Top 10 Stocks to Buy According to Two Sigma Investments

1. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders as of Q4: 166

Two Sigma Investments’ Equity Stake: $1.39 Billion 

Apple Inc. (NASDAQ:AAPL) reported strong Q4 2024 financial results with revenue reaching $124.3 billion, a 3.95% year-over-year increase, and earnings per share of $2.40, exceeding analyst expectations. Investor confidence in the company remains high, as reflected in the company’s decision to issue a quarterly dividend of $0.25 per share. Hedge fund interest in Apple has also surged, with 166 funds tracked by Insider Monkey holding positions worth nearly $118.56 billion by the end of the quarter.

However, the company faces growing uncertainty as the Trump administration enforces higher tariffs on Chinese imports, potentially disrupting its supply chain and impacting profit margins. In response, Apple Inc. (NASDAQ:AAPL) is making a major push to expand its U.S. manufacturing footprint, committing $500 billion over the next four years to domestic production and technological advancements. Additionally, the company plans to open a 250,000-square-foot manufacturing facility in Texas by 2026, aligning with the Trump administration’s reshoring efforts.

At the same time, Apple Inc. (NASDAQ:AAPL) is expanding its financial ecosystem, with Apple Pay preparing for a broader rollout in South Korea. After launching exclusively with Hyundai Card, Apple is now in discussions with major issuers like Shinhan Card and KB Kookmin Card to expand its availability. However, concerns over payment commission fees remain, with South Korea’s financial regulators emphasizing that costs should not be passed onto consumers or merchants. Meanwhile, Apple’s expansion could intensify competition with Samsung Pay, which currently does not charge transaction fees, potentially prompting Samsung to introduce charges.

As of Q4 2024, Two Sigma Investments held over 5.5 million shares of Apple Inc. (NASDAQ:AAPL), valued at $1.39 billion. Hedge fund interest in the company also increased, with 166 funds tracked by Insider Monkey holding positions worth nearly $118.56 billion by the end of the quarter, up from 158 funds in Q3.

Overall, Apple Inc. (NASDAQ:AAPL) ranks first on our list of top 10 stocks to buy according to Two Sigma Investments. 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.

READ NEXT: 20 Best AI Stocks to Buy Now and 30 Best Stocks to Buy Now According to Billionaires

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