In this article, we will take a look at the 5 Best Blue Chip Stocks to Buy Now. For a deeper discussion and analysis, have a look at the 15 Best Blue Chip Stocks to Buy Now.
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5. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Holders: 118
Bank of America Corporation (NYSE:BAC) is one of the world’s leading financial institutions, serving individuals, small- and middle-market businesses, large corporations, and governments with a full range of banking, investment management, and other financial and risk management products and services.
On April 7, UBS trimmed its price target on Bank of America Corporation (NYSE:BAC) from $67 to $62, but kept its ‘Buy’ rating on the shares. The revised target still indicates an upside potential of 18% from the current share price.
The update comes as UBS revised its targets in the large-cap banks and consumer finance group ahead of the Q1 earnings season. The firm stated that even after it lowered its expected rate cuts from two to one in 2026, its forecasts for 2026 and 2027 remain largely the same. According to the firm, the sector’s year-to-date selloff could create some opportunities, especially given the strong momentum in direct lending, capital markets, and deregulation for the industry.
Bank of America Corporation (NYSE:BAC) is targeting a growth of roughly 7% YoY in net interest income in Q1 2026. Meanwhile, the company expects its NII to grow by 5% to 7% for the full-year 2026, when compared to last year.
4. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 145
UnitedHealth Group Incorporated (NYSE:UNH) is a health care and well-being company with team members in two distinct and complementary businesses – its insurance wing, UnitedHealthcare, and its health services segment, Optum.
On April 7, BofA analyst Kevin Fischbeck raised the firm’s price target on UnitedHealth Group Incorporated (NYSE:UNH) from $315 to $337, while maintaining a ‘Neutral’ rating on the shares. The revised target indicates an upside of over 10% from the current levels.
The update comes as BofA increased its price target for several managed care companies, pointing to improved multiples after CMS finalized Medicare Advantage rates for next year, as the rule provides visibility on 2027 rates. According to the analyst firm, the net rate increase of 2.48% exceeded expectations, topping the high end of the 1% to 2% improvement that the market had projected.
Similarly, the analysts over at Raymond James also turned bullish on UnitedHealth Group Incorporated (NYSE:UNH) earlier this month, upgrading the stock from ‘Market Perform’ to ‘Outperform’ (read the details here).
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 256
Meta Platforms, Inc. (NASDAQ:META) engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) headsets, and AI glasses. Its core business includes platforms like Facebook, Instagram, WhatsApp, and Messenger.
On April 9, KeyBanc trimmed its price target on Meta Platforms, Inc. (NASDAQ:META) from $855 to $760, while maintaining an ‘Overweight’ rating on the shares. The lowered target, which still indicates an upside of around 20% from the current levels, reflects a more conservative multiple amid market volatility.
The move comes after Meta Platforms, Inc. (NASDAQ:META) unveiled Muse Spark, its first artificial intelligence model from the costly superintelligence team it assembled last year to catch up with rivals in the AI race. According to the analyst, this model indicates that Meta Superintelligence Labs has made meaningful progress over the last 9 months and provides a look at the tech giant’s vision of consumer AI.
Combined with practical AI applications for Manus integrations and progress with ranking models, Keybanc believes that the market is underestimating the platform’s stickiness both for consumers and advertisers. Additionally, the recent ad checks have increased the firm’s confidence in a medium-term growth algorithm of over 20%.
Meta Platforms, Inc. (NASDAQ:META) was also recently downgraded by Erste Group (see the details here).
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 312
Microsoft Corporation (NASDAQ:MSFT) is engaged in developing and marketing software, services, and hardware that deliver new opportunities, greater convenience, and enhanced value to people’s lives.
On April 10, BNP Paribas analyst Stefan Slowinski lowered the firm’s price target on Microsoft Corporation (NASDAQ:MSFT) from $659 to $556, but maintained an ‘Outperform’ rating on the shares. The trimmed target, which still indicates an upside potential of almost 50% from the current share price, comes ahead of the company’s upcoming Q3 2025 report due on April 29.
BNP Paribas revised its estimates to reflect the additional 40% capacity being allocated towards first-part workloads, as well as the higher cash capital expenditures. The reduced valuation multiple also accounts for a broader de-rating in the software industry.
Microsoft Corporation (NASDAQ:MSFT) is targeting a revenue of $80.65 billion to $81.75 billion in Q3, indicating a growth of 15% to 17% amid the accelerating AI cloud demand and Copilot seat growth. It needs mentioning that the company also grew its revenue by 17% YoY to $81.3 billion in the second quarter.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 381
Topping our list of the Best Blue Chip Stocks to Buy Now is Amazon.com, Inc. (NASDAQ:AMZN). The company provides a broad selection, value, and convenience across a range of customer experiences, including online shopping, cloud computing, streaming entertainment, consumer electronic devices, advertising, healthcare, AI services, and more.
On April 9, Amazon.com, Inc. (NASDAQ:AMZN) announced plans to expand its data center footprint in Mississippi, bringing its investment in the state to $25 billion. The expansion includes an additional $11 billion investment in Madison County and a $1 billion investment to convert a former Delphi manufacturing plant to a data center facility in Hinds County.
The development comes after Amazon.com, Inc. (NASDAQ:AMZN) broke ground on its first data center in Madison County in 2024, followed by a $3 billion planned investment in Warren County. According to the company, the latest expansion will create over 2,000 jobs in the Magnolia State, providing a boost to the local economy and workforce.
David Zapolsky, Chief Global Affairs and Legal Officer at Amazon.com, Inc. (NASDAQ:AMZN), commented:
“Amazon’s $25 billion investment in Mississippi to build data centers will create 2,000 high-skilled jobs and bring new energy generation to the grid. We’re covering all our energy expenses, increasing our investment in Madison County, expanding into Warren County, and transforming a former manufacturing plant in Hinds County—producing reliable infrastructure that will serve Mississippi for generations. Governor Reeves and local leaders have been outstanding partners, and we’re just getting started.”
Amazon.com, Inc. (NASDAQ:AMZN) is targeting to spend about $200 billion in capital expenditures in FY 2026, with a big portion of it invested in AWS, given the high demand.
While we acknowledge the potential of AMZN as an investment, 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 the cheapest AI stock.
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