In this article, we will take a detailed look at Top 10 Stocks to Buy According to Adage Capital Management.
Adage Capital Management, based in Boston, is a major investment firm specializing in managing the broader market’s assets, with a strong focus on Endowments and Foundations. Among its prominent clients are institutions such as Harvard University, Dartmouth College, Northwestern University, the American Red Cross, and the Getty Foundation. Over the last 15 years, Adage and its predecessor, the Select Equity Group at Harvard Management Company, have consistently surpassed the wider market’s performance by an average of 3.5%.
The firm’s origins date back to the mid-1980s when co-founders Phillip Gross and Robert Atchinson met as investment analysts for Harvard’s endowment. In the 1990s, following controversy over large performance bonuses at Harvard Management, they, along with an 18-person team, left to establish Adage Capital Management. Their launch was backed by a $1.8 billion initial investment from Harvard, with an agreement that the university would receive 10% of Adage’s earnings.
Adage Capital Management primarily manages the broader market’s assets for endowments and foundations, utilizing a long/short equity strategy driven by fundamental analysis. The firm also explores risk arbitrage and event-driven investment opportunities when suitable.
Phillip Gross, more commonly known as Phill Gross, co-founded Adage Capital Management, L.P. in 2001 and serves as a Managing Director and Healthcare Portfolio Manager. Before establishing the firm, he spent 18 years at Harvard Management Company, Inc., where he held roles as a Healthcare and Retail Analyst, Equity Research Director, and Partner.
Gross earned both his B.S. in finance and economics in 1982 and M.S. in investments in 1983 from the University of Wisconsin. He previously served on the UW Foundation Board of Directors and is currently involved with the Steve Hawk Center for Applied Securities Analysis Advisory Board and the Nicholas Center for Applied Corporate Finance Advisory Board. In 2006, he was honored with the Distinguished Alumnus Award from the UW Business School.
In philanthropy, Gross co-founded Strategic Grant Partners, an initiative aimed at systemic change in education and family services in Massachusetts. He serves as Vice President of the Board of Directors for Youth Enrichment Services, a Boston-based organization that introduces urban youth to outdoor activities. Additionally, he is a Board Trustee of the U.S. Ski and Snowboard Association, vice-chair of its Investment Committee, and a board member of the T2 Foundation.
Adage Capital Management’s Q4 2024 13F filing reported $57.19 billion in managed 13F securities, with its top 10 holdings accounting for 31.7% of the total portfolio. This distribution highlights the firm’s diversified investment approach.
Phillip Gross of Adage Capital
Our Methodology
The stocks discussed below were picked from Adage Capital 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 over 1,000 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).
Top 10 Stocks to Buy According to Adage Capital Management
10. Berkshire Hathaway Inc. (NYSE:BRK-A)
Number of Hedge Fund Holders as of Q4: 131
Adage Capital Management’s Equity Stake: $830.62 Million
A multinational holding company headquartered in Omaha, Nebraska, Berkshire Hathaway Inc. (NYSE:BRK-A) owns a diverse portfolio of businesses across industries such as insurance, utilities, energy, transportation, manufacturing, and retail. In addition to its wholly owned subsidiaries, which include Geico, Duracell, Dairy Queen, Fruit of the Loom, and railroad operator BNSF, Berkshire holds significant investments in publicly traded companies like Apple, Bank of America, and Coca-Cola. Its broad investment approach has solidified its reputation as a dominant force in the global financial landscape. Instead of frequently trading stocks, the company follows a buy-and-hold strategy, often acquiring entire businesses or significant stakes in corporations. This approach enables Berkshire to exert control over its investments and establish strong relationships with company management.
Berkshire Hathaway Inc. (NYSE:BRK-A) reported a 71% surge in operating earnings during the fourth quarter, largely driven by higher interest rates that boosted investment income and improved its insurance business. The company’s operating earnings reached $14.5 billion in the three months ending in December. A key contributor to this growth was a 48% increase in insurance investment income, which rose to $4.1 billion. The favorable interest rate environment played a crucial role in strengthening the conglomerate’s financial performance.
Warren Buffett recently made headlines after reducing Berkshire’s substantial holding in Apple and amassing a record cash reserve just before a stock market decline. The company nearly doubled its liquid assets, including cash and Treasury bills, to $334 billion in 2024. This expansion was largely attributed to the net sale of $134 billion in stocks while spending under $3 billion on share buybacks, halting them entirely in the latter half of the year. By contrast, Berkshire Hathaway Inc. (NYSE:BRK-A) sold a net $24 billion in stocks and repurchased over $9 billion of its own shares in 2023. Despite concerns about the company’s growing cash position, Buffett reassured shareholders in his annual letter that the majority of Berkshire Hathaway Inc. (NYSE:BRK-A)’s assets remain invested in equities, including both public stocks and wholly owned businesses.
9. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders as of Q4: 161
Adage Capital Management’s Equity Stake: $985.17 Million
Headquartered in Palo Alto, California, Broadcom Inc. (NASDAQ:AVGO) is well-positioned to take advantage of the rising demand for AI-driven technologies, particularly in data center connectivity and network infrastructure. The company’s diverse portfolio has allowed it to capitalize on the increasing adoption of high-performance AI models that require advanced semiconductor solutions. In fiscal 2024, Broadcom’s revenue grew by 44% year-over-year, largely due to the successful integration of VMware and a significant boost in AI-related revenue. AI revenue alone surged by 220% to $12.2 billion, making up 41% of the company’s total semiconductor revenue. This remarkable growth highlights the company’s strategic focus on artificial intelligence and its ability to adapt to evolving market trends.
Looking to the future, Broadcom Inc. (NASDAQ:AVGO) sees AI as a key driver of expansion, with management projecting a serviceable addressable market ranging from $60 billion to $90 billion by fiscal 2027. During the Q4 2024 earnings call, executives emphasized that Broadcom’s AI semiconductor business is expected to grow faster than its non-AI semiconductor segment. As AI-powered computing continues to gain momentum, the company’s ongoing investments in AI infrastructure are set to enhance its competitive position and reinforce its leadership in the semiconductor sector.
On March 7, 2025, investment firm Piper Sandler reaffirmed its “Overweight” rating for Broadcom Inc. (NASDAQ:AVGO) and set a price target of $250, citing the company’s strong AI-driven performance. Broadcom exceeded earnings expectations for the January quarter and provided optimistic projections for the April quarter. A substantial portion of its revenue came from its XPU and AI-related networking, generating $4.1 billion in the January quarter, with an expected rise to $4.4 billion in the April quarter—reflecting a 44% year-over-year increase. Additionally, the company’s software division has shown strong execution, with 70% of its largest enterprise clients now using VMware’s VCF. Piper Sandler analysts expressed confidence in Broadcom Inc. (NASDAQ:AVGO)’s continued growth in both the AI and networking sectors, reinforcing its position as a leader in next-generation computing technologies.
Parnassus Core Equity Fund stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its Q4 2024 investor letter:
“Broadcom Inc. (NASDAQ:AVGO) shares gained as the chipmaker achieved record high quarterly revenues driven by AI projects. News that the chipmaker is designing an AI server processor for Apple, in addition to custom chips it makes for other technology giants, further bolstered investor enthusiasm.
Broadcom gained on the strength of better-than-expected sales of AI chips and optimism on the revenue-generating potential of its wide-ranging AI initiatives. We continue to see upside in custom AI chips that Broadcom is well positioned to deliver.”
8. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders as of Q4: 234
Adage Capital Management’s Equity Stake: $1.03 Billion
Alphabet Inc. (NASDAQ:GOOGL) reported robust fourth-quarter earnings, surpassing analyst expectations. The company posted earnings of $2.15 per share on revenue of $96.47 billion, against projections of $2.13 per share. This performance represented a notable increase from the previous year’s Q4 results, which stood at $1.64 per share on revenue of $86.3 billion. CFO Anat Ashkenazi highlighted that a significant portion of the company’s investments has been directed toward technical infrastructure, particularly in expanding its server and data center capabilities. CEO Sundar Pichai reinforced Alphabet’s commitment to innovation, announcing plans for approximately $75 billion in capital expenditures for 2025, with a strong emphasis on advancing generative AI. The company views artificial intelligence as a transformative opportunity to solidify its market presence, especially in cloud computing.
On March 12, 2025, Alphabet Inc. (NASDAQ:GOOGL)’s stock closed at $169.06, reflecting a 1.86% increase from the previous trading session. This gain outpaced the broader market’s daily rise of 0.49%, while the Nasdaq climbed 1.22%. Over the past month, Alphabet’s shares dropped 11.27%, performing slightly better than the Computer and Technology sector, which saw a 12.07% decline, but trailing the market’s 8.15% loss.
Investors are closely monitoring Alphabet Inc. (NASDAQ:GOOGL)’s financial performance ahead of its next earnings report. Projections estimate earnings per share at $2.04 for the quarter, marking a 7.94% rise compared to the same quarter in the prior year. Revenue for the quarter is expected to reach $75.67 billion, representing an 11.94% year-over-year increase. For the full fiscal year, consensus forecasts suggest Alphabet Inc. (NASDAQ:GOOGL) will achieve earnings of $8.89 per share, reflecting a 10.57% annual growth. Additionally, revenue is expected to reach $334.55 billion, an increase of 13.36% compared to the prior year. These estimates highlight the company’s continued financial momentum and its strategic investments in AI and technical infrastructure as key drivers of future growth.
Columbia Threadneedle Global Technology Growth Strategy stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q4 2024 investor letter:
“Alphabet Inc. (NASDAQ:GOOG) (parent company Alphabet) generated strong double-digit returns during the quarter, as the company’s tremendous innovation in AI, along with strength in its core business of search and advertising and a healthy focus on profit growth and shareholder friendly capital allocation, shifted investor focus away from ongoing litigation with the Department of Justice related to market dominance. In the month of December alone, Google released to the public Gemini 2.0, its most capable AI model yet, as well as new generative image and vision models. And if that was not enough, Google also announced progress in quantum computing. Once considered an AI laggard, the flurry of product announcements and AI development did not go unnoticed by the market and the stock reacted accordingly.”
7. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders as of Q4: 126
Adage Capital Management’s Equity Stake: $1.04 Billion
Tesla, Inc. (NASDAQ:TSLA) is facing a rough start to 2025, with its stock plummeting over 15% on March 10, bringing its total losses for the year to more than 40%. The steep decline erased approximately $127 billion from the company’s market value, wiping out all the gains it had made since Donald Trump’s election victory in November. Meanwhile, Chinese EV competitors like BYD and Xpeng saw stock gains, with Xpeng even announcing plans to mass-produce a flying car by 2026. Tesla, Inc. (NASDAQ:TSLA) continues to struggle in China, where its February sales plunged 49% year-over-year, partially due to production halts ahead of a Model Y update. In contrast, BYD’s sales surged 161%, closing in on Tesla’s position as the world’s largest EV seller.
Elon Musk’s standing in China, once bolstered by his early investments in the country’s EV sector and his strong relationship with Chinese officials, may be weakening. His recent political statements, including controversial claims about COVID-19, have sparked backlash on Chinese social media. The China Passenger Car Association even issued a rare comment, warning that Musk’s political ties could hurt Tesla, Inc. (NASDAQ:TSLA)’s sales. Additionally, his support for Trump is damaging the company’s reputation in Europe, with declining sales in markets like Germany and France. While Chinese tech stocks are surging due to new AI breakthroughs and government backing, Tesla, like many U.S. tech companies, is suffering from market instability, tariffs, and economic uncertainty under the new administration.
In its most recent quarterly report, Tesla, Inc. (NASDAQ:TSLA) achieved mixed financial results for Q4 2024, with net sales increasing 2.15% year-over-year to $25.71 billion. However, operating profit declined significantly by 23.3% to $1.58 billion, while earnings per share fell short of expectations at $0.73, missing analyst forecasts by 4.8%. These figures highlight the company’s ongoing financial pressures, as it navigates production challenges and heightened competition in the global EV market.
6. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders as of Q4: 262
Adage Capital Management’s Equity Stake: $1.22 Billion
Meta Platforms, Inc. (NASDAQ:META) is making a significant push into AI hardware with its first in-house chip for training artificial intelligence systems, aiming to reduce dependence on Nvidia and lower infrastructure costs. The company has begun small-scale deployment of the chip and may expand production if tests succeed, marking a milestone in its long-term plan to develop custom silicon. Meta Platforms, Inc. (NASDAQ:META) has projected up to $119 billion in expenses for 2025, with AI infrastructure playing a major role. The new training chip is part of Meta’s ongoing Meta Training and Inference Accelerator (MTIA) program, which has had setbacks in the past but recently saw success with its first inference chip for recommendation systems. While Meta continues to be a major Nvidia customer, the push for in-house AI chips signals its ambition to take greater control over its AI ecosystem, particularly as skepticism grows over the long-term scalability of large language models.
Meta Platforms, Inc. (NASDAQ:META) has reinforced its dominance in digital advertising through rapid AI advancements, driving significant financial growth despite evolving industry regulations. In its Q4 2024 earnings report, the company posted a 21% year-over-year revenue increase to $48.4 billion, surpassing analyst expectations of $47 billion. Earnings per share (EPS) soared 50% to $8.02, well above the projected $6.76, leading to a nearly 9% rise in Meta’s stock price. The company’s AI-powered ad targeting and content recommendation systems have strengthened its market position, attracting increased ad spending and bolstering its competitive edge.
Investor confidence in Meta Platforms, Inc. (NASDAQ:META) continues to rise, with institutional backing growing substantially. Hedge fund interest also surged, with 262 funds holding stakes worth nearly $59.4 billion by the end of Q4 2024, up from 235 funds in the previous quarter, according to Insider Monkey’s database. Meta’s strong financials, AI-driven innovations, and unwavering dominance in digital advertising make it a top investment choice, as the company continues leveraging technology to maintain its industry leadership.
5. Hess Corporation (NYSE:HES)
Number of Hedge Fund Holders as of Q4: 92
Adage Capital Management’s Equity Stake: $1.52 Billion
Hess Corporation (NYSE:HES), an American independent energy company founded in 1933, specializes in the exploration and production of crude oil and natural gas. The company operates production facilities across key regions, including the United States, Guyana, and Malaysia, while also focusing on offshore exploration in areas like the Gulf of Mexico and Suriname.
Hess Corporation (NYSE:HES) delivered impressive Q4 2024 earnings, reporting $1.76 per share, surpassing the consensus estimate of $1.51 and improving from $1.63 per share in the previous year. The company’s net income surged to $542 million, compared to $413 million in Q4 2023, marking its fourth consecutive quarter outperforming earnings expectations. This consistent earnings beat highlights Hess’s strong financial performance and operational efficiency in the oil and gas sector, reinforcing its ability to navigate market fluctuations effectively.
In addition to earnings growth, Hess Corporation (NYSE:HES) reported revenue of $3.23 billion for Q4 2024, exceeding analyst expectations by 6.38% and growing from $3.04 billion year-over-year. The company’s stock has gained approximately 8.87% since the beginning of the year, significantly outperforming the broader market’s 1.68% decline. With a strong track record of revenue expansion and effective capital management, Hess is well-positioned for continued momentum in the near term, though future performance will depend on market conditions and management’s strategic outlook.
On March 5, 2025, Hess Corporation’s Board of Directors declared a regular quarterly dividend of $0.50 per share, payable on March 31, 2025, to shareholders of record as of March 17, 2025. With a market capitalization of $45.7 billion, Hess Corporation (NYSE:HES) remains a key player in oil exploration and production across the U.S. and Gulf of Mexico. As of March 12, 2025, analysts maintain the consensus rating of “Moderate Buy” on HES, with a mean price target of $167.47, representing a potential 15.8% upside from current levels.
4. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders as of Q4: 339
Adage Capital Management’s Equity Stake: $1.96 Billion
As of Q4 2024, Adage Capital Management held over 7 million shares of Amazon.com, Inc. (NASDAQ:AMZN), valued at over $1.9 billion. Hedge fund interest in the company also increased, with 339 funds tracked by Insider Monkey holding positions worth nearly $69.04 billion by the end of the quarter, up from 286 funds in Q3.
The company’s operating income for Q4 2024 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, Amazon.com, Inc. (NASDAQ:AMZN)’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. The company reported record operating income of $68.6 billion, an 86% increase year-over-year, largely driven by the success of its cloud-computing division, Amazon Web Services (AWS). With enterprises increasingly turning to AWS for artificial intelligence (AI) applications, the division remains a key driver of Amazon’s long-term growth.
Despite posting strong financial results for 2024, Amazon.com, Inc. (NASDAQ:AMZN) experienced a 10.7% drop in its stock price in February. Investor concerns over the company’s aggressive capital expenditures have weighed on the stock. The company plans to spend $100 billion in the form of capital expenditures in 2025, a significant increase from $77.7 billion in 2024, with most of the investment focused on AI infrastructure for AWS. While CEO Andy Jassy remains confident in the strategy, investors worry that such high spending could hurt profit margins, especially since Amazon expects its full-year 2025 operating income to decline by $700 million. Historically, the stock has been sensitive to fluctuations in operating income, which may explain the market’s cautious response. However, Amazon.com, Inc. (NASDAQ:AMZN) remains a top stock to buy due to its dominant position in e-commerce and cloud computing, strong AI-driven growth in AWS, and long-term investment in cutting-edge technology despite short-term profitability concerns.
Parnassus Core Equity Fund stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2024 investor letter:
“Amazon.com, Inc. (NASDAQ:AMZN) posted better-than-expected quarterly earnings, lifting investor confidence in the e-commerce giant’s ability to generate margin while continuing to invest into its large AI and retail end markets.
Amazon’s shares experienced volatility throughout the year as IT spending and the company’s margin structure came under scrutiny. Despite this, the stock outperformed as sentiment and results improved across both the overall environment for Amazon Web Services and the company’s ability to show margin.”
3. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders as of Q4: 317
Adage Capital Management’s Equity Stake: $2.98 Billion
Microsoft Corporation (NASDAQ:MSFT) reported impressive financial results for Q4, with revenue reaching $69.63 billion, marking a 12.27% year-over-year increase and surpassing expectations. Earnings per share (EPS) came in at $3.23, exceeding analyst forecasts of $3.12, highlighting the company’s continued profitability and strong market presence. Beyond financial performance, Microsoft achieved a major milestone in quantum computing by developing a topological qubit, a breakthrough with potential applications in artificial intelligence, medicine, and cryptography. This advancement solidifies Microsoft’s leadership in quantum research and enhances its long-term growth prospects.
Despite being at the forefront of technological innovation, Microsoft Corporation (NASDAQ:MSFT)’s shares declined on March 10 due to investor concerns over a potential recession and uncertainty surrounding trade policies. The fluctuating trade policies due to tariffs introduced by President Donald Trump have raised concerns over pricing stability and supply chains, leading some investors to offload stocks, particularly in the tech sector, where companies like Microsoft rely on global markets for production and distribution. The uncertainty has contributed to volatility in growth stocks, as investors weigh potential economic risks amid shifting trade regulations.
Moreover, a physicist has recently challenged Microsoft’s claim of creating the first topological qubits, arguing that the test used to detect the necessary quasiparticles, known as the topological gap protocol (TGP), is flawed. While Microsoft’s 19 February announcement lacked peer-reviewed proof, the company maintains that it has made significant progress beyond the published research. The critique, led by Henry Legg of the University of St Andrews, suggests that without a reliable test for Majorana quasiparticles, the foundation of Microsoft’s qubit breakthrough remains uncertain. However, the company’s quantum computing lead, Chetan Nayak, dismissed the criticism as a misrepresentation of their research. Despite this controversy, Microsoft (NASDAQ:MSFT) remains a strong stock to buy due to its robust financial performance, leadership in AI and cloud computing, and continued innovation in next-generation technologies like quantum computing.
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.”
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders as of Q4: 223
Adage Capital Management’s Equity Stake: $3.1 Billion
NVIDIA Corporation (NASDAQ:NVDA) has been the dominant force in the AI boom, with its stock surging over 600% since early 2023 and its market capitalization nearing $3 trillion. However, the stock has shown vulnerability, down about 16% year to date and 27% from its peak, despite beating Q4 earnings expectations with 78% revenue growth to $39.3 billion. For the quarter ending January 2025, the company reported revenue of $39.3 billion, representing a 12% sequential increase and an extraordinary 78% year-over-year growth. A primary contributor to this success was Nvidia’s data center segment, which surged by 93% year-over-year, solidifying its position as a key driver of long-term growth. While Nvidia experienced a 150-basis-point sequential decline in gross margins due to higher costs associated with Blackwell’s rollout, its adjusted gross margin of 73.5% remained within guidance, demonstrating strong financial management.
On March 10, 2025, Melius Research analyst Ben Reitzes reaffirmed his Buy rating on NVIDIA Corporation (NASDAQ:NVDA) but lowered his two-year price target from $195 to $170, citing short-term challenges such as potential tariffs, regulatory restrictions, and cost-reducing advancements in computing. Reitzes noted that the uncertainty surrounding the AI sector has led to erratic stock movements, with Nvidia shares reflecting broader market confusion. However, the upcoming GTC conference in San Jose, where CEO Jensen Huang will deliver a keynote on March 18, is expected to be a significant event that could influence investor sentiment and serve as a potential catalyst for the stock.
Looking ahead, NVIDIA Corporation (NASDAQ:NVDA) remains confident in its growth trajectory, projecting revenue of $43 billion for the April quarter—a 9% sequential increase and a 65% rise year-over-year. This outlook surpasses analyst expectations of $42.1 billion, reinforcing the company’s strong market position and continued ability to drive demand for AI and data center solutions. With its leadership in next-generation computing and robust financials, Nvidia remains a top stock to buy despite short-term market concerns.
1. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders as of Q4: 166
Adage Capital Management’s Equity Stake: $3.49 Billion
Originally founded in 1976, Apple Inc. (NASDAQ:AAPL) remains a dominant force in the global technology sector, ranking as the top stock pick for Adage Capital Management. In Q4 2024, the company reported revenue of $124.3 billion, reflecting a 3.95% year-over-year increase and exceeding analyst expectations. Earnings per share rose to $2.40, up from $2.18 in the previous year. On January 30, 2025, Apple’s Board of Directors announced a quarterly dividend of $0.25 per share, payable on February 13, 2025. Hedge fund interest in Apple also grew, with 166 out of 1,009 funds tracked by Insider Monkey holding positions valued at nearly $118.56 billion by the end of Q4, an increase from 158 funds in the prior quarter.
Looking ahead, Apple Inc. (NASDAQ:AAPL) is making a $500 billion investment in the U.S. over the next four years, focusing on expanding domestic manufacturing, doubling its Advanced Manufacturing Fund to $10 billion, and hiring 20,000 employees in key areas such as R&D, silicon engineering, software development, and AI. The company will begin producing servers in Houston this year and plans to open a 250,000-square-foot manufacturing facility in Texas by 2026, aligning with President Trump’s push for increased domestic production.
In March 2025, Apple Inc. (NASDAQ:AAPL) announced that it has delayed its more personalized Siri features, initially expected this spring, with plans to roll them out “in the coming year.” The update was meant to enhance Siri’s ability to understand personal context and take actions across apps, but internal concerns about functionality have led to setbacks. Bloomberg’s Mark Gurman reports that Apple executives, including Craig Federighi, found the features unreliable in testing, and some within Apple’s AI division fear they may need to be rebuilt from scratch. A fully modernized, conversational Siri might not debut until iOS 20 at the earliest.
Tsai Capital mentioned Apple Inc. (NASDAQ:AAPL) in its Q4 2024 investor letter. It stated:
“We initiated our investment in Apple Inc. (NASDAQ:AAPL) in 2016 and elevated it to a core holding in 2018, the same year the company introduced its redesigned 13-inch and 15-inch MacBook Pro models. Under Tim Cook’s visionary leadership, Apple has consistently redefined innovation in hardware and software.
The September 2024 launch of the iPhone 16, with its groundbreaking AI capabilities, including enhanced image generation tools, marks another inflection point. We believe this transformative device is the foundation for an AI-driven supercycle and could entice approximately 100 million consumers to upgrade, reinforcing Apple’s leadership in the industry.
Today, Apple’s ecosystem spans over two billion active devices, supported by a rapidly-growing base of subscription services. This strategy has helped to turbocharge customer engagement and spending. In the most recent fiscal year, which ended in September 2024, Apple’s high-margin services division accounted for 39.3% of total gross profits, up from 32.8% just two years ago.
Apple’s financial footing remains exceptional, with approximately $50 billion in net cash and marketable securities. Looking ahead, we expect earnings-per-share growth to outpace revenue growth, driven by margin expansion and continued share buybacks.”
Overall, Apple Inc. (NASDAQ:AAPL) ranks first on our list of top 10 stocks to buy according to Adage Capital Management. While we acknowledge the potential for AAPL 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 AAPL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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