Louis Moore Bacon is the founder, Chairman, and principal investment manager of Moore Capital Management, a global investment management firm that provides services to institutional and high-net-worth clients through diversified hedge funds and specialized funds that focus on global fixed-income and emerging markets. It was established in March 1989 and is headquartered in New York City with offices in London and Hong Kong. He holds an MBA in Finance from Columbia Business School and a BA in American Literature from Middlebury College. Bacon’s investment philosophy is based on risk management and capital preservation principles. His trading strategies are focused on macroeconomic trends and fundamental analysis of the markets.
Bacon emphasizes diversification, which allows him to invest across different geographies and asset classes. He is known for his contrarian investment style and takes positions against prevailing market sentiment. Moore Capital Management is a hedge fund with 4 clients and discretionary assets under management (AUM) of $33.20 billion, as reported in the firm’s Form ADV dated 19 November 2024. Their last reported 13F filing for Q4 2024 included $8.70 billion in managed 13F securities and a top 10 holdings concentration of 25.53%. He believes that there are opportunities to profit from mispricing that come with volatility or fear. Louis Moore Bacon is also the Founder and Co-Chair of The Moore Charitable Foundation, which was established in 1992 to support conservation-focused nonprofits dedicated to preserving land, water, and wildlife habitats. Bacon has received several awards in this regard, including the Theodore Roosevelt Conservation Partnership (TRCP) Lifetime Conservation Achievement Award and the Audubon Medal.
That being said, we’re here with a list of billionaire Louis Bacon’s 10 stock picks with huge upside potential.
A business analyst reviewing a portfolio of stocks and bonds in the current market capitalization.
Our Methodology
To compile the list of billionaire Louis Bacon’s 10 stock picks with huge upside potential, we sifted through Q4 2024 13F filings of Moore Global Investments from Insider Monkey. From these filings, we checked each stock’s upside potential from CNN and ranked the stocks in ascending order of this upside potential. We have also added Moore Global Investments’ stake in each company and the hedge fund sentiment around each stock.
Note: All data was sourced on May 2.
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).
Billionaire Louis Bacon’s 10 Stock Picks with Huge Upside Potential
10. Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM)
Moore Global Investments’ Stake: $26.23 million
Number of Hedge Fund Holders: 186
Average Upside Potential as of May 2: 22.29%
Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) is a tech company that manufactures, packages, tests, and sells integrated circuits and other semiconductor devices globally. It provides various wafer fabrication processes. It also offers customer & engineering support services, invests in tech start-up companies, and provides investment services.
The HPC segment made 59% of the company’s total revenue in Q1 2025, which totaled $25.78 billion and improved by 41.40% year-over-year. This revenue itself improved by 7% sequentially due to the demand for AI-related applications. TSMC is also at the forefront of advanced chip manufacturing. As of Q1, 3nm chips made up 22% of TSMC’s total wafer revenue, while 5nm and 7nm accounted for 36% and 15%, respectively. Altogether, advanced technologies (7nm and below) made 73% of the total wafer revenue.
To support AI and HPC growth, TSMC is investing in advanced packaging technologies, particularly CoWoS, intending to double its CoWoS capacity in 2025. Despite projecting a mid-40% revenue CAGR from AI accelerators for the 5 years starting from 2024, Barclays analyst Simon Coles lowered the price target on the stock to $215 from $255 on April 21 while maintaining an Overweight rating. The company also plans to launch 2nm and 1.6nm chips, which would further strengthen its competitive edge.
The company’s results and guidance showcased strong AI chip demand, which is why Sands Capital Technology Innovators Fund stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q4 2024 investor letter:
“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) third-quarter 2024 results and guidance showcased strong continued demand for artificial intelligence (AI) chips. Revenue increased by 29 percent, and earnings saw a 54 percent rise year-over-year. Gross margins were at their highest since 2022, bolstered by price hikes and record utilization at both the 3 nanometer (nm) and 5nm nodes. TSMC’s full-year revenue outlook was revised upward from 25 percent to 30 percent growth. The company also anticipates higher capital expenditure in 2025, a leading indicator for revenue.
Meanwhile, TSMC’s competitive position within the leading-edge chip fabrication industry has improved. The company noted that demand for its next-generation 2nm (N2) node is considerably higher than for its predecessor, N3. Additionally, TSMC has more capacity for N2 than N3. This situation contrasts with Intel and Samsung, which both recently disclosed struggles in ramping up their leading-edge nodes. Together, Intel and Samsung account for approximately $25 billion of foundry revenue, which could potentially migrate to TSMC over time…” (Click here to read the full text)
9. Fluor Corp. (NYSE:FLR)
Moore Global Investments’ Stake: $40.29 million
Number of Hedge Fund Holders: 48
Average Upside Potential as of May 2: 24.07%
Fluor Corporation (NYSE:FLR) delivers engineering, procurement, and construction (EPC) solutions across diverse sectors. These include urban infrastructure, energy (both traditional and renewable), and government projects. Its expertise spans complex project management, fabrication, and technical consulting, with a focus on delivering large-scale and mission-critical infrastructure.
In Q1 2025, the company’s Urban Solutions segment reported a profit of $70 million and experienced a ramp-up in execution activities due to new awards secured over the past 18 months. New awards for Urban Solutions in Q1 were strong at $5.3 billion, compared to $4.9 billion year-over-year. The ending backlog for this segment is at $20.2 billion, which is 70% of Fluor’s total backlog.
Within Urban Solutions, the Advanced Technology & Life Sciences (ATLS) business line is particularly strong, which is further highlighted by a recent award from a leading pharmaceutical maker for EPCM services on a multibillion-dollar investment. Fluor Corporation (NYSE:FLR) has a long-standing history in this market, having worked on 1,500 life sciences projects in 30 countries over the past 50 years.
ClearBridge Small Cap Growth Strategy highlighted the company’s potential to benefit from large-scale projects in growing markets due to its improved contract structure. It stated the following regarding Fluor Corporation (NYSE:FLR) in its Q4 2024 investor letter:
2024 proved a particularly active year for new idea generation: we added 23 new investments while exiting 29 due to a variety of considerations, including acquisitions, market capitalization constraints, and our assessment of forward return potential. While many of the new investments we made during the year are of relatively modest size, we will continue to build these positions over time provided company execution and end market prospects remain intact. In the fourth quarter we initiated five new investments: Oscar Health, TG Therapeutics, Clearwater Analytics, Fluor Corporation (NYSE:FLR) and Modine.
Fluor is one of the largest engineering, procurement and construction firms, with global scale supporting megaprojects across various end markets. With an improved contract structure mix and balance sheet, the company is poised to benefit from an array of high-priority investment projects in markets such as data centers, GLP-1 manufacturing, mining and nuclear energy.
8. Amazon.com Inc. (NASDAQ:AMZN)
Moore Global Investments’ Stake: $212.03 million
Number of Hedge Fund Holders: 339
Average Upside Potential as of May 2: 24.83%
Amazon.com Inc. (NASDAQ:AMZN) is a global e-commerce and technology giant. It operates through its North America, International, and Amazon Web Services (AWS) segments. It engages in retail sales, cloud computing, digital streaming, and AI. Its products and services include e-commerce, cloud infrastructure, digital content, and consumer electronics.
In Q1 2025, AWS generated $29.3 billion in revenue, which was an improvement of 17% year-over-year. AWS is experiencing growth across both its traditional cloud offerings and its GenAI business. Companies of all sizes are increasingly relying on AWS to modernize their infrastructure, such as Adobe and Uber. The driver for this growth lies in the fact that over 85% of global IT spending remains on-premises, which leaves a massive potential for future cloud migration.
Amazon.com Inc. (NASDAQ:AMZN) is investing in AI infrastructure and services at every level of the stack. This is exemplified by the custom AI chip Trainium 2, which offers compelling price-performance advantages for model training. Wedbush has reiterated an Outperform rating on the stock and raised its price target to $235 from $225 as Amazon delivered solid Q1 2025 results amid the tariff threat.
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.”
7. ConocoPhillips (NYSE:COP)
Moore Global Investments’ Stake: $43.75 million
Number of Hedge Fund Holders: 86
Average Upside Potential as of May 2: 31.83%
ConocoPhillips (NYSE:COP) explores, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids. It operates in six segments: Alaska, Lower 48, Canada, Europe-Middle East-North Africa, Asia Pacific, and Other International.
ConocoPhillips’ Lower 48 operations delivered a 5% production growth year-over-year for the full year 2024. This contributed to the company’s overall 4% production growth. In Q4 of 2024, the Lower 48 produced 1,308,000 BOE/d. The $22.5 billion acquisition of Marathon Oil in late November 2024 also enhanced the Lower 48 portfolio and added high-quality and low-cost supply inventory.
The company’s revenue of $14.74 billion beat estimates by almost $515 million. The overall production also rose 14.8% to 2.183 million BOE/d in Q4. The company expects to achieve over $1 billion of run-rate synergies by the end of 2025. A portion of this is already reflected in the capital guidance. ConocoPhillips also plans to reduce its workforce as part of a broader initiative to cut costs and streamline operations.
6. Targa Resources Corp. (NYSE:TRGP)
Moore Global Investments’ Stake: $28.75 million
Number of Hedge Fund Holders: 61
Average Upside Potential as of May 2: 34.87%
Targa Resources Corp. (NYSE:TRGP) owns, operates, acquires, and develops a portfolio of complementary domestic infrastructure assets in North America. It operates in two segments: Gathering & Processing (G&P) and Logistics & Transportation. It’s involved in gathering, compressing, treating, processing, transporting, and selling natural gas.
In Q1 2025, natural gas inlet volumes in the Permian Basin operations within the G&P segment averaged over 6 billion cubic feet per day, which was an 11% increase year-over-year. While volumes saw a slight 1% decrease sequentially due to winter weather events, they have since rebounded and are trending ~200 million cubic feet per day higher than the Q1 average.
Targa Resources Corp. (NYSE:TRGP) now anticipates significant volume growth in the Permian throughout the remainder of 2025 and beyond. Targa Resources Corp. (NYSE:TRGP) is also investing in new infrastructure in the Permian. For instance, the Pembrook II plant in the Midland Basin is now expected to come online in Q3 2025, with the East Pembrook and East Driver plants following in Q2 and Q3 of 2026.
5. Advanced Micro Devices Inc. (NASDAQ:AMD)
Moore Global Investments’ Stake: $108.71 million
Number of Hedge Fund Holders: 96
Average Upside Potential as of May 2: 36.58%
Advanced Micro Devices Inc. (NASDAQ:AMD) offers products like AI accelerators, x86 microprocessors, and GPUs through its Data Center, Client, Gaming, and Embedded segments. It serves OEMs and design manufacturers, public cloud service providers, system integrators, independent distributors, and add-in-board manufacturers through its direct sales force and sales representatives.
Seaport Global started coverage of the stock on April 30 with a $110 price target and a Buy rating. Seaport is confident in AMD’s ability to gain market share. AMD delivered record annual revenue in 2024 while more than doubling free cash flow from 2023. In Q4 alone, the revenue increased by 24% to a record $7.7 billion due to record quarterly data center and client segment revenue.
The data center segment contributed ~50% of annual revenue as Instinct and EPYC processor adoption expanded with cloud, enterprise, and supercomputing customers. Wedbush’s Matt Bryson also pointed out that AMD is still gaining market share in the compute sector, both in servers and PCs. The analyst believes that while Advanced Micro Devices Inc. (NASDAQ:AMD) is already outperforming in desktop computers, there is still potential for growth in the notebook segment in 2025.
4. Qualcomm Inc. (NASDAQ:QCOM)
Moore Global Investments’ Stake: $92.17 million
Number of Hedge Fund Holders: 79
Average Upside Potential as of May 2: 36.82%
Qualcomm Inc. (NASDAQ:QCOM) engages in the development and commercialization of foundational technologies for the wireless industry worldwide. It operates through three segments: Qualcomm CDMA Technologies, Qualcomm Technology Licensing, and Qualcomm Strategic Initiatives.
In Q2 2025, the combined revenues from the Automotive and IoT segments of the company reached $2.56 billion. In particular, Automotive made $959 million while IoT made $1.6 billion, which was a year-over-year increase of 59% and 27%, respectively. This growth outpaced the 12% growth in the handset business within QCT. JPMorgan has reiterated an Overweight rating on the stock with a $185 price target due to the company’s push to diversify its streams away from smartphone revenues.
The growth in Automotive is driven by the demand for Qualcomm’s Snapdragon Digital Chassis, which is being integrated into new vehicle launches. During Q2, Qualcomm Inc. (NASDAQ:QCOM) secured 30 new automotive designs, including 5 ADAS programs, and saw 14 commercial vehicle launches utilizing the company’s platforms. Qualcomm aims for $8 billion in automotive revenue by 2029.
Nightview Capital highlighted Qualcomm as a core opportunity in the semiconductor supercycle and stated the following regarding Qualcomm Inc. (NASDAQ:QCOM) in its Q4 2024 investor letter:
“Semiconductors are the unsung heroes of the modern economy, powering everything from AI and 5G to electric vehicles and renewable energy systems. Without them, innovation stalls. The semiconductor industry has entered a supercycle, driven by unprecedented demand across industries that rely on advanced computing. And while this notoriously boom and bust industry has seen cycles before we believe this cycle remains in relative infancy.
These advancements aren’t incremental. As AI systems scale, the need for cutting-edge semiconductors will only accelerate. We believe the companies at the forefront of this revolution are foundational to the next wave of global progress.
Qualcomm Inc. (QCOM): Core Opportunity: Qualcomm is transitioning beyond its traditional handset business, focusing on high-growth markets in Automotive and Internet of Things to drive future revenue streams. We have already seen this strategy flowing through the PnL and we are confident in the firm’s execution abilities going forward.
Competitive Advantage: Automotive Strength: Automotive revenue rose ~55% in FY 2024 to $2.9 billion, further supported by over 10 new design wins with global automakers for advanced driver-assistance systems (ADAS), connectivity, and digital cockpit solutions.
IoT Growth: IoT revenue reached $1.4 billion, reflecting steady traction in smart devices and industrial applications…” (Click here to read the full text)
3. Applied Materials Inc. (NASDAQ:AMAT)
Moore Global Investments’ Stake: $48.79 million
Number of Hedge Fund Holders: 80
Average Upside Potential as of May 2: 37.62%
Applied Materials Inc. (NASDAQ:AMAT) provides manufacturing equipment and services. It also offers software to the semiconductor, display, and related industries. The company operates through three segments: Semiconductor Systems, Applied Global Services, and Display. It operates in the US, China, Korea, Taiwan, Japan, Southeast Asia, Europe, and internationally.
In Q1 2025, the company’s Semiconductor Systems segment generated $5.36 billion in sales, which marked a 9% year-over-year increase. This was fueled by a 20% surge in foundry logic sales, which benefit from the industry’s transition to advanced nodes like gate-all-around transistors and backside power delivery. Applied Materials Inc. (NASDAQ:AMAT) estimates that this transition alone expands the company’s total available market by over 15%.
For Q2 2025, the company projects Semiconductor Systems revenue to be ~$5.3 billion, with an 8% growth year-over-year. Jefferies analysts recently upgraded the stock to Buy from Hold with a $195 price target, up from the previous target of $185. This upgrade was backed by recovering demand, which can help the company’s stock to continue to rise despite the US-China trade tensions.
Vltava Fund viewed the company as a strong tech company with excellent profitability, cash flow, and growth potential, and stated the following regarding Applied Materials, Inc. (NASDAQ:AMAT) in its Q4 2024 investor letter:
“In the quarter just ended, we added to the portfolio two new companies from the technology sector: Applied Materials, Inc. (NASDAQ:AMAT) and Lam Research. Both are in the same industry as is another of our investments that we have held for some time, KLA Corporation. This industry is termed semiconductor devices and materials. One chapter in Hidden Investment Treasures is devoted to investing in technology companies and, among other things, the controversy over what really constitutes a technology company. As investors, we try to view technology companies not according to the industry into which they are formally classified but by whether the technologies and technological processes used in the production of their products and services are an essential element in value creation or if they are a source of long-term, sustainable competitive advantage. Among the companies that are formally categorized as technology-based and fall into either the Information Technology or the Communications Services sector, we find some that can be said to be just that but also others for which this classification is at least debatable. Similarly, among companies that do not formally belong to these two sectors, we find many that clearly are built to a large extent on technology and base their market positions and competitiveness on it. In the cases of Applied Materials and Lam Research, there can be no doubt that these are technology companies not only as a formality but also in fact.
Applied Materials provides manufacturing equipment, services, and software for the semiconductor, display, and related industries. Its principal business activities are semiconductor systems and Applied Global Services. Its largest customers are Samsung and Taiwan Semiconductors, but its overall clientele is more diversified than is that of Lam Research. At first glance, it would appear that Applied Materials has a somewhat less tangible and definable competitive advantage compared to KLA Corporation and Lam Research, but the numbers do not support such a view. Net margins likewise in the neighborhood of 27% and ROCE around 30% are outstanding. Basically, it can be said that all three companies we own have very similar underlying profitability metrics. Even their valuations, growth, and potential are similar. All have strong free cash flow and strong balance sheets, and they are regularly buying back their own shares over the long term and in large volumes…” (Click here to read the full text)
2. NVIDIA Corp. (NASDAQ:NVDA)
Moore Global Investments’ Stake: $299.16 million
Number of Hedge Fund Holders: 223
Average Upside Potential as of May 2: 43.36%
NVIDIA Corp. (NASDAQ:NVDA) is a computing infrastructure company that provides graphics, compute, and networking solutions globally. Through its Compute & Networking and Graphics segments, it delivers products and services like GPUs, data center platforms, AI software, and autonomous driving solutions.
On April 16, Mizuho Securities maintained its Outperform rating on NVIDIA with a $168 price target. Mizuho analysts are optimistic about the company’s near-term prospects, especially with the shipment of the GB200 series and increased testing capacity for more complex GPU racks. The analysts also highlighted NVIDIA’s long-term capital expenditure in AI for the calendar year 2026. At CES 2025, NVIDIA Corp. (NASDAQ:NVDA) unveiled major innovations in AI, gaming, and autonomous vehicles.
In FQ4 2025, NVIDIA made $39.3 billion in quarterly revenue, which was up 78% year-over-year. The company is currently trying to navigate the US-China tensions over advanced technology exports, particularly as Washington tightens restrictions on the sale of AI chips to Chinese firms. The restrictions curb China’s access to advanced AI tech, while boosting domestic chip production. This is evidenced by NVIDIA’s recent $500 billion AI server investment plan in the US.
Guinness Global Innovators is highly bullish on NVIDIA Corp. (NASDAQ:NVDA) due to its dominant AI chip market position. It stated the following in its Q4 2024 investor letter:
“For a second year running, NVIDIA Corporation (NASDAQ:NVDA) was the Fund’s top performing stock, delivering a stellar return of +177.7% over the year. Since the beginning of last year, Nvidia’s ‘Hopper’ GPUs have been at the centre of exploding demand for chips powerful and efficient enough to facilitate the energy intensive requirements of AI processes within datacentres. Initially possessing over 95% of market share in these types of chips, Nvidia have been quick to entrench their position as the technological leader in the space, launching the successor to the current ‘Hopper’ GPU in March, Blackwell, inhibiting the likes of AMD and Intel making meaningful inroads in taking share of the fast-growing market. Compared to the previous iteration (Hopper) which is continuing to fuel Nvidia’s extreme revenue growth, the Blackwell chip is twice as powerful for training AI models and has 5 times the capability when it comes to “inference” (the speed at which AI models respond to queries). Throughout the year, Nvidia’s financial performance has remained resilient. Quarterly revenues hit $35.1 billion in their most recent quarter, beating consensus expectations by 6% and representing a +94% year-over-year increase. Additionally, Nvidia’s data centre segment, driven by the Hopper (H100) chip, grew fivefold over the past year, underscoring the sustained demand for advanced AI infrastructure. The H100 chip, priced at around $40,000, continues to see significant adoption due to its ability to enhance AI model training efficiency while lowering overall costs. This growth is expected to continue as companies invest in upgrading existing data centres and building new ones, with Nvidia well-positioned to capture a significant share of the estimated $2 trillion market opportunity over the next five years. There have been some concerns over Blackwell production delays causing share price volatility however, Nvidia has recovered swiftly, driven by positive earnings results through the year and assurances from management regarding future supply. Additionally, the release of the H200 chip promises to extend Nvidia’s technological leadership, ensuring continued momentum into 2025. While Nvidia’s valuation remains a topic of debate, the stock is not at a significant premium to history, and it still appears reasonable given its dominant market position, innovative prowess, and exposure to long-term secular growth trends in AI, cloud computing, and data infrastructure. As a result, Nvidia remains well-positioned to deliver sustained outperformance over the long term, making it a cornerstone of growth-oriented portfolios.”
1. Applovin Corp. (NASDAQ:APP)
Moore Global Investments’ Stake: $37.83 million
Number of Hedge Fund Holders: 95
Average Upside Potential as of May 2: 64.59%
Applovin Corp. (NASDAQ:APP) builds a software-based platform for advertisers to enhance the marketing and monetization of their content. It operates through two segments: Advertising and Apps. It serves individuals, small and independent businesses, enterprises, advertisers & advertising networks, mobile app publishers, and indie studio developers.
The company’s AXON algorithm, which is a core component of its AI-powered advertising platform, is undergoing self-learning and engineering enhancements for growth. Applovin is expanding its AI advertising capabilities beyond mobile gaming, with a successful e-commerce pilot. Early data shows advertisers seeing substantial returns. The company plans to scale this segment in 2025 by reallocating resources and launching a self-service platform to reach more advertisers.
On April 11, UBS analyst Chris Kuntarich lowered the price target on AppLovin from $630 to $450 while keeping a Buy rating. The analyst addressed concerns stemming from a short report that made e-commerce advertisers more cautious. However, Kuntarich does not expect any major algorithm adjustments in Q1 2025. Kuntarich believes the company can achieve a CAGR of over 40% in advertising revenue over the next 3 years.
ClearBridge Mid Cap Strategy stated the following regarding AppLovin Corporation (NASDAQ:APP) in its Q1 2025 investor letter:
“AI-beneficiary and strong fourth-quarter performer AppLovin Corporation (NASDAQ:APP) came under pressure from several reports from short sellers seeking to capitalize on a reversal in the company’s strong momentum amid the broader tech retreat. However, we believe the AI-enabled advertising software platform continues to be one of the best AI opportunities within the mid cap market. Recent positive channel indicators for its e-commerce business point toward a solid and persistent future of attractive returns for AppLovin, and we used the short-natured weakness to add to our position.”
While we acknowledge the growth potential of Applovin Corp. (NASDAQ:APP), our conviction lies in the belief that AI stocks hold great promise for delivering high 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 APP but that 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.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
