In this article, we will discuss the 10 Best Stocks For Beginners to Buy Now.
On June 23, Gary Cohn, IBM Vice Chairman & Former Trump NEC Director, appeared on CNBC’s ‘Squawk Box’ to discuss the latest market trends and the state of the AI boom. He highlighted a unique, significant shift in corporate strategy where historically asset-light companies that generated substantial cash flow (which they previously used for growth and shareholder dividends) have transitioned into asset-heavy organizations. These firms are now issuing new stock and debt to fund massive infrastructure investments, effectively ceasing to be cash-flow-positive in the traditional sense. This transformation poses a challenge for investors, as the valuation metrics once applied to these growth-oriented, cash-generating companies may no longer be appropriate for entities burdened by significant debt service charges and uncertain long-term returns.
Cohn noted that the market’s evolution is currently driven almost exclusively by the AI and energy sectors, arguing that if these two areas were removed, the broader market would currently be in decline. He observed that while there is an intense obsession with Mag 7 style market drivers, the current reality is an intertwined AI and energy trade that leaves the rest of the market struggling. He pointed out that investors are attempting to chase the money by looking beyond the primary big spenders and trying to identify the next tier or two of companies that will benefit from the massive capital flowing into infrastructure.
A portion of Cohn’s concern centers on the possibility that firms are building more infrastructure than they will ever be able to use. He drew a historical parallel to the fiber-optic boom of the late 1990s, where companies like WorldCom and Global Crossing correctly identified that their tech would change the world, yet failed to monetize the infrastructure because they could not fulfill the projected forward values of their contracts. Cohn suggested that a similar risk exists today with AI data centers and long-term power agreements; he anticipated that compute will eventually become a commodity, leading companies to purchase it from the lowest-cost provider rather than sustaining the current high-expenditure models.
Furthermore, Cohn noted that while the market is focused on AI, the imminent rise of quantum computing will necessitate an entirely different set of infrastructure, distinct from today’s traditional data centers. He concluded that the current volatility and market swings are a natural part of a developing market, as participants attempt to determine the ultimate value of LLMs, whether compute will remain a competitive advantage or become a commoditized utility, and who will emerge as the dominant player in an evolving technological landscape.
Against this backdrop, lets look at some of the best stocks for beginners to buy now.
Our Methodology
We sifted through holdings of blue-chip ETFs and selected stocks and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Note: All data was sourced on June 24.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10 Best Stocks For Beginners to Buy Now
10. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 113
Johnson & Johnson (NYSE:JNJ) is one of the best stocks for beginners to buy now. On June 11, Johnson & Johnson expanded the US availability of the TECNIS PureSee IOL, an advanced extended depth of focus lens designed for cataract surgery. This lens helps patients address both cataract-related vision loss and presbyopia, offering excellent distance and intermediate vision. Notably, it is the first US FDA-approved lens of its kind with no warning regarding loss of contrast sensitivity, providing vibrant vision with minimal bothersome disturbances.
To support informed decision-making during Cataract Awareness Month, the company has introduced a new patient lifestyle quiz. This tool helps individuals evaluate their daily activities and vision goals to facilitate better conversations with eye care professionals. With over half a million eyes treated worldwide, 97% of patients report they would recommend this lens to others.
The TECNIS PureSee IOL is indicated for the visual correction of aphakia in adults following cataract removal. By providing an extended range of vision while maintaining visual quality comparable to an aspheric monofocal lens, it offers surgeons greater flexibility in personalizing care.
Johnson & Johnson (NYSE:JNJ) is a global healthcare company that researches, develops, and manufactures innovative medicines and MedTech products. It focuses on treating complex diseases, advancing surgical care, and improving patient outcomes in areas such as cancer, immunology, and orthopedics.
9. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 115
Oracle Corporation (NYSE:ORCL) is one of the best stocks for beginners to buy now. On June 24, Oracle Health and Theator partnered to bring AI-powered surgical intelligence to US operating rooms. By analyzing surgical video and EHR data through Oracle Cloud Infrastructure, the platform automates operative reporting. This allows surgeons to generate accurate, structured reports instantly, replacing memory-based drafts that are prone to significant errors.
The technology understands surgical steps and safety milestones in real time, producing a finished report by the time a procedure ends. By reducing manual documentation, it eases the cognitive burden on surgical teams while ensuring more precise records. This enables surgeons to review and sign off on reports within their existing workflows.
For health systems, this integration streams accurate data directly into clinical and financial records. This improves billing accuracy, reduces coding gaps, and provides immediate access for quality review. Having analyzed over 600,000 procedures, the partnership aims to standardize surgical care and enhance system-wide safety and efficiency.
Oracle Corporation (NYSE:ORCL) provides information technology-related products and services to enterprises through its main business segments: Cloud and License, Hardware, and Services.
8. Tesla Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 123
Tesla Inc. (NASDAQ:TSLA) is one of the best stocks for beginners to buy now. On June 24, Sunrun, Renew Home, and Tesla formed a coalition to deliver over 16 gigawatts of flexible energy capacity to help meet surging electricity demand from data centers and AI growth. The companies aim to aggregate existing home batteries, solar systems, and smart thermostats into a virtual power plant that could provide more than 16GW of flexible capacity.
This framework creates essential grid “headroom” by optimizing existing transmission and distribution capacity. By shifting household energy use and dispatching stored power during peak periods, the coalition can help data centers manage high demand while lowering costs for all ratepayers. The companies note that this approach can be deployed in months, offering a significantly faster alternative to building traditional, large-scale power facilities.
For homeowners, the initiative offers opportunities to earn rewards and reduce energy bills through grid-supporting programs. For hyperscalers and utilities, the partnership provides a unified, scalable resource to navigate grid congestion and accelerate data center operations. Interested parties can coordinate these distributed resources by visiting www.vppcapacity.com, further supporting a cleaner and more cost-effective energy transition.
Tesla Inc. (NASDAQ:TSLA) is a developer, manufacturer, designer, lessor, and seller of electric vehicles, and energy generation and storage systems. The company operates across China, the United States, and globally. It operates through the Automotive and Energy Generation and Storage segments.
7. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 132
Eli Lilly and Company (NYSE:LLY) is one of the best stocks for beginners to buy now. On June 24, Eli Lilly completed its acquisition of Centessa Pharmaceuticals, aiming to advance the development of orexin receptor 2 agonists. This new class of medicine is designed to treat narcolepsy and other sleep-wake disorders by targeting the brain’s natural systems for maintaining alertness and sleep stability.
Eli Lilly and Company (NYSE:LLY) plans to urgently utilize Centessa’s clinical portfolio to address the profound and life-altering impacts of sleep disruption. By integrating these assets, the company seeks to explore the orexin system’s broader potential for brain health and provide solutions for significant unmet needs in neuroscience.
This acquisition aligns with Eli Lilly’s ongoing focus on pioneering life-changing discoveries across various health challenges, including diabetes, obesity, Alzheimer’s, and immunology. The company remains committed to advancing innovative medical solutions and ensuring their accessibility for patients worldwide.
Eli Lilly and Company (NYSE:LLY) is a healthcare company that develops human pharmaceutical products, including cardiometabolic health, oncology, and immunology products.
6. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 173
Broadcom Inc. (NASDAQ:AVGO) is one of the best stocks for beginners to buy now. On June 24, OpenAI and Broadcom introduced “Jalapeño,” a custom AI accelerator designed specifically for LLM inference. Developed in nine months, the processor is built from the ground up to optimize memory movement, networking, and compute resources. Early testing indicates that the chip will deliver significantly better performance-per-watt than current state-of-the-art alternatives.
This initiative marks a shift in OpenAI’s infrastructure strategy, moving toward a full-stack approach that integrates product development with custom hardware. By designing the architecture based on their own deep understanding of LLM kernels and future model requirements, OpenAI aims to make AI faster, more reliable, and more affordable. The project also utilized AI models to accelerate the chip’s own design and optimization process.
Jalapeño serves as the first entry in a multi-generation compute roadmap. The companies plan to deploy the processors at a gigawatt scale starting later in 2026.
Broadcom Inc. (NASDAQ:AVGO) is a technology company that specializes in semiconductor devices (through the Semiconductor Solutions segment) and infrastructure software solutions (through the Infrastructure Software segment).
While we acknowledge the potential of AVGO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AVGO and that has 100x upside potential, check out our report about the cheapest AI stock.
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