5 Stocks That Will Change the Future

In this article, we will be taking a look at 5 stocks that will change the future. To read our detailed analysis of how the market is transforming this year, you can go directly to see the 10 Stocks That Will Change the Future.

5. GE HealthCare Technologies Inc. (NASDAQ:GEHC)

Number of Hedge Fund Holders: 37

Patrick Wood, an analyst at Morgan Stanley, maintains an Equal Weight rating on shares of GE HealthCare Technologies Inc. (NASDAQ:GEHC) as of July 26. The analyst also raised his price target on the stock from $76 to $78.

GE HealthCare Technologies Inc. (NASDAQ:GEHC) was seen in the portfolios of 37 hedge funds at the end of the first quarter. Their total stake value in the company was $955.9 million.

Based in Chicago, Illinois, GE HealthCare Technologies Inc. (NASDAQ:GEHC) is a healthcare equipment company that develops products, services, and complementary digital solutions in the diagnosis, treatment, and monitoring of patients. The company is a leader in the diagnostic equipment space since it offers scanners that are vital for the monitoring and detection of Alzheimer’s disease. Its scanners can accurately check whether medications for this disease are working, which can significantly change the way healthcare for such diseases operates in the future.

This is what Vulcan Value Partners had to say about GE HealthCare Technologies Inc. (NASDAQ:GEHC) in its first-quarter 2023 investor letter:

“We sold GE HealthCare Technologies Inc. (NASDAQ:GEHC) during the quarter. GE HealthCare is a recent spin-off from General Electric Company and provides imaging, ultrasound, patient care solutions and pharmaceutical diagnostics to customers around the world. The company is a leader in a global oligopoly and has a massive installed base. Half of the company’s revenue is recurring, margins are stable to rising, and it generates significant free cash flow. As a recent operating unit inside of GE, we believe the market has been undervaluing this asset. Although the spin price reflected this under-valuation, after the spin-off, its stock price rose to meet our estimate of its intrinsic value, and we sold the position. GE HealthCare remains on our MVP list.”

4. Medtronic plc (NYSE:MDT)

Number of Hedge Fund Holders: 52

We saw 52 hedge funds holding stakes in Medtronic plc (NYSE:MDT) in the first quarter, with a total stake value of $1.6 billion.

Medtronic plc (NYSE:MDT) is another healthcare equipment company on our list, based in Dublin, Ireland. The company is developing AI-based medical devices such as the GI Genius™ Intelligent Endoscopy Module. This is an AI-based polyp detection system that processes colonoscopy images.

Kristen Stewart, an analyst at CL King, initiated coverage on Medtronic plc (NYSE:MDT) shares with a Buy rating and a $106 price target on June 30.

Appleseed Fund mentioned Medtronic plc (NYSE:MDT) in its first-quarter 2023 investor letter:

“During the most recent quarter, Appleseed Fund added three new equity holdings: Medtronic plc (NYSE:MDT), Stanley Black & Decker (SWK), and Synovus Financial (SNV). Medtronic is the world’s largest device manufacturer, and it holds the number one or number two market share in most of its product segments. Medtronic’s business is heavily weighted towards complicated in-patient procedures, which are typically quite profitable. Industry dynamics are quite attractive with an aging global population and the growth of improved healthcare in emerging markets; furthermore, most of its segments are highly concentrated with just 2-3 players that split each segment’s market share, affording the key participants with significant economies of scale and pricing power. The Company has been recently addressing several temporary headwinds including a strong dollar, inflation, a delayed recovery in surgical volumes from the coronavirus pandemic, and supply chain issues. Once these issues reach the rearview mirror, the Company’s growth and margin expansion plans should transform into reality.”

3. Intuitive Surgical, Inc. (NASDAQ:ISRG)

Number of Hedge Fund Holders: 67

Intuitive Surgical, Inc. (NASDAQ:ISRG) manufactures products that enhance the quality of and access to minimally invasive care. It is a leading medical device company and has developed the robotic Da Vinci Surgical System.

Matt Miksic at Barclays holds an Overweight rating and a $385 price target on Intuitive Surgical, Inc. (NASDAQ:ISRG) shares as of July 24.

In the first quarter, 67 hedge funds were long Intuitive Surgical, Inc. (NASDAQ:ISRG), with a total stake value of $2.2 billion.

This is what Baron Funds said about Intuitive Surgical, Inc. (NASDAQ:ISRG) in its second-quarter 2023 investor letter:

“Strength in health care equipment was largely due to the outperformance of sleep apnea device company Inspire Medical Systems, Inc. and robotic surgery system pioneer Intuitive Surgical, Inc. (NASDAQ:ISRG). Intuitive Surgical, Inc. manufactures and markets the da Vinci Surgical System, a robotic system used for minimally invasive procedures. Shares increased after Intuitive reported strong first quarter financial results highlighted by a 26% increase in procedures and raised guidance for 2023. These results, which came in well above Street estimates, were driven by strength in general surgery procedures in the U.S. and non-urology procedures outside the U.S. We continue to believe Intuitive has a large opportunity to expand the use of robotic surgery over time.”

2. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 132

NVIDIA Corporation (NASDAQ:NVDA) is a leader in the semiconductor and AI markets today with its development of GPU (AI) chips that are essential to AI processes and systems.

A total of 132 hedge funds held stakes in NVIDIA Corporation (NASDAQ:NVDA) in the first quarter, with a total stake value of $12.3 billion.

Mizuho’s Vijay Rakesh maintains a Buy rating and a $530 price target on NVIDIA Corporation (NASDAQ:NVDA) shares as of July 24.

Polen Capital made the following comments about NVIDIA Corporation (NASDAQ:NVDA) in its second-quarter 2023 investor letter:

NVIDIA Corporation (NASDAQ:NVDA) was the largest relative headwind to the Portfolio as we do not own this “AI darling.” NVIDIA shares rose more than 50% in the second quarter alone, following a 90% increase in the share price in the first quarter of 2023. NVIDIA supplies GPUs (graphics processing units), the preferred (often necessary) semiconductors for machine learning and AI. On their recent earnings call, NVIDIA management announced that they expect a significant increase in demand for the GPUs for datacenter customers beginning this quarter and lasting at least through the end of this year. NVIDIA’s datacenter business, which was almost non-existent from a revenue perspective eight years ago, is now the company’s largest and fastest-growing business.

We find NVIDIA’s competitive advantages to be quite large around its technology, but even more importantly around its full-stack solutions, including highly integrated hardware, software, and networking equipment and a robust developer ecosystem. It would be difficult to disrupt these competitive advantages in our view. That said, with a greater than $1 trillion valuation on the back of what feels like peak-level AI exuberance since OpenAI’s breakthrough with ChatGPT, we believe virtually all the upside opportunities we can currently see for the company are already priced in…” (Click here to read the full text)

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 289

Microsoft Corporation (NASDAQ:MSFT) was spotted in the portfolios of 289 hedge funds in the first quarter. Their total stake value was $57.9 billion.

Microsoft Corporation (NASDAQ:MSFT) is another tech company that is revolutionizing the AI space. It has an immense stake in OpenAI, a leading generative AI company and the developer of ChatGPT. It is also using this relationship with OpenAI to integrate advanced AI technology in its own chatbot.

A Buy rating and a $433 price target were held on Microsoft Corporation (NASDAQ:MSFT) shares on August 2 by Ivan Feinseth at Tigress Financial.

Here’s what Third Point Management said about Microsoft Corporation (NASDAQ:MSFT) in its second-quarter 2023 investor letter:

“While our gross equity exposure is still modest (below 100% on the long side), we have increased our nets to 70% as of this writing and 77% on a beta adjusted basis. About 45% of that net long exposure is composed of direct and indirect AI beneficiaries trading at reasonable valuations. We have sized up our investments in certain cloud software businesses including Microsoft Corporation (NASDAQ:MSFT), a clear AI winner as a result of its rapidly growing Azure cloud business, upside from applying AI features to its core Office products, investment in Open AI, and ability to provide AI services to other companies (for example, Microsoft holds a stake in one of our portfolio companies, LSE, which it is also assisting in harnessing greater value in its data via AI).”

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