5 Best Performing S&P 500 Stocks in the Last 10 Years

In this article, we discuss 5 best performing S&P 500 stocks in the last 10 years. If you want to see more stocks in this selection, check out 11 Best Performing S&P 500 Stocks in the Last 10 Years. 

5. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 74

10-Year Share Price Gains as of January 18: 2,060%

Broadcom Inc. (NASDAQ:AVGO) is a California-based semiconductor manufacturer whose products are used in multiple applications like enterprise and data center networking, home connectivity, broadband access, telecommunication equipment, smartphones and base stations, data center servers, storage systems, factory automation, power generation and alternative energy systems, and electronic displays. Broadcom Inc. (NASDAQ:AVGO) is one of the best performing S&P 500 stocks over the last decade. 

Deutsche Bank analyst Ross Seymore on December 14 raised the price target on Broadcom Inc. (NASDAQ:AVGO) to $590 from $575 and maintained a Buy rating on the shares. Heading into 2023, the analyst expects semiconductor investor focus to move to finding a “bottom in both fundamentals and share prices.” 

According to Insider Monkey’s Q3 data, 74 hedge funds were bullish on Broadcom Inc. (NASDAQ:AVGO), compared to 66 funds in the last quarter. Ken Fisher’s Fisher Asset Management is the largest stakeholder of the company, with 1.5 million shares worth $673 million.  

Here is what Carillon Tower Advisers specifically said about Broadcom Inc. (NASDAQ:AVGO) in its Q2 2022 investor letter:

“Tech stocks, including Broadcom Inc. (NASDAQ:AVGO), were one of the hardest-hit sectors due to fears over a weakening macroeconomic environment. Broadcom, however, outperformed semiconductor peers as its end-market exposures provided relatively more defensive characteristics.”

4. Mastercard Incorporated (NYSE:MA)

Number of Hedge Fund Holders: 146

10-Year Share Price Gains as of January 18: 2,240%

Mastercard Incorporated (NYSE:MA), an American financial technology company, is one of the best performing S&P 500 stocks in the last ten years. Mastercard Incorporated (NYSE:MA) shares have exhibited share price gains of 2,240% as of January 18. The company declared on December 6 a $0.57 per share quarterly dividend, a 16.3% increase from its prior dividend of $0.49. The dividend is payable on February 9, to shareholders of record on January 9. 

On January 18, Jefferies analyst Trevor Williams raised the price target on Mastercard Incorporated (NYSE:MA) shares to $430 and maintained a Buy rating on the stock. He has a relative preference for Mastercard Incorporated (NYSE:MA) in 2023 due to its limited exposure to the US, more leverage to APAC, and a path for higher forward estimates.

According to Insider Monkey’s third quarter database, 146 hedge funds were long Mastercard Incorporated (NYSE:MA), compared to 137 funds in the last quarter. Charles Akre’s Akre Capital Management held the biggest stake in the company, comprising 5.8 million shares worth $1.6 billion. 

Ensemble Capital made the following comment about Mastercard Incorporated (NYSE:MA) in its 2022 annual investor letter:

“Mastercard Incorporated (NYSE:MA) (8.43%* weight in fund): Mastercard declined just 1.61% during the Fund’s fiscal year, adding 1.30% to relative performance. After worries last year about Buy Now, Pay Later lenders being disruptive to Mastercard’s payment network provided to be misguided, Mastercard avoided much of the decline in the broader stock market this year. In addition, with inflation worries being the main driver of the market selloff, the company’s inflation resistant business model calmed worried investors.”

3. Advanced Micro Devices, Inc. (NASDAQ:AMD)

Number of Hedge Fund Holders: 89

10-Year Share Price Gains as of January 18: 2,510%

Advanced Micro Devices, Inc. (NASDAQ:AMD) was incorporated in 1969 and is headquartered in Santa Clara, California. It operates as a semiconductor company worldwide. On January 15, while Wall Street was cautious about the entire semiconductor industry, Wells Fargo selected Advanced Micro Devices, Inc. (NASDAQ:AMD) as one of its top chip stocks for 2023 amid pockets of optimism in certain areas of the sector.

On January 11, KeyBanc analyst John Vinh reiterated an Overweight rating on Advanced Micro Devices, Inc. (NASDAQ:AMD) but lowered the firm’s price target on the shares to $80 from $85. His quarterly supply chain findings are mostly negative. However, he continues to see a “soft landing” scenario and believes semiconductor companies are in a much better position to navigate this downturn due to improved visibility, more secular drivers, and better pricing leverage as selective price increases continue.

According to Insider Monkey’s data, 89 hedge funds were long Advanced Micro Devices, Inc. (NASDAQ:AMD) at the end of Q3 2022, compared to 87 funds in the last quarter. Ken Fisher’s Fisher Asset Management is the largest stakeholder of the company, with 19.4 million shares worth $1.2 billion. 

L1 Capital International made the following comment about Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q3 2022 investor letter:

“The share price of Advanced Micro Devices, Inc. (NASDAQ:AMD) was weak during the quarter and weakened further in early October when the pre-announced revenue was significantly below prior guidance, reflecting an acute slowdown in the PC market. Data center related revenue grew strongly, albeit below our expectations, while gaming and embedded revenue was in line with our base case.

Geopolitical risks have increased for the semiconductor sector, with the U.S. Government announcing restrictions on the sale of certain technologies to China. Despite near term headwinds, AMD is well positioned for the medium term, with a technology lead over Intel in servers for data centers and rapidly gaining share in the PC/notebook sectors. Its gaming and embedded applications continue to grow strongly. AMD is a very capital light business, with manufacturing outsourced. After expending nearly $5b on research and development, AMD generates around $5b of free cash flow. With a net cash balance sheet, we expect management will accelerate buyback activity at a share price well below fair value.

The share price of our more cyclical businesses, in particular the building products companies which have exposure to the U.S. residential, repair and renovation and infrastructure sectors, were broadly flat for the quarter. Rapidly escalating mortgage rates and rapidly reducing affordability will have a pronounced negative effect on near term new residential construction activity. We believe these cyclical pressures are well understood and are more than reflected in current share prices. Overall, we strongly believe share prices are overly reflecting near-term challenges and our portfolio of companies are now meaningfully undervalued.”

2. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 88

10-Year Share Price Gains as of January 18: 5,640%

Tesla, Inc. (NASDAQ:TSLA) is one of the best performing S&P 500 stocks in the last ten years, with shares indicating 10-year share price gains of 5,640% as of January 18. On January 17, Tesla, Inc. (NASDAQ:TSLA) stock climbed higher as more Street analysts observed the long-term upside of the recent price cuts even as short-term catalysts are limited due to the hit to margins. The general consensus is that market share gains could be dramatic if EV competitors struggle amid the new pricing environment.

On January 17, Jefferies analyst Philippe Houchois maintained a Buy recommendation on Tesla, Inc. (NASDAQ:TSLA) but lowered the firm’s price target on the shares to $180 from $350. While the analyst believes Tesla, Inc. (NASDAQ:TSLA) is leading the industry towards an improved business model, the trajectory is “bumpier than we would like.” 

According to Insider Monkey’s data, Tesla, Inc. (NASDAQ:TSLA) was part of 88 hedge fund portfolios at the end of September 2022, compared to 73 in the prior quarter. Cathie Wood’s ARK Investment Management is a significant position holder in the company, with 4 million shares worth $1 billion. 

In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Tesla, Inc. (NASDAQ:TSLA) was one of them. Here is what the fund said:

“In 2014, before we began to invest in Tesla (NASDAQ:TSLA), I called Roger to ask whether he thought Elon Musk’s electric car business would succeed. I did not believe that Roger, an owner of dealerships that sell cars powered by internal combustion engines (ICE) would likely have a favorable opinion of Tesla’s prospects. That was principally for two reasons:

First, automobile manufacturing and distribution is unusually complicated, capital intensive, and highly regulated, which makes profitability problematic; second, cars with ICE motors require extensive annual maintenance, and dealer services revenues, not profits from automobile sales, are the most important contributor to profits of perpetual licensed ICE car dealerships.

Penske Automotive Group is principally an ICE car dealer. Since electric cars are powered by batteries and need little service, franchised dealerships are incented to sell ICE, not EV automobiles. Further, Roger had been a long-term director of General Motors. General Motors’ ICE automobile business would be disrupted if Tesla were successful. (click here to read more…)

1. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 89

10-Year Share Price Gains as of January 18: 6,160%

NVIDIA Corporation (NASDAQ:NVDA), a California-based provider of graphics, semiconductors, computing, and networking solutions, is one of the best performing S&P 500 stocks over the last ten years. The shares have garnered 10-year share price gains of 6,160%. 

On January 11, KeyBanc analyst John Vinh maintained an Overweight rating on NVIDIA Corporation (NASDAQ:NVDA) but lowered the firm’s price target on the shares to $220 from $230. Bank of America on January 11 maintained its Buy recommendation on NVIDIA Corporation (NASDAQ:NVDA) and several other semiconductor companies after data indicated that major hyperscalers are forecasted to grow cloud spending in the near-term.

According to Insider Monkey’s data, 89 hedge funds were bullish on NVIDIA Corporation (NASDAQ:NVDA) at the end of September 2022, compared to 84 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is a prominent stakeholder of the company, with 12 million shares worth $1.5 billion. 

Ave Maria made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2022 investor letter:

“NVIDIA Corporation (NASDAQ:NVDA) Corporation primarily designs and sells the accelerated computer hardware and software that is indispensable for autonomous vehicle, gaming, and artificial intelligence applications. Near term uncertainty from the crypto market correction and the semiconductor cycle have weighed on shares and offered an attractive entry point for long-term investors.”

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