Billionaire Ken Fisher’s 5 Stock Picks with Huge Upside Potential

In this article, we discuss billionaire Ken Fisher’s 5 stock picks with huge upside potential. To read Fisher’s comments on current economic conditions and details about his Q3 bets, go directly to Billionaire Ken Fisher’s 10 Stock Picks with Huge Upside Potential.

5. Freeport-McMoRan Inc. (NYSE:FCX)

Ken Fisher’s Stake Value: $2.039 billion

Average analyst price target: $45.64

Average analyst price target upside: 15.14%

Freeport-McMoRan Inc. (NYSE:FCX) is an Arizona-based mining company. It is the world’s largest producer of Molybdenum and has major operations in copper and gold. Most of the company’s revenues are generated from copper.

Hedge funds were quite bullish on Freeport-McMoRan Inc. (NYSE:FCX) in the third quarter. The number of hedge fund holders increased to 73 in Q3 from 66 in the previous quarter. Moreover, the total hedge fund investments in Freeport-McMoRan Inc. (NYSE:FCX) increased by nearly 146% quarter-over-quarter to $3.39 billion in Q3.

Based on the average price target of 11 analysts, Freeport-McMoRan Inc. (NYSE:FCX)’s stock has an upside potential of 15.14%.

4. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

Ken Fisher’s Stake Value: $2.66 billion

Average analyst price target: $112.00

Average analyst price target upside: 13.65%

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the world’s most valuable semiconductor companies. The company is headquartered in Taiwan and serves globally.

On November 14, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s Board of Directors approved a quarterly NT$3.50 (NT$1 = $0.032) per share cash dividend. The dividend will be payable by April 11, 2024, to the shareholders of record on March 18, 2024.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s stock was owned by 107 hedge funds in the third quarter of 2023. Fisher Asset Management was the most prominent investor in the company after increasing its holdings by 4% to 30.637 million shares worth $2.66 billion.

Wedgewood Partners talked about Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its third quarter 2023 investor letter. Here is what it said:

“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) detracted from performance, as revenues declined 10% from a year ago. The Company is lapping revenue growth of over +40% (compared to 2022) during every quarter of 2023, so it is more instructive to look at the health of the business through the lens of a multi-year timeframe. Most of the Company’s customers have seen near-term weakness in demand due to pandemic normalization. However, we think the longer-term trend of more silicon per device is still very much intact, and the Company is well-positioned to serve this, given its commanding market share in leading edge capacity. The Company’s aggressive investment in leading-edge equipment combined with tight development with fabless IC designers, plus the embrace of open development libraries, should continue to foster a superior competitive position and attractive long-term growth.”

3. NVIDIA Corporation (NASDAQ:NVDA)

Ken Fisher’s Stake Value: $3.63 billion

Average analyst price target: $661.00

Average analyst price target upside: 41.35%

NVIDIA Corporation (NASDAQ:NVDA) has been the performer of the year among the technology stocks. The company stock has gained nearly 227% year-to-date. Even after such a massive gain, Wall Street analysts still see a 41.35% upside to NVIDIA Corporation (NASDAQ:NVDA)’s December 1 stock price.

NVIDIA Corporation (NASDAQ:NVDA) represented 2.05% of Ken Fisher’s stock portfolio in Q3, with nearly 6.35 million shares worth $3.63 billion. According to Insider Monkey’s database, 180 hedge funds had stakes worth $29.576 billion in the company.

O’keefe Stevens Advisory mentioned NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2023 investor letter. Here is what the firm said:

“This quarter, we actively reduced our position in our favorite company, NVIDIA Corporation (NASDAQ:NVDA). Over the past several years, I have consistently noted the concentration of the top 5 holdings in our portfolio, with NVDA comprising 26% of the last quarter’s 40%. The business, management, and outlook are nothing short of excellent. The business has a dominant market share in a rapidly growing market with competition seemingly years behind, though, fighting hard to gain share. Gross margin is expected to exceed 70% in 2024 and expand in 2025, reflecting the premium customers pay for their advanced technology. Revenue growth of 30%+ on a $50B base and a return on equity over 50%. If this isn’t the best business in the world currently, certainly it is in the top 5.

Jensen is the reason we held onto the stock despite our unease about the valuation. Jensen came to the U.S. from Thailand and was sent to a boarding school in rural Kentucky for troubled youth by his aunt and uncle, who mistook it for a prep school. When buying an ownership stake in the business, we must ask ourselves who we partner with. Are they honest? Capable? Aligned?

Honest: Listening to Jensen (while promotional) is like a breadth of fresh air. He tells you how it is. When the business looked like it was headed for failure in 2009, Jensen reduced his salary to $1….” (Click here to read the full text)

2. Amazon.com, Inc. (NASDAQ:AMZN)

Ken Fisher’s Stake Value: $5.257 billion

Average analyst price target: $175.75

Average analyst price target upside: 20.04%

Amazon.com, Inc. (NASDAQ:AMZN) is an American conglomerate with operations in retail, technology, and communications services. Fisher Asset Management owned 41.353 million of the company shares worth nearly $5.257 billion, making it the most prominent stakeholder of the company. Amazon.com, Inc. (NASDAQ:AMZN) covered 2.98% of Fisher’s 13F portfolio.

In Q3, 286 hedge funds had a stake in Amazon.com, Inc. (NASDAQ:AMZN), at a combined value of $38.9 billion.

Over the last three months, 42 analysts have covered Amazon.com, Inc. (NASDAQ:AMZN)’s stock, and all of them have a Buy rating on the company shares.

Polen Capital commented on Amazon.com, Inc. (NASDAQ:AMZN) in its third quarter 2023 investor letter. Here is what it said:

“Amazon continues to showcase it’s place as one of the most competitively advantaged companies in the world. The company has made significant progress in managing costs and better leveraging existing capacity, driving a strong recovery in its profitability. We think there’s additional room for improvement.

AWS growth seems to be stabilizing even while management continues to work with clients to optimize their infrastructure spend. Roughly 90% of global IT spending remains on premise. We believe this will eventually flip, with most IT spending ultimately moving to the cloud over time. We think AWS will be a significant beneficiary of this transition.

Further, our investment case on company profitability driven by AWS and advertising continues to unfold, delivering nearly $8 billion in free cash flow over the trailing twelve months and a net margin of 5%. We expect both to move higher with the mix shift of more profitable businesses growing fastest continuing to take effect.

At Amazon’s current price, we believe the company is well positioned to deliver a mid-teens or higher total shareholder return for our clients over the next five plus years without a Herculean effort from the business. It simply needs to continue executing on current businesses and growing into the capacity it built during and immediately after the pandemic.”

1. Alphabet Inc. (NASDAQ:GOOGL)

Ken Fisher’s Stake Value: $5.725 billion

Average analyst price target: $153.63

Average analyst price target upside: 16.51%

Alphabet Inc. (NASDAQ:GOOGL) is one of the largest technology companies by revenue and is part of the American Big Five tech. It is headquartered in California.

Alphabet Inc. (NASDAQ:GOOGL) has been covered by 32 analysts in the last three months, and 26 of them keep a Buy rating on the company stock. On November 21, Tigress Financial maintained a Strong Buy rating on Alphabet Inc. (NASDAQ:GOOGL)’s stock and raised its price target to $176 from $172. The revised price target represents an upside of 33.47% from its stock price on December 1.

According to the Insider Monkey database, Alphabet Inc. (NASDAQ:GOOGL) had the highest number of hedge fund investors in the third quarter of 2023. 306 hedge funds had investments worth $72.194 billion in the company.

Atai Capital made the following comment about Alphabet Inc. (NASDAQ:GOOG) in its Q3 2023 investor letter:

“On average, individual stocks experience fluctuations of around 80% in any given year. When we pause to contemplate the fact that every share represents a fractional ownership in an underlying business, this notion that the fundamental value of most enterprises undergoes such substantial swings in a single year is nothing short of ludicrous. Moreover, volatility also disregards price and valuation entirely. For example, in theory, Alphabet Inc. (NASDAQ:GOOG) at $500 could have the same Beta (a measure of volatility) at its current price of $130. In this example, it doesn’t take much common sense to recognize the flaw of using volatility as a measure of risk. Google is undoubtedly a great business, but at $500, it would be significantly more expensive than it is today, carrying a higher level of risk and lower prospective returns. The inverse scenario is applicable here as well, and If Google were to experience a swift 50% decline, a professor would likely tell you it’s now riskier, but I would argue that Google at $65 would represent a remarkable bargain today!”

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