In this article, we will take a detailed look at Top 10 Stocks Wall Street is Discussing.
Bill Strazzullo, Bell Curve Trading chief market strategist, said in a latest program on CNBC that the market rally that started during the peak of the pandemic driven by fiscal stimulus seems to have “tapped out.” The analyst sees more pain ahead:
“The bottom line of all this is that we’ve only started this. We’ll be lucky if we get out of this top to bottom only down 20%. I think eventually, across the indices—Dow, S&P, NASDAQ 100—we’ll end up being down 25% before it’s all done.”
Asked what he would advise to long-term investors, the analyst recommended taking some money off the table and bracing for more impact:
“It’s not anything very esoteric. Take some money off the table—you’ll be able to deploy that capital at much better levels later in the year. But right now, Trump is taking us not only into a trade war but into a full-blown recession. I think the mistake people are making is that we’ve been spoiled with these V bottoms—we go down 10 or 12% and then right back up. This is not going to be like that. We are going to be in for a much deeper drawdown and I think something that’s going to last a significant amount of time.”
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In
For this article, we picked 10 stocks making moves on important news. With each stock we have mentioned the number of hedge fund investors. 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).
A person holding a cup of coffee while reading stock market data on the phone. Photo by Anna Nekrashevich on Pexels
10. IONQ Inc (NYSE:IONQ)
Number of Hedge Funds Investors: 17
Senior markets reporter George Tsilis in a recent program on Schwab Network discussed quantum computing software and hardware company IONQ Inc (NYSE:IONQ) results and pointed out the broader concerns about the business:
“They actually reported a much worse-than-expected earnings per share number at around $0.93 of a loss. That was estimated to be around $0.25 of a loss, which was still expected to be a little bit worse than last year, where they lost around $0.20 a share. Now, if you look at the top-line sales, they actually bested the estimates, but they were higher by almost double—$11.7 million versus $6.1 million for the same quarter last year. So obviously, this company has been growing its sales. But the structural challenge, I think, with all these quantum computing names is essentially, you know, the question of whether this technology is largely experimental or effectively, currently impractical. And that’s something we have to consider in the context of the technology stack right now. These stocks have made a tremendous run. There’s no doubt this name is still higher by over 150%, irrespective of the nearly 50% pullback in the past, you know, six weeks or so. But the company is still losing money.”
9. Altria Group Inc (NYSE:MO)
Number of Hedge Funds Investors: 32
Josh Brown, CEO of Ritholtz Wealth Management, said in a recent program on CNBC that Altria Group Inc (NYSE:MO) had the “best chart” in the S&P 500 amid strong gains. However, he believes the stock is now overbought.
“The actual best chart in the S&P right now is Altria. Thing is, you missed it—it went vertical. It looks like the Empire State Building. RSI is in the 80s. It’s the most overbought name on my list.”
Ashva Capital stated the following regarding Altria Group, Inc. (NYSE:MO) in its Q3 2024 investor letter:
“At Ashva Capital, our focus on intrinsic value–rather than market sentiment or temporary price metrics– sets our portfolio apart from peers. For example, we hold Altria Group, Inc. (NYSE:MO), which has demonstrated resilience and strong performance within our portfolio, particularly following a robust Q3 earnings report. Altria’s results highlighted increased demand for smokeless products, underscoring both the adaptability of its business model and its long-term growth potential—a key factor in our investment decision.
This approach to intrinsic value echoes insights from renowned value investor Bill Miller, whose strategy emphasized fundamental value over market-driven factors. Key principles from Miller’s approach that inform our strategy include:..” (Click here to read the full text)
8. Corteva Inc (NYSE:CTVA)
Number of Hedge Funds Investors: 33
Josh Brown, CEO of Ritholtz Wealth Management, said in a recent program on CNBC that he likes Corteva Inc (NYSE:CTVA) and believes the stock is in the process of breaking out.
“This is going to be a slow mover but I think it’s in the process of breaking out. It’s not going to act like a like a tech stock. This is uh seeds branded seeds are about 60% of the business, 40% of the business is crop protection, so it’s in the chemical space. It was a spin out from Dow Dupont, which is why not a lot of people know the name. There’s a breakout happening here. It’s a really interesting chart and when they last reported they had a lot of good things to say. Fundamentally, operating EBITDA margin improved by 280 basis points last quarter, they said free cash flow was up by 40% to 1.7 billion. They also announced a billion doll buyback for the year 2025. Assuming they act on that, I think the stock should be okay. You’ve got an RSI here at 58, so not overbought yet, 6% above the 50, 12% above the 200. I like that Golden Cross, and she’s 3% from the 52-week high.”
7. Okta Inc (NASDAQ:OKTA)
Number of Hedge Funds Investors: 47
Ryan Shrout from Futurum said in a latest program on Schwab Network that Okta Inc (NASDAQ:OKTA) could see competition from Microsoft in the future.
“I don’t see CrowdStrike as a huge competitor yet. I know they’re trying to get into that kind of user security area as well, but I think the biggest competition is actually coming from Microsoft. Its ability to bundle services together with the operating system and the platforms is maybe the biggest possible avenue where you could see user and subscription rate loss for Okta.”
White Brook Capital Partners stated the following regarding Okta, Inc. (NASDAQ:OKTA) in its Q4 2024 investor letter:
“Okta, Inc. (NASDAQ:OKTA) was basically unchanged from where we bought it in 2024, although its had a good start to 2025. Okta’s products are used by customers and consumers to manage and secure identities. I believe we acquired shares at an attractive price and look forward to publishing a write up early this year.”
6. Gilead Sciences Inc (NASDAQ:GILD)
Number of Hedge Funds Investors: 59
Josh Brown, CEO of Ritholtz Wealth Management, said during a program on CNBC last month that he’s paying attention to Gilead Sciences Inc (NASDAQ:GILD).
“I haven’t personally bought or sold this stock in like 15 years but uh this is a longstanding sort of uh biotech pharmaceutical name used to be thought of as almost a blue chip it’s about a hundred billion dollar market cap popped up on our list of the best stocks in the market probably because was last week they beat on both the top and the bottom lines and this is a chart that’s spent about eight eight and a half almost nine full years in a consolidation now it’s starting to break out I don’t know the name well enough to have a very strong opinion about whether or not this breakout will hold but I think people that like this sector and they’re looking for ideas Gilead is a big liquid stock that nobody talks about anymore and if you dig in on the fun this might be an area where you want to take a a closer look.”
Polaris Global Equity Strategy stated the following regarding Gilead Sciences, Inc. (NASDAQ:GILD) in its Q3 2024 investor letter:
“U.S. biopharma/biotech companies topped the health care sector, with the majority of holdings posting returns in excess of 10%. Gilead Sciences, Inc. (NASDAQ:GILD) had two big announcements during the quarter: 1) the FDA approved its new liver disease treatment for biliary cholangitis and 2) its phase III HIV drug trial reduced new infections by 96% when compared to background HIV incidence, which could be a game changer for the disease.”
5. McDonald’s Corp (NYSE:MCD)
Number of Hedge Funds Investors: 60
Josh Brown, CEO of Ritholtz Wealth Management, during a recent program on CNBC talked about McDonald’s Corp (NYSE:MCD).
“I’m saying, like, the sum total of all the people managing money have decided to be buying and accumulating McDonald’s in a choppy tape. I believe that there’s signal there, and I think that investors are smart. So this is an RSI of 66, which means it’s up, there’s momentum, but it’s not overbought. It’s about 3% below its 52-week high. It could take that level out on one green day. This name is up 8% in the past month, where most stocks have struggled. And what’s really interesting is Bill Gates—The Gates Foundation, which is a $42 billion pool of capital—just initiated a brand-new position in McDonald’s while selling down Microsoft and selling down Berkshire Hathaway. He— I say he—The Gates Foundation bought 334,000 shares at an estimated average cost of $297.40. That’s right around here. It’s about $100 million worth of stock, not a big position in the context of a $42 billion pool of capital, which means that position could be more, not less.”
Carillon Eagle Growth & Income Fund stated the following regarding McDonald’s Corporation (NYSE:MCD) in its Q3 2024 investor letter:
“McDonald’s Corporation (NYSE:MCD) performed well as it met the expectations of investors looking for improvements in relative market share trends. The company’s introductions of menu items at premium- and medium-price tiers are picking up pace, allowing it to capture value more effectively.”
4. Starbucks Corp (NASDAQ:SBUX)
Number of Hedge Funds Investors: 76
Josh Brown, CEO of Ritholtz Wealth Management, said in a recent program on CNBC:
“Starbucks Corp (NASDAQ:SBUX) right now has an incredible setup. Obviously, I like the fundamentals here, but just purely from a technical standpoint, this thing looks coiled, and I think the next move is a break above. Back in May of 2023, which is almost two full years ago, is when this chart peaked out, and it peaked below the prior highs set back in 2021. It failed and spent almost two full years consolidating. Now we could be off to the races. The stock is up 24% year to date. It is the sixth-best performing stock in the S&P 500 this year. Just reported a kitchen-sink quarter.”
The Street is turning bullish on SBUX amid its new CEO Brian Niccol. Why? He has a solid history of turning around businesses. Bill Ackman brought Niccol to Chipotle Mexican Grill from Yum! Brands to turn the company around. Ackman sold his stake in Chipotle in the second quarter of 2024, just before Niccol transitioned to Starbucks. During Niccol’s tenure, Chipotle shares rose 700%.
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.”
3. Vistra Corp (NYSE:VST)
Number of Hedge Funds Investors: 97
Mike Khouw, OpenInterest.Pro chief strategist, said in a recent program on CNBC that he still sees rising demand for Vistra Corp (NYSE:VST) despite short-term volatility.
“I would say, and I still anticipate that there is going to be this huge ramp in demand. This is really more of a short-term question about pricing than it is about the fundamentals in terms of the demand for AI data centers and the power needs that they’re going to have. So, you know, I tend to be still a little bit positive, but I rather like trades like this for those who are long. The worst thing that would happen if you put a trade like this on is you’re going to lose about 6% of the current stock price. Given the kinds of moves that Kelly was just highlighting, I don’t think that’s a huge risk to have for a hedge that lasts you out till June.”
Meridian Hedged Equity Fund stated the following regarding Vistra Corp. (NYSE:VST) in its Q3 2024 investor letter:
“Vistra Corp. (NYSE:VST) is an integrated retail electricity and power generation company, primarily serving Texas and the Midwest. We own Vistra because we expect power markets to continue tightening as baseload supply declines, coupled with rising demand from data centers, electric vehicles, and manufacturing reshoring. These factors create a favorable pricing environment for Vistra’s generation fleet, especially its nuclear and gas assets. The stock performed well during the period for three key reasons: tightening energy markets and strengthened pricing in forward-year energy contracts, the continuation of Vistra’s aggressive share repurchase program, and the company’s announced plan to acquire the remaining interest in Vistra Vision at an attractive valuation. Additionally, the company reaffirmed its 2024 guidance, indicating that results are trending toward the upper end of the previously projected range. We took advantage of the stock’s strength this quarter to trim our position.”
2. Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM)
Number of Hedge Funds Investors: 158
Scott Bauer from ProsperTradingAcademy said in a latest program on Schwab Network that he likes the “opportunity” around Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM) amid the company’s plan to invest and manufacture in the US.
“Their investment that they’re going to make in America and building some places here. The stock hit the 200-day moving average. It has dipped just below that, but that has been really significant support in the past. I know that the big chip names are seemingly out of favor right now, at least for this week or this month—who knows how long—but I really like the opportunity in Taiwan Semi.”
Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM) plans to invest $100B in new capital in the US over the next four years, Taiwan Semi Chairman and CEO C.C. Wei and President Trump said during an event.
TSMC’s high-performance computing (HPC) revenue exceeded 50% for the full year of 2024, with HPC sales reaching 53% of total revenue in the fourth quarter. Smartphones contributed 35% in Q4, underscoring AI as the key growth driver for TSMC in the coming years.
Baron Emerging Markets Fund stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q4 2024 investor letter:
“Semiconductor giant Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) contributed in the fourth quarter due to a cyclical recovery in semiconductors and significant incremental demand for AI chips. We retain conviction that TSMC’s technological leadership, pricing power, and exposure to secular growth markets, including AI/high-performance computing, automotive, 5G, and internet of things, will allow the company to sustain strong double-digit earnings growth over the next several years.”
1. NVIDIA Corp (NASDAQ:NVDA)
Number of Hedge Funds Investors: 193
Aswath Damodaran, NYU Stern School of Business professor of finance, said before NVIDIA Corp’s (NASDAQ:NVDA) latest earnings report that the company will beat Wall Street estimates and still “disappoint” investors amid high expectations.
“I valued them about $90 before the election, before the market downturn. They were trading at 108 then, and today they’re trading at 128. So, in terms of perspective, even with the beating they’ve taken in the last few weeks, the stock is still $20 higher than it was in September of 2024. At that time, I said the stock is a great company, but I don’t see how you can get to $120 or $130 per share still. I think that’s still what I said then, and it still holds. They don’t have the capacity in terms of generating earnings and cash flows to sustain a $3 trillion market cap. I think that still stands. As the earnings report comes out tomorrow, my expectation is it’s going to be a lot like September, a replay of September, where they will beat analyst expectations, but the market’s going to be disappointed because the market seems to have set expectations higher than what analysts are seeing for the company.”
The market will keep punishing Nvidia for not coming up to its gigantic (and sometimes unrealistic) growth expectations. About 50% of the company’s revenue comes from large cloud providers, which are rethinking their plans amid the DeepSeek launch and looking for low-cost chips. Nvidia’s Q1 guidance shows a 9.4% QoQ revenue growth, down from the previous 12% QoQ growth. Its adjusted margin is expected to be down substantially as well to 71%. The market does not like when Nvidia fails to post a strong quarterly beat. The stock will remain under pressure in the coming quarters when the company will report unimpressive growth.
Nvidia is facing challenges at several levels. Competition is one of them. Major competitors like Apple, Qualcomm, and AMD are vying for TSMC’s 3nm capacity, which could limit Nvidia’s access to these chips. Why? Because Nvidia also uses TSMC’s 3nm process nodes. Nvidia is also facing direct competition from other giants that are deciding to make their own chips. Amazon, with its Trainium2 AI chips, offers alternatives. Trainium2 chips could provide cost savings and superior computational power, which could shift AI workloads away from Nvidia’s offerings. Apple is reportedly working with Broadcom to develop an AI server processor. Intel is also trying hard to get back into the game with Jaguar Shores GPU process, set to be produced on its 18A or 14A node.
Brown Advisors Global Leaders Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q4 2024 investor letter:
“The main driver of our 2024 relative underperformance was not being invested in NVIDIA Corporation (NASDAQ:NVDA). Since ChatGPT introduced the power of generative artificial intelligence to the world on 30 November 2022, the Global Leaders Strategy has outperformed its benchmark despite being underweight the USA and specifically underweight the “Magnificent Seven”.7 2024 underperformance of -2.81% versus our benchmark was almost precisely matched by the individual outperformance of NVIDIA, which we did not own. On balance the rest of the portfolio is doing just fine albeit with areas of strength (AI) and weakness (EM financials) discussed below.
We wrote about the concentration within global indexes last year and this continued with only 29% of companies within the ACWI Index at the start of 2024 outperforming this benchmark over the year. Our capital allocation added value in 2024 as five of our top ten largest weights over the year were also in our top ten percentage winners. Conversely, within our ten worst performers, seven were also amongst our smallest ten weights. Capital allocation is critical when index hit rates are below 50%…” (Click here to read the full text)
While we acknowledge the potential of NVIDIA Corporation (NASDAQ:NVDA), our conviction lies in the belief that under the radar 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 NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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