In this article, we will take a detailed look at the Top 10 Stocks to Buy According to Balyasny Asset Management.
Balyasny Asset Management (BAM) is a leading investment management firm headquartered in Chicago, with additional offices in Canada, London, and Asia. The firm is dedicated to delivering consistent, uncorrelated returns across various market conditions. By leveraging advanced research, technology, and a diversified investment approach, BAM seeks to identify and capitalize on opportunities in global financial markets. The firm’s core strategies span equities, fixed income, macroeconomic trends, commodities, and systematic investing, all supported by a robust risk management framework tailored to individual portfolio managers and their teams.
The firm’s Quantitative Research division employs an evidence-based, analytical approach to enhance investment performance. By identifying patterns and inefficiencies, the team supports portfolio managers in making data-driven decisions that lead to sustainable returns. BAM’s Applied AI team further strengthens this effort by integrating artificial intelligence tools into daily operations, improving efficiency, and uncovering insights that might otherwise go unnoticed. This collaboration across strategies enhances idea generation while mitigating risks, ensuring that investment decisions are well-informed and adaptive to evolving market conditions.
Balyasny’s investment strategies are diverse, with a strong emphasis on Equities Long/Short (L/S), one of the largest equity platforms among multi-strategy asset managers. The firm employs over 300 analysts and 70 portfolio managers who conduct fundamental, sector-specific research to identify compelling long and short investment opportunities. Its Fixed Income & Macro division capitalizes on global trends through a mix of directional, relative value, and semi-systematic strategies, supported by a team of more than 140 investment professionals across 40 specialist groups. Additionally, the Commodities division focuses on supply and demand-driven investments, leveraging a sophisticated technology and data platform.
Other key investment approaches include Multi-Asset Arbitrage, which targets opportunities in event-driven and arbitrage strategies such as convertibles and credit, and the Systematic division, which uses proprietary technology and quantitative modeling to generate consistent, risk-adjusted returns. BAM’s forward-looking risk management system plays a crucial role in safeguarding investments, adapting to market changes, and ensuring risk is managed effectively across asset classes. By continuously refining its strategies and leveraging cutting-edge technology, Balyasny Asset Management remains a competitive force in the global investment landscape.
Dmitry Balyasny co-founded Balyasny Asset Management (BAM) in 2001 and serves as its Managing Partner and Chief Investment Officer. Under his leadership, BAM has grown into a globally recognized investment firm with a strong presence in equities long/short investing. He plays an active role in risk management and portfolio strategy while overseeing the firm’s expansion across multiple asset classes. Balyasny began his trading career in 1994 with Schonfeld Securities and has been a key figure in the hedge fund industry since 1999. His expertise in identifying overlooked investment opportunities has been instrumental in BAM’s success, emphasizing a research-driven approach to uncovering unique, high-return strategies.
Beyond his work in finance, Balyasny is deeply committed to philanthropy and education. In 2021, he founded ATLAS Fellows, Inc., a nonprofit dedicated to providing under-resourced young individuals with opportunities for careers in finance and investing. Additionally, he actively supports the Ayn Rand Institute and various educational initiatives aimed at fostering intellectual and professional development. As a board member for Teach for America Chicago, he contributes to advancing educational equity and supporting community engagement programs.
Balyasny holds a Bachelor of Business Administration in Finance from Loyola University Chicago. His philosophy in investing is centered on focusing on “misunderstood situations,” leveraging in-depth research to uncover opportunities others may overlook. This contrarian yet disciplined approach has solidified his reputation as a leading figure in the investment industry.
Once an unknown name in the financial sector, Dmitry Balyasny has since risen to prominence as one of the industry’s top investors. His ability to navigate complex markets and adapt to changing economic conditions has made him a respected voice in the hedge fund world. Through his leadership at BAM and his philanthropic efforts, he continues to influence both the financial and educational landscapes, leaving a lasting impact on the industry and beyond.
As of its latest filing for the fourth quarter of 2024, Balyasny Asset Management oversees approximately $67.14 billion in 13F securities. The firm maintains a well-diversified portfolio, with its top ten holdings representing just 6.13% of total assets, reflecting a balanced investment approach that mitigates risk while capitalizing on strategic opportunities.
Dmitry Balyasny of Balyasny Asset Management
Our Methodology
The stocks discussed below were picked from Balyasny Asset 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 1009 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 Balyasny Asset Management
10. Starbucks Corporation (NASDAQ:SBUX)
Number of Hedge Fund Holders as of Q4: 84
Balyasny Asset Management’s Equity Stake: $330.27 Million
Starbucks Corporation (NASDAQ:SBUX), founded in 1971 and headquartered in Seattle, Washington, is a global coffeehouse chain known for its premium coffee, tea, and food offerings. The company generates revenue through a combination of company-operated and licensed stores, as well as through brand licensing, allowing third-party businesses such as hotels and airlines to serve its products. The company also distributes its packaged coffee beans, teas, and other food items to retail outlets.
In its financial report for the first quarter of the 2024 fiscal year, Starbucks Corporation (NASDAQ:SBUX) announced a 4% decline in global comparable store sales, driven by a 6% drop in transactions, which was partially offset by a 3% increase in the average amount a customer spends per transaction, known as ticket size. The company’s international markets experienced a similar trend, with comparable store sales dropping 4%, including a 6% decline in China. Despite these setbacks, Starbucks Corporation (NASDAQ:SBUX) continued its expansion, opening 377 net new stores during the quarter, bringing its global store count to 40,576.
Financially, Starbucks Corporation (NASDAQ:SBUX) reported consolidated net revenues of $9.4 billion for the quarter, remaining flat compared to the previous year. Operating margin declined by 390 basis points year-over-year to 11.9%, mainly due to increased labor costs, additional benefits for employees, and the elimination of extra charges for non-dairy milk. These expenses were partly offset by pricing adjustments and supply chain efficiencies. Earnings per share fell by 23% to $0.69 compared to the prior year. Meanwhile, the Starbucks Rewards program continued to show resilience, with active U.S. members increasing by 1% year-over-year to 34.6 million.
Despite the challenges, Starbucks executives remain optimistic about the company’s turnaround strategy, known as “Back to Starbucks.” CEO Brian Niccol emphasized that early efforts have received a positive response and that the company is committed to making fundamental changes to restore confidence and drive long-term growth. The company’s leadership is confident that these strategic initiatives will position Starbucks for a stronger financial future.
Invesco Growth and Income Fund stated the following regarding Starbucks Corporation (NASDAQ:SBUX) in its Q3 2024 investor letter:
“Starbucks Corporation (NASDAQ:SBUX): The coffee retailer has struggled with China’s economic softness, declining sales and weaker US store traffic that have hampered revenues and profit margins. However, we believe the company has several positive, long-term catalysts, including strong growth in store count, better labor relations, improving productivity from labor, technology and innovation, and easier future earnings comparisons. We believed a management change was imminent, and shortly after we purchased the stock, Starbucks named a new CEO, which was seemingly greeted enthusiastically by investors.”
9. Discover Financial Services (NYSE:DFS)
Number of Hedge Fund Holders as of Q4: 91
Balyasny Asset Management’s Equity Stake: $335.94 Million
Discover Financial Services (NYSE:DFS) is a leading American financial institution known for its online banking services, including checking and savings accounts, personal loans, home equity loans, and credit cards. The company also operates the Discover and Pulse payment networks and owns Diners Club International, a globally recognized charge card brand. With its diverse range of financial products and strong market presence, Discover has established itself as a key player in the financial services sector, consistently adapting to evolving consumer and industry trends.
In its fourth-quarter earnings report, Discover Financial Services (NYSE:DFS) significantly outperformed market expectations, driving its stock price up by 2.5% in after-hours trading. The company posted adjusted earnings per share (EPS) of $5.11, far exceeding the consensus estimate of $3.20. Additionally, revenue reached $4.76 billion, surpassing projections of $4.41 billion. The impressive performance was driven by increased loan growth, margin expansion, and improved credit conditions, contributing to a notable 253% year-over-year surge in net income, which reached $1.29 billion compared to $366 million in the previous year.
Discover Financial Services (NYSE:DFS) also demonstrated its commitment to shareholder value by declaring a quarterly cash dividend of $0.70 per share, payable on March 6, 2025. The company’s strong financial health and strategic focus have caught the attention of analysts, with Truist’s Brian Foran upgrading the stock’s price target from $233 to $262 while maintaining a Buy rating. The upgrade reflects confidence in Discover’s ability to sustain growth and profitability, particularly given its recent earnings performance and operational improvements.
The company’s ability to generate high earnings, improve credit conditions, and expand its margins underscores its resilience in the financial sector. With consistent loan growth, a focus on increasing shareholder returns, and positive analyst sentiment, Discover is well-positioned for long-term value appreciation, making it a top stock to buy for investors seeking both stability and growth potential.
Middle Coast Investing stated the following regarding Discover Financial Services (NYSE:DFS) in its Q3 2024 investor letter:
“The good transitions tend to tie back to the macroeconomy. Financial companies are seen as the big winners in a soft landing. Each of our winners has good things happening to them, too. Discover Financial Services (NYSE:DFS) is cleaning up many of its problems from the past few years. Whether or not its deal with Capital One goes through, Discover’s business has gotten much stronger in the past six months.
8. RTX Corporation (NYSE:RTX)
Number of Hedge Fund Holders as of Q4: 80
Balyasny Asset Management’s Equity Stake: $344.51 Million
RTX Corporation (NYSE:RTX), formerly known as Raytheon Technologies Corporation, is a leading American aerospace and defense company headquartered in Arlington, Virginia. The company specializes in providing advanced technologies and solutions for both commercial and defense sectors. In the fourth quarter of 2024, RTX Corporation saw strong financial performance driven by increased demand for aircraft parts and maintenance services, as airlines continued to rely on older planes amid a global jet shortage. The company reported $21.6 billion in sales for the quarter, reflecting a 9% year-over-year increase. Earnings per share (EPS) stood at $1.10, with adjusted EPS rising 19% to $1.54. Additionally, RTX generated $1.6 billion in operating cash flow and $0.5 billion in free cash flow for the quarter.
For the full year 2024, RTX Corporation (NYSE:RTX) posted total sales of $80.7 billion, with adjusted sales slightly higher at $80.8 billion, representing a 9% increase from the prior year. The company reported an EPS of $3.55 and an adjusted EPS of $5.73, marking a 13% growth year-over-year. Operating cash flow for the year was $7.2 billion, with free cash flow reaching $4.5 billion. RTX President and CEO Chris Calio highlighted the company’s strong momentum, citing an 11% organic sales growth, improved segment margins across all divisions, and a growing backlog of $218 billion. This backlog includes $125 billion in commercial orders and $93 billion in defense contracts, positioning RTX for continued success in 2025.
Throughout 2024, RTX Corporation (NYSE:RTX) remained committed to returning value to shareholders, distributing $852 million in the fourth quarter and a total of $3.7 billion for the year. Since its merger, the company has returned over $33 billion to investors. Despite its strong financial performance, RTX’s 2025 adjusted sales forecast of $83 billion to $84 billion slightly missed analysts’ expectations of $84.47 billion. However, the company remains optimistic, projecting adjusted EPS between $6.00 and $6.15, with free cash flow anticipated to reach between $7.0 billion and $7.5 billion.
Longleaf Partners Fund stated the following regarding RTX Corporation (NYSE:RTX) in its Q4 2024 investor letter:
“RTX Corporation (NYSE:RTX) – Aerospace and defense company RTX was a top contributor for the year. Our appraisal value has grown nicely since we first purchased the company just over a year ago. While the issues for Pratt & Whitney’s (P&W) Geared Turbofan engine are still not yet fully fixed, they have gotten better and given us another reminder that the point of maximum pessimism is only obvious in retrospect. We continue to have a conservative valuation on P&W so view this as a source of future value upside. The Raytheon segment has also performed better as the year has gone on, with recent signs of margin improvement. Strong industry tailwinds, prudent capital allocation and a solid balance sheet provide a foundation for sustained growth and eventual full value recognition.”
7. The Travelers Companies, Inc. (NYSE:TRV)
Number of Hedge Fund Holders as of Q4: 52
Balyasny Asset Management’s Equity Stake: $360.69 Million
The Travelers Companies, Inc. (NYSE:TRV) is a leading American insurance provider, ranking as the second-largest writer of U.S. commercial property casualty insurance and the sixth-largest writer of U.S. personal insurance through independent agents. The company reported strong financial results for the fourth quarter of 2024, with net income reaching $2.082 billion, or $8.96 per diluted share, compared to $1.626 billion, or $6.99 per diluted share, in the same period the previous year. Core income also saw an increase to $2.126 billion, or $9.15 per diluted share, driven by higher underwriting gains, increased net investment income, and favorable reserve developments, despite higher catastrophe-related losses.
The Travelers Companies, Inc. (NYSE:TRV) also reported record full-year operating cash flows of $9.074 billion, demonstrating its strong financial position. During the fourth quarter, the company repurchased 1 million shares at an average price of $255.41 per share, totaling $252 million. As of December 31, 2024, The Travelers Companies, Inc. (NYSE:TRV) had $5.040 billion in remaining share repurchase authorization. The company’s capital position remains solid, with statutory capital and surplus at $27.715 billion and a debt-to-capital ratio of 22.4%, which falls within its target range of 15% to 25% when excluding after-tax net unrealized investment gains or losses.
The Board of Directors declared a quarterly dividend of $1.05 per share, payable on March 31, 2025, to shareholders of record as of March 10, 2025. This dividend reflects the company’s commitment to returning value to shareholders while maintaining a balanced approach to capital management. The consistent share repurchases and stable dividends further reinforce The Travelers Companies, Inc. (NYSE:TRV)’s financial strength and ability to generate long-term shareholder value.
Investors looking for a stable, well-established company with a strong financial foundation may find Travelers an attractive stock to buy. The company’s robust underwriting performance, growing investment income, and disciplined capital management position it well for continued profitability. Additionally, the combination of steady dividend payouts and share buybacks makes The Travelers Companies, Inc. (NYSE:TRV) an appealing option for income-focused investors. With its solid balance sheet and ability to navigate economic uncertainties, Travelers presents a compelling investment opportunity in the insurance sector.
6. Arthur J. Gallagher & Co. (NYSE:AJG)
Number of Hedge Fund Holders as of Q4: 77
Balyasny Asset Management’s Equity Stake: $374.51 Million
Arthur J. Gallagher & Co. (NYSE:AJG) is a leading American insurance brokerage and risk management firm headquartered in Rolling Meadows, Illinois. Established in 1927, the company has grown into one of the largest insurance brokers globally, with over 56,000 employees providing services in more than 130 countries.
In the fourth quarter of 2024, Arthur J. Gallagher & Co. (NYSE:AJG) reported total revenue of $2.68 billion, slightly below analysts’ expectations of $2.69 billion. However, the company’s adjusted net earnings surged to $491.2 million, a significant increase from $402.4 million in the prior year. Adjusted earnings per share (EPS) reached $2.13, exceeding projections of $1.35. This impressive financial performance underscores the company’s resilience and ability to maintain profitability despite acquisition-related costs and workforce adjustments. The brokerage segment saw a 12% year-over-year revenue increase to $2.3 billion, while the risk management division experienced steady growth, reaching $369.4 million.
Arthur J. Gallagher & Co. (NYSE:AJG) continued its aggressive expansion strategy by completing 20 acquisitions in Q4 2024, adding an estimated annualized revenue of $387 million. Chairman and CEO J. Patrick Gallagher, Jr. highlighted the firm’s remarkable success, marking its 16th consecutive quarter of double-digit revenue growth, with organic revenue increasing by 7%. With a solid balance sheet and a clear focus on expansion, Arthur J. Gallagher & Co. (NYSE:AJG) remains well-positioned for continued success in the competitive insurance brokerage industry.
Investor confidence in the company is evident, as hedge funds have significantly increased their holdings in Arthur J. Gallagher & Co. By the end of Q4 2024, Balyasny Asset Management raised its stake in the company to nearly 1.32 million shares, a massive increase from just 2,478 shares in the previous quarter, bringing its investment value to approximately $374.54 million. Additionally, data from Insider Monkey reveals that 77 hedge funds held positions in the company by the end of Q4, up from 44 in the prior quarter, with total stakes valued at nearly $4.47 billion. These investment trends indicate strong institutional confidence in Arthur J. Gallagher & Co. (NYSE:AJG)’s growth potential.
Andvari Associates stated the following regarding Arthur J. Gallagher & Co. (NYSE:AJG) in its Q3 2024 investor letter:
“Arthur J. Gallagher & Co. (NYSE:AJG) and Rollins are two other serial acquirers in Andvari’s client portfolios. Both are some of the largest, and best, businesses in their respective industries. AJG is a leading property and casualty insurance and reinsurance broker. Rollins is home to many of the top brands in the pest service industry in North America.
Importantly, while both AJG and Rollins have large market shares, their respective markets are still highly fragmented. There are thousands of small and medium-sized businesses left for AJG and Rollins to acquire. Gallagher currently has a pipeline of 100 potential acquisitions that represents about $1.4 billion of annualized revenue (compare this to $10.1 billion of revenues for 2023). Andvari believes the pace of acquisitions for both companies can continue for many years to come. Just see below the acquisition track records of both companies since 2014…”(Click here to read the full text)
5. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders as of Q4: 81
Balyasny Asset Management’s Equity Stake: $371.93 Million
The Coca-Cola Company (NYSE:KO), a multinational corporation founded in 1892, is a global leader in the beverage industry. It produces and markets a wide range of soft drinks, non-alcoholic beverage concentrates, syrups, and even alcoholic beverages. With a strong presence in international markets, Coca-Cola continues to drive revenue growth through strategic pricing, product innovation, and expanding its consumer base. On February 11, the company reported fourth-quarter earnings and revenue that exceeded analysts’ expectations, demonstrating the resilience of its brand and the consistent demand for its products worldwide.
For the quarter ending December 31, The Coca-Cola Company (NYSE:KO) reported earnings per share of 55 cents on an adjusted basis, surpassing the expected 52 cents. Revenue reached $11.54 billion, exceeding Wall Street projections of $10.68 billion. Net income attributable to shareholders rose to $2.20 billion, or 51 cents per share, up from $1.97 billion, or 46 cents per share, in the previous year. Organic revenue, which excludes the effects of acquisitions, divestitures, and foreign currency, grew 14%, largely driven by a 9% increase in pricing. The company attributed 4% of this pricing growth to inflationary markets, while the remaining growth stemmed from price hikes and a favorable sales mix.
Looking ahead to 2025, The Coca-Cola Company (NYSE:KO) projects organic revenue growth of 5% to 6%, with comparable earnings per share expected to rise 2% to 3%. The company acknowledges potential challenges, including currency exchange headwinds and increased costs from tariffs on aluminum imports. However, its ability to adapt pricing strategies and optimize product packaging, such as shifting toward PET bottles over aluminum cans, demonstrates its operational flexibility. With a strong global brand, continued volume growth, and effective pricing strategies, The Coca-Cola Company (NYSE:KO) remains a top stock to buy according to Balyasny Asset Management.
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders as of Q4: 223
Balyasny Asset Management’s Equity Stake: $410.70 Million
As the primary supplier of high-performance GPUs to top tech companies, NVIDIA Corporation (NASDAQ:NVDA)’s dominance as having an 80% market share remains unchallenged despite the premium pricing of its products. The launch of its Blackwell architecture has further strengthened its market position, which has translated into exceptional financial performance, with the company reporting record-breaking revenue of $39.3 billion in its most recent quarter. This figure represents a 12% increase from the previous quarter and an impressive 78% year-over-year growth, largely driven by a 93% surge in its data center segment.
Looking ahead, NVIDIA Corporation (NASDAQ:NVDA) projects continued growth, forecasting $43 billion in revenue for the April quarter. This represents a 9% sequential increase and a 65% jump year-over-year, exceeding analysts’ expectations of $42.1 billion. Despite concerns about rising competition, NVIDIA’s aggressive innovation strategy, including its commitment to annual GPU updates, ensures that it maintains a technological edge. The company’s ability to sustain high demand for AI chips amid evolving industry trends reinforces its long-term market leadership and growth potential.
In addition to AI advancements, NVIDIA Corporation (NASDAQ:NVDA) is expanding its research efforts into quantum computing. The company recently announced the launch of the Nvidia Accelerated Quantum Research Center (NVAQC) in Boston, where it will collaborate with researchers from Harvard University, the Massachusetts Institute of Technology (MIT), and leading quantum firms such as Quantinuum, Quantum Machines, and QuEra Computing. This initiative was unveiled at NVIDIA’s annual software developer conference, underscoring its ambition to stay at the forefront of emerging technologies. While CEO Jensen Huang had previously suggested that practical quantum computing is still two decades away, he later walked back these comments, highlighting the industry’s rapid developments and potential near-term breakthroughs.
NVIDIA’s stronghold in AI, its continuous innovation in GPU technology, and its proactive investment in quantum computing position it as a formidable player in the tech industry. As demand for AI and quantum computing continues to rise, NVIDIA’s ability to adapt and lead makes it a promising stock for long-term growth.
Parnassus Growth Equity Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q4 2024 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) continued to lead the market for graphics processing units and semiconductor chips needed to power AI applications. Because our position in the stock is an underweight relative to the nearly 12% of the benchmark it now represents, it was a relative detractor for the year.”
3. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders as of Q4: 162
Balyasny Asset Management’s Equity Stake: $413.59 Million
Salesforce, Inc. (NYSE:CRM), a prominent cloud-based software provider, has encountered some hurdles in 2025 despite its long-standing reputation for innovation and strong market presence. To address evolving business needs, the company recently launched Agentforce 2dx, an advanced AI-powered solution designed to improve customer and employee workflows.
Investor confidence in Salesforce, Inc. (NYSE:CRM) remains strong, as evidenced by an increase in hedge fund participation, which rose from 116 firms in Q3 2024 to 162 in Q4. This growing interest reflects optimism about the company’s long-term prospects, particularly as it expands into new markets. On March 12, Salesforce announced a $1 billion investment in Singapore over the next five years, aimed at accelerating digital transformation and advancing AI adoption. This initiative is particularly significant given Singapore’s slowing labor force growth due to demographic challenges.
In its latest financial report, Salesforce, Inc. (NYSE:CRM) delivered a strong performance for fiscal year 2025, which ended in January. The company reported a total revenue of $37.9 billion, reflecting a 9% year-over-year increase. Additionally, its total remaining performance obligation (RPO), a key indicator of future revenue, rose by 11% to $63.4 billion. Free cash flow also saw significant growth, increasing by 31% to $12.4 billion, demonstrating the company’s ability to generate substantial cash reserves while continuing to invest in AI and cloud computing.
Looking ahead, Salesforce, Inc. (NYSE:CRM) projects adjusted earnings per share between $11.09 and $11.17 for fiscal 2026, with anticipated revenue ranging from $40.5 billion to $40.9 billion, representing a 7.4% increase. However, these projections fall slightly below analysts’ expectations of $11.18 per share in earnings and $41.35 billion in revenue, leading to some concerns about the company’s growth trajectory. Despite this, Salesforce’s continued investment in AI, strategic global expansion, and strong institutional backing position it for long-term success. With its commitment to innovation and a growing footprint in emerging markets, Salesforce, Inc. (NYSE:CRM) remains a key player in the evolving cloud and AI-driven technology landscape.
Parnassus Growth Equity Fund stated the following regarding Salesforce, Inc. (NYSE:CRM) in its Q4 2024 investor letter:
“Salesforce, Inc. (NYSE:CRM) reported third-quarter results that exceeded analysts’ expectations, as the integration of AI technology across the customer relationship management software company’s product offerings has driven robust growth in new deals.”
2. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders as of Q4: 186
Balyasny Asset Management’s Equity Stake: $434.83 Million
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a leading semiconductor manufacturer based in Taiwan. The company is responsible for producing approximately 90% of the world’s most advanced semiconductor chips, which power devices such as smartphones, servers, and laptops. These chips are also essential for running artificial intelligence applications, making TSMC a critical player in the AI-driven technological landscape. With its role as a key supplier to major companies like Nvidia and Apple, TSMC continues to strengthen its position as the world’s largest contract chip manufacturer.
In its latest financial report, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) exceeded market expectations for both revenue and profit in the fourth quarter. The company reported net revenue of NT$868.46 billion ($26.36 billion), surpassing analysts’ forecasts of NT$850.08 billion. Net income also came in higher than expected at NT$374.68 billion, marking a 57% year-over-year increase, while revenue saw a substantial 38.8% jump. The company’s high-performance computing (HPC) division, which includes AI and 5G-related applications, was the primary growth driver, contributing 53% of total revenue.
TSMC’s leadership has expressed confidence in continued AI-driven growth, with Chairman and CEO C.C. Wei noting that revenue from AI accelerator products accounted for a mid-teens percentage of total revenue in 2024. He further projected that AI-related revenue would double in 2025, given the increasing adoption of AI technologies across various industries. Despite these positive forecasts, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) faces potential challenges in 2025, including U.S. restrictions on advanced semiconductor shipments to China and potential shifts in trade policy under the incoming administration of President-elect Donald Trump.
Despite external challenges, market analysts remain optimistic about TSMC’s growth prospects. In 2024, TSMC’s Taiwan-listed shares surged 81%, and the stock continued its upward momentum, rising 3.75% in early 2025 trading. With its dominant market position, strategic partnerships, and commitment to innovation, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is well-positioned to maintain its leadership in the semiconductor industry and capitalize on the expanding AI revolution.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders as of Q4: 339
Balyasny Asset Management’s Equity Stake: $769.30 Million
Amazon.com, Inc. (NASDAQ:AMZN) has increasingly integrated artificial intelligence across its core business segments: e-commerce, cloud computing, and digital advertising. The implementation of AI has played a significant role in the company’s strong financial performance. In 2024, it reported an 11% increase in revenue, reaching $638 billion. Its operating margin expanded by four percentage points, while GAAP net income surged by 90% to $5.53 per diluted share. Amazon Web Services (AWS) remains the fastest-growing segment, with Q4 revenue rising 19% to $28.8 billion and operating income increasing by 47% to $10.6 billion. A key contributor to AWS’s profitability is Amazon’s development of proprietary AI processors, known as application-specific integrated circuits (ASICs), which enhance efficiency and reduce operational costs.
Amazon.com, Inc. (NASDAQ:AMZN) also made significant strides in improving its delivery network, increasing the number of same-day delivery sites by over 60% in 2024. The expansion now covers more than 140 metropolitan areas, allowing the company to fulfill orders more quickly and efficiently. In the advertising segment, Amazon reported an 18% year-over-year revenue increase in Q4, reaching $17.3 billion. This growth pushed the segment’s annual revenue run rate to $69 billion—more than double its size from four years ago. AI remains at the center of Amazon’s strategic vision, with continuous investment in automation, logistics, and digital marketing enhancements.
Looking ahead to 2025, Amazon.com, Inc. (NASDAQ:AMZN) plans to further invest in its fulfillment and transportation infrastructure. The company aims to expand same-day delivery facilities, enhance its inbound logistics network, and implement greater automation to improve delivery speed while reducing costs.
In Q4 2024, Balyasny Asset Management increased its stake in the company by 1,049%. From its previous holding of 305,302 shares in Q3, the hedge fund held over 3.5 million shares of Amazon.com, Inc. (NASDAQ:AMZN) by the end of Q4, valued at over $769 million. Hedge fund interest in the company also increased, with 339 out of 1,009 funds tracked by Insider Monkey holding positions worth nearly $69.04 billion by the end of the quarter, up from 286 funds in Q3.
Overall, Amazon.com, Inc. (NASDAQ:AMZN) ranks first on our list of top 10 stocks to buy according to Balyasny Asset Management. While we acknowledge the potential for AMZN 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 AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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