In this article, we will take a look at some of the high growth mega cap stocks you can buy and hold for the next 3 years.
These days, everyone’s into big names. Perhaps because they make the headlines or provide both stability and reliability. Well, there are countless reasons to invest in such stocks, with some weighing heavily on the attractiveness of other, more emerging, stocks.
Mega-cap stocks, as the name suggests, are the stocks of the largest publicly traded companies in the market, usually with a market capitalization of $200 billion or more. From protection during turbulent times to strong fundamentals, the benefits of investing in these stocks are plenty.
Many equity market observers have noticed that the earnings growth among the largest companies in the S&P 500 has improved over the years. As stated by research analyst, Saketh Reddy:
“Ten years ago, the top 50 market cap stocks had an average projected long-term earnings growth rate of 11.7%, compared to 10.0% for the rest of the index. Today, that gap has widened. The top 50 boast 12.7%, while the rest have declined to 9.3%.”
Our Methodology
We have compiled a list of 15 high growth mega cap stocks you can buy and hold for the next 3 years. Using Finviz stock screener, we have selected stocks that have a market capitalization of $200 billion or more, upside potential, and over 15% EPS growth for the next 5 years. The stocks are ranked in ascending order according to the number of hedge fund holdings in them, as data extracted from Insider Monkey’s Q2 2025 database.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
15. SAP SE (NYSE:SAP)
Number of Hedge Fund Holdings: 32
Goldman Sachs Group Inc. expanded its holdings in SAP SE (NYSE:SAP) by 6.5% through the purchase of 80,164 shares, according to the latest filing with the SEC. The leading global investment bank now owns 1,318,908 shares of the company’s stock, valued at $354,048,000.
We already know that SAP SE (NYSE:SAP) is among the largest software global companies, but what’s even more interesting is that the company is perhaps the top name in ‘systems of record’. Although the giant has recently witnessed a price dip, the 3-year return delivered by the company surpasses the market’s return by an impressive 119.30%.
Despite the company being late in joining the AI race, the giant is now fully focused on addressing what slowed it down. When it comes to crucial data, SAP SE (NYSE:SAP) is trusted like no other by large companies, so we know for a fact that it’ll be difficult to replace such a company.
SAP SE (NYSE:SAP), founded in 1972, is a provider of enterprise applications and business solutions. The core offerings of this German company include SAP S/4HANA, SAP SuccessFactors, SAP Business Technology Platform, and SAP Business Network.
14. Blackstone Inc. (NYSE:BX)
Number of Hedge Fund Holdings: 72
Anchor Investment Management LLC increased its holdings in Blackstone Inc. (NYSE:BX) by 275.4% in the first quarter, according to the latest 13F filing with the SEC. Following the purchase of 6,500 shares, the investment advisor now owns 8,860 shares of the company’s stock worth $1,238,000.
With a solid track record and a stellar management team, Blackstone Inc. (NYSE:BX) offers what very few do. In the last five years, the company has delivered 318.99%, a return that is nearly 3.3 times the market’s. While today many associate risk with the stock rather than reward, the company’s classic products, including BREIT and BXPE, are well-positioned to capitalize on the surge in retail and pension demand for private assets, thus driving its long-term growth.
Earlier last week, Blackstone Inc. (NYSE:BX) presented at the Barclays 23rd Annual Global Financial Services Conference, where management highlighted its confidence in the insurance space, which it called “a winning model”. Under the lowest risk, the open architecture multi-client model sets the company up to capture a $40 trillion global insurance market.
Blackstone Inc. (NYSE:BX) is a New York-based alternative asset management firm focusing on private equity, hedge fund solutions, and credit, among others. Founded in 1985, the company is committed to building sustainable businesses for long-term value.
13. T-Mobile US, Inc. (NASDAQ:TMUS)
Number of Hedge Fund Holdings: 76
A key shareholder in T-Mobile US, Inc. (NASDAQ:TMUS), Deutsche Telekom AG, sold 136,080 shares of common stock. Under a pre-arranged 10b5-1 trading plan, the transaction resulted in proceeds of approximately $33.7 million.
From strong operating cash flow growth to rising margins, T-Mobile US, Inc. (NASDAQ:TMUS) is in the right direction for new all-time highs in the near future. While slightly outperforming the market, the company has strong customer metrics. This seems quite extraordinary in today’s weakening U.S. consumer spending economy.
During its latest presentation at the Goldman Sachs Communacopia + Technology Conference 2025, the management highlighted its focus on three main things: profitable industry-leading growth, assertive growth, and overall growth in the near, medium, and long terms. As long as T-Mobile US, Inc. (NASDAQ:TMUS) sticks to what has been promised, we have a good reason to believe in the stock.
T-Mobile US, Inc. (NASDAQ:TMUS) is a Washington-based company that offers wireless communications services across the United States, Puerto Rico, and the United States Virgin Islands. Incorporated in 1994, the company is committed to delivering both value and experience.
12. ASML Holding N.V. (NASDAQ:ASML)
Number of Hedge Fund Holdings: 78
According to the latest disclosure with the SEC, SCS Capital Management LLC has increased its stake in ASML Holding N.V. (NASDAQ:ASML) through the purchase of 706 shares, valued at $468,000.
Earlier, on September 9, 2025, ASML Holding N.V. (NASDAQ:ASML) announced a €1.3 billion investment in Mistral AI, making it the French startup’s largest shareholder. Europe’s largest AI deal forms a strategic collaboration between the two, with ASML working towards integrating Mistral’s AI models in its R&D operations and product offerings. This will enable the company to leverage the AI platform’s expertise to enhance lithography and other processes, thereby facilitating innovation in semiconductor and AI technologies.
Overall, ASML Holding N.V. (NASDAQ:ASML) remains a leading player, with the company’s 5-year return surpassing the market’s return by 72.93%. Some even consider the company to be too cheap to be ignored, given its healthy earnings growth, strong market footing, and robust AI-fueled demand.
ASML Holding N.V. (NASDAQ:ASML) is a Netherlands-based lithography solutions provider for advanced semiconductor equipment systems. Founded in 1984, the company is committed to solving the toughest challenges. The giant’s core offerings include lithography, metrology, and inspection systems.
11. AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Holdings: 89
Evan Seigerman, an analyst at BMO Capital, increased the price target on AbbVie Inc. (NYSE:ABBV) to $240 from $215 with an ‘Outperform’ rating. This potential upside of nearly 10% follows the company’s announcement that it has resolved litigation with generic drugmakers, allowing for the early market entry of generic Rinvoq.
Many believe that generic competition market entry won’t occur until 2037, four years after the 2033 expiration of the composition of matter patent. This will not only aid AbbVie Inc. (NYSE:ABBV) in surpassing expectations but also make it a top biotech pick. Even today, if we consider the year-to-date return delivered by the company, it outperforms the market by a healthy 14.31%.
From the EU-US deal on pharmaceuticals and expansion of its neuroscience portfolio through Gilgamesh’s bretisilocin acquisition to an overall improved guidance, there’s no doubt the company is among the best stocks to hold for the upcoming years. These positives point to just one thing: AbbVie Inc. (NYSE:ABBV) is onto something big.
AbbVie Inc. (NYSE:ABBV) is an Illinois-based research-focused biopharmaceutical company that provides medicines and therapies internationally. The core offerings of the company include Humira, Skyrizi, Rinvoq, Imbruvica, and Epkinly.
10. GE Aerospace (NYSE:GE)
Number of Hedge Fund Holdings: 100
On Friday, the United Auto Workers announced that it had signed a tentative five-year agreement with GE Aerospace (NYSE:GE) regarding employees at the company’s Evendale, Ohio, and Erlanger, Kentucky, facilities.
From job security and bonus vacation days to health care expenses, the deal covers all. Under the contract, GE Aerospace (NYSE:GE) has committed to bear almost all premium increases over the contract term. Apart from that, the union highlighted the inclusion of minimum staffing levels and new work for both sites.
This step became necessary because in August, as many as 600 workers called for a strike advocating for stronger protections and benefits. The members are set to vote on ratification on September 19, with picketing continuing until then. This tentative pact has been confirmed by GE Aerospace (NYSE: GE), which expresses its eagerness to strengthen this collaboration.
GE Aerospace (NYSE:GE), operated by General Electric Company, is an Ohio-based company that focuses on commercial and defense aircraft engines, mechanical aircraft systems, and engine components.
9. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holdings: 113
During the first quarter, Advisors Capital Management LLC increased its stake in Advanced Micro Devices, Inc. (NASDAQ:AMD) by 5.7% through the purchase of 2,907 shares. According to the recent disclosure with the SEC, the investment advisor now owns 53,503 shares of the company’s stock, valued at $5,497,000.
The company’s planned 70% price surge for its MI350 AI chips is a testament to its position in the highly profitable AI GPU market. With the giant’s AI solutions gaining traction, Advanced Micro Devices, Inc. (NASDAQ:AMD) is in the right direction to benefit directly as AI expands into personal computers.
Despite a recent slowdown in AI chip demand and aggressive competition from Nvidia and Broadcom, Advanced Micro Devices, Inc. (NASDAQ:AMD) is moving ahead with its AI strategy and maintaining its leadership in CPUs. What’s remarkable here is that the company’s growth outlook could fuel the stock 50% to 100% over the next 12 months. Having said that, now may be the golden opportunity for investors to acquire the stock.
Advanced Micro Devices, Inc. (NASDAQ:AMD), headquartered in Santa Clara, California, is a semiconductor company operating in three segments: Data Center, Client and Gaming, and Embedded. Founded in 1969, the company is committed to driving innovation in the PC, gaming, and data center spaces.
8. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holdings: 119
During the first quarter, eCIO Inc. acquired a new position in Eli Lilly and Company (NYSE:LLY) through the purchase of 886 shares. According to the latest disclosure with the SEC, the firm’s investment in the company is valued at approximately $732,000.
At a time when being lean is the new luxury, Eli Lilly and Company (NYSE:LLY) is doing what it does best. The company is focusing on obesity and type 2 diabetes treatment markets at a speed only a few can match. While the tirzepatide franchise captures the GLP-1 market, the company’s orforglipron, an experimental drug, continues to be more effective than the competitor’s Rybelsus.
The comparative statistics are a testament to the company’s strong market standing, with its 3-year and 5-year returns surpassing the market’s returns by 78.37% and 332.72%, respectively. With confidence around the oral GLP-1 segment, entering a pivotal stage of growth in 2026 onwards, we can only expect Eli Lilly and Company (NYSE:LLY) to outperform.
Eli Lilly and Company (NYSE:LLY) is an Indiana-based company that specializes in human pharmaceuticals. Founded in 1876, the company is committed to making life better for people all over the globe.
7. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holdings: 124
Acadian Asset Management LLC increased its stake in Oracle Corporation (NYSE:ORCL) by 5.3% through the acquisition of 4,398 shares during the first quarter. According to the latest disclosure with the SEC, the firm now owns 87,969 shares of the company’s stock, translating to an investment of $12,294,000.
What’s truly noteworthy is the company’s multi-cloud strategy, collaborations with key AI players, and its enhanced data center footprint. In just one year, Oracle Corporation (NYSE:ORCL) delivered a return of 88.27% in contrast to the market’s mere return of 17.57%. That’s not it. The giant is planning to expand multi-cloud data center locations to 71 to support its database demand, so to say that the future of the company looks equally promising doesn’t do quite justice.
The biggest growth catalyst for Oracle Corporation (NYSE:ORCL) is the shift to inferencing from AI training, highlighting that utilization by enterprises is poised to fuel growth for the company in the years ahead.
Oracle Corporation (NYSE:ORCL), headquartered in Austin, Texas, is a company that provides solutions for enterprise information technology environments. Founded in 1977, the company serves various sectors, including government agencies, educational institutions, and industries.
6. Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holdings: 133
According to the latest Form 13F filing with the SEC, Advisors Capital Management LLC has expanded its holdings in Netflix, Inc. (NASDAQ:NFLX) by 5.0% in the first quarter. With the acquisition of an additional 443 shares, the financial advisory firm now owns 9,222 shares of the company’s stock, valued at $8,600,000.
Last week, Netflix, Inc. (NASDAQ:NFLX) announced its partnership with Amazon Ads (NASDAQ:AMZN) to grant advertisers using Amazon DSP access to its ad inventory. From the United States and the United Kingdom to France, Spain, and Mexico, the offering is set out to reach various markets.
As stated by Netflix’s president of advertising, Amy Reinhard,
“This partnership with Amazon perfectly aligns with our commitment to bringing advertisers even greater flexibility in their buys to achieve their marketing goals.”
Collaborations like this underscore one thing: betting against Netflix, Inc. (NASDAQ:NFLX) isn’t wise. The streaming giant’s dominant scale, pricing power, fierce content spending, and global reach make it the clear leader in the market.
Netflix, Inc. (NASDAQ:NFLX) is a California-based entertainment services company operating in nearly 190 countries. Incorporated in 1997, the company offers television (TV) series, documentaries, feature films, and games.
5. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holdings: 156
Mizuho reaffirmed its ‘Outperform’ rating on Broadcom Inc. (NASDAQ:AVGO) while raising the price target to $410.00 from $355.00, implying a possible surge of nearly 14%. This optimism follows the company’s robust earnings report in which the management also raised the fiscal 2026 AI revenue outlook for the next few years, given the company’s AI portfolio and ScaleOut/Up opportunity.
Amid today’s AI boom, the company’s often-overlooked small components play a huge role in AI infrastructure. The 5-year return delivered by Broadcom Inc. (NASDAQ:AVGO) is nothing short of amazing, with a payoff 11 times greater. Some believe that the company doesn’t have any more room for growth, but for many, the growth has just started. All thanks to XPUs and the Broadcom ecosystem, the tech powerhouse’s moat is now unshakable.
But that’s not it. Broadcom Inc. (NASDAQ:AVGO) thrives on strategic partnerships, with one of particular importance being the deal with OpenAI, which positions the company for long-term growth in AI infrastructure. To say the least, the company is currently among the most compelling investments.
Broadcom Inc. (NASDAQ:AVGO), headquartered in Palo Alto, California, is a developer and supplier of several semiconductor devices and infrastructure software solutions. Founded in 1961, the company operates in two segments: Semiconductor Solutions and Infrastructure Software.
4. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holdings: 187
Integrity Alliance LLC. increased its position in Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) by a whopping 418.6% during the first quarter. According to the latest filing with the SEC, the firm now owns 7,058 shares of the company’s stock, following the purchase of 5,697 shares, worth $1,172,000.
The company’s aggressive reinvestment, solid balance sheet, and leadership in R&D are sending its stock soaring. While the giant’s year-to-date return surpasses the market’s return by 20.85%, the 3-year return delivered by Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) outperforms the market’s by an impressive 171.55%.
The world’s largest contract chip manufacturer didn’t build its strong portfolio overnight; it’s definitely the outcome of management’s commitment to reinvesting heavily in business, and this is what sets Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) apart. Just recently, it announced the launch of an AI chip R&D center in Germany, which is home to AI. With that being said, everything adds up to one thing: the company has a clear strategy and is executing it well.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a Taiwan-based provider of integrated circuits and other semiconductor devices. Incorporated in 1987, the giant is focused on becoming the most trusted technology company.
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holdings: 235
According to the latest disclosure with the SEC, Silicon Valley Capital Partners increased its stake in NVIDIA Corporation (NASDAQ:NVDA) by 23.9% in the first quarter, making the stock its seventh largest position. Following the purchase of 61,476 shares, the investment advisor now owns 318,354 shares of the company’s stock worth $34,914,000.
AI hyperscaler CoreWeave (NASDAQ:CRWV) has announced a $6.3 billion new order form with NVIDIA Corporation (NASDAQ:NVDA), a deal ensuring that the AI chipmaker will buy any unsold cloud capacity through April 13, 2032. Additionally, the recent Nebius/Microsoft deal means that the company is stepping early into an emerging growth market, which will benefit it immensely as hyperscalers are increasingly turning to Neoclouds for GPU rentals. Collaborations like these highlight the company’s position in achieving multi-year growth.
Analysts are already raising FY2027 forecasts, all thanks to leadership in AI compute, the $19 billion Microsoft-Nebius agreement, and sustained hyperscaler CapEx. With NVIDIA Corporation (NASDAQ:NVDA) becoming more profitable, the shareholders will be rewarded through larger buybacks to enhance EPS.
NVIDIA Corporation (NASDAQ:NVDA) is a California-based computing infrastructure company that offers graphics, compute, and networking solutions. Incorporated in 1993, the company is committed to enhancing computing to address the toughest challenges.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holdings: 294
Analysts at Truist Securities have reaffirmed their ‘Buy’ rating on Microsoft Corporation (NASDAQ:MSFT) while maintaining a price target of $675.00, implying an upside of nearly 32%. This confidence stems from the company’s revised partnership agreement with OpenAI.
We’ve all heard about how strong Microsoft Corporation (NASDAQ:MSFT) is as an investment, and well, the stock still doesn’t show any signs of slowing down. Perfectly blending robust growth potential with continued profitability and protection against downside, the company is exceeding expectations. The latest $17.4B Nebius (NBIS) AI infrastructure deal, which secures long-term capacity and sustains abundant free cash flow, is a testament to the company’s glowing outlook.
While the S&P 500 (^GSPC)’s year-to-date return stands at 12.46%, Microsoft Corporation (NASDAQ:MSFT) reports an impressive return of 21.86%. The company enjoys an impenetrable wide moat that is driven by switching costs, network effects, and scale.
Microsoft Corporation (NASDAQ:MSFT), founded in 1975 and headquartered in Redmond, Washington, is a company specializing in software, services, devices, and solutions. With three main segments: Productivity and Business Processes, Intelligent Cloud, and Personal Computing, the company is committed to empowering every person and organization.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holdings: 335
Alta Fox Capital Management LLC has trimmed its stake in Amazon.com, Inc. (NASDAQ:AMZN) by 19.9% during the first quarter. Following the sale of 20,652 shares, the firm now owns 83,000 shares of the e-commerce giant, worth $15,792,000, making the stock its fifth-largest holding.
If there’s one company that is on the brink due to tariff risks, it’s definitely Amazon.com, Inc. (NASDAQ:AMZN). But all thanks to the extended tariff break for Chinese imports, there is a good chance that management will deliver as promised. So for now, if we anchor our analysis on the possible U.S.-China deal, Amazon demonstrates the biggest upside potential among the Mag 7.
The empire that Amazon.com, Inc. (NASDAQ:AMZN) is, each of its segments is performing well. Of particular importance is its subsidiary Zoox, which just launched a driverless ride-hailing service on the Las Vegas Strip, emerging as the first business to operate a fully autonomous service through a purpose-built robotaxi.
Amazon.com, Inc. (NASDAQ:AMZN) is a Washington-based provider of consumer products, advertising, and subscription services via online and physical outlets. Founded in 1994, the company operates through three segments: North America, International, and Amazon Web Services (AWS).
While we acknowledge the potential of AMZN 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 AMZN and that has 100x upside potential, check out our report about this cheapest AI stock.
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