The market has been reversing its gains earlier in the year, so much so that the S&P 500 is now down 1.5% year-to-date. The past two years have seen the same index post stellar gains back-to-back, and those gains were mostly spearheaded by big-cap stocks.
However, historically speaking, the market delivering a third year of such returns would be unprecedented. Investors believe that 2025 will likely be a year when the market starts to cool off, and recent events have started a trend toward just that.
Big-cap stocks are now leading the way down as tariff and AI-related fears hurt them the most. Many big-cap companies have invested significantly in these tech trends, which investors have now soured on.
Still, it’s a good idea to keep an eye on the big-cap losers year-to-date. Many of them have declined enough to open up buying opportunities.
A graph on a big screen with a group of people around it discussing ‘Data Performance’.
Methodology
For this article, I screened the worst-performing big-cap stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. 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).
15. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders In Q4 2024: 86
ConocoPhillips (NYSE:COP) is one of the largest independent oil and natural gas companies.
The stock is down significantly so far in 2025 due to a decline in oil prices, though natural gas prices have been up recently. Regardless, the drop in oil caused a 3.7% decline in Q4 2024 revenue to $14.7 billion.
Net income fell almost 16% to $2.4 billion, and this has caused ConocoPhillips to underperform its peers. Broader macroeconomic fears and the shock of tariffs have also contributed to COP stock being red year-to-date.
The consensus price target of $133.47 implies 47.28% upside.
COP stock is down 7.86% year-to-date.
14. Caterpillar Inc (NYSE:CAT)
Number of Hedge Fund Holders In Q4 2024: 62
Caterpillar Inc (NYSE:CAT) is the largest manufacturer of construction and mining equipment. It also makes engines.
The stock is down significantly so far in 2025 as Caterpillar missed revenue estimates for the fifth consecutive quarter and reported a 5% decline in revenue to $16.22 billion.
This was below the consensus estimate of $16.61 billion. All major business segments reported lower sales volumes, and the company also warned of a slight sales drop for 2025 due to weak demand caused by high borrowing costs and inflation.
Several analysts then downgraded the company’s earnings outlook and the implementation of new tariffs is also negatively impacting it.
The consensus price target of $383.8 implies 17.57% upside.
CAT stock is down 9.60% year-to-date.
13. Alphabet Inc (NASDAQ:GOOGL)
Number of Hedge Fund Holders In Q4 2024: 234
Alphabet Inc (NASDAQ:GOOGL) doesn’t really need an introduction. It owns the world’s two biggest websites and also has a cloud business.
The stock is down significantly so far in 2025 as Alphabet’s Q4 2024 revenue of $96.47 billion fell short of analysts’ expectations of $96.56 billion. Although earnings per share exceeded projections, the company announced plans to spend $75 billion on AI-related capital expenditures in 2025.
This CapEx plan was seen as a bullish thing a few weeks ago, but the sentiment has reversed completely. Analysts forecasted $58.84 billion in CapEx and now think the increased AI spending could drive down margins.
Furthermore, growth in Alphabet’s core segments, including YouTube ads and Google Search, showed signs of deceleration year-over-year.
The consensus price target of $210.62 implies 23.22% upside.
GOOGL stock is down 9.71% year-to-date.
12. Boeing Co (NYSE:BA)
Number of Hedge Fund Holders In Q4 2024: 103
Boeing Co (NYSE:BA) makes commercial airplanes.
The stock is down significantly so far in 2025 due to newly imposed tariffs by the Trump administration on imports from Mexico, Canada, and China. These tariffs raised costs for Boeing’s global supply chain and reduced its competitiveness against Airbus.
Airbus is not subject to Trump’s tariffs. On the other hand, the 25% levy on imports from Mexico and Canada will cause Boeing’s expenses to go up. China is also being slapped with two rounds of 10% tariff hikes.
In addition, Boeing announced a halt in deliveries of its Pegasus refueling tankers due to cracks discovered during inspections.
The consensus price target of $195.16 implies 22.64% upside.
BA stock is down 10.23% year-to-date.
11. Danaher Corp (NYSE:DHR)
Number of Hedge Fund Holders In Q4 2024: 101
Danaher Corp (NYSE:DHR) is a diversified company that makes medical, industrial, and commercial products. It mostly focuses on life sciences and biotechnology.
The stock is down significantly so far in 2025 as Danaher missed its Q4 2024 EPS target by 5.5%. It reported $5.29 instead of the expected $5.57.
Revenue for the quarter was $6.54 billion, which was above expectations but slower than that of Danaher’s peers. Analysts lowered their expectations for all of 2025 following the report and now project only 1.1% revenue growth.
Not only that, Danaher itself projected a low-single-digit contraction in non-GAAP core revenue for Q1 2025 compared to the prior year period. It also faces risks in its China market.
The consensus price target of $278 implies 35% upside.
DHR stock is down 10.30% year-to-date.
10. Blackstone Inc (NYSE:BX)
Number of Hedge Fund Holders In Q4 2024: 67
Blackstone Inc (NYSE:BX) is the largest alternative asset manager.
The stock is down significantly so far in 2025 as its real estate segment has faced challenges due to rising borrowing costs and declining property valuations. The general market sentiment is bearish and it is dragging down most equities and alternative assets Blackstone is invested in.
The Fed is now holding higher for longer due to inflation not slowing as fast as expected.
Moreover, Blackstone withdrew from a high-profile deal to acquire a minority stake in India’s Haldiram’s snacks business due to disagreements over valuation and IPO timelines.
The consensus price target of $172.38 implies 14.46% upside.
BX stock is down 11.83% year-to-date.
9. NVIDIA Corp (NASDAQ:NVDA)
Number of Hedge Fund Holders In Q4 2024: 223
NVIDIA Corp (NASDAQ:NVDA) is the poster child of the AI rally. The semiconductor company makes high-end chips for AI.
The stock is down significantly so far in 2025 due to several reasons. First, the DeepSeek spook caused it to drop 17%, and while it did recover from that a little, it started declining again as broader AI industry fears gripped Wall Street.
Nvidia’s recent earnings report didn’t manage to beat earnings estimates by a wide enough margin. Moreover, President Donald Trump’s enactment of tariffs on imports caused it to tumble even more.
The company is also facing risks of more export restrictions not only for its China exports but also for chip exports in Singapore and Vietnam.
The consensus price target of $169.62 implies 46.24% upside.
NVDA stock is down 13.63% year-to-date.
8. Salesforce Inc (NYSE:CRM)
Number of Hedge Fund Holders In Q4 2024: 162
Salesforce Inc (NYSE:CRM) provides cloud-based customer relationship management (CRM) software and enterprise products.
The stock is down significantly so far in 2025 due to Salesforce reporting Q4 fiscal 2025 revenue of $9.99 billion, which came in below consensus estimates of $10.04 billion.
EPS exceeded expectations at $2.78, and the slower-than-expected adoption of its AI-powered Agentforce platform weighed on results. Moreover, the FY2026 guidance projected revenue growth to stabilize in the high single digits and fell short of market expectations.
Also, Salesforce announced that Robin Washington would assume the combined role of President and Chief Operating and Financial Officer (COFO). Since then, investors expressed concerns over consolidating two critical roles, which traditionally have been separate.
The consensus price target of $365.32 implies 27.24% upside.
CRM stock is down 14.05% year-to-date.
7. ServiceNow Inc (NYSE:NOW)
Number of Hedge Fund Holders In Q4 2024: 110
ServiceNow Inc (NYSE:NOW) is a cloud-based software company.
The stock is down significantly so far in 2025 after the company issued cautious subscription revenue guidance for 2025 during its Q4 2024 earnings report.
The forecast was $12.635 billion to $12.675 billion in revenue. This was below analyst expectations of $12.849 billion. ServiceNow attributed this to a shift in deal timing. However, investors are still nervous.
The consensus price target of $1,129.72 implies 24.67% upside.
NOW stock is down 14.53% year-to-date.
6. Eaton Corp PLC (NYSE:ETN)
Number of Hedge Fund Holders In Q4 2024: 88
Eaton Corp PLC (NYSE:ETN) is a power management company.
The stock is down significantly so far in 2025 due to Eaton reporting revenues of $6.2 billion for Q4 2024. This missed Wall Street estimates by 1.7%. The miss was attributed to weaker eMobility and vehicle segment sales due to a downturn in the light vehicle market.
Moreover, disruptions from Hurricane Helene and aerospace strikes reduced sales by approximately $80 million. Concerns over tariffs have also contributed to the decline of ETN stock.
The consensus price target of $364.65 implies 30.73% upside.
ETN stock is down 15.86% year-to-date.
5. Advanced Micro Devices Inc (NASDAQ:AMD)
Number of Hedge Fund Holders In Q4 2024: 96
Advanced Micro Devices Inc (NASDAQ:AMD) is one of the biggest semiconductor companies, and it also makes AI chips, though its tech trails that of Nvidia significantly.
The stock is down significantly so far in 2025 since AMD has faced criticism for slower progress in AI chip sales compared to competitors like Nvidia. Investors were disappointed by AMD’s inability to capitalize on the AI boom as effectively as Nvidia, particularly in training.
On top of that, AMD’s data center segment fell short of analyst expectations and its other segments, like gaming and embedded, have also seen weak performance. The recent bout of fear surrounding AI stocks has caused AMD to decline further.
The consensus price target of $155.83 implies 54.67% upside.
AMD stock is down 16.59% year-to-date.
4. KKR & Co Inc (NYSE:KKR)
Number of Hedge Fund Holders In Q4 2024: 83
KKR & Co Inc (NYSE:KKR) is an investment firm.
The stock is down significantly so far in 2025 as KKR announced an upsized offering of $2.25 billion in mandatory convertible preferred stock at a 6.25% dividend rate. This is dilutive and has signaled funding pressures to shareholders.
Moreover, despite beating earnings expectations with an adjusted EPS of $1.32 and $3.3 billion in revenue, KKR’s adjusted revenue dropped 26.4% year-over-year due to rising insurance-related expenses.
KKR also did not provide specific guidance during its Q4 earnings call.
The consensus price target of $161.43 implies 35% upside.
KKR stock is down 18.24% year-to-date.
3. Broadcom Inc (NASDAQ:AVGO)
Number of Hedge Fund Holders In Q4 2024: 161
Broadcom Inc (NASDAQ:AVGO) is one of the biggest semiconductor companies.
The stock is down significantly so far in 2025 as investors are concerned about AI spending and new tariff announcements by the Trump administration. There are also risks of expanded chip restrictions on China along with new restrictions on Singapore and Vietnam.
Most AI-related stocks have pulled back, and since AVGO is sitting on significant gains, it isn’t unusual that some shareholders are taking profits.
The consensus price target of $225 implies 20% upside.
AVGO stock is down 19.13% year-to-date.
2. Arista Networks Inc (NYSE:ANET)
Number of Hedge Fund Holders In Q4 2024: 78
Arista Networks Inc (NYSE:ANET) provides cloud networking solutions for large data centers.
The stock is down significantly so far in 2025 as Arista Networks experienced a significant drop in revenue from Meta Platforms. Meta is one of its largest customers.
Meta’s contribution to Arista’s revenue fell from 20% in 2023 to approximately 15% in 2024. Moreover, Microsoft has canceled some data center leases (not directly linked to Arista), and the bearish sentiment from this has spilled over into all data center stocks.
The consensus price target of $113.79 implies 33.45% upside.
ANET stock is down 22.63% year-to-date.
1. Tesla Inc (NASDAQ:TSLA)
Number of Hedge Fund Holders In Q4 2024: 126
Tesla Inc (NASDAQ:TSLA) is an EV company, though Musk is trying to make it look more like an AI/robotics play. That is likely well over a decade away, given Optimus robots are reportedly remote-controlled at showcase events.
The stock is down significantly so far in 2025 as Tesla’s sales in China fell by 49.2% year-over-year in February 2025. This is Tesla’s second-largest market.
Moreover, European EV registrations for Tesla dropped 45% year-over-year in January 2025, even as overall EV registrations in the region rose by 37%.
Tesla has a solid position in the U.S., but that too could be in danger if EV subsidies are pulled back, In that case, Tesla’s margins would decline markedly.
Elon’s involvement in DOGE is also causing Tesla’s customer base to shrink.
The consensus price target of $315.33 implies 15.88% upside.
TSLA stock is down 32.64% year-to-date.
While we acknowledge the potential of TSLA 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 TSLA 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 Complete List of 59 AI Companies Under $2 Billion in Market Cap
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