In this article, we will look at the 10 Hottest Mega-Cap Stocks of 2025.
On October 11, Dan Ives, managing director and global head of technology research at Wedbush Securities, appeared on Yahoo Finance to discuss what the third-quarter earnings season is going to look like for big tech companies. He believes that Wall Street is massively underestimating the potential of the current tech/AI cycle. Dan calls it the AI super cycle and believes that the third-quarter earnings season will be a validation moment not only for the chips but also for software.
Dan Ives has been bullish on the tech sector. He noted that the bears have continued to miss the market gains for the past two years and will continue to miss it as the current tech cycle has at least two more years ahead of it. While talking about analysts calling for diversification of portfolios out of the technology sector. Dan noted that he acknowledges the diversification technique; however, he disagrees about totally peeling away from AI. To elaborate on his perspective, Dan pointed towards the missed opportunity for people who might have sold AMD a month ago, Oracle six months ago, or NVIDIA a year ago. He emphasized that investors need to understand that we are currently in only the second innings of a nine-innings cycle. Therefore, the Q3 2025 earnings season is going to provide validation with respect to how the use cases of AI are exploding.
With that, let’s take a look at the 10 Hottest Mega-Cap Stocks of 2025.
Our Methodology
To come up with the list of 10 Hottest Mega-Cap Stocks of 2025, we used the Finviz Stock Screener, Yahoo Finance, WSJ, and Insider Monkey’s Q2 2025 database. Using the screener, we aggregated a list of Mega-Cap stocks (Market Cap of $200 billion or more) sorted by year-to-date performance. Next, we cross-checked the market capitalization from WSJ and year-to-date performance from Yahoo Finance, as of October 13, 2025. Lastly, we ranked the stocks in ascending order of the number of hedge fund holders sourced from Insider Monkey.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10 Hottest Mega-Cap Stocks of 2025
10. Palantir Technologies Inc. (NASDAQ:PLTR)
Market Capitalization: $416.20 billion
Year-to-Date Performance: 133.33%
Number of Hedge Fund Holders: 78
Palantir Technologies Inc. (NASDAQ:PLTR) is one of the Hottest Mega-Cap Stocks of 2025. On October 13, The DJS Law Group announced that it is investigating Palantir Technologies Inc. (NASDAQ:PLTR) for violations of securities laws on behalf of the company’s investors.
The investigation follows a report by Reuters, published on October 4, which cited a recent internal Army memo. The memo stated that the US Army’s battlefield communication network, which was being undertaken by Palantir Technologies Inc. (NASDAQ:PLTR), Anduril, and other companies, has fundamental security problems.
The NGC2 platform connects soldiers, sensors, vehicles, and commanders with real-time data. The memo notes,
“We cannot control who sees what, we cannot see what users are doing, and we cannot verify that the software itself is secure.”
Although a spokesperson from Palantir Technologies Inc. (NASDAQ:PLTR) noted that no vulnerabilities were found in the Palantir platform. However, the Army memo noted battlefield communications networks to be treated as a very high risk, given the hosted 3rd party applications.
The DJS Law Group investigation is focused on assessing whether Palantir Technologies Inc. (NASDAQ:PLTR) issued misleading statements and/or failed to disclose important information with regard to the Reuters report.
Palantir Technologies Inc. (NASDAQ:PLTR) is a technology company that develops software platforms to assist in counterterrorism investigations and operations. Some of the company’s key platforms include Gotham, Foundry, Apollo, and the Artificial Intelligence Platform.
9. Micron Technology, Inc. (NASDAQ:MU)
Market Capitalization: $203.84 billion
Year-to-Date Performance: 107.95%
Number of Hedge Fund Holders: 94
Micron Technology, Inc. (NASDAQ:MU) is one of the Hottest Mega-Cap Stocks of 2025. On October 13, Karl Ackerman from BNP Paribas Exane upgraded Micron Technology, Inc. (NASDAQ:MU) from Underperform to Outperform and raised the firm’s price target on the stock from $100 to $270.
The analyst noted that their firm has now fully embraced the high-bandwidth memory sector as a separate growth vector. He believes that Micron Technology, Inc. (NASDAQ:MU) and the memory sector in general are entering the early innings of a super cycle.
In addition to BNP Paribas Exane, on October 8, Timothy Arcuri from UBS also raised the firm’s price target on Micron Technology, Inc. (NASDAQ:MU) from $195 to $225, while reiterating a Buy rating on the stock.
Micron Technology, Inc. (NASDAQ:MU) is a technology company that provides memory and storage solutions. The company manufactures a portfolio of high-performance memory and storage products, including DRAM, NAND, and NOR technologies.
8. GE Aerospace (NYSE:GE)
Market Capitalization: $309.11 billion
Year-to-Date Performance: 72.90%
Number of Hedge Fund Holders: 100
GE Aerospace (NYSE:GE) is one of the Hottest Mega-Cap Stocks of 2025. On October 9, GE Aerospace (NYSE:GE) announced that its FlightPulse App has seen a 156% increase in the number of commercial and business jet pilot users since 2022.
The app, which is part of the company’s electronic flight bag, is now being used by 60,000 pilots, with expectations of reaching 70,000 users driven by new customers, including NetJets onboarding into the app.
Management noted that the FlightPulse App is being used by 29 airlines and 49 business jet operators. Moreover, around 15% to 20% airline pilots around the world have installed the app for safety and fuel insights during the flight.
The FlightPulse App is designed for pilots and contains pre- and post-flight modules that provide information about the flight experience from pre-departure to landing. It also features a 3D animation module that closely mimics the flight deck experience in the cockpit.
GE Aerospace (NYSE:GE) is an international aerospace and defense company that designs, manufactures, and services jet engines for commercial, business, and military aircraft. The company operates through two main segments, including Commercial Engines & Services and Defense & Propulsion Technologies.
7. Alibaba Group Holding Limited (NYSE:BABA)
Market Capitalization: $405.68 billion
Year-to-Date Performance: 87.18%
Number of Hedge Fund Holders: 101
Alibaba Group Holding Limited (NYSE:BABA) is one of the Hottest Mega-Cap Stocks of 2025. On October 9, Alibaba Group Holding Limited (NYSE:BABA)’s Alibaba Cloud announced a multiyear partnership with NBA China to enhance fan experience and engagement through AI and cloud technologies.
The collaboration makes Alibaba Cloud the official cloud computing and AI partner of NBA China. Management noted that they will develop innovative applications to enhance the game experience. Notably, Alibaba Group Holding Limited (NYSE:BABA) will debut its Real-Time 360 Replay Solution, which will allow fans to replay highlights using AI-powered visual enhancements.
This also marks the return of the NBA to the Chinese market for the first time in six years, as two league stage games are set to take place in Macau.
Alibaba Group Holding Limited (NYSE:BABA) provides diverse technology platforms that offer e-commerce, logistics, digital media, cloud computing, and marketing services. The company also operates key businesses, including retail platforms such as Taobao and Tmall, and international commerce such as Lazada and AliExpress.
6. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Market Capitalization: $348.75 billion
Year-to-Date Performance: 78.15%
Number of Hedge Fund Holders: 113
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the Hottest Mega-Cap Stocks of 2025. On October 6, Advanced Micro Devices, Inc. (NASDAQ:AMD) announced a strategic partnership with OpenAI to deploy 6 Gigawatts of AMD GPUs. These GPUs will power OpenAI’s next-generation AI Infrastructure.
This is a multigeneration agreement with the first gigawatt deployment of AMD Instinct MI450 GPUs expected to begin in the second half of 2026. The stock has gained more than 7.5% in just a week since the announcement, and several Wall Street analysts have raised their price targets on Advanced Micro Devices, Inc. (NASDAQ:AMD).
On October 10, Joshua Buchalter from TD Cowen raised the firm’s price target on the stock from $195 to $270, while reiterating a Buy rating. More recently, on October 13, Vijay Rakesh from Mizuho Securities also raised the price target on Advanced Micro Devices, Inc. (NASDAQ:AMD), while maintaining a Buy rating on the stock.
Advanced Micro Devices, Inc. (NASDAQ:AMD) is an international semiconductor company that specializes in high-performance computing, graphics, and visualization technologies.
5. Oracle Corporation (NYSE:ORCL)
Market Capitalization: $832.51 billion
Year-to-Date Performance: 76.45%
Number of Hedge Fund Holders: 124
Oracle Corporation (NYSE:ORCL) is one of the Hottest Mega-Cap Stocks of 2025. On October 10, Kirk Materne from Evercore ISI raised the price target on Oracle Corporation (NYSE:ORCL) from $340 to $350, while keeping an Outperform rating on the stock.
The analyst noted that their firm upgraded its model before the Oracle AI World and the financial analyst meeting scheduled from October 13 to October 16. Evercore ISI expects Oracle Corporation (NYSE:ORCL) to update its long-term revenue and EPS guidance.
The analyst highlighted that the management during its fiscal first quarter 2026 earnings call hinted that its cloud revenue can reach $144 billion by 2030. Materne notes that this suggests the company will soon provide an updated revenue guidance as the $144 billion target seems likely. The analyst believes Oracle Corporation (NYSE:ORCL) revenue to reach $200 billion by 2030 and expects the EPS to grow by around 20% annually from 2025 to 2030.
Oracle Corporation (NYSE:ORCL) provides cloud-based suites of applications and secure, automated infrastructure through its Oracle Cloud Platform.
4. Netflix, Inc. (NASDAQ:NFLX)
Market Capitalization: $518.44 billion
Year-to-Date Performance: 37.59%
Number of Hedge Fund Holders: 133
Netflix, Inc. (NASDAQ:NFLX) is one of the Hottest Mega-Cap Stocks of 2025. On October 10, Benjamin Swinburne from Morgan Stanley maintained a Buy rating on Netflix, Inc. (NASDAQ:NFLX) with a price target of $1,500.
The analyst noted the company has the ability to grow subscribers consistently, along with the ability to expand internationally. He believes that this positions Netflix, Inc. (NASDAQ:NFLX) well in the competitive streaming market. Moreover, the analyst also likes the company’s consistent investment in bringing original content, which has helped it retain subscribers, thereby enhancing its brand value. Swinburne believes that the company’s long-term outlook looks promising.
Netflix, Inc. (NASDAQ:NFLX) is an international streaming services company that offers paid memberships for streaming TV series, films, and games in multiple languages across over 190 countries.
3. Broadcom Inc. (NASDAQ:AVGO)
Market Capitalization: $1.53 trillion
Year-to-Date Performance: 39.94%
Number of Hedge Fund Holders: 156
Broadcom Inc. (NASDAQ:AVGO) is one of the Hottest Mega-Cap Stocks of 2025. On October 8, Broadcom Inc. (NASDAQ:AVGO) announced that the company will showcase major product advancements in its scale-up and scale-out AI networking solutions at the Open Compute Project Global Summit. The summit is being held in San Jose from October 13 to October 16.
Management noted that it will showcase innovations, including its third-generation TH6-Davisson Co-packaged Optics, Tomahawk 6, Tomahawk Ultra, and Jericho4 Ethernet switches. Moreover, the presentation will also include the latest developments and innovations of Broadcom Inc. (NASDAQ:AVGO) in scale-up Ethernet networking for in-rack, inter-data center, and inter-rack connectivity. These solutions are designed to power the next generation of AI. Lastly, the company will also partner with more than 20 companies to showcase partnered demonstrations across the floor.
Broadcom Inc. (NASDAQ:AVGO) designs and supplies a broad range of semiconductor products and enterprise software solutions. The company operates through two segments, including semiconductor solutions and infrastructure software.
2. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Market Capitalization: $1.46 trillion
Year-to-Date Performance: 39.23%
Number of Hedge Fund Holders: 187
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the Hottest Mega-Cap Stocks of 2025. On October 9, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) released its September 2025 revenue report. The company reported a 31.4% year-over-year increase in revenue to reach approximately NT$330.98 billion. While the revenue increased year-over-year, it was down 1.4% from August 2025.
Following the report, on October 10, Mehdi Hosseini from Susquehanna reiterated a Buy rating on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM). The analyst also increased the price target on the stock from $300 to $400, noting he expects the company to beat expectations for the fiscal third quarter of 2025, scheduled to be released on October 16. In addition, Hosseini also believes the company will raise its guidance and expects the company to beat consensus for the FQ4 and FQ1 2026 quarters, driven by seasonal trends.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a technology company that provides integrated circuit manufacturing services, including cutting-edge process technologies and packaging solutions.
1. NVIDIA Corporation (NASDAQ:NVDA)
Market Capitalization: $4.45 trillion
Year-to-Date Performance: 32.43%
Number of Hedge Fund Holders: 235
NVIDIA Corporation (NASDAQ:NVDA) is one of the Hottest Mega-Cap Stocks of 2025. On October 9, Reuters reported that NVIDIA Corporation (NASDAQ:NVDA) had received approval from the United States to ship several billion worth of its chips to the United Arab Emirates.
NVIDIA Corporation (NASDAQ:NVDA) recently received its export licenses from the Commerce Department’s Bureau of Industry and Security as per the bilateral artificial intelligence agreement signed in May 2025. The agreement allows the UAE to import 500,000 of the most advanced AI chips of NVIDIA Corporation (NASDAQ:NVDA) per year, starting in 2025 to 2027. According to the report, the agreement has a chance to be extended until 2030.
NVIDIA Corporation (NASDAQ:NVDA) is a full-stack computing infrastructure company that focuses on accelerated computing to solve complex computational problems. The company offers AI data center platforms, GPUs, networking, and autonomous vehicle solutions.
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 this cheapest AI stock.
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