In this article, we will take a look at Billionaire Cliff Asness’ 10 Stock Picks with Huge Upside Potential.
Cliff Asness, the founder, managing principal, and chief investment officer of AQR Capital Management, is a well-known figure in the world of finance. Starting with a $10 million commitment from a small group of investors in 1995, Asness was able to boost the Goldman Sachs Global Alpha Fund’s assets to more than $100 million in just a handful of months. Cliff Asness’ investment strategies, which focus on value and momentum, have delivered exceptional returns for AQR, setting him apart from his fellow hedge fund managers. As a testament, the fund has produced positive returns over the last three years, with its greatest year in 2022, when it returned 43.5%.
The first quarter of 2025 continued that momentum. As Wall Street grappled with increased volatility resulting from President Donald Trump’s unpredictable tariff policy, AQR Capital Management outperformed the market by 9%. The firm’s Apex strategy, a $3 billion multi-strategy fund that includes equities, macro, and arbitrage trades, rose 3.4% in March, adding to its strong quarterly performance. Meanwhile, AQR’s Delphi Long-Short Equity Strategy returned 9.7%, while its trend-following Helix strategy gained 3% during the same period.
Cliff Asness has repeatedly stated that he is not an admirer of Bitcoin. In a recent CNBC interview, the hedge fund manager voiced pessimism about Bitcoin, claiming that it had no realistic use case, although he did not rule out the possibility that the leading cryptocurrency has formed a bubble. Back in February, the billionaire stated that Bitcoin and the S&P 500, were basically “the same thing” with varying amounts of volatility. Asness has also questioned the notion that Bitcoin must be seen as a store of value simply because it has a limited supply.
The billionaire seemed even more critical of the idea of a cryptocurrency reserve, a stance that sharply contrasts with President Donald Trump’s. In a piece written for The Free Press, the money manager stated his thoughts about the President’s executive order:
“I’ve been managing money for 33 years now with some modest success. While there are some worthy competitors, it’s hard for me to remember a much worse idea than the U.S. launching a “strategic cryptocurrency reserve.” Nevertheless, on Thursday, President Donald Trump issued an executive order calling for just such a fund. David Sacks—Trump’s crypto czar—tweeted that the reserve would be “like a digital Fort Knox,” perhaps forgetting that the U.S. has been off the gold standard since 1933. In any case, his words do not diminish my scorn for this dangerous boondoggle, as I will explain below.
A sovereign wealth fund for the U.S., which President Trump has also begun planning, is inappropriate, unneeded, likely harmful, and potentially quite corrupt. But a strategic cryptocurrency reserve looks at a “normal” sovereign wealth fund and says, “Hold my beer,” as we are going to plaid.”
Cliff Asness of AQR Capital Management
Our Methodology
For this article, we examined AQR Capital Management’s Q4 2024 13F filings to list down billionaire Cliff Asness’ stock picks with the highest upside potential. We ranked the companies in ascending order of their upside potential. These equities are also popular among elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Merck & Co., Inc. (NYSE:MRK)
AQR Capital Management’s Q4 Stake: $533 million
Upside Potential as of April 26: 26.57%
Number of Hedge Fund Holders: 91
Merck & Co., Inc. (NYSE:MRK) is an American multinational pharmaceutical corporation. The company specializes in prescription pharmaceuticals, vaccines, biologic medicines, and animal health products.
On April 22, Cantor Fitzgerald initiated coverage of Merck & Co., Inc. (NYSE:MRK) with a Neutral rating and a $85 price target. The firm’s report emphasized Merck’s poor performance over the previous year, highlighting a 37% fall compared to the 14% reduction in the broader biotech index. The assessment indicated a recalibration of expectations for Gardasil in China, bringing the company’s reliance on Keytruda and post-2028 growth prospects into sharp focus.
Merck & Co., Inc. (NYSE:MRK) reported a 7% gain in first-quarter adjusted profits, as lower expenses offset a 2% drop in sales, which was attributed in part to the company’s January decision to halt Gardasil vaccine shipments to China amid weaker demand. The drugmaker reported adjusted earnings of $5.61 billion, or $2.22 per share, which came above analyst projections of $2.14. While global sales fell 2% to $15.5 billion, they still exceeded the average projection of $15.3 billion.
9. Broadcom Inc. (NASDAQ:AVGO)
AQR Capital Management’s Q4 Stake: $660.47 million
Upside Potential as of April 26: 27.03%
Number of Hedge Fund Holders: 161
Broadcom Inc. (NASDAQ:AVGO) is a global technology company with a strong presence in hardware and software. The company’s primary focus is on networking and custom chips for various applications.
In the first quarter of 2025, Broadcom Inc. (NASDAQ:AVGO)’s Semiconductor Solutions revenue climbed by 11% year-over-year, mainly due to a 77% growth in AI revenue. This AI revenue is expected to rise by 44% in the second quarter as hyperscale clients spend heavily on next-generation AI models.
Broadcom Inc. (NASDAQ:AVGO) announced on April 7 that it was starting a new buyback program of up to $10 billion that would continue until the end of the year, sending its shares up about 3% in extended trading. CEO Hock Tan stated that the move indicates confidence in the company’s semiconductor and infrastructure software franchises, notably its leadership in artificial intelligence-related projects.
Renaissance Large Cap Growth Strategy stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its Q4 2024 investor letter:
“Broadcom Inc. (NASDAQ:AVGO) was another large contributor in the quarter after reporting solid operating results. The company presented an optimistic outlook, driven by its dominant position in artificial intelligence application-specific chipsets. In addition, the company should continue to benefit from its leading position in several end markets including data centers and cloud infrastructure, which have favorable secular growth trends. Broadcom is also seeing margin expansion and improved visibility, as the mix of software revenues increases, following the acquisition of VMWare.”
8. Centene Corporation (NYSE:CNC)
AQR Capital Management’s Q4 Stake: $496 million
Upside Potential as of April 26: 27.06%
Number of Hedge Fund Holders: 72
Centene Corporation (NYSE:CNC), headquartered in St. Louis, Missouri, is a managed care company that serves as a middleman between government-sponsored and privately insured healthcare programs. The firm primarily serves the Medicaid market, with a sizable proportion of its membership coming from programs like as the Children’s Health Insurance Program (CHIP) and Temporary Assistance for Needy Families (TANF).
On April 9, Guggenheim Securities began coverage of Centene Corporation (NYSE:CNC) with a neutral rating. The firm’s analyst noted the healthcare company’s continued advantages from its scale and expertise in government-related sectors as positive aspects. Centene’s recent disposal of around 11 non-core assets, as well as the disposal of its pharmaceutical benefits management (PBM) services arm, were cited as strategic actions that could lead to additional opportunities.
Centene Corporation (NYSE:CNC) announced quarterly earnings of $2.90 per share in the first quarter of 2025, above the average expectation of $2.52 per share and up from $2.26 per share the previous year. Centene assigned its strong first-quarter profitability to a considerable increase in Obamacare enrollment, which drove membership and revenue growth.
7. Synchrony Financial (NYSE:SYF)
AQR Capital Management’s Q4 Stake: $258 million
Upside Potential as of April 26: 27.20%
Number of Hedge Fund Holders: 64
Synchrony Financial (NYSE:SYF) is a consumer finance company that provides credit cards, installment loans, and commercial financing. The company also offers private label and co-branded credit cards, as well as banking services.
Earlier this March, BofA Securities reiterated its Buy rating and $85 price target for Synchrony Financial (NYSE:SYF) shares. The endorsement comes amid debate over the long-term viability of some mitigating activities in light of anticipated regulatory changes. The firm’s analysts have expressed confidence in the company’s business strategy, implying that even if the era of ‘over earning’ ends earlier than expected, the valuation continues to be appealing.
On April 22, Synchrony Financial (NYSE:SYF) reported mixed results for the first quarter of 2025. The company’s average active accounts increased 3% year-over-year to 69 million, while purchasing volume jumped 4% to $41 billion and loan receivables increased 2% to $100 billion. However, the company’s financial results indicated major strain on profitability. Diluted earnings per share declined 40% year-over-year to $1.89, while return on assets came in at 2.5%. Additionally, net revenue fell by 23%, from $4,798 million to $3,718 million. This decline was mainly driven by an 87% drop in other income to $149 million, which was slightly offset by a 1% gain in net interest income to $4,464 million.
6. Meta Platforms, Inc. (NASDAQ:META)
AQR Capital Management’s Q4 Stake: $964.9 million
Upside Potential as of April 26: 27.99%
Number of Hedge Fund Holders: 262
Meta Platforms, Inc. (NASDAQ:META) is a renowned technology company known primarily for its flagship platforms Facebook, Instagram, and WhatsApp, as well as its revolutionary advances in augmented reality (AR) and virtual reality (VR).
Meta Platforms, Inc. (NASDAQ:META) expects its total operating expenses to be between $114 and $119 billion in 2025, with a year-over-year growth rate of 19-25%. In addition, capex is predicted to increase 61-74% year-over-year to $60-$65 billion, compared to $37.3 billion in FY24. However, given reduced consumer spending and a cautious macroeconomic environment this year, the company may be unable to continue declaring double-digit increases in ad pricing.
On April 28, Loop Capital reduced Meta Platforms, Inc.’s (NASDAQ:META) price target to $695 from $900. Despite the substantial drop, the firm maintained its Buy rating for the company’s shares. The change comes as the firm expects Meta to report solid first-quarter results but a less bullish future outlook. According to Loop Capital’s analysis, Meta Platforms, Inc. (NASDAQ:META) might lose 40% of its revenue from inventory previously acquired by Chinese advertisers. Nonetheless, some revenue is anticipated to be retained when these impressions are passed on to the next best bidders.
Nightview Capital stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q4 2024 investor letter:
“Core Opportunity: Meta Platforms, Inc.’s (NASDAQ:META) platforms—Instagram, Facebook, WhatsApp, and Messenger—reach nearly half the world’s population daily, making it one of the most powerful advertising ecosystems globally. With investments in AI and augmented reality (AR), we believe Meta is also creating significant optionality for long-term growth.
5. PayPal Holdings, Inc. (NASDAQ:PYPL)
AQR Capital Management’s Q4 Stake: $258.1 million
Upside Potential as of April 26: 30.43%
Number of Hedge Fund Holders: 94
PayPal Holdings, Inc. (NASDAQ:PYPL), based in San Jose, California, operates a technology platform that enables digital payments for merchants and customers worldwide. The company provides payment services under several brands, including PayPal, Credit, Braintree, Venmo, Xoom, and Zettle.
The company currently has 432 million active accounts in more than 200 countries. In 2024, PayPal’s branded checkout segment had a constant quarterly increase in transaction margin dollars, with US growth notably speeding up in Q4.
On April 16, Wells Fargo analyst Andrew Bauch lowered the price target for PayPal Holdings, Inc. (NASDAQ:PYPL) from $80 to $74 while maintaining an Equal Weight rating. Bauch’s study identified a number of challenges for the company, including a quarter four branded Total Payment Volume (TPV) shortfall relative to market expectations, management guidance regarded as aggressive, and ongoing competitive issues.
Wedgewood Partners stated the following regarding PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q1 2025 investor letter:
“PayPal Holdings, Inc. (NASDAQ:PYPL) was a leading detractor from performance for portfolios during the quarter. The Company’s branded checkout grew by a healthy +6% while total payment volumes grew by +7% during the Company’s most recent quarter. PayPal also outlined several reinvestment initiatives across its platform that continue to accelerate its branded checkout volume growth back to double digits. In addition, the Company has authorized nearly $20 billion in share repurchases which represents nearly a third of its market cap as of quarter end. We continue to hold PayPal as one of our largest active weights in portfolios.”
4. Amazon.com Inc. (NASDAQ:AMZN)
AQR Capital Management’s Q4 Stake: $1.18 billion
Upside Potential as of April 26: 30.94%
Number of Hedge Fund Holders: 286
Amazon.com, Inc. (NASDAQ:AMZN) is a major technology company that runs the world’s largest e-commerce and cloud computing businesses. The company also offers digital streaming and AI technology. Amazon.com, Inc.’s (NASDAQ:AMZN) e-commerce position offers it a significant competitive advantage over competitors since it accounts for around 38% of total e-commerce sales in the United States.
Amazon.com, Inc. (NASDAQ:AMZN) announced solid financial performance in 2024, with revenue climbing 10% year-over-year and operating income of $21.2 billion, a 61% increase year-over-year . The North America segment rose 10%, while the International segment grew 9%. In addition, AWS maintained its strong performance, growing by 19% year-over-year to an annualized revenue run rate of $115 billion.
On April 24, Citizen JMP analysts maintained their Market Outperform rating and $240 price target for Amazon.com, Inc. (NASDAQ:AMZN). According to analyst Nicholas Jones, Amazon has invested around $2 billion per year in satellite launches since 2022, influencing the company’s operating income margin. According to Jones, these expenditures impacted Amazon’s consolidated operating income margin by 27 basis points in 2024.
Harding Loevner Global Developed Markets Equity Strategy stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2024 investor letter:
“During the quarter, we benefited from strong stocks within the Communication Services and Consumer Discretionary sectors. In Consumer Discretionary, Amazon.com, Inc. (NASDAQ:AMZN) reported strong third-quarter results. Revenue increased by double digits, led by growth in advertising and Al products, while the company’s operating margins also hit an all-time high of 11%. The key reasons for the higher margins were that its international e-commerce operations turned profitable, and there was faster growth in its high-margin cloud-computing business.”
3. Arista Network Inc. (NASDAQ:ANET)
AQR Capital Management’s Q4 Stake: $336.1 million
Upside Potential as of April 26: 35.90%
Number of Hedge Fund Holders: 78
Arista Networks, Inc. (NYSE:ANET) is an American computer networking company headquartered in Santa Clara, California. The company specializes in developing and providing multilayer network switches that enable software-defined networking in large-scale data centers, cloud computing, high-performance computing, and high-frequency trading environments.
On April 15, Evercore ISI revised its price target for Arista Networks, Inc. (NYSE:ANET) from $130 to $100, while retaining an Outperform rating. The change comes amid a challenging year for Arista, with the company’s stock price outpacing the broader market’s decline. However, Evercore ISI remains bullish, indicating that Arista Networks is on pace to meet its $750 million back-end AI revenue target and achieve growth rates in the low-20 percent range for calendar year 2025.
Giverny Capital Asset Management stated the following regarding Arista Networks Inc (NYSE:ANET) in its Q4 2024 investor letter:
“I trimmed Arista Networks Inc (NYSE:ANET) as it grew beyond 10% weight in the portfolio thanks to its continued outperformance. Arista has been on a tear in January and if our clients are lucky I will leave Arista alone for a while! The market appears to see that Artificial Intelligence data centers are going to require robust investment in networking equipment, and Arista is the leader in that sector.”
2. Neurocrine Biosciences, Inc. (NASDAQ:NBIX)
AQR Capital Management’s Q4 Stake: $258.9 million
Upside Potential as of April 26: 45.64%
Number of Hedge Fund Holders: 57
Neurocrine Biosciences, Inc. (NASDAQ:NBIX) is a biopharmaceutical company that specializes in developing medicines for neurological, neuroendocrine, and neuropsychiatric illnesses. INGREZZA, the company’s flagship medicine, treats tardive dyskinesia and chorea in Huntington’s disease.The company additionally offers CRENESSITY, a first-in-class medication for congenital adrenal hyperplasia (CAH), and continues partnerships for treatments on endometriosis and uterine fibroids.
On April 28, Canaccord Genuity revised its financial outlook for Neurocrine Biosciences, Inc. (NASDAQ:NBIX), lowering the stock’s price target from $163 to $158, while maintaining a Buy rating. Sumant Kulkarni, an analyst at Canaccord Genuity, stated that the revised model anticipates INGREZZA sales of $550 million, down from the prior estimate of $605 million. Despite this adjustment, Kulkarni noted that the expected sales for 2025 remain at $2.5 billion, which is consistent with Neurocrine Biosciences’ own predictions and represents a 9% increase over the estimated sales for 2024.
1. NVIDIA Corporation (NASDAQ:NVDA)
AQR Capital Management’s Q4 Stake: $2.19 billion
Upside Potential as of April 26: 53.67%
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA), a global leader in graphics processing and networking, leverages its GPUs to dominate the gaming and artificial intelligence industries, leading to its more than trillion-dollar valuation.
NVIDIA Corporation (NASDAQ:NVDA) reported a record full-year revenue of $130.5 billion for fiscal 2025, up 114% from the previous year. Non-GAAP diluted EPS was $2.99, a 130% increase from the year prior. Fiscal Q4 2025 was another record quarter for the company, with revenues of $39.3 billion, up 12% sequentially and 78% year-over-year.
On April 16, Stifel analysts reaffirmed their Buy rating on NVIDIA Corporation (NASDAQ:NVDA) with a $180 price target, despite the company’s massive charge due to new US export limitations. NVIDIA revealed that it will suffer a $5.5 billion inventory charge due to the requirement for an indefinite license to export H20 processors to China, which encompasses Hong Kong, Macau, and D:5 nations, as well as corporations with headquarters or parent companies in those areas. The new developments have added to the uncertainty in an already volatile market. However, Stifel analysts feel that NVIDIA’s long-term future outlook remains solid.
Alger Spectra Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2025 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) is a leading supplier of graphics processing units (GPUs) for a variety of end markets, such as gaming, PCs, data centers, virtual reality, and high-performance computing. The company is leading in most secular growth categories in computing, and especially artificial intelligence and super-computing parallel processing techniques for solving complex computational problems. In our view, Nvidia’s computational power is a critical enabler of AI and therefore essential to AI adoption. During the quarter, shares detracted from performance due to several factors. In January 2025, investor concerns grew regarding the emergence of advanced AI models from China, reportedly developed at lower costs and with reduced computing requirements, raising doubts about Nvidia’s market dominance. Additionally, U.S. President Donald Trump’s announcement of new tariffs targeting industries increased worries about higher operational costs. Despite these headwinds, Nvidia reported robust fiscal fourth-quarter results, highlighted by significant revenue growth driven by its data center segment. On the earnings call, CEO Jensen Huang emphasized the increasing computational requirements of future AI models, noting, “The more computation, the more the model thinks, the smarter the answer,” and adding that future reasoning models could demand substantially more compute resources. We believe Nvidia’s leadership in scaling AI infrastructure—including advancements in inference and reasoning during inference—continues to drive adoption among enterprises and startups, ensuring sustained demand for its high performance chips and software solutions. As older-generation chips are repurposed and new clusters deployed, we see Nvidia as well-positioned to capitalize on rising computational needs across AI applications.”
While we acknowledge the potential for NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NVDA but trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks to Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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