Markets

Insider Trading

Hedge Funds

Retirement

Opinion

12 Best Long-term Stocks to Invest in for High Returns

In this article, we will discuss the 12 Best Long-term Stocks to Invest in for High Returns.

The global economy seems to be at a point where fiscal ambition intersects with market skepticism, says Oakglen Wealth. Donald Trump’s presidential election and the Republican takeover of the US Senate and retention of the House of Representatives resulted in a complicated mix of policy goals. Notably, the broader market’s initial reaction hints at positivity given Trump’s plans for growth, hinting at the continued outperformance of US assets in the year ahead.

Sectors To Focus on in 2025

Fidelity has an optimistic view of the financial sector, primarily because of steady economic growth for the broader US economy. Since the financial sector is cyclical, the sector’s performance is mainly a function of the strength of the broader economy. The US economy has been showing momentum and a path towards the desired “soft landing,” says Fidelity. Therefore, worries about a mild recession (which could have impacted the financial stocks) are alleviated. One significant difference in market dynamics entering 2025, in comparison to recent years, is the outlook on interest rates.

The H2 2024 began a new rate cycle, with the US Fed cutting rates for the first time since the initial days of the pandemic. Banks might benefit from higher interest rates due to higher NIMs. On the other hand, lower rates can help boost confidence and decrease the pressure on economic growth, which is expected to be beneficial for virtually all industries in this sector, opines Fidelity. Within equities, Franklin Templeton has an optimistic outlook on IT, health care, energy, consumer staples, and industrial sectors.

READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.

Growth Drivers Amidst Policy Shifts

As per Russell Investments, the US economy is resilient as it enters 2025, but the road ahead is expected to be affected by shifting policy dynamics. On the positive side, tax cuts and deregulation can offer a meaningful growth boost, mainly to domestic and cyclical sectors. The investment firm believes that companies leveraging AI technologies to enhance productivity—mainly in industrials and healthcare— are expected to see material improvements to operating fundamentals.

Even though the mega-cap AI stocks have fueled the market returns over recent years, leadership has been shifting to companies leveraging AI to develop real-world efficiencies. Russell Investments believes that the Trump administration’s policies offer a delicate balancing act. It assumes that the new administration will not aggressively pursue policies that can create inflation risk.

With this in mind, let us now have a look at the 12 Best Long-term Stocks to Invest in for High Returns.

An index provider revealing the investment strategy and assets of a company.

Our Methodology

To list the 12 Best Long-term Stocks to Invest in for High Returns, we sifted through several financial media reports related to the best long-term stocks to buy. After getting an initial list of 20 stocks, we chose the ones which analysts saw the most upside to. Finally, the stocks were ranked in ascending order of their average upside potential, as of February 6. We also mentioned the hedge fund sentiments around each stock, as of Q3 2024.

At Insider Monkey we are obsessed with 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

12 Best Long-term Stocks to Invest in for High Returns

12) UnitedHealth Group Incorporated (NYSE:UNH)

Average Upside Potential: 20.8%

Number of Hedge Fund Holders: 112

UnitedHealth Group Incorporated (NYSE:UNH) operates as a diversified healthcare company. TD Cowen analyst Ryan Langston maintained a “Buy” rating on the company’s shares, setting a price target of $609.00. The rating was backed by a combination of factors, including UnitedHealth Group Incorporated (NYSE:UNH)’s ability to surpass market expectations and confidence demonstrated by management in the financial outlook. Notably, the company has affirmed the 2025 performance outlook established in December 2024, including revenues of $450 billion – $455 billion, net earnings of $28.15 – $28.65 per share, and adjusted net earnings of $29.50 – $30.00 per share.

As per the analyst, even though a slightly challenging operating environment is expected for next year, UnitedHealth Group Incorporated (NYSE:UNH)’s strategic initiatives and pricing strategies can fuel growth. Furthermore, the company successfully improved its operating cost ratio, mainly because of strategic portfolio initiatives, which remains a positive indicator for future profitability. The company’s diversified portfolio provides a base for competitive advantage.

UnitedHealth Group Incorporated (NYSE:UNH)’s scale and analytics capabilities can act as key drivers for potential market share gains, primarily in government insurance markets. Aristotle Atlantic Partners, LLC, an investment advisor, released its Q4 2024 investor letter. Here is what the fund said:

“UnitedHealth Group Incorporated (NYSE:UNH) detracted from performance in the fourth quarter following the tragic shooting of its insurance division CEO and increased focus on health insurance industry practices. A bipartisan bill was introduced that could force companies that own pharmacy benefit managers to divest their pharmacy operations, which would impact United’s Optum unit.”

11) Shell plc (NYSE:SHEL)

Average Upside Potential: 21.4%

Number of Hedge Fund Holders: 48

Shell plc (NYSE:SHEL) operates as an energy and petrochemical company. Analyst Roger Read from Wells Fargo maintained a “Buy” rating on the company’s shares, which stemmed from the company’s promising financial outlook and strategic initiatives. Shell plc (NYSE:SHEL) demonstrated robust operational execution, which, together with cost-cutting measures, improved its cash flow and FCF, aiding a positive financial performance. In Q4 2024, despite the lower earnings, the company’s cash delivery remained solid and it generated FCF of $40 billion across the year, higher than 2023, in a lower price environment.

As per the analyst, Shell plc (NYSE:SHEL)’s emphasis on refining its portfolio via divestments and prioritizing value over volume continues to strengthen its position. It remains well-positioned to benefit from the anticipated growth in the global LNG market. Furthermore, Shell plc (NYSE:SHEL)’s commitment to shareholder returns is evident via dividend increases and a share buyback program, aided by robust cash flow forecasts and a reduction in net debt. To provide a brief overview, the company announced a 4% increase in its dividends and another $3.5 billion buyback program on January 30. This marks the 13th consecutive quarter of at least $3 billion of buybacks.

Elsewhere, DBS analyst Suvro Sarkar has maintained a bullish stance on the company’s stock, giving a “Buy” rating on January 31. The rating was backed by factors including Shell plc (NYSE:SHEL)’s strategic focus on enhancing shareholder returns and maintaining strong cash flows. Also, the analyst believes that the company’s strong earnings potential is fueled by its integrated gas and upstream oil segments, which can benefit from global supply constraints and geopolitical tensions.

10) Microsoft Corporation (NASDAQ:MSFT)

Average Upside Potential: 21.7%

Number of Hedge Fund Holders: 279

Microsoft Corporation (NASDAQ:MSFT) develops and supports software, services, devices and solutions. Analyst Bradley Sills from Bank of America Securities reiterated a “Buy” rating on the shares of the company, keeping the price objective at $510.00. The analyst’s rating stems from a combination of factors, highlighting Microsoft Corporation (NASDAQ:MSFT)’s robust performance and potential for future growth. Even though there have been some execution challenges in the Azure segment, its core growth drivers remain strong, with Office products demonstrating significant strength.

The expected growth in Azure, fueled by AI workloads and large cloud deals, demonstrates a positive outlook for the upcoming quarters. Microsoft Corporation (NASDAQ:MSFT)’s strategic focus on AI, mainly through M365 Copilot, can fuel considerable revenue growth, reinforcing its position as a leader in applications and infrastructure. The rating and price target are backed by Microsoft Corporation (NASDAQ:MSFT)’s ability to capitalize on the expanding AI market.

Fred Alger Management, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“Microsoft Corporation (NASDAQ:MSFT) is a beneficiary of corporate America’s transformative digitization. The company operates through three segments: Productivity and Business Processes (Office365, LinkedIn, and Dynamics), Intelligent Cloud (Server Products and Cloud Services, Azure, and Enterprise Services), and More Personal Computing (Windows, Devices, Gaming, and Search). During the quarter, Microsoft delivered better-than-expected fiscal first-quarter revenues, beating analyst estimates across all three segments. In the Intelligent Cloud business, Azure revenue grew 34% year[1]over-year, slightly above consensus, with AI Services contributing 12% to Azure’s growth, up from 11% in the previous quarter, as demand for AI continues to outpace capacity. However, shares declined after management signaled a potential deceleration in Azure growth for the next quarter and highlighted a negative earnings impact from OpenAI-related losses. Additionally, concerns over significantly increased AI-related capital expenditures (CapEx) raised questions about short-term profitability despite the long-term growth potential. While these near-term challenges led to shares detracting from performance for the quarter, we remain confident in Microsoft’s ability to maintain its leadership in AI.”

9) Analog Devices, Inc. (NASDAQ:ADI)

Average Upside Potential: 24.2%

Number of Hedge Fund Holders: 63

Analog Devices, Inc. (NASDAQ:ADI) is engaged in designing, manufacturing, testing, and marketing integrated circuits (ICs), software, and subsystems products. CFRA analyst Angelo Zino upgraded the company’s stock from ‘Buy’ to ‘Strong Buy,’ while maintaining a price objective of $250.00. As per the analyst, the new capacity additions are expected to drive long-term growth, together with industrial advancements in instrumentation, testing, and factory automation.

Notably, the automotive sector is expected to act as Analog Devices, Inc. (NASDAQ:ADI)’s most significant growth opportunity, with its products in battery management systems, audio systems, and connectivity acting as potential drivers. The analyst also opines that stable pricing for Analog Devices, Inc. (NASDAQ:ADI)’s products and a rebound can enable it to increase returns to investors.  The company continues to make strategic, long-term investments throughout engineering, manufacturing, and the end-to-end customer experience.

For Q1 2025, Analog Devices, Inc. (NASDAQ:ADI) projects revenue of $2.35 billion (+/- $100 million). At the midpoint of this revenue outlook, the company anticipates a reported operating margin of ~22.0% (+/- 130 bps), and an adjusted operating margin of ~40.0% (+/- 100 bps). Carillon Tower Advisers, an investment management company, released its Q2 2024 investor letter. Here is what the fund said:

“Analog Devices, Inc. (NASDAQ:ADI) rebounded as management teams at several semiconductor companies in the analog space called the bottom, seeing improved conditions ahead. The analog semiconductor industry is a very cyclical business that has underperformed the broader semiconductor industry for several years.”

8) Salesforce, Inc. (NYSE:CRM)

Average Upside Potential: 25.2%

Number of Hedge Fund Holders: 116

Salesforce, Inc. (NYSE:CRM) is engaged in providing customer relationship management (CRM) technology, bringing companies and customers together. Agentforce demonstrates a significant opportunity for the company to capitalize on the elevated demand for AI-powered customer support solutions. Notably, the platform’s integration of generative AI agents into business workflows places Salesforce, Inc. (NYSE:CRM) in a strong position in this rapidly evolving market.

Moreover, the successful deployment of Agentforce is expected to strengthen its competitive position against rivals like Microsoft, supporting retaining current customers and attracting new ones seeking advanced and dynamic AI capabilities integrated into their CRM systems.  Salesforce, Inc. (NYSE:CRM)’s growth is expected to be driven by an expansive product suite, together with seamless integrations and an innovative approach to enterprise solutions. Furthermore, its strategic acquisitions have strengthened its market position. The acquisition of Slack significantly aided Salesforce, Inc. (NYSE:CRM)’s collaboration capabilities, making the company an all-encompassing enterprise software provider.

Also, the acquisition of Own Company in 2024 strengthened Salesforce, Inc. (NYSE:CRM)’s data protection and AI capabilities. This move remains at par with the market trends revolving around growing enterprise priorities associated with security and automation. Montaka Global Investments, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“There are multiple structural trends in the enterprise software space, including (i) the ongoing cloud migrations and digital transformations of enterprises, and (ii) the infusion of AI into software applications.

While the former remains in its early innings (80-85% of enterprise workloads still reside ‘on-premise’ – many of which will ultimately move to public clouds), the latter remains in its infancy.

Given all the hype of late, it’s hard to fathom that large-scale deployments of AI-based enterprise applications have barely even started. It’s all still to come. And we believe 2025 will be the first year that we really start to see meaningful deployments and adoption of these kinds of applications.

Consider another of our top 10 holdings, Salesforce, for example. Its revenue growth is at a cyclical low. Indeed, at just +8% per annum, as reported in the company’s most recent quarter, its rate of revenue growth has never been lower.

But in 2025, not only will price increases that were announced two years ago boost Salesforce, Inc.’s (NYSE:CRM) revenue growth, but the year will also mark the early stages of adoption of the company’s new ‘Agentforce’ (released only weeks ago). This is a new platform that lets businesses build and deploy their own custom AI agents to automate tasks, improve efficiency, and enhance customer experiences…” (Click here to read the full text)

7) PepsiCo, Inc. (NASDAQ:PEP)

Average Upside Potential: 26.5%

Number of Hedge Fund Holders: 58

PepsiCo, Inc. (NASDAQ:PEP) is engaged in the manufacturing, marketing, distribution, and sale of various beverages and convenient foods. The company plans to build upon the successful expansion of its international business, while also taking actions to improve performance in North America. Its multiyear productivity initiatives are expected to finance disciplined commercial investments and profitability. Therefore, PepsiCo, Inc. (NASDAQ:PEP) expects to deliver low-single-digit organic revenue growth and mid-single-digit core constant currency EPS growth in 2025.

Piper Sandler maintained an “Overweight” rating on the company’s stock with a steady price target of $171.00. The firm remains focused on PepsiCo, Inc. (NASDAQ:PEP)’s potential rebound in 2025, mainly through its Doritos brand. Emerging markets continue to provide significant expansion opportunities. PepsiCo, Inc. (NASDAQ:PEP)’s global scale and healthy brand portfolio place it well to capitalize on increasing consumer incomes and changing dietary habits in such regions.

The company announced that it has closed the acquisition of Garza Food Ventures LLC, dba Siete Foods for $1.2 billion. Over the past 2 decades, PepsiCo, Inc. (NASDAQ:PEP) has continued to transform its portfolio. With Siete, it plans to further expand its portfolio of products with nutritious, simple foods and ingredients.

6) NIKE, Inc. (NYSE:NKE)

Average Upside Potential: 33.9%

Number of Hedge Fund Holders: 75

NIKE, Inc. (NYSE:NKE) is engaged in the designing, development, marketing, and sale of athletic footwear, apparel, equipment, accessories, and services. Piper Sandler analyst Anna Andreeva upped the company’s stock to “Overweight” from “Neutral,” raising the price target to $90 from $72. The analyst remains optimistic and expects a return to profitable growth in 3 to 4 quarters. Despite competitive pressures from brands such as On Running, HOKA, New Balance, and Asics, the analyst’s views about NIKE, Inc. (NYSE:NKE) stem from its history of successful comebacks.

The company’s strong brand recognition and extensive marketing budget are expected to act as competitive advantages. Furthermore, NIKE, Inc. (NYSE:NKE)’s substantial R&D capabilities, together with a deep understanding of athlete needs, place it well to roll out promising products. Moreover, the company’s innovation pipeline might help it capture a significant portion of the performance athletic market, potentially leading to increased margins and sustained revenue growth.

NIKE, Inc. (NYSE:NKE)’s efforts to improve inventory management and reduce promotional activity can result in healthier margins over the long term. Coho Partners, an investment management company released its Q2 2024 investor letter. Here is what the fund said:

“While we believe each of those companies is performing in line with or better than our expectations and that the moves lower are unjustified, both CVS and NIKE, Inc. (NYSE:NKE) reported disappointing performance in recent results. For Nike, the company reported mixed fourth quarter Fiscal 2024 results and weak Fiscal 2025 guidance, reflecting top line pressure from lifestyle product slowing, lower digital sales and increased macro headwinds in international markets. To manage through the decline in sports footwear and apparel demand, the senior leadership team is focused on cutting costs and reinvesting in marketing and innovation to drive sales. The company is starting to see green shoots for performance product innovation and has historically emerged stronger from these downturns due to benefits from a leading market position and scale.”

5) NVIDIA Corporation (NASDAQ:NVDA)

Average Upside Potential: 36.0%

Number of Hedge Fund Holders: 193

NVIDIA Corporation (NASDAQ:NVDA) is a leading designer of discrete graphics processing units that enhance the experience on computing platforms. Joseph Moore of Morgan Stanley gave an “Overweight” rating on the company’s stock, providing a price target of $152. The analyst noted that China’s DeepSeek, an AI model matching its American rivals in performance and at a much cheaper cost, established some challenges for NVIDIA Corporation (NASDAQ:NVDA) around export controls and longer-term investment. Despite these challenges, Moore opines that near-term checks remain strong for its Hopper platform. The analyst believes that Blackwell’s supply visibility has been building and that customers’ desire to spend remains clearly visible.

Elsewhere, Ivan Feinseth of Tigress Financial upped the company’s stock to “Strong Buy,” raising its price objective to $220. Even though DeepSeek’s R1 AI model has been claiming competitive features at lower costs, Tigress Financial noted unknown capabilities and security concerns. The firm lauded NVIDIA Corporation (NASDAQ:NVDA)’s critical role in AI and data center growth and sees it as a long-term beneficiary of continued investments. Furthermore, lawmakers in the US have plans to ban DeepSeek.

The AI infrastructure build-out continues to act as a major tailwind for NVIDIA Corporation (NASDAQ:NVDA). Notably, cloud service providers, sovereign states, and consumer internet companies have been fueling demand for AI computing power. Fred Alger Management, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

NVIDIA Corporation (NASDAQ:NVDA) is a leading supplier of graphics processing units (GPUs) for a variety of end markets, such as gaming, PCs, data centers, virtual reality, and high-performance computing. The company is leading in most secular growth categories in computing, and especially artificial intelligence and super-computing parallel processing techniques for solving complex computational problems. In our view, Nvidia’s computational power is a critical enabler of AI and therefore essential to AI adoption. Shares contributed to performance during the quarter, driven by strong demand for its data center products, especially the Hopper H200 chips, which generated double-digit billions in revenue, marking the fastest product ramp in the company’s history. Management provided fiscal fourth-quarter revenue guidance above analyst estimates, along with resilient operating margins supported by robust demand and limited competition. In our view, Nvidia’s leadership in scaling AI infrastructure, including advancements in inference and test-time scaling (i.e., reasoning during inference), is driving adoption among enterprises and startups, providing continued demand for its high-performance chips and software solutions. As older-generation chips are repurposed for inference and new clusters are deployed, we believe Nvidia is well-positioned to capitalize on growing compute needs across AI applications.”

4) Lockheed Martin Corporation (NYSE:LMT)

Average Upside Potential: 36.9%

Number of Hedge Fund Holders: 58

Lockheed Martin Corporation (NYSE:LMT) is a security and aerospace company, which is engaged in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services. Truist Financial analyst, Michael Ciarmoli, gave a new “Buy” rating on the company’s stock, backed by factors highlighting the potential growth and stability. The analyst expects demand for defense capabilities, mainly in the context of U.S. and NATO spending, to remain strong, which is expected to support Lockheed Martin Corporation (NYSE:LMT)’s growth prospects.

Furthermore, the analyst hinted at the company’s diverse portfolio in the defense sector, spanning air, land, sea, space, and cyber domains, which aligns well with national security priorities. The F-35 program is expected to maintain steady production and contribute to Lockheed Martin Corporation (NYSE:LMT)’s revenue. Overall, increased defense budgets and demand continue to paint an optimistic picture for the company. Its diverse portfolio of products and services, such as fighter jets, transport aircraft, helicopters, and various missile systems, is expected to provide a competitive edge.

Delaware Funds by Macquarie, an investment management company, released its Q3 2024 investor letter. Here is what the fund said:

“Finally, we added Lockheed Martin Corporation (NYSE:LMT) to the portfolio. While demand for the company’s products remains strong as a function of increased defense industry expenditures and a favorable geopolitical backdrop, margins have been impaired by government contracts that were fixed in price before the onset of rapid inflation. We believe the longer-term profit outlook is inflecting as mispriced contracts are replaced by more favorable ones, beginning in 2025. As several observers have noted before, defense companies are a great insurance policy for what you don’t know, a saying that certainly rings true amid escalating conflict across the globe.”

3) Adobe Inc. (NASDAQ:ADBE)

Average Upside Potential: 44.3%

Number of Hedge Fund Holders: 123

Adobe Inc. (NASDAQ:ADBE) operates as a diversified software company. The company’s highly differentiated technology platforms, the pace of innovation, diversified go-to-market, and integration of clouds place it well for long-term growth. Adobe Inc. (NASDAQ:ADBE) saw $21.51 billion in revenue, $8.06 billion in cash flows from operations, and $19.96 billion in RPO in FY24. The company’s strategy, AI innovation, and massive cross-cloud opportunity place it well for 2025 and beyond.

Its continued focus on expanding its enterprise customer base offers a strong opportunity for long-term growth. Adobe Inc. (NASDAQ:ADBE)’s comprehensive suite of creative, document, and experience management solutions places it well to capture a significant share of enterprise IT budgets.  With well-established organizations increasingly prioritizing digital transformation and customer experience initiatives, Adobe Inc. (NASDAQ:ADBE)’s integrated offerings become more attractive. Furthermore, its healthy relationships with Fortune 100 companies continue to offer a strong foundation for upselling and cross-selling additional products and services.

The enterprise customers are more stable and less price-sensitive as compared to individual consumers or small businesses. By deepening its enterprise relationships, Adobe Inc. (NASDAQ:ADBE) can potentially shield itself from competitive pressures in the broader market while, at the same time, fuel recurring revenue growth, courtesy of long-term contracts and expanded service adoption.

2) Micron Technology, Inc. (NASDAQ:MU)

Average Upside Potential: 57.1%

Number of Hedge Fund Holders: 107

Micron Technology, Inc. (NASDAQ:MU) is engaged in designing, developing, manufacturing, and selling memory and storage products. J.P. Morgan analyst Harlan Sur has maintained a bullish stance on the company’s stock, providing a “Buy” rating on January 7. The analyst’s rating is backed by a combination of factors, suggesting a promising outlook for Micron Technology, Inc. (NASDAQ:MU)’s stock. The company continues to benefit from a favorable demand environment fueled by AI, with robust expectations for growth in HBM and eSSD segments, aided by improvement in supply and demand dynamics in the broader market.

As per the analyst, the positive trend is expected to result in substantial revenue generation in FY25, primarily in the data center segment, where Micron Technology, Inc. (NASDAQ:MU) has been capitalizing on its technology leadership and customer partnerships. Also, the company’s strategic focus on high-margin products like HBM, and the efforts to improve production yields, can enhance Micron Technology, Inc. (NASDAQ:MU)’s gross margins and facilitate sustained margin expansion, says Sur.

Overall, Micron Technology, Inc. (NASDAQ:MU)’s prudent capital expenditure strategy, mainly in expanding DRAM and HBM capacity while managing NAND investments, strengthens its growth prospects. With the demand trends for AI and high-performance computing becoming favourable, HBM continues to become increasingly critical. Micron Technology, Inc. (NASDAQ:MU)’s ability to secure key customers in the AI space strengthens its position and can result in long-term partnerships which can drive consistent demand for its high-value memory solutions.

1) Advanced Micro Devices, Inc. (NASDAQ:AMD)

Average Upside Potential: 70.1%

Number of Hedge Fund Holders: 107

Advanced Micro Devices, Inc. (NASDAQ:AMD) operates as a semiconductor company. In the server CPU market, the company has been gaining market share with its EPYC line of processors. 2024 was a transformative year for the company as it delivered record annual revenue and strong earnings growth. Notably, data center segment revenue came in at $12.6 billion, an increase of 94% compared to the prior year, driven by growth in both AMD Instinct and EPYC processors.

Looking into 2025, Advanced Micro Devices, Inc. (NASDAQ:AMD) continues to see clear opportunities for continued growth based on the strength of its product portfolio and growing demand for high-performance and adaptive computing. S&P Global opines that the positive AI industry outlook and strong momentum for Advanced Micro Devices, Inc. (NASDAQ:AMD)’s AI products offer a strong foundation for its growth and margin expansion. The company recently launched its next-generation EPYC Turin server CPU, which is expected to further solidify its data center x86 market position, says the rating agency.

Furthermore, S&P Global opines that PC-related orders will improve in 2025. Advanced Micro Devices, Inc. (NASDAQ:AMD)’s strategic and technological advancements continue to solidify its position as a leading competitor in the AI chip infrastructure. The company wrapped up 2024 with a robust Q4, posting record revenue (which was up 24% YoY), and accelerated earnings expansion while, at the same time, investing aggressively in AI and innovation for long-term growth and value creation.

While we acknowledge the potential of AMD as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than AMD 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.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

The best part? You can discover everything about this company and its groundbreaking technology right now.

I’ve compiled everything you need to know about this groundbreaking company in a detailed, members-only report.

Trust me — you’ll want to read this report before putting another dollar into any tech stock.

For a ridiculously low price of just $9.99 a month, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Here’s what to do next:

1. Subscribe to our Premium Readership Newsletter for just $9.99 a month. (33% Off – was $14.99).

2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

<b>Cancel anytime.</b> Turn off auto-renewal via our website with just a click.

 

Buy This $3 Stock Now Before the 400% Surge Begins

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

My name is Inan Dogan. I’m the co-founder and Research Director of Insider Monkey. I have an important message for you today.

Since March 2017, my stock picks have returned 16.5% annually. Today, I’ve found an opportunity even bigger than my British American Tobacco call.

Two years ago, Wall Street wrote off British American Tobacco (BTI) as a “melting ice cube.” The stock had crashed 40% from its peak, and consensus said the business was dying.

We looked under the cover and realized they were wrong.

We alerted our subscribers, and BTI returned 90% in just 16 months.

Now if you had invested just $10,000 in BTI in June 2024, you’d be sitting on $19,000 in October 2025.

Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

While the market panics over a surface-level revenue decline, our PhD-led research shows management has actually surgically cut $100 million in waste to focus on high-margin growth.

This pattern is a hallmark of our 16.5% annual return track record. The current opportunity offers a 400% upside potential—dwarfing even our 90% BTI return.

Get the ticker for our new “Underdog” pick and the full BTI case study for just 99 cents.

This exclusive offer is for NEW newsletter subscribers ONLY! Join our Premium Readership Newsletter for only $0.99 and become part of a savvy investor community.!

This offer vanishes in 7 days, so don’t miss your chance to lock in market beating returnsSign up NOW! The monthly newsletter comes with a 30-day, no-risk money-back guarantee. This offer is available to the first 1000 new investors who respond.

Regular price $9.99/mo. Cancel anytime.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $0.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Regular price $9.99/mo. Cancel anytime.