In this article, we will take a look at the 12 Major Stocks to Buy According to Billionaires.
The U.S. stock market had one of the worst starts, at least the worst start to a presidency since 1928. The S&P 500 is just recovering following the latest U.S.-China trade deal update, as both countries have agreed to significantly cut tariffs on each other’s imports for 90 days. The S&P 500 index is up by a meagre 0.30% year-to-date, as tech stocks rallied following the tariff reduction.
ALSO READ: 13 Best Technology Stocks to Buy for Long-Term Investment
Tariffs on Hold
Markets finally had a sigh of relief after the U.S.-China trade deal. The tariff reduction potentially negates all bear cases anticipated by Wall Street analysts based on the tariff risks. Sylvia Jablonski, CEO and CIO of Defiance ETFs called the tariff cut a “game changer” in a recent appearance on a CNBC show.
“I think both countries probably saw a little bit of the demise of what would be here with a non-tariff deal as the data came in. You had a lot of complaints around China across all sectors, and then in the US, retailers were reaching out to President Trump and saying that shelves are empty and, you know, a lot of panic about semiconductor software companies. I think that this is really a game changer for both countries, and the big message here is that both countries, it sounds like, decided that they really don’t want to decouple, and, you know, make America great might also mean that, you know, China stays.”
President Trump’s Betting Big on AI
President Trump and his team at the White House have secured around $2 trillion in new company investments since Inauguration Day. The administration emphasizes that these investments indicate a broad economic renaissance. The tech giants are investing following the President’s plan to bring investments into the US. According to Yahoo Finance, these investments are mainly clustered in the world of Big Tech and largely come from sectors where Trump’s Final tariff plans are most uncertain.
Apple and Nvidia have promised to invest $500 billion each in AI infrastructure, manufacturing, and training. Healthcare and new pharmaceutical manufacturing account for almost 11% of the total investments to be made in the U.S., as per Yahoo Finance.
With that, let’s take a look at the 12 Major Stocks to Buy According to Billionaires.
Our Methodology
We have listed the 12 Major Stocks to Buy According to Billionaires, according to Insider Monkey’s database. We picked the 12 stocks with the highest number of billionaire investors, updated as of Q4 2024. All of these billionaire investors are founders or managers of some of the top hedge funds in the world. We have also mentioned the number of hedge funds holding stakes in these stocks. The best major stocks are ranked in ascending order of the number of billionaires that have stakes in them.
Why are we interested in the stocks that hedge funds and billionaire investors 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12 Best Major Stocks to Buy According to Billionaires
12. Salesforce, Inc. (NYSE:CRM)
No. of Billionaire Holders: 23
No. of Hedge Fund Holders: 162
Salesforce, Inc. (NYSE:CRM) is a leading provider of customer relationship management (CRM) technology. The company’s CRM platform provides Salesforce Starter, Tableau, Slack, Agentforce, Industries AI, Data Cloud, and integration and analytics solutions.
On May 12, Bradley Sills from Bank of America reiterated a Buy rating with positive views regarding Salesforce’s Sales Cloud offering. Despite a price target reduction from $440 to $350, Sills believes that Sales Cloud will maintain a 25% market share in the $39 billion Sales CRM industry through 2027. Sales Cloud growth rate could increase from 9-10% to a sustainable 12%, added Sills. The analyst also highlighted that high-priced products such as Industry Cloud, Revenue Cloud, and Agentforce will be a key growth factor.
Wall Street analysts expect Salesforce, Inc. (NYSE:CRM) to post adjusted earnings of $2.55 per share during Q1 FY2026, flat year-over-year. The revenue is projected to be around $9.75 billion, up 6% from a year ago, driven by Agenforce adoption and Data Cloud. Both earnings and revenue are anticipated to miss consensus estimates by a slight margin, due to higher R&D for Agentforce 2.0 and tariff costs.
11. Eli Lilly and Company (NYSE:LLY)
No. of Billionaire Holders: 23
No. of Hedge Fund Holders: 115
Eli Lilly and Company (NYSE:LLY) is a leading medicine company which discovers, develops, manufactures, and markets products in the pharmaceutical products segment. The company recently released new trial data showing its weight loss drug, Zepbound, posted stronger results than its peer’s drug Wegovy.
Eli Lilly and Company (NYSE:LLY) reported strong financial results during the first quarter of 2025, driven by the sales of its weight loss drugs, including Mounjaro and Zepbound. The quarterly sales of Mounjaro and Zepbound were around $3.8 billion and $2.3 billion, a significant increase from a year ago. Overall, the total revenue was around $12.73 billion, up by almost 45% year-over-year and exceeding estimates by $6.85 million. The adjusted earnings came in at $3.34 per share, missing the estimates by $0.12. The EPS was impacted by IP R&D charges, which impacted the earnings by $1.72 per share. For the second quarter, the company expects revenue to be around $13.8 billion and adjusted earnings to be around $4.10 per share, driven by Mounjaro, Zepbound, and Verzenio. Despite the tariff and competitive pressures, analysts expect the company to do better.
On May 2, UBS analyst Trung Huynh reduced the price target on LLY from $1,100 to $1,050. Despite the downgrade in price target, Huynh maintains a Buy rating on LLY.
10. Vistra Corp. (NYSE:VST)
No. of Billionaire Holders: 25
No. of Hedge Fund Holders: 120
Vistra Corp. (NYSE:VST) is a leading retail electricity and power generation company that offers essential energy resources in the U.S. The company has a reliable power generation fleet with a capacity of almost 41,000 MW. Vistra generates power from natural gas, nuclear, coal, solar, and battery energy storage facilities.
On May 8, William Appicelli from UBS raised the price target on VST from $154 to $160, reiterating a Buy rating on the stock. Appicelli upgraded the price target following a solid Q1 and the company’s update on the groundwork for promising projections for its EBITDA in 2026. The management targets a $6 billion EBITDA by 2026, driven by growing data center demand. Vistra’s adjusted EBITDA for Q1 2025 reached $1.24 billion, posting a 53% growth year-over-year.
Vistra Corp. (NYSE:VST) has hedged nearly 95% of its expected generation for 2025 and 2026, giving stability and resilience against market vulnerability. Analysts anticipate the Texas legislative session to overcome major legal obstacles for long-term nuclear power purchase agreements. This will assist Vistra’s future growth trajectory. On top of that, the company is working on its solar energy projects, including collaborations with Amazon and Microsoft. The company expects these projects to add nearly 600 MW of renewable capacity to its portfolio.
9. Netflix, Inc. (NASDAQ:NFLX)
No. of Billionaire Holders: 25
No. of Hedge Fund Holders: 144
Netflix, Inc. (NASDAQ:NFLX) is a provider of entertainment services and a global leader among OTT platforms. Netflix acquires, licenses, and produces content, including original programming. The company has paid memberships of over 310 million in more than 190 countries.
During Q1 2025, Netflix, Inc. (NASDAQ:NFLX) posted strong results with revenue of $10.54 billion, up by 12.5% year-over-year and exceeding estimates by $39.44 million. The company’s ad revenue soared over 50% from a year ago, driven by live events. The adjusted earnings came in at $6.61, beating consensus estimates by $0.93 per share. Analysts expect the company to post revenue of around $11 billion and EPS of $6.34 in Q2, though Trump’s proposed 100% tariff on foreign-produced films poses risks.
On May 7, BMO Capital Markets analyst Brian Pitz maintained an Outperform rating on NFLX and kept a price target of $1,200. Pitz highlighted that Netflix’s upgrade of the TV app now offers real-time, personalized recommendations based on users’ viewing. The analyst also pointed to Netflix’s use of AI across its platform to improve content suggestions. This could attract a broader user base and enhance customer retention, added Pitz.
8. Broadcom Inc. (NASDAQ:AVGO)
No. of Billionaire Holders: 25
No. of Hedge Fund Holders: 161
Broadcom Inc. (NASDAQ:AVGO) is a leading global technology firm that designs, develops, and supplies different types of semiconductors, enterprise software, and security solutions. Broadcom operates through two segments: semiconductor solutions and infrastructure software. AVGO shares soared over 13% as tech stocks rallied following the U.S. and China announcing tariff cuts by 115 percentage points for 90 days.
On May 8, Stacy Ragson from Bernstein reiterated a Buy rating on AVGO with a price target of $250. The analyst maintains a positive outlook on AVGO after the company achieved revenue and earnings surprise during Q1. The company is making progress in AI, as its AI revenue saw a huge surge in Q1, soaring over 77% year-over-year to $4.1 billion, exceeding the guidance of $3.8 billion. Broadcom is making key R&D investments in AI, including the development of the industry’s first 2-nanometer AI XPU. Moreover, the integration of VMware and transition to subscription-based models have been a major boost, as it helped 47% revenue growth for infrastructure software in Q1. The 90-day tariff slash will improve quarterly outcomes further in Q2, driven by these major developments in AI and infrastructure.
Mar Vista US Quality Select Strategy maintains a positive long-term outlook on the company and stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its Q1 2025 investor letter:
“We maintain a positive outlook on Broadcom Inc. (NASDAQ:AVGO) shares, despite recent stock price pressure stemming from two key concerns: (1) uncertainty around potential tariffs and the impact on global growth, and (2) investor skepticism regarding the return profile of large-scale AI capex investments by hyperscalers. This skepticism has been amplified by the efficiency gains recently demonstrated by DeepSeek, an unknown Chinese software company, which developed a competitive large language model at a much lower cost. These efficiency gains stoked fears that hyperscalers may have overbuilt AI infrastructure.
Broadcom maintains a strong competitive position in the custom AI ASIC market, as well as a disciplined capital allocation, most recently reflected in the VMWare acquisition. That deal is already delivering better than-expected top-line growth and margin expansion. Broadcom is the leading provider of custom AI ASICs and has been steadily diversifying its customer base beyond its initial anchor client, Alphabet. Many hyperscalers are interested in developing custom ASICs, which are tailored to specific computing tasks, given their lower costs and attractive performance attributes relative to general-purpose GPUs from providers like NVIDIA.
While we remain constructive on Broadcom’s long-term prospects, we did trim our position earlier in the quarter at higher levels to reallocate capital toward a more favorable risk-reward opportunity. Nonetheless, Broadcom remains a core holding in our portfolio and offers an attractive margin of safety. We believe the company is well-positioned to grow intrinsic value by +20% over the intermediate term.”
7. Visa Inc. (NYSE:V)
No. of Billionaire Holders: 26
No. of Hedge Fund Holders: 181
Visa Inc. (NYSE:V) is a multinational payment card service provider. Visa provides various payment-related services and products to its consumers. The company serves more than 200 countries, accounting for billions of transactions each year.
During Q2 FY2025, Visa Inc. (NYSE:V) surpassed both the revenue and earnings estimates. The revenue came in at $9.59 billion, up 9% year-over-year and exceeding estimates by $45.32 million. The adjusted earnings were reported at around $2.76 per share, beating estimates by $0.08. Visa Direct processed nearly 2.3 billion transactions in Q2, a 20% growth from a year ago. The increase in transaction volume was driven by partnerships such as Klarna and Afterpay expanding Buy Now, Pay Later (BNPL). Visa continues to grow its acceptance network, expanding over 1 million merchant locations in major markets including India, Mexico, and Brazil.
On May 7, Iris Gao from DBS reiterated a Buy rating on Visa with a price target of $400. The analyst remains optimistic regarding Visa as the company continues to be a leader in payment card services.
6. NVIDIA Corporation (NASDAQ:NVDA)
No. of Billionaire Holders: 29
No. of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA) is the leader in the AI space and specializes in AI-driven solutions. It provides products and services for data centers, self-driving cars, robotics, and cloud services. The tariff cut on China and the new supply chain agreements in the Middle East can be a big deal for the company. The U.S. administration’s development towards establishing agreements with UAE-based G42 and Saudi Arabia’s HUMAIN could accelerate Nvidia’s growth, aligning with moves to ease export controls on AI technology. Nvidia’s strategic positioning in the Middle East presents a promising opportunity for it.
NVIDIA Corporation (NASDAQ:NVDA) surpassed both revenue and earnings estimates for the fourth quarter of fiscal 2025. The company posted a record quarterly revenue of $39.3 billion, beating estimates by $1.19 billion. The adjusted earnings were around $0.89, surpassing the consensus by $0.04. The demand for Nvidia’s Blackwell AI supercomputers was robust and added billions in revenue in its debut quarter.
On May 12, UBS reiterated a Buy rating on NVDA, cutting the price target from $180 to $175 per share. The firm mentioned that Nvidia seems promising following the Taiwan Ministry of Finance’s release of April export data. Despite the price target reduction, the firm has confidence in Nvidia’s market position and potential for growth. Wedbush analyst Dan Ives recently mentioned that he sees one clear winner in the easing of trade tensions. “It would have to be Nvidia,” Ives told Yahoo Finance in an interview. The analyst says that the broader tariff relief rally in tech, along with the AI investment cycle, creates a “dream scenario” for the AI chip maker.
“I think [the stock] makes … new all-time highs because there’s only one chip in the world fueling the AI revolution, and that’s led by [the] godfather of AI, Jensen, and Nvidia,” Ives said.
5. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
No. of Billionaire Holders: 30
No. of Hedge Fund Holders: 186
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a Taiwan-based company that designs and manufactures semiconductors. The company targets various end markets, including high-performance computing, Internet of Things (IoT), smartphones, automotive, and digital consumer electronics. TSM sells its chips and semiconductor equipment to leading tech companies worldwide, including Nvidia, AMD, Apple, Broadcom, Marvell, and Qualcomm, among others.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) overcame the smartphone seasonality challenges and an earthquake. During Q1 2025, the company posted $25.78 billion in revenue, beating estimates by $59.12 million. TSM experienced strong demand for its 7-nanometer and below category wafers, as the advanced technologies segment accounted for 73% of the wafer revenue. The company expects a 13% increase in Q2 revenue from Q1, driven by robust demand for 3- and 5-nanometer technologies. On top of that, the company plans to double its CoWoS capacity in 2025 to meet the growing AI-related demand. The company has also announced an additional $100 billion investment plan to expand its capacity in Arizona. This shows TSM’s commitment to meeting growing customer demand and providing a safe passage against the tariffs.
On April 28, BofA analyst Brad Lin maintained its Buy rating on TSM, keeping the price target at $220. Lin remains optimistic regarding TSM’s future following the company’s 2025 Technology Symposium in North America. The company demonstrated its unwavering dedication to tech leadership, breakthrough innovations in AI, and its growing footprint in the automotive and IoT sectors.
4. Alphabet Inc. (NASDAQ:GOOGL)
No. of Billionaire Holders: 33
No. of Hedge Fund Holders: 234
Alphabet Inc. (NASDAQ:GOOGL) is a holding company that operates through subsidiaries. The company provides web-based searches, advertisements, enterprise solutions, software applications, commerce, and hardware products. Google has recently announced its AI Futures Fund, a new initiative that will invest in startups that are building with the latest AI tools from Google DeepMind.
Alphabet Inc. (NASDAQ:GOOGL) reported another strong quarter with revenue of $90.23 billion during Q1 2025, beating estimates by $1.08 billion. The company posted adjusted earnings per share of $2.81, exceeding consensus estimates by $0.80. The strong results were driven by robust performance across Google Search, YouTube ads, and Google Cloud. The cloud revenue soared 28% year-over-year to $12.3 billion, driven by AI Infrastructure and Generative AI demand.
On May 12, Gil Luria from D.A. Davidson downgraded the rating on GOOGL from Neutral to Hold, keeping the price target at $160. Luria addressed Google’s current issues with the Department of Justice (DOJ) and the ongoing antitrust case. The analyst believes that Google is headed toward a “passive-aggressive” spin-off of its Network and potentially Chrome/Android divisions. Luria mentioned that the company will try to appease the DOJ, however, the debate over Google Search will not end anytime soon. Luria also pointed out that the eventual break-up could turn out to be a net positive for Google. Evercore ISI holds an Outperform rating with a price target of $205, following strong quarterly results and robust demand for cloud business.
3. Meta Platforms, Inc. (NASDAQ:META)
No. of Billionaire Holders: 36
No. of Hedge Fund Holders: 262
Meta Platforms, Inc. (NASDAQ:META) is one of the tech giants that connects people and shares, finds communities, and grows businesses. The company’s main business lies in its advertisements on its platforms, including Instagram, Facebook, WhatsApp, Facebook, Messenger, and Thread.
Meta Platforms, Inc. (NASDAQ:META) posted the best financial results among the Mag 7 stocks, as famous investor Stephanie Link addressed recently on CNBC. Link, a Chief Investment Strategist at Hightower, has recommended investors to buy META. Driven by AI utilization, “time spent on Face increased 7%,” Link highlighted. Similarly, Instagram saw a 6% rise in the first quarter. She further added that META is monetizing AI, and that is why it is a Buy.
Meta Platforms, Inc. posted $42.31 billion in revenues during Q1 2025, exceeding estimates by $952.58 million. The adjusted earnings came in at $6.43, surpassing consensus by $1.22. On May 5, Doug Anmuth from JP Morgan upgraded the price target on META from $610 to $675, keeping an Overweight rating. Anmuth is bullish on the future prospects of the company after its strong quarterly outcomes.
2. Microsoft Corporation (NASDAQ:MSFT)
No. of Billionaire Holders: 39
No. of Hedge Fund Holders: 317
Microsoft Corporation (NASDAQ:MSFT) is another tech giant that develops and supports software, services, devices, and solutions. Microsoft is one of the top firms investing in AI and cloud computing. The company’s cloud business generates the most revenue.
Microsoft Corporation (NASDAQ:MSFT) reported yet another strong quarter with a net revenue of $70.07 billion, surpassing estimates by $1.62 billion. The revenue was driven by cloud business, which experienced a 22% increase year-over-year in constant currency, driven by strong demand for cloud and AI offerings. Azure and other cloud services revenue soared 33% from a year ago. Moreover, Microsoft 365 Copilot usage tripled year-over-year, reflecting the robust adoption of AI-based productivity tools.
On May 13, Mark Murphy from JP Morgan reiterated an Overweight rating on MSFT, keeping the price target at $475 after a recent upgrade following the earnings. The analyst remains bullish on MSFT following strong quarterly outcomes, especially in its Azure cloud services.
1. Amazon.com, Inc. (NASDAQ:AMZN)
No. of Billionaire Holders: 40
No. of Hedge Fund Holders: 339
Amazon.com, Inc. (NASDAQ:AMZN) is a leading technology company with the largest e-commerce network and cloud computing business in the world. Amazon is engaged in various businesses, from services including digital streaming to AI solutions, and more.
Amazon.com, Inc. (NASDAQ:AMZN) surpassed both revenue and earnings estimates in the first quarter of 2025. The company posted revenue of around $155.67 billion, up from an estimated $155.12 billion. The adjusted earnings were around $1.59, exceeding estimates by $0.23. The strong quarterly results were driven by high demand for AWS, which saw a 17% year-over-year growth, recording a $117 billion annualized revenue run rate. The company’s advertising revenue came in at $13.9 billion, growing by 19% from a year ago.
On May 12, Bank of America analyst Justin Post reiterated a Buy rating on AMZN with a price target of $230. The analyst pointed out that despite Azure getting traction in Q1, AWS sales remain intact.
While we acknowledge the potential of AMZN to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that has gone up since the beginning of 2025, while popular AI stocks have lost around 25%. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks To Invest In According to Billionaires.
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