engine solutions into its AI strategy. Microsoft Corporation (NASDAQ:MSFT) intends to spend $80 billion on AI-enabled data centres in fiscal 2025 in order to train AI models.
With cloud-based solutions that enable enterprise clients to create, train, and implement custom AI models, AI has also revolutionized the company’s Azure segment. The segment is one of the fastest growing and expected to generate significant long-term value. Microsoft Corporation’s (NASDAQ:MSFT) revenue increased by a strong 12% year over year in the fiscal second quarter, while profits per share (EPS) increased by 10%. The AI industry’s progress, which includes a 21% rise in server and cloud service revenue, affirmed the company’s heightened AI investments.
2. NVIDIA Corporation (NASDAQ:NVDA)
AQR Capital Management Equity Stakes: $2.19 Billion
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA) is a technology giant that designs and supplies graphics processing units (GPUs) and system-on-a-chip (SoC) units. It is the leading supplier of GPUs needed to power data centers and other electronic devices amid the artificial intelligence race. It is one of the top blue chip AI stocks to buy, according to billionaire Cliff Asness, as it continues to benefit from increased spending on AI infrastructure.
Its flagship GPUs, the H100, H200, and the more recent Blackwell series, have become the standard for powering data centres amid the AI boom. Due to its market dominance in the GPU industry, NVIDIA Corporation (NASDAQ:NVDA) already enjoys a competitive advantage that is anticipated to fuel further growth. Additionally, the Blackwell AI processor’s high demand caused NVIDIA’s most recent quarterly sales to surpass Wall Street projections, affirming underlying growth.
With data center revenue of $35.6 billion, which exceeded the $34.1 billion forecast, the chipmaker posted revenue of $39.3 billion in FQ4 2025, exceeding Wall Street’s projection of $38.2 billion. Because of AI adoption, NVIDIA Corporation’s (NASDAQ:NVDA) data center division has emerged as its most significant and rapidly expanding revenue stream, accounting for almost 88% of total sales.
1. Apple Inc. (NASDAQ:AAPL)
AQR Capital Management Equity Stakes: $2.59 Billion
Number of Hedge Fund Holders: 166
Apple Inc. (NASDAQ:AAPL) is a technology company that designs, manufactures, and sells a wide array of consumer electronics, including smartphones, personal computers, tablets, wearables, and online services. The company is increasingly integrating artificial intelligence into its products and services to strengthen its competitive edge. Likewise, it is the largest holding in AQR Capital Management.
Apple Inc. (NASDAQ:AAPL) is best known for its flagship iPhone product line, accounting for the biggest share of its total revenue at 52%. It also generates a significant chunk of revenues from Macs, iPads, and wearable sales. Nevertheless, the company is increasingly investing in its services segment, which poses higher profit margins of over 70%. With over 2.2 billion Apple devices on sale, the company is increasingly integrating AI services to strengthen its service offerings.
More consumers may be encouraged to upgrade their phones and tablets in order to take advantage of the newest features and capabilities as the firm provides more AI-powered services. Amit Daryanani, an Evercore ISI analyst, projects that Apple Inc.’s (NASDAQ:AAPL) earnings per share would increase from $7.33 this year to $11.50 by 2029 due to its consistent performance and growing services division. Growing iPhone market share, prospective AI revenue streams, and increased monetization should also act as key growth drivers.
While we acknowledge the potential of Apple Inc. (NASDAQ:AAPL) as an investment, our conviction lies in the belief that 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 AAPL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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