In this article, we will take a detailed look at the Top 10 Stocks to Buy According to Marshall Wace LLP.
Marshall Wace LLP is a prominent British hedge fund established in 1997 by Paul Marshall and Ian Wace. Headquartered in London, the firm has grown to become one of the world’s leading hedge funds. The firm operates as a unified global team, dedicated to fostering long-term client relationships built on trust and integrity, with a culture centered on continuous innovation and improvement.
Sir Paul Roderick Clucas Marshall, known simply as Paul Marshall, serves as the chairman and chief investment officer of Marshall Wace. Born in London, England, he studied history and modern languages at St John’s College, Oxford before earning an MBA from INSEAD Business School in Fontainebleau, France. Prior to co-founding Marshall Wace, Marshall was the Head of European Equities at Mercury Asset Management.
Beyond finance, Marshall is best known as a philanthropist and media baron. He expanded his influence into media by owning UnHerd and The Spectator and co-owning GB News. His philanthropic efforts are equally notable; he was named the top donor on The Sunday Times Giving List in 2024 after donating a hefty sum to various causes including the London School of Economics to establish the Marshall Institute. He was knighted in the 2016 Birthday Honours for his contributions to education and philanthropy.
Politically, Marshall was initially a member and donor of the Liberal Democrats, co-editing the influential Orange Book in 2004 alongside key party figures. However, his stance shifted in 2015 when he left the party due to his support for Brexit. He later became a major donor to the Brexit campaign and the Conservative Party. His ownership of UnHerd and GB News has positioned him as a significant right-wing media figure in the UK.
Ian Gerald Patrick Wace serves as the firm’s chief executive officer and chief risk officer. Despite not holding a college degree, he has achieved exceptional success in the finance industry, earning recognition as “perhaps the only person without a college degree to ever qualify” for Institutional Investor’s Rich List. Wace began his career at S.G. Warburg & Co., where he spent 11 years and became the firm’s youngest director at the age of 25. His rapid ascent continued as he was appointed head of European equity sales in 1988, head of proprietary trading in 1993, and head of international trading in 1994. In 1995, he joined Deutsche Morgan Grenfell as head of equity and derivative trading, further establishing his expertise in the financial sector before co-founding Marshall Wace in 1997.
Marshall Wace LLP manages quantitative, systematic, and fundamental investment strategies, with a primary focus on long/short equity. These strategies are implemented on a global scale, utilizing proprietary systems and processes to optimize performance. For over two decades, technology and data have been central to the firm’s operations. In 2002, Marshall Wace introduced MW TOPS, its Trade Optimized Portfolio System and the world’s first ‘Alpha Capture’ application. This revolutionized the way investment insights were harnessed and contributed largely to its prominence in the hedge fund industry. Today, the firm remains committed to innovation and excellence, continuously refining its methodologies to maintain a competitive edge in the financial markets. Despite its success, Marshall Wace has faced recent challenges; in the fiscal year ending February 2024, the firm’s revenues declined substantially, leading to a nearly 64% drop in profits.
Marshall Wace LLP’s Q4 2024 13F filing reported over $83 billion in managed 13F securities, with its top 10 holdings accounting for 34.5% of the total portfolio.
Paul Marshall of Marshall Wace
Our Methodology
The stocks discussed below were picked from Marshall Wace LLP’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 Marshall Wace LLP
10. Flutter Entertainment plc (NYSE:FLUT)
Number of Hedge Fund Holders as of Q4: 98
Marshall Wace LLP’s Equity Stake: $636 Million
The world’s largest sports betting and iGaming operator with 13.9 million Average Monthly Players worldwide in 2024, Flutter Entertainment plc (NYSE:FLUT) was founded in 2016 and is based in New York City. The company delivered strong financial performance in Q4 2024, with revenue reaching $3.79 billion, marking a 14% increase compared to the previous year. The company reported a net income of $156 million, a significant turnaround from a net loss of $902 million in Q4 2023. Adjusted EBITDA rose by 4% year-over-year to $655 million, while free cash flow surged by an impressive 175% to $473 million. Earnings per share also improved substantially, shifting from a loss of $5.14 per share in Q4 2023 to a positive $0.45 per share in Q4 2024, demonstrating the company’s enhanced profitability and operational efficiency.
In line with its strategic priorities, Flutter Entertainment plc (NYSE:FLUT) undertook key financial initiatives in 2024, including a share repurchase program that returned $121 million to shareholders in Q4 alone, with plans to reach $1 billion in buybacks by 2025. The company also reduced its total debt by $320 million, lowering its leverage ratio from 3.1 to 2.2. Furthermore, Flutter announced major acquisitions in Brazil and Italy, with NSX and Snai set to join its portfolio in Q2 2025. These moves highlight the company’s commitment to strengthening its global footprint while maintaining financial discipline.
Looking ahead, Flutter Entertainment plc (NYSE:FLUT) expects continued growth in 2025, with projected revenue between $15.48 billion and $16.38 billion and adjusted EBITDA ranging from $2.94 billion to $3.38 billion. Its dominance in the U.S. market, coupled with international expansion and financial prudence, positions the company for long-term success. As a leader in the growing sports betting and iGaming industry, Flutter Entertainment remains a top stock to buy for investors seeking exposure to a high-growth sector with strong financial fundamentals.
9. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders as of Q4: 234
Marshall Wace LLP’s Equity Stake: $647.34 Million
Alphabet Inc. (NASDAQ:GOOGL) delivered strong fourth-quarter earnings, exceeding market expectations. The tech giant reported earnings of $2.15 per share on revenue of $96.47 billion, surpassing analyst projections of $2.13 per share. This marked a significant improvement from the previous year’s fourth quarter, where earnings were $1.64 per share on revenue of $86.3 billion. CEO Sundar Pichai emphasized on the company’s focus on innovation, revealing plans to allocate around $75 billion in capital expenditures for 2025, with a primary focus on advancing generative AI. Alphabet views artificial intelligence as a crucial driver for strengthening its market position, particularly in the cloud computing sector.
As Alphabet Inc. (NASDAQ:GOOGL) prepares for its upcoming earnings report, analysts anticipate earnings per share of $2.04 for the quarter, representing a 7.94% increase from the same period last year. Revenue for the quarter is projected to reach $75.67 billion, reflecting an 11.94% year-over-year rise. For the full fiscal year, Alphabet is expected to achieve earnings of $8.89 per share, marking a 10.57% annual growth. Revenue is estimated to reach $334.55 billion, reflecting a 13.36% increase compared to the previous year. These forecasts indicate the company’s continued expansion, supported by strategic investments in AI and infrastructure improvements.
As market conditions shift, and the tech sector regains momentum, Alphabet Inc. (NASDAQ:GOOGL) could benefit significantly from advancements in artificial intelligence. The company’s AI partner recently introduced Gemma 3, an upgraded model used in Google’s Gemini AI chatbot, which is being positioned as the “world’s best single-accelerator model.” Early reports indicate that Gemma 3 outperforms competing models from Meta, DeepSeek, and OpenAI, making it the most powerful AI model capable of running on a single GPU or TPU. If consumer adoption of this technology accelerates, Alphabet Inc. (NASDAQ:GOOGL) could experience a surge in AI-driven growth, further strengthening its stock performance.
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.”
8. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders as of Q4: 262
Marshall Wace LLP’s Equity Stake: $769.69 Million
Meta Platforms, Inc. (NASDAQ:META) is an American technology conglomerate that owns and operates Facebook, Instagram, WhatsApp, and Threads. The company has strengthened its leadership in digital advertising through rapid advancements in AI, contributing to strong financial performance despite regulatory challenges. Meta’s Q4 2024 earnings report showed a 21% year-over-year revenue increase, reaching $48.4 billion and surpassing analyst projections of $47 billion. Earnings per share (EPS) surged by 50% to $8.02, significantly beating the expected $6.76. The success of AI-powered ad targeting and content recommendation systems has helped strengthen the company’s competitive edge, attracting higher ad spending and solidifying its market dominance.
Meta’s AI investments have driven increased user engagement, but investors were disappointed by its quarterly forecast: the company plans to allocate $60-65 billion toward infrastructure in 2025 to support AI development, despite emerging AI models like DeepSeek’s potentially lowering computing demands. However, competition is intensifying as advancements in cost-efficient AI models, such as Manus, challenge Meta Platforms, Inc. (NASDAQ:META) to refine its AI technologies like Llama. Additionally, macroeconomic factors, particularly President Trump’s trade policies, pose risks to Meta’s operations. Higher tariffs on Chinese imports and semiconductor chips could escalate infrastructure costs, while reduced consumer spending from these price increases may weaken Meta’s ad revenue.
Despite these challenges, investor confidence in Meta Platforms, Inc. (NASDAQ:META) remains high, with growing institutional and hedge fund support. The number of hedge funds with stakes in Meta increased to 262 by the end of Q4 2024, with holdings valued at nearly $59.4 billion, up from 235 funds in the previous quarter, according to Insider Monkey. The company’s strong financial performance, commitment to AI innovation, and continued dominance in digital advertising position it as a top investment choice for those looking to capitalize on the company’s ongoing technological advancements.
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)
7. Boston Scientific Corporation (NYSE:BSX)
Number of Hedge Fund Holders as of Q4: 96
Marshall Wace LLP’s Equity Stake: $791.90 Million
With a market capitalization of $154.8 billion, Boston Scientific Corporation (NYSE:BSX) is a leader in medical innovation, specializing in the development and commercialization of advanced medical devices. Based in Marlborough, Massachusetts, the company offers solutions across multiple interventional medical fields, addressing cardiovascular, respiratory, digestive, oncological, neurological, and urological conditions.
In its fiscal fourth-quarter earnings report on February 5, 2025, Boston Scientific Corporation (NYSE:BSX) posted a 22.4% year-over-year revenue increase to $4.6 billion, driven by strong performance across its business segments. Net income increased by 12% to $566 million, while operating profit rose 28% to $790 million, highlighting improved efficiency and profitability. Adjusted earnings per share rose 26% to $0.70, exceeding expectations of $0.66. The cardiovascular segment, led by the success of the Farapulse system, grew nearly 29% to $2.94 billion, while the medical-surgical division reported a 12% revenue increase.
Looking ahead, Boston Scientific Corporation (NYSE:BSX) anticipates 10-12% organic sales growth in 2025, with adjusted earnings per share expected to range between $2.80 and $2.87 and first-quarter adjusted EPS projected between $0.66 and $0.68. This optimistic outlook reinforces its strong market position and continued expansion. Analysts remain highly bullish on Boston Scientific Corporation (NYSE:BSX), assigning it a “Strong Buy” rating. The stock’s mean price target of $118.53 represents a 14.4% upside from current levels, reflecting confidence in its growth trajectory and sustained innovation in medical technology. The company’s strategic investments, operational efficiencies, and ability to navigate economic headwinds position it well for sustained success in the medical device industry.
Investor interest in Boston Scientific Corporation (NYSE:BSX) has been on the rise, with Marshall Wace LLP holding over 8.8 million shares valued at nearly $792 million by the end of Q4 2024, representing 0.95% of its portfolio. Additionally, hedge fund participation increased, as 96 of the 1,009 hedge funds tracked by Insider Monkey had stakes in the company in Q4 2024, collectively valued at nearly $7.22 billion, up from 92 funds in the previous quarter. This surge in institutional investment underscores strong confidence in the company’s growth prospects and reinforces its position as a favored stock among investors.
Baron Health Care Fund stated the following regarding Boston Scientific Corporation (NYSE:BSX) in its Q4 2024 investor letter:
“Boston Scientific Corporation (NYSE:BSX) is a global manufacturer of devices used in a broad range of interventional medical specialties. Shares climbed steadily throughout the quarter on solid company fundamentals, including a double-digit EPS growth profile and cost discipline that produces more than 50 basis points of annual operating margin expansion. We believe Boston Scientific can see sustainable organic growth in the high single digits, driven by differentiated products in electrophysiology and structural heart, in particular, the emerging field of pulsed field ablation (PFA), where the company is well positioned. Temperature-based methods (either hot or cold) to disable heart tissue responsible for irregular heartbeats can damage surrounding tissue. PFA relies on electricity to damage aberrant tissue, and because different types of tissue have different electrical thresholds, the surrounding tissue can be selectively spared. In our opinion, Boston Scientific is a compelling name within the large-cap medical device universe.”
6. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders as of Q4: 150
Marshall Wace LLP’s Equity Stake: $988.57 Million
Specializing in health insurance and health care services, UnitedHealth Group Incorporated (NYSE:UNH) reported fourth-quarter 2024 revenue of $100.81 billion, slightly below analyst expectations of $101.76 billion. The company experienced a rise in its medical cost ratio to 85.5%, exceeding the projected 84.96%, driven by increased utilization of healthcare services under Medicare plans. Despite this, UnitedHealth’s Optum healthcare services division showed strong performance, growing 9% to $65.1 billion. Additionally, the company posted earnings per share of $6.81, surpassing estimates. UnitedHealth Group Incorporated (NYSE:UNH) reaffirmed its 2025 profit outlook, projecting full-year revenue between $450 billion and $455 billion, demonstrating confidence in its long-term strategy.
The stock has faced challenges, declining 25.7% from its November 2024 peak of $630.73, significantly underperforming the broader healthcare sector. Over the last three months, shares have dropped nearly 23%, remaining below key technical benchmarks such as the 50-day and 200-day moving averages. However, analysts maintain a positive outlook, assigning the stock a “Strong Buy” rating and setting an average price target of $639.21, which implies a potential 36.4% upside. While UnitedHealth Group Incorporated (NYSE:UNH) has encountered short-term setbacks, its continued expansion in Optum and strong full-year revenue guidance reinforce its long-term growth prospects, making it an attractive investment at its current valuation.
UnitedHealth Group Incorporated (NYSE:UNH)’s revenue growth has been fueled by the rapid expansion of its OptumHealth division, which provides healthcare services through affiliated medical groups. From 2022 to 2024, OptumHealth’s revenue soared by 48%, outpacing the company’s overall revenue growth of 23%, driven by a greater number of patients under value-based care models, including at-home services. Additionally, UnitedHealth’s insurance business saw over 20% growth in both its Medicaid and Medicare segments, supported by an increase in customer enrollments.
UnitedHealth Group Incorporated (NYSE:UNH)’s strong market position, expanding OptumHealth division, and consistent revenue growth make it one of the top stocks to buy. Despite short-term challenges, its solid fundamentals, strategic investments, and analyst-backed upside potential position it as a compelling long-term investment.
Polen Focus Growth Strategy stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its Q4 2024 investor letter:
“We trimmed our positions in UnitedHealth Group Incorporated (NYSE:UNH), Amazon, ServiceNow, and Gartner during the quarter. We trimmed our position in UnitedHealth to fund the purchase of CoStar Group. Despite short-term margin headwinds, our long-term expectations for UnitedHealth Group remain virtually unchanged, with the trim simply reflecting what we view as a superior investment alternative.”
5. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders as of Q4: 126
Marshall Wace LLP’s Equity Stake: $1.55 Billion
Donald Trump’s public endorsement of Tesla, Inc. (NASDAQ:TSLA) and praise for Elon Musk may have briefly boosted the company’s stock, but experts warn it could ultimately harm the brand. During a White House press conference, Trump called Musk a “patriot” and showcased five Teslas in the driveway, even revealing that he had purchased one himself. While this show of support helped Tesla’s stock recover after a sharp decline, analysts caution that the company is becoming increasingly tied to political symbolism. Wedbush Securities analyst Dan Ives noted that the company’s association with Trump and Musk’s involvement in government advisory roles, such as the DOGE spending group, could alienate consumers and investors, potentially damaging the company’s long-term market position.
Tesla, Inc. (NASDAQ:TSLA) delivered mixed results in its Q4 2024 earnings report, with revenue rising 2.15% year-over-year to $25.71 billion. However, operating profit dropped by 23.3% to $1.58 billion, and earnings per share came in at $0.73, falling below analyst expectations. These figures highlight the company’s ongoing financial struggles amid increasing competition in the electric vehicle (EV) sector and production challenges.
Elon Musk’s influence in China, once strengthened by early investments and strong ties with officials, appears to be waning. His recent political remarks, including controversial statements about COVID-19, have sparked backlash on Chinese social media, prompting concerns from the China Passenger Car Association that his political stance could impact Tesla’s sales in the region. Tesla, Inc. (NASDAQ:TSLA)’s stock has had a turbulent start to 2025, plummeting over 15% on March 10 and bringing its year-to-date losses to more than 40%, erasing $127 billion in market value. Meanwhile, Chinese EV makers such as BYD and Xpeng are gaining ground. Tesla’s sales in China dropped 49% year-over-year in February, partially due to production halts before a Model Y refresh, while BYD saw a 161% surge, narrowing the gap between the two companies in the race for EV market dominance.
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders as of Q4: 223
Marshall Wace LLP’s Equity Stake: $1.70 Billion
NVIDIA Corporation (NASDAQ:NVDA) continues to dominate the AI chip industry, holding an 80% market share and maintaining its position as the go-to supplier for the world’s leading tech companies. Despite its high GPU prices, demand for its latest Blackwell architecture has outpaced supply, further solidifying its market control. This dominance has fueled remarkable financial growth, with the company consistently delivering double and triple-digit revenue increases. In its most recent quarter, Nvidia reported a record-breaking $39.3 billion in revenue, marking a 12% sequential increase and an extraordinary 78% year-over-year growth, primarily driven by a 93% increase in its data center segment.
Despite its financial strength, NVIDIA Corporation (NASDAQ:NVDA)’s stock has exhibited volatility, declining 16% year to date and 27% from its peak, even after surpassing Q4 earnings expectations. The AI sector’s rapid evolution, along with concerns over tariffs, regulatory restrictions, and cost-cutting advancements in computing, has created uncertainty in the market. However, investor sentiment could shift as NVIDIA Corporation (NASDAQ:NVDA) prepares for its highly anticipated GTC conference on March 18, where CEO Jensen Huang is expected to unveil key developments that could serve as a catalyst for the stock.
Looking ahead, NVIDIA Corporation (NASDAQ:NVDA) remains optimistic about its long-term prospects, forecasting 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 ability to drive AI demand and sustain growth despite external pressures. While some investors worry about potential slowdowns due to rising competition, Nvidia’s commitment to annual GPU updates and continuous innovation makes it difficult for rivals to capture significant market share.
3. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders as of Q4: 339
Marshall Wace LLP’s Equity Stake: $2.48 Billion
Amazon’s stock fell 2.66% on March 14, 2025, closing at $193.91, as investors reacted to growing concerns over potential tariff impacts following new policy discussions from the Trump administration. While Amazon.com, Inc. (NASDAQ:AMZN) doesn’t primarily deal in alcoholic beverages, the announcement of a possible 200% tariff on European imports raised broader fears about trade policies affecting major retailers. This drop extends Amazon’s challenging start to 2025, with shares down 11.7% year-to-date and nearly 20% below their February peak of $242.06. However, Amazon’s financial health remains strong, reporting a return on equity of 24.68% and a return on assets of 10.49%. With a price-to-earnings ratio of 35.01, near its 10-year low, this could serve as a top stock to buy for long-term investors.
Despite recent stock volatility, Amazon.com, Inc. (NASDAQ:AMZN) delivered record-breaking financial results in 2024. The company’s operating income for Q4 surged to $21.2 billion from $13.2 billion the previous year, while net income doubled to $20 billion. For the full year, Amazon’s net sales grew 11% to $638 billion, and operating income nearly doubled to $68.6 billion. The main driver of this success was Amazon Web Services (AWS), which saw a 19% jump in quarterly revenue to $28.8 billion. With enterprises increasingly turning to AWS for artificial intelligence (AI) applications, the cloud division remains a critical component of Amazon’s long-term growth strategy.
However, investor concerns over Amazon.com, Inc. (NASDAQ:AMZN)’s aggressive capital expenditures have weighed on the stock. The company plans to increase capital spending to $100 billion in 2025, up from $77.7 billion in 2024, with most of the investment focused on expanding AI infrastructure for AWS. While CEO Andy Jassy remains confident in the strategy, investors worry that such high spending could pressure profit margins, especially as Amazon.com, Inc. (NASDAQ:AMZN) projects its full-year 2025 operating income to decline by $700 million.
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.”
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders as of Q4: 317
Marshall Wace LLP’s Equity Stake: $2.50 Billion
Microsoft Corporation (NASDAQ:MSFT) reported strong Q4 financial results, with revenue rising 12.27% year-over-year to $69.63 billion and earnings per share surpassing expectations at $3.23. The tech giant continues to demonstrate resilience and profitability, driven by its dominance in cloud computing and artificial intelligence. However, Microsoft now faces increased regulatory scrutiny over its market influence, particularly regarding its investment in OpenAI and its cloud licensing policies. U.S. regulators are assessing whether these practices foster innovation or stifle competition, a probe that could reshape the competitive landscape and open doors for rivals. While antitrust cases typically unfold over time, they introduce uncertainty that may impact Microsoft’s growth trajectory and legal costs.
Beyond financial performance and regulatory concerns, Microsoft Corporation (NASDAQ:MSFT) recently announced a major breakthrough in quantum computing with the development of a topological qubit, a technology with potential applications in AI, medicine, and cryptography. This advancement reinforces the company’s leadership in next-generation computing and long-term growth prospects. However, physicist Henry Legg of the University of St Andrews has challenged Microsoft’s claim, arguing that its topological gap protocol (TGP) test for detecting Majorana quasiparticles is flawed. Without peer-reviewed verification, skepticism remains about the validity of Microsoft’s breakthrough. Despite this controversy, the company maintains confidence in its progress, emphasizing that its quantum research extends beyond publicly available findings.
Microsoft’s continued innovation, strong financials, and leadership in cloud and AI keep it positioned as a top stock to buy, even amid regulatory and scientific challenges. The company’s historical ability to navigate market shifts, coupled with its investments in cutting-edge technologies, suggests that any near-term volatility could create long-term opportunities. As regulatory investigations evolve, Microsoft Corporation (NASDAQ:MSFT) may face pressure to modify its business practices, but its commitment to AI, cloud computing, and quantum research underscores its resilience and potential for sustained growth.
As of Q4 2024, Marshall Wace LLP held nearly 6 million shares of Microsoft Corporation (NASDAQ:MSFT), valued at almost $2.5 billion. Hedge fund interest in the company also increased, with 317 funds tracked by Insider Monkey holding positions worth nearly $91.24 billion by the end of Q4 2024, up from 279 funds in Q3.
1. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders as of Q4: 166
Marshall Wace LLP’s Equity Stake: $3.40 Billion
Apple Inc. (NASDAQ:AAPL), founded in 1976, continues to dominate the global technology sector and is first on the list of top stocks to buy according to Marshall Wace LLP. In Q4 2024, the company reported revenue of $124.3 billion, reflecting a 3.95% year-over-year increase, while earnings per share climbed to $2.40, surpassing analyst expectations. Apple’s Board of Directors announced a quarterly dividend of $0.25 per share, reinforcing investor confidence. Hedge fund interest in the company also increased, with 166 funds holding positions worth nearly $118.6 billion by the end of the quarter. However, despite these strong financial results, the company faces growing uncertainty as the Trump administration enforces higher tariffs on Chinese imports, which could disrupt its supply chain and impact profit margins. Since China accounts for roughly 90% of iPhone production, these tariffs could force Apple to absorb higher costs, raise consumer prices, or negotiate carrier subsidies, all of which pose financial risks.
In response to these challenges, Apple Inc. (NASDAQ:AAPL) is making a significant push to expand its U.S. presence, committing $500 billion over the next four years to domestic manufacturing and technological development. This includes doubling its Advanced Manufacturing Fund to $10 billion, hiring 20,000 employees in key sectors such as R&D, silicon engineering, and AI, and beginning server production in Houston. Additionally, Apple plans to open a 250,000-square-foot manufacturing facility in Texas by 2026, aligning with the Trump administration’s push for reshoring production. While these efforts may help mitigate some of the supply chain risks posed by tariffs, they will take years to materialize, leaving Apple vulnerable to short-term economic and geopolitical uncertainties.
Beyond trade concerns, broader macroeconomic risks including inflation, geopolitical instability, and weakening consumer spending add further pressure. The ongoing Ukraine-Russia conflict and trade uncertainties could lead to higher import costs, reduced disposable income, and lower consumer demand, particularly for high-end electronics. As smartphone innovation slows and economic conditions remain fragile, consumers may delay device upgrades, potentially impacting Apple’s revenue growth. While Apple Inc. (NASDAQ:AAPL) remains a strong long-term investment due to its brand strength, innovation, and expanding services segment, near-term volatility could challenge its stock performance.
Overall, Apple Inc. (NASDAQ:AAPL) ranks first on our list of top 10 stocks to buy according to Marshall Wace LLP. 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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