In this article, we are going to look at the 5 Best Fundamental Stocks to Invest in According to Billionaires. For a longer list and more details on how we picked these stocks, you can go to 10 Best Fundamental Stocks to Invest in According to Billionaires.
5. Moody’s Corporation (NYSE:MCO)
Number of Billionaire Investors: 28
Number of Hedge Fund Holders: 91
3-year Revenue Growth: ~13.2%
3-year EPS Growth: ~23.1%
Moody’s Corporation (NYSE:MCO) is one of the Best Fundamental Stocks to Invest in According to Billionaires. On April 22, Wolfe Research lifted the price objective on the company’s stock to $535 from $525 and maintained an “Outperform” rating. Notably, this target price reflects an increase of ~17.3% from the price of $456.05. Notably, MA (Moody’s Analytics) ARR growth was largely stable in Q1 2026 at 8%. There was continued healthy recurring revenue growth in Banking and KYC. Notably, the firm placed its year-end 2026 price target at ~28x – 29x its CY 2027 adjusted EPS estimate of $18.85.
Moody’s Corporation (NYSE:MCO) stated that both MIS and MA saw healthy results in Q1 2026 amidst sustained growth and healthy operating leverage. MIS (Moody’s Investors Service) witnessed record revenues of $1.2 billion on more than $2 trillion in rated issuance. It also posted an adjusted operating margin of 67%.
Amidst the acceleration of AI adoption, there has been increased demand for Moody’s decision-grade connected intelligence in high-stakes environments.
Moody’s Corporation (NYSE:MCO) is an integrated risk assessment firm.
4. ServiceNow, Inc. (NYSE:NOW)
Number of Billionaire Investors: 31
Number of Hedge Fund Holders: 118
3-year Revenue Growth: ~22.3%
3-year EPS Growth: ~62.4%
ServiceNow, Inc. (NYSE:NOW) is one of the Best Fundamental Stocks to Invest in According to Billionaires. On April 22, the company announced financial results for Q1 2026, with subscription revenues reaching $3,671 million, reflecting 22% YoY growth and 19% growth in constant currency. As of March 31, 2026, ServiceNow, Inc. (NYSE:NOW)’s current remaining performance obligations (cRPO) amounted to $12.64 billion, up by 22.5% YoY and 21% in constant currency.
Furthermore, ServiceNow, Inc. (NYSE:NOW) had 16 transactions with more than $5 million in net new annual contract value in Q1 2026, which reflects ~80% YoY growth. It closed the quarter with 630 customers with over $5 million in ACV, reflecting ~22% YoY growth. Notably, the early close of the company’s Armis acquisition significantly expands the TAM and ramps up the subscription revenue growth trajectory.
For 2026, ServiceNow, Inc. (NYSE:NOW) raised its subscription revenues by $205 million at the midpoint to $15.735 billion – $15.775 billion. This reflects 20.5% – 21% YoY growth on a constant currency basis.
ServiceNow, Inc. (NYSE:NOW) offers cloud-based and AI-embedded end-to-end workflow automation solutions.
3. Netflix, Inc. (NASDAQ:NFLX)
Number of Billionaire Investors: 34
Number of Hedge Fund Holders: 146
3-year Revenue Growth: ~13.6%
3-year EPS Growth: ~49.3%
Netflix, Inc. (NASDAQ:NFLX) is one of the Best Fundamental Stocks to Invest in According to Billionaires. Netflix, Inc. (NASDAQ:NFLX) released results for Q1 2026, with revenue growing 16% YoY (14% on FX neutral basis). This was mainly aided by membership growth, increased pricing, and higher ad revenue. The company stated that revenue was marginally above its forecast because of higher-than-forecasted membership growth as well as favorable F/X movements net of hedging.
Netflix, Inc. (NASDAQ:NFLX)’s diluted EPS for Q1 2026 came in at $1.23 compared to $0.66 in Q1 2025, above the company’s forecast of $0.76. This was aided by higher-than-projected operating income and the $2.8 billion termination fee associated with the Warner Bros. transaction. This was recognized in “interest and other income.”
Netflix, Inc. (NASDAQ:NFLX) expects revenue of $50.7 billion – $51.7 billion for FY 2026, reflecting 12% – 14% growth. This will be aided by continued strong membership growth, pricing, as well as projected rough doubling of the ads revenue.
2. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Billionaire Investors: 35
Number of Hedge Fund Holders: 132
3-year Revenue Growth: ~13.6%
3-year EPS Growth: ~46.6%
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the Best Fundamental Stocks to Invest in According to Billionaires. On April 24, DA Davidson upgraded the company’s stock to “Buy” from “Neutral” and increased the price objective to $375 from $220. The firm’s analyst highlighted a structural rise in CPU demand and improved visibility into Advanced Micro Devices, Inc. (NASDAQ:AMD)’s role in the broader data center buildout.
Starting the March quarter, the firm’s analyst expects strong upside to the company’s estimates. Furthermore, the firm believes that stronger-than-expected results from Intel hint that the broader CPU market is reaccelerating. The firm believes that Intel’s performance gives an early sign of the significant step-up for Advanced Micro Devices, Inc. (NASDAQ:AMD)’s CPU franchise. The transition towards agentic AI workloads continues to result in strong demand for server CPUs.
Advanced Micro Devices, Inc. (NASDAQ:AMD) remains well-positioned to increase prices throughout the portfolio amidst expectations of demand outpacing supply.
Advanced Micro Devices, Inc. (NASDAQ:AMD) happens to be a leading semiconductor company. It specializes in high-performance computing and graphics solutions.
1. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Billionaire Investors: 49
Number of Hedge Fund Holders: 224
3-year Revenue Growth: ~21.6%
3-year EPS Growth: ~24.1%
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the Best Fundamental Stocks to Invest in According to Billionaires. On April 22, Reuters reported that the company is targeting to open a chip packaging plant in Arizona by 2029. Modern AI chips, like the ones made by Nvidia, are not single chips. These are several chips that are brought together, possessing advanced packaging technologies, Reuters said. This step has become a supply bottleneck for Nvidia and other companies.
Reuters, while quoting Kevin Zhang (Deputy co-chief operations officer and Senior vice president), noted that Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) plans to build a CoWoS capability and 3D-IC capability before 2029. Here, the key personnel pointed to 2 of the company’s packaging technologies, which are in high demand.
In 2024, Amkor and Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stated that they will work together in bringing several of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s advanced packaging technologies to Arizona. The technology discussions of both companies are ongoing, noted Reuters while quoting Zhang.
Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) is the leading semiconductor foundry, which is engaged in the manufacturing of semiconductor chips.
While we acknowledge the potential of TSM 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 TSM and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 10 Best FMCG Stocks to Invest In According to Analysts and 11 Best Long-Term Tech Stocks to Buy According to Analysts.
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