In this article, we will look at the 10 Best Stocks to Invest in For 5 Years According to Billionaires.
On May 12, Edward Yardeni, president of Yardeni Research, appeared on a Bloomberg Television interview to discuss his new targets for the S&P 500. He noted that the earnings seasons have been extraordinary, and it’s difficult to recall any previous instances where earnings were this strong. Yardeni highlighted that the first-quarter earnings expectations were not conservative, and the market has seemed to top those expectations easily. Moreover, as a result of strong earnings, analysts are now raising second and third quarter estimates. He noted that we are likely to see a year-over-year increase of around 18% in the first quarter, while full-year growth is expected to be around 24%.
Yardeni has raised the year-end outlook on the S&P 500 from 7,700 to 8,250. The EPS outlook has also been raised from $310 to $330. He noted that while the semiconductors and large-cap stocks comprise almost 18% of the index, the earnings expectations for small and mid caps have also been going up. Yardeni believes that the market breadth is improving, and it is good for the overall health of the stock market.
With that, let’s take a look at the 10 Best Stocks to Invest in For 5 Years According to Billionaires.
Our Methodology
To curate the list of 10 Best Stocks to Invest in For 5 Years According to Billionaires, we used Insider Monkey’s billionaires database and Finviz stock screener. Using the database, we looked at the top 20 companies most widely held by billionaire investors, and analysts expect more than 15% EPS growth over the next 5 years. Lastly, we ranked the stocks in ascending order of the number of hedge fund holders. We have limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10 Best Stocks to Invest in For 5 Years According to Billionaires
10. Advanced Micro Devices, Inc. (NASDAQ:AMD)
EPS Growth Next 5 years: 61.97%
Number of Billionaires: 35
Value of Holdings: $7.77 billion
Number of Hedge Fund Holders: 132
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the Best Stocks to Invest in For 5 Years According to Billionaires. On May 13, Evercore ISI reiterated an Outperform rating on Advanced Micro Devices, Inc. (NASDAQ:AMD), Arm Holdings, and Intel.
The firm noted that the positive rating comes after the Q1 2026 server CPU market share report. In terms of the market share, Advanced Micro Devices gained 220 basis points quarter-over-quarter in server CPU unit share, bringing its estimated share to around 24%. This compares to the 55% share of Intel and 17% of Arm Holding’s.
According to Evercore’s thesis on CPU, the total addressable market is expanding dramatically. The firm sees the market expanding from roughly 30 million annual units to around 75 million to 110 million units.
Advanced Micro Devices, Inc. (NASDAQ:AMD) operates as a semiconductor company serving the data center, client, gaming, and embedded markets globally.
9. Mastercard Incorporated (NYSE:MA)
EPS Growth Next 5 years: 132%
Number of Billionaires: 35
Value of Holdings: $13.64 billion
Number of Hedge Fund Holders: 150
Mastercard Incorporated (NYSE:MA) is one of the Best Stocks to Invest in For 5 Years According to Billionaires. Wall Street is bullish on Mastercard Incorporated (NYSE:MA) since the company reported its fiscal Q1 2026 earnings on April 30.
During the quarter, the company posted $8.40 billion in revenue, reflecting more than 15.8% year-over-year growth and topping the consensus of $8.25 billion. The EPS came in at $4.60, above the expectation of $4.41. Management attributed growth to payment network and value-added services and solutions. Payment network revenue for the quarter grew 12% year-over-year, while the value-added services and solutions revenue grew 22% during the same time.
Following the release, recently, on May 12, Truist lowered the firm’s price target on the stock from $590 to $561 and maintained a Buy rating on the shares. The firm cited lowering top-line estimates of the broader payments solutions sector due to weaker expectations of cross-border volume growth and EMEA payment activity.
Earlier, on May 2, Macquarie analyst Paul Golding lowered the firm’s price target on Mastercard Incorporated (NYSE:MA) from $675 to $665, while keeping an Outperform rating on the shares. The analyst noted the Q1 earnings to be strong and ahead of expectations. Moreover, Macquarie also finds the consumers to be solid and notes value-added services as a key driver of growth.
Mastercard Incorporated (NYSE:MA) offers transaction processing and other payment-related products and services.
8. DoorDash, Inc. (NASDAQ:DASH)
EPS Growth Next 5 years: 48.83%
Number of Billionaires: 35
Value of Holdings: $6.01 billion
Number of Hedge Fund Holders: 108
DoorDash, Inc. (NASDAQ:DASH) is one of the Best Stocks to Invest in For 5 Years According to Billionaires. On May 15, Wolfe Research released its internet sector research report and named DoorDash, Inc. (NASDAQ:DASH) as one of its top picks over the next 12 months.
The firm noted that while the market situation is uncertain due to the geopolitical landscape, Wolfe sees opportunity in the internet sector for select companies. The firm highlighted that its top picks are companies that have potential for upward revisions, a clear product catalyst, macro resilience, and potential for revenue acceleration.
Regarding DoorDash, Inc. (NASDAQ:DASH), the firm finds the recent pullback following the Q1 2026 earnings to be overdone. Moreover, Wolfe also sees potential for significant upside for the company, driven by healthy revenue growth and improvement in unit economics for international and retail business.
DoorDash, Inc. (NASDAQ:DASH) operates a commerce platform connecting merchants, consumers, and delivery drivers across the United States and international markets.
7. Broadcom Inc. (NASDAQ:AVGO)
EPS Growth Next 5 years: 48.64%
Number of Billionaires: 42
Value of Holdings: $25.23 billion
Number of Hedge Fund Holders: 202
Broadcom Inc. (NASDAQ:AVGO) is one of the Best Stocks to Invest in For 5 Years According to Billionaires. On May 15, TD Cowen raised its price target on Broadcom Inc. (NASDAQ:AVGO) from $405 to $500 and maintained a Buy rating on the shares.
The firm highlighted an important shift in AI infrastructure dynamics. TD Cowen noted that while the AI capital expenditure is accelerating, investors are focused on identifying the next supply bottleneck beyond traditional accelerators.
The firm also highlighted observing a major market bifurcation and noted that major accelerator companies have underperformed recently. However, the optical networking stocks have still rallied on anticipated capacity storage. TD Cowen highlighted that this reflects evolving infrastructure priorities as hyperscalers build out AI data centers.
The increased price target for Broadcom is based on sustained momentum in AI-driven demand. The firm also increased its long-term outlook for data center silicon spending to $1.3 trillion by 2030, up from its previous $1.2 trillion forecasts.
Broadcom Inc. (NASDAQ:AVGO) is a technology leader that designs, develops, and supplies semiconductors and infrastructure software for global organizations’ complex, mission-critical needs. Broadcom combines long-term R&D investment with superb execution to deliver the best technology at scale.
6. NVIDIA Corporation (NASDAQ:NVDA)
EPS Growth Next 5 years: 40.16%
Number of Billionaires: 49
Value of Holdings: $68.30 billion
Number of Hedge Fund Holders: 264
NVIDIA Corporation (NASDAQ:NVDA) is one of the Best Stocks to Invest in For 5 Years According to Billionaires. NVIDIA Corporation (NASDAQ:NVDA) is set to release its fiscal Q1 2027 earnings on May 20. The Street is bullish on the stock as 91% of the 61 analysts covering the stock have maintained a Buy rating. Moreover, the 12-month average price target of the analysts suggests more than 22% upside from the current levels.
According to Seeking Alpha, the Street expects Nvidia’s FQ1 2027 revenue to be around $79.17 billion and GAAP EPS at $1.75. NVIDIA Corporation (NASDAQ:NVDA) during its fiscal Q4 2026 earnings noted that they expect revenue to be around $78.0 billion, plus or minus 2%. Moreover, management expects GAAP gross margins to be around 74.9%.
Recently, on May 15, TD Cowen raised its price target on the stock from $235 to $275, while maintaining a Buy rating. The firm noted that the increased price target is part of an off-cycle compute semiconductor earnings preview.
The analyst noted that AI capital expenditure continues to climb as investors search for the next bottleneck in infrastructure builds. This dynamic has created what TD Cowen describes as a bifurcation within the infrastructure trade, where the largest accelerator companies are underperforming while optical names are trading higher on expectations of upcoming shortages. Despite this split, the firm raised its estimates for Nvidia, citing ongoing momentum in the space.
Founded in 1993, the California-based company, NVIDIA Corporation (NASDAQ:NVDA), is a fabless semiconductor and AI computing company that designs GPUs, AI accelerators, Application Programming Interfaces (APIs), and system-on-a-chip units.
While we acknowledge the potential of NVDA 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 NVDA and that has 100x upside potential, check out our report about the cheapest AI stock.
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