In this article, we are going to look at the 5 Best Monopoly Stocks to Buy According to Hedge Funds. For a longer list and more details on how we picked these stocks, you can go to 12 Best Monopoly Stocks to Buy According to Hedge Funds.
5. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 262
Meta Platforms, Inc. (NASDAQ:META) is one of the Best Monopoly Stocks to Buy According to Hedge Funds. On July 2, Bank of America analyst Justin Post maintained a “Buy” rating on the company’s stock with a price objective of $835. As per the analyst, creating a business that is focused on cloud services or AI infrastructure can result in a new revenue stream.
The bullish view is that Meta Platforms, Inc. (NASDAQ:META) has been developing something valuable. As per the firm, Wall Street expects the tech giant to spend ~$850 billion on capital expenditures between 2026 and 2030. Therefore, if building one gigawatt of AI capacity can cost ~$45 billion, the company can build ~19 gigawatts of computing power.
However, the firm also noted that building a cloud business is not easy. If there are no clear cost or technological advantages, it can be a lower-margin business. Notably, companies such as Amazon and Google took several years to make their respective cloud divisions profitable. Despite the risks and challenges, the firm remains optimistic.
Meta Platforms, Inc. (NASDAQ:META) develops products that allow people to share and connect with their family and friends using PCs, mobile devices, VR headsets, and AI glasses.
4. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 265
Alphabet Inc. (NASDAQ:GOOGL) is one of the Best Monopoly Stocks to Buy According to Hedge Funds. On July 7, Cognizant announced a significant expansion of its partnership with Google Cloud. This further broadens the ways companies bring Gemini Enterprise to clients and deepens Cognizant’s internal use of the technology.
The collaboration is based on the dedicated Gemini Enterprise practice announced in April, with Cognizant and Google Cloud bringing jointly delivered solutions, portfolio of reusable agents as well as certified Cognizant Frontier Certified Engineers. They will work directly within client environments to ramp up the time to value on Gemini deployments.
In a separate release, analyst Laura Martin from Needham maintained a “Buy” rating on Alphabet Inc. (NASDAQ:GOOGL)’s stock and maintained a price objective of $450.00. The rating is backed by the company’s expanding AI strategy and improved fundamentals. The analyst noted Alphabet Inc. (NASDAQ:GOOGL)’s build-out of an enterprise-focused AI ecosystem around Gemini, aided by partnerships with companies such as Cognizant, which continue to embed Gemini into the client workflows and internal processes.
Alphabet Inc. (NASDAQ:GOOGL) is a holding company that operates Google services such as search engines, ad platforms, Internet browsers, devices, mapping software, app stores, video streaming, and more. The company also offers cloud infrastructure and platform services, collaboration tools, and other services for enterprise customers.
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 275
NVIDIA Corporation (NASDAQ:NVDA) is one of the Best Monopoly Stocks to Buy According to Hedge Funds. On July 8, TD Cowen analyst Joshua Buchalter reiterated a “Buy” rating on the company’s stock and the price objective of $275. The analyst opines that NVIDIA Corporation (NASDAQ:NVDA) possesses an underappreciated competitive edge in the next phase of AI. This is because it provides an integrated hardware and software platform, which works seamlessly together. The analyst remains confident that AI spending is durable throughout different applications and customers.
Furthermore, industry-specific AI deployments are expected to be a much larger growth driver over time.
In a separate update, James Schneider, an analyst at Goldman Sachs, believes that NVIDIA Corporation (NASDAQ:NVDA) has been left out of the current rally seen in microchip stocks. This offers an opportunity for investors. The analyst has a “Buy” rating and a price objective of $285.
NVIDIA Corporation (NASDAQ:NVDA) is a fabless semiconductor and AI computing company that designs GPUs, AI accelerators, Application Programming Interfaces (APIs), and system-on-a-chip units. Through its CUDA ecosystem, the company enables industries ranging from autonomous vehicles to scientific research by advancing AI, accelerated computing, and data center infrastructure.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 282
Microsoft Corporation (NASDAQ:MSFT) is one of the Best Monopoly Stocks to Buy According to Hedge Funds. On July 2, CNBC reported that Microsoft Corporation (NASDAQ:MSFT) plans to invest $2.5 billion in a new group. This group focuses on assisting clients with AI implementations. With this, Microsoft Corporation (NASDAQ:MSFT) is the latest tech giant that is committing significant resources to support businesses in understanding and adopting the emerging AI technologies.
With the new venture, called Microsoft Frontier Co., the company stated that 6,000 employees would be embedded with clients, in a practice called forward deployed engineering. The division will have current Microsoft FDEs, technical consultants, support staffers, and salespeople having experience in particular industries.
This comes after Amazon stated that it plans to invest $1 billion towards the FDE initiative to aid fast-paced AI engagements. CNBC further noted that AI labs Anthropic and OpenAI established FDE groups in May, joining hands with PE firms, banks, as well as consulting firms.
Microsoft Corporation (NASDAQ:MSFT) is a global technology company that develops and sells a wide range of software, cloud services, devices, and business solutions, serving both individual users and enterprise customers worldwide.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 353
Amazon.com, Inc. (NASDAQ:AMZN) is one of the Best Monopoly Stocks to Buy According to Hedge Funds. On July 2, Wells Fargo raised its price objective for the company’s stock to $313 from $312, while maintaining an “Overweight” rating. The firm expects a healthy Q2 amidst continued acceleration in AWS. That being said, while the firm anticipates the company to give guidance of operating income which will be above consensus, it expects Q3 revenue guidance to be slightly below the street estimates because of Prime Day timing shift.
The firm expects positive revisions to AWS as well as total company operating income. The new price objective of $313 is on the basis of 30x the firm’s 2027 EPS estimate.
In a separate release, CNBC reported that Amazon.com, Inc. (NASDAQ:AMZN) is planning to garner at least $25 billion via an eight-part bond sale, with the tech giant looking to continue its massive AI buildout.
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 the cheapest AI stock.
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