In this article, we will look at the 10 Best Strong Buy Stocks to Invest in According to Billionaires.
On May 1, Fundstrat’s Tom Lee appeared on CNBC’s ‘Closing Bell’ to talk about his view on equity markets, recent earnings growth, and more. He was of the view that the market is rising for the right reasons. It is rising because the tail risks are abating, we have had good fundamentals, and earnings have been good enough for estimates to go up. In addition, the leadership is coming from the groups that we want to see, which are the Mag 7, tech, and cyclicals, and that is what you want to see if the market is showing economic resilience. For now, he believes their base case is tracking; he still thinks we will make a good move towards 7,300 for the S&P 500. He also raised software, which is also the ETF IGV, to beat a top pick sector alongside Mag 7 and crypto.
READ ALSO: 10 Best Performing Small Cap Stocks So Far in 2026 AND 9 Best Drug Stocks to Buy According to Analysts.
Lee further stated that he is going to look at this as a series of rolling bear markets, because we know that the Mag 7 and software stocks peaked a lot earlier as compared to the broader market, and then they led into the low, but then bottomed first and are rallying. He thinks that we should expect breadth to follow, but it would be pretty textbook because tech is what peaked earlier.
With these broader market trends in view, let’s look at the best strong buy stocks to invest in according to billionaires.
Our Methodology
We sifted through the Finviz stock screener to compile a list of the best stocks with analyst consensus Strong Buy ratings and selected the top 10 stocks most favored by billionaires. We took the data for the number of billionaire investors for each stock from Insider Monkey’s Q4 2025 database. The stocks are ranked in ascending order of the number of billionaires who hold stakes in them. These stocks are also popular among elite hedge funds.
Note: All data was recorded on May 3.
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 Strong Buy Stocks to Invest in According to Billionaires
10. Alibaba Group Holding Limited (NYSE:BABA)
Alibaba Group Holding Limited (NYSE:BABA) is one of the best strong buy stocks to invest in according to billionaires. On April 29, BNP Paribas initiated coverage of Alibaba Group Holding Limited (NYSE:BABA) with an Outperform rating and set a price target of $209, which offers 58% upside. The firm told investors in a research note that the company’s cloud revenue growth will accelerate on better AI capex monetization.
Alibaba Group Holding Limited (NYSE:BABA) also received a rating update from Freedom Broker on April 24. The firm upgraded the stock to Buy from Hold, adjusting the price target on the stock to $190 from $180. The firm told investors that the cloud segment’s rapid growth, in addition to the company’s rollout of agent AI and recent price increases for cloud services by Chinese tech giants, supports Alibaba Group Holding Limited’s (NYSE:BABA) focus on AI as its primary medium-term growth driver. In another development, Barclays cut the price target on Alibaba Group Holding Limited (NYSE:BABA) to $186 from $190 on April 14, and maintained an Overweight rating on the shares.
Alibaba Group Holding Limited (NYSE:BABA) manages and provides technology infrastructure and marketing platforms. It operates through seven segments: China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media and Entertainment, and Innovation Initiatives and Others segments.
9. Walmart Inc. (NASDAQ:WMT)
Walmart Inc. (NASDAQ:WMT) is one of the best strong buy stocks to invest in according to billionaires. Reuters announced on April 29 that Walmart Inc. (NASDAQ:WMT) has opened its third milk processing facility in the United States, with over $350 million, which adds to the company’s decade-long effort to bolster its perishables supply chain. It further reported that the facility, based in Robinson, Texas, will process and bottle milk across various types and sizes for its Great Value and Sam’s Club Member’s Mark private label brands. Walmart stated that the facility will create more than 400 new jobs and will supply to over 650 Walmart stores and Sam’s Clubs across the South Central U.S.
Reuters provided additional context, reporting that Walmart Inc. (NASDAQ:WMT) first entered into the milk processing domain in early 2016, with the first milk processing unit opening in Fort Wayne, Indiana, in 2018, and the second facility opening in Valdosta, Georgia, in December last year.
Walmart Inc. (NASDAQ:WMT) is an omnichannel retailer operating retail and wholesale stores, clubs, e-commerce websites, and mobile applications. It offers an elaborate array of items, from general merchandise and electronics to food, groceries, and more.
8. Applied Materials, Inc. (NASDAQ:AMAT)
Applied Materials, Inc. (NASDAQ:AMAT) is one of the best strong buy stocks to invest in according to billionaires. BofA lifted the price target on Applied Materials, Inc. (NASDAQ:AMAT) to $465 from $420 on April 28, reaffirming a Buy rating on the shares. The firm told investors that it raised several price targets across semiconductor capital equipment following “strong” Lam Research results, and cited higher industry forecasts that should precede broad-based upward estimate revisions.
Applied Materials, Inc. (NASDAQ:AMAT) also received a rating update from B. Riley on April 13. The firm lifted the price target on the stock to $485 from $450, and maintained a Buy rating on the shares. It updated its multi-year AI capex and semiconductor capital wafer fab equipment views, and reported that it is more positive on calendar year 2026-2028 semi cap prospects. Susquehanna also raised the price target on Applied Materials, Inc. (NASDAQ:AMAT) to $500 from $435 on April 9, maintaining a Positive rating on the shares.
Applied Materials, Inc. (NASDAQ:AMAT) is a leader in materials engineering solutions engaged in the provision of manufacturing equipment, services, and software to the semiconductor, display, and related industries.
7. Eli Lilly and Company (NYSE:LLY)
Eli Lilly and Company (NYSE:LLY) is one of the best strong buy stocks to invest in according to billionaires. Cantor Fitzgerald lifted the price target on Eli Lilly and Company (NYSE:LLY) to $1,230 from $1,205 on May 1, reaffirming an Overweight rating on the shares. The firm told investors in a research note that the company’s fiscal Q1 call highlighted solid OUS Mounjaro demand with potential upside to raised guidance and encouraging early Foundayo ramp commentary. It also cited improved earnings leverage supporting higher EPS expectations and multiple catalysts, including a potential 2H acceleration and anticipation of retatrutide, helping sustain engagement.
In another development, Eli Lilly and Company (NYSE:LLY) announced on April 27 the signing of a definitive agreement for it to acquire Ajax. Ajax is a biopharmaceutical company that develops next-generation JAK inhibitors for patients with myeloproliferative neoplasms, and its lead asset, AJ1-11095, is an investigational, once-daily oral, first-in-class Type II JAK2 inhibitor currently being evaluated in a Phase 1 clinical trial, AJX-101, in patients with myelofibrosis who have previously been treated with a Type I JAK2 inhibitor.
Eli Lilly and Company (NYSE:LLY) develops, manufactures, discovers, and sells pharmaceutical products. These products span oncology, diabetes, immunology, neuroscience, and other therapies.
6. Mastercard Incorporated (NYSE:MA)
Mastercard Incorporated (NYSE:MA) is one of the best strong buy stocks to invest in according to billionaires. Raymond James cut the price target on Mastercard Incorporated (NYSE:MA) to $609 from $631 on May 1, maintaining an Outperform rating on the shares. The firm told investors in a research note that the company delivered solid fiscal Q1 results, with a modest EPS and revenue beat. However, it added that cross-border volume growth slowed due to geopolitical disruption, and while near-term guidance is slightly softer with expected Q2 pressure, a projected 2H recovery and discounted valuation support a still-favorable risk/reward outlook.
Mastercard Incorporated (NYSE:MA) also received a rating update from Macquarie the same day. The firm cut the price target on the stock to $665 from $675 and maintained an Outperform rating on the shares. The rating update came after the company reported its fiscal Q1 earnings, which the firm believed were “ahead of expectations.” It still believes the consumer is “solid”, and noted that Crypto, AI, and value-added services have been, and continue to be, “key drivers”.
Mastercard Incorporated (NYSE:MA) is a technology company that provides payment solutions for developing and implementing debit, credit, prepaid, commercial, and payment programs via its brands. Its portfolio includes Mastercard, Cirrus, and Maestro. The company also offers intelligence and cyber solutions.
While we acknowledge the potential of MA 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 MA and that has 100x upside potential, check out our report about the cheapest AI stock.
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