In this piece we will look at the 5 Best Stocks to Invest in For 5 Years According to Billionaires. Please visit 10 Best Stocks to Invest in For 5 Years According to Billionaires if you’d like to see an extended list and how we came up with the list of Best Stocks to Invest in For 5 Years According to Billionaires.
5. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
EPS Growth Next 5 years: 31.44%
Number of Billionaires: 49
Value of Holdings: $27.21 billion
Number of Hedge Fund Holders: 224
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the Best Stocks to Invest in For 5 Years According to Billionaires. On May 15, Bank of America Securities analyst Haas Liu reiterated a Buy rating on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) with a price target of 2,560 Taiwan dollars.
The firm noted that competitive concerns about the company’s foundry leadership are exaggerated. Analyst Haas Liu emphasized that TSMC’s scale and technological advantages in advanced nodes continue to widen the gap versus competitors like Samsung and Intel.
The analyst added that in terms of the capital expansion, the company targets around 25% compound annual growth rate for 3nm and 5nm nodes through 2027. This will allow the company to reach 230,000 wafers monthly. BofA highlighted that this will surpass Samsung’s SF3 and Intel’s 18A production of around 20,000 to 25,000 wafers monthly. Moreover, for next-generation N2 technology, the company plans aggressive 70% annual capacity growth from 2026 to 2028. It plans to achieve this by deploying five fabs simultaneously while reducing technology transfer times by 20% .
In addition, in terms of advanced packaging, BofA noted that the company demonstrates execution superiority with CoWoS yields exceeding 98% versus Intel’s EMIB-T at 80% to 85% pilot yield. BofA noted this creates significant risk for Intel if it cannot achieve 95% mass production yield by mid-2027, further solidifying TSMC’s competitive moat.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a dedicated semiconductor foundry that manufactures advanced chips for customers across AI, high-performance computing, smartphones, automotive, IoT, and other end markets.
4. Meta Platforms, Inc. (NASDAQ:META)
EPS Growth Next 5 years: 19.39%
Number of Billionaires: 54
Value of Holdings: $33.41 billion
Number of Hedge Fund Holders: 256
Meta Platforms, Inc. (NASDAQ:META) is one of the Best Stocks to Invest in For 5 Years According to Billionaires. On May 13, Reuters reported that Meta Platforms, Inc. (NASDAQ:META) is launching a new Incognito Chat feature on WhatsApp for conversations with the company’s AI assistant.
The report highlighted that this new feature is aimed at addressing the concerns regarding data privacy. Management noted that the incognito chat feature will ensure that the conversations with the Meta AI assistant remain hidden from everyone, including the company itself. These messages will not be saved and will automatically disappear.
Reuters also highlighted that the initiative responds to a widespread concern that people routinely share personal, financial, health, and work-related information with AI assistants. Head of WhatsApp, Will Cathcart, emphasized that users should not have to expose the personal context behind their questions to the companies operating these AI systems.
Moreover, initially, the Incognito Chat supports text only, with no option to upload images. The chat also features built-in guardrails, which handle inappropriate queries intelligently. The company also plans to roll out additional Side Chat features in the coming months, which will allow users to get help while chatting with other users.
Meta Platforms, Inc. (NASDAQ:META) has transitioned into a major AI-driven company, integrating artificial intelligence across its social media apps, advertising systems, and hardware devices while developing open-source AI models. The company is focused on building agentic AI, improving content recommendations, and advancing its open-source Llama model.
3. Microsoft Corporation (NASDAQ:MSFT)
EPS Growth Next 5 years: 18.73%
Number of Billionaires: 55
Value of Holdings: $72.30 billion
Number of Hedge Fund Holders: 312
Microsoft Corporation (NASDAQ:MSFT) is one of the Best Stocks to Invest in For 5 Years According to Billionaires. On May 13, TD Cowen analyst Derrick Wood maintained a Buy rating on Microsoft Corporation (NASDAQ:MSFT) with a price target of $540.
The analyst maintained the bullish sentiment following a meeting with the management. The firm highlighted that meetings suggest improving trends for the company, including greater Azure capacity allocation, rising momentum in GitHub Copilot, and improving M365 Copilot adoption. Wood highlighted that all these trends are supported by strong demand for AI and support the company’s elevated capital expenditure policies.
Separately, on May 5, KeyBanc reiterated an Overweight rating on the stock with a price target of $600. KeyBanc also noted that the bullish rating is based on the firm’s monitoring of Microsoft’s Azure capacity growth, Copilot adoption, and Microsoft 365 Commercial Cloud growth. The firm is also monitoring the company’s AI capital expenditure.
Microsoft Corporation (NASDAQ:MSFT) is one of the world’s biggest technology companies. The products include the Windows operating system, Microsoft 365 productivity tools, Azure cloud services, LinkedIn, and even Xbox gaming.
2. Alphabet Inc. (NASDAQ:GOOGL)
EPS Growth Next 5 years: 16.42%
Number of Billionaires: 58
Value of Holdings: $51.06 billion
Number of Hedge Fund Holders: 288
Alphabet Inc. (NASDAQ:GOOGL) is one of the Best Stocks to Invest in For 5 Years According to Billionaires. On May 15, Reuters reported that Alphabet Inc. (NASDAQ:GOOGL) has issued 576.5 billion yen, around $3.6 billion in yen-denominated bonds, marking the largest such issuance ever by a foreign company.
The report noted that this is the company’s first yen-denominated debt issue as a means to diversify its funding sources to drive AI capital expenditure. The company plans to spend more than $190 billion in capital expenditure in 2026 and has previously raised debt in euros, sterling, Canadian dollars, and Swiss francs.
Following the news, on the same day, Moody’s Ratings assigned an Aa2 rating to Alphabet’s newly proposed yen-denominated senior unsecured notes. The firm assigned a stable outlook, and S&P issued an AA+ issue-level rating. The company’s financial position remains robust, with approximately $144 billion in cash and marketable securities as of March 31, 2026, and a notably low total debt-to-EBITDA ratio of around 0.7x.
Alphabet Inc. (NASDAQ:GOOGL) is a leader in AI, investing heavily in research, infrastructure, and applications via Google.
1. Amazon.com, Inc. (NASDAQ:AMZN)
EPS Growth Next 5 years: 21.83%
Number of Billionaires: 66
Value of Holdings: $62.20 billion
Number of Hedge Fund Holders: 381
Amazon.com, Inc. (NASDAQ:AMZN) is one of the Best Stocks to Invest in For 5 Years According to Billionaires. On May 14, TD Cowen reiterated a Buy rating on Amazon.com, Inc. (NASDAQ:AMZN) with a price target of $350.
The rating comes after the company recently rolled out a new 30-minute delivery for thousands of grocery and essentials products. The service is available in Atlanta, Dallas–Fort Worth, Philadelphia, and Seattle. Management noted that the service is rapidly expanding to dozens more US cities, including Austin, Houston, Minneapolis, Orlando, Phoenix, Denver, and Oklahoma City. The service can be accessed by Prime members at a discounted fee of $3.99 for orders above $15, while non-Prime members have to pay $13.99.
TD Cowen highlighted that its survey suggests that online grocery use reached pandemic highs, with almost 36% of the shoppers purchasing groceries online in the last 30 days of Q4 2025. During the recent fiscal Q1 2026 earnings, Amazon delivered $181.5 billion in revenue, reflecting 17% year-over-year growth. Management highlighted delivering more than 1 billion items in the first quarter and the availability of more than 90,000 items for a one-to-three-hour delivery time.
Founded in 1994, Amazon.com Inc. (NASDAQ:AMZN) operates across e-commerce, digital content, advertising, and cloud computing. Its online and offline stores offer both in-house and third-party products, while its Amazon Web Services (AWS) division runs one of the world’s largest data center networks.
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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