In this article, we discuss Billionaire Mario Gabelli’s 10 Large-Cap Stock Picks with Huge Upside Potential.
Mario Gabelli needs no introduction, having risen to become one of the most successful money managers on Wall Street, backed by a research-driven equity investment style. Having founded Gamco Investors, formerly Gabelli Asset Management Company, in 1977, the investment firm has grown to over $32 billion in assets under management with a portfolio spread over 800 stocks.
Therefore, GAMCO is one of the most diversified hedge funds, offering exposure to some of the biggest and fastest-growing market segments. Over the years, Gabelli has relied on a value investment strategy that focuses on stocks trading below their fair value. In return, he looks for catalysts that could cause the stock’s value to rise substantially.
Some of the catalysts the fund manager often looks for include the sale or spinoff of a business. Mergers, industry consolidation, or regulatory changes also act as tailwinds in driving share value. The value investment strategy has been the catalyst behind GAMCO investors achieving impressive annualized returns of 16.3% since inception.
READ ALSO: Billionaire David Tepper’s 10 Stock Picks with Huge Upside Potential and Billionaire Jim Simons’ RenTech’s 10 Small-Cap Stock Picks with Huge Upside Potential.
Likewise, GAMCO Investors is well positioned to capitalize on emerging opportunities in the overall stock market, pulling back. Valuation levels have pulled back significantly in the aftermath of the stock market coming under pressure amid the US tariff-fueled trade war.
The announcement of President Donald Trump’s “Liberation Day” tariffs caused a significant upheaval in the stock and bond markets, resulting in the loss of trillions of dollars in investor wealth. While the administration temporarily suspended most reciprocal tariffs on April 9 for a period of 90 days, the looming threat of a global trade war poses risks to economic expansion. It is likely to shift capital flows in the equity markets.
Both policymakers and market players are also wary of the potential for a financial “mishap,” stemming from erratic movements in the U.S. Treasury market. Federal Reserve Chair Jerome Powell warned that current tariffs are “significantly larger than expected,” adding that “the same is likely to be true of the economic effects, which will include higher inflation and slower growth.”
The tariffs imposed by U.S. President Donald Trump and other countries’ reactions have created uncertainty for investors’ holdings. Technology stocks have been the hardest hit amid the tariff wars after years of blockbuster gains fueled by the artificial intelligence frenzy.
Given the market downturns, an anticipated increase in consumer costs, and a heightened chance of a recession as a result of these tariffs, it is indeed challenging to envision what a victory would entail for Trump, who claimed in 2018 that “trade wars are beneficial and straightforward to win!”
On the other hand, now would be the best time to capitalize on the significant pullbacks in the equity markets. With most stocks trading at discounted valuations beyond historical averages, billionaire Mario Gabelli’s 10 large-cap stock picks with huge upside potential could offer a way out of the downturn.
Mario Gabelli of GAMCO Investors
Our Methodology
We combed Gamco Investors SEC Q4 2024 13F filings to identify Billionaire Mario Gabelli’s 10 Large-Cap Stock Picks with Huge Upside Potential. We then settled on stocks with more than 30% upside potential based on analysts’ ratings and analyzed why the stocks stand out, as solid value investments well poised to generate significant long-term value. The list is sorted in ascending order according to analysts’ projected upside potential.
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 Mario Gabelli’s 10 Large-Cap Stock Picks with Huge Upside Potential
10. ASML Holding N.V. (NASDAQ:ASML)
Gamco Investors Equity Stake: $3.47 Million
Market Capitalization as of May 5: $270.44 Billion
Stock Upside Potential as of May 5: 32.43%
Number of Hedge Fund Holders: 86
ASML Holding N.V. (NASDAQ:ASML) is a semiconductor equipment & materials company that provides lithography solutions for developing and producing advanced semiconductor equipment systems. It offers lithography, metrology, and inspection systems. It is one of the few companies that have held steady as Trump’s tariff trade wars and recession concerns rattle the once booming sector. While the stock is down by about 2% year to date, Truist Securities upgraded it to a Strong Buy and raised its price target to $1200 on May 1.
Truist Securities’ bullish stance stems from ASML Holding N.V. (NASDAQ:ASML) cementing its position as the leading producer of lithography systems used to etch circuit patterns. Additionally, the company’s growth prospects remain solid as it is the only producer of ultraviolet lithography systems used by TSMC and Samsung to manufacture advanced Chips. Its dominance in the segment accords its pricing power. With its low-NA EUV systems costing $180 million each and high-NA EUV systems costing $380 million, analysts believe the company’s revenue is poised to grow at a compound annual growth rate of 12% between 2024 and 2027.
ASML Holding N.V. (NASDAQ:ASML) delivered solid first quarter 2025 results, with sales increasing 46% year-over-year to €7.7bn. Its net profit came in at €2.36 billion against €2.3 billion expected. Net bookings of ASML equipment stood at €3.94 billion in the first quarter, lower than the €4.89 billion analysts had expected. Nevertheless, CEO Christophe Fouquet insists that the demand outlook remains strong as artificial intelligence remains a key driver.
9. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)
Gamco Investors Equity Stake: $401,042
Market Capitalization as of May 5: $65.17 Billion
Stock Upside Potential as of May 5: 32.83%
Number of Hedge Fund Holders: 68
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is a biotechnology company that develops and commercializes life-transforming medicines for eye diseases, allergies, cancer, cardiovascular diseases, and rare diseases. The stock has been under pressure due to disappointing first-quarter 2025 results. Earnings per share fell 14% year-over-year to $8.22 as revenues dropped 4% to $3.03 billion.
The disappointing results came on sales for Eylea, one of the company’s key products, dropping 26% to $1.04 billion amid pricing pressure and market share losses. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) pipeline momentum remains strong amid the disappointing results. The company has multiple regulatory approvals and promising clinical trials. It is working on DB-OTO, a potential gene therapy for hearing loss.
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) has also confirmed a $7 billion infrastructure investment as it seeks to bolster its manufacturing capacity in the US. While the investment is expected to shield the company from trade tariffs, it also underscores management’s long-term confidence. The company has also signed an agreement with FUJUFILM Diosynth Biotechnologies to manufacture and supply drug production on the North Carolina campus as it continues to bolster its manufacturing capacity in the US.
8. QUALCOMM Incorporated (NASDAQ:QCOM)
Gamco Investors Equity Stake: $1.72 Million
Market Capitalization as of May 5: $152.09 Billion
Stock Upside Potential as of May 5: 33.15%
Number of Hedge Fund Holders: 79
QUALCOMM Incorporated (NASDAQ:QCOM) is a technology company that develops and commercializes foundational technologies for the wireless industry worldwide. It develops and manufactures chips for wireless telecommunications, including mobile phones, computers, tablets, and cars. It is one of Billionaire Mario Gabelli’s 10 large-cap stock picks with tremendous upside potential as a key supplier of chips such as smartphone modems and processors.
QUALCOMM Incorporated (NASDAQ:QCOM) delivered fiscal second quarter 2025 results that topped analysts’ estimates as it increasingly benefited from chip sales that showed strong growth. Revenue came in at $10.84 billion against $10.66 billion expected as earnings per share rose to $2.85 against $2.82 expected. While handset chip sales surged 12% to $6.93 billion, Qualcomm is increasingly working on selling more chips for cars through its automotive business. Sales in the segment were up 59% to $959 million.
QUALCOMM Incorporated (NASDAQ:QCOM) is also working on selling more chips for virtual reality headsets and more for Windows PCs under its Internet of Things. The push is part of a diversification strategy and a continued focus on areas likely to drive long-term value. Likewise, the stock sentiments received a boost on the chip giant, reiterating that it does not expect any material impact from tariffs. Consequently, Susquehanna has reiterated a Buy rating on the stock amid the favorable tailwinds, even cutting the price target to $190 from $210.
7. Thermo Fisher Scientific Inc. (NYSE:TMO)
Gamco Investors Equity Stake: $2.15 Million
Market Capitalization as of May 5: $159.40 Billion
Stock Upside Potential as of May 5: 33.32%
Number of Hedge Fund Holders: 100
Thermo Fisher Scientific Inc. (NSE:TMO) is a healthcare company providing life sciences solutions, analytical instruments, specialty diagnostics, laboratory products, and biopharma services. While the stock has underperformed, going down by about 18% year-to-date, its underlying fundamentals remain solid. Consequently, analysts at Bernstein maintain a positive stance, going by an Outperform rating and a $690 price target.
While Thermo Fisher Scientific Inc. (NSE:TMO) remains susceptible to tariff risk, analysts are confident of its ability to pass the increased costs on to customers, given the strong demand for its scientific instruments and laboratory supplies. Solid first-quarter 2025 results echoed the sentiments amid an uncertain macroeconomic environment. The lab equipment and life science solutions company posted adjusted earnings per share of $5.15, above the $5.10 a share that analysts expected. Revenue in the quarter totaled $10.36 billion against $10.23 billion expected.
Amid the tariff risks, Thermo Fisher Scientific Inc. (NSE:TMO) is increasingly strengthening its product pipeline in pursuit of new growth opportunities. In the first quarter, it launched several innovative products, including the Thermo Scientific Vulcan Automated Lab and the next-generation Thermo Scientific Transcend, enhancing its market leadership. It also inked a $4.1 billion acquisition deal for Solventum’s Purification & Filtration business to further strengthen its bio-production business, especially in biologics development.
6. The Walt Disney Company (NYSE:DIS)
Gamco Investors Equity Stake: $33.74 Million
Market Capitalization as of May 5: $166.52 Billion
Stock Upside Potential as of May 5: 36.13%
Number of Hedge Fund Holders: 108
The Walt Disney Company (NYSE:DIS) is a diversified media and entertainment giant known for its film studios, theme parks, and consumer products. It also offers streaming services through Disney+. The stock has been under pressure on President Trump threatening 100% tariffs on foreign-produced films. Amid the headwind, the stock has slid 16% year to date.
Amid the pullback, it is one of billionaire Mario Gabelli’s 10 large-cap stock picks with tremendous upside potential. Even as the company faces the tariff headwind, its underlying fundamentals remain strong. Disney’s streaming business has been growing at an impressive rate, with the Disney direct-to-consumer segment delivering positive income over the last three quarters. The unit is expected to generate $1 billion operating income in 2025.
The Walt Disney Company (NYSE:DIS) has felt the full brunt of declining linear TV, it continues strengthening its edge in the Experiences segment through its theme parks, cruise lines, and consumer products. The segment is home to the 10 most visited parks in the world, drawing more than 700 million fans every year. Likewise, it plans to spend $60 billion on the segment over the next decade to strengthen its competitive edge. On April 30, Loop Capital reiterated a Buy rating on the stock with a $120 price target buoyed by the company’s strong upcoming film lineup, which includes Avatar and Avengers.
5. Dell Technologies Inc. (NYSE:DELL)
Gamco Investors Equity Stake: $815,899
Market Capitalization as of May 5: $65.85 Billion
Stock Upside Potential as of May 5: 36.21%
Number of Hedge Fund Holders: 63
Dell Technologies Inc. (NYSE:DELL) is a technology company that provides technology solutions, including computers, monitors, and other technological products and services. Its product line includes personal computers, monitors, servers, data storage, and networking equipment. It is one of the companies benefiting from the strong demand for artificial intelligence servers amid the digital transformation and AI revolution.
In the fourth quarter of fiscal 2025, Dell Technologies Inc. (NYSE:DELL) recorded $1.7 billion in AI optimizer server orders. It also shipped $2.1 billion in AI servers, affirming how it increasingly benefits from the AI revolution. Likewise, analysts at Citi have reiterated a Buy rating on the stock, even after cutting the price target to $105 from $145.
Dell Technologies Inc. (NYSE:DELL) is well-positioned to benefit owing to its strong clientele base and partnerships with Microsoft, Meta Platforms, and Nvidia on server solutions. Likewise, the company should shrug off a slowdown in PC sales as it increasingly introduces AI PCs.
4. Merck & Co., Inc. (NYSE:MRK)
Gamco Investors Equity Stake: $7.88 Million
Market Capitalization as of May 5: $208.01 Billion
Stock Upside Potential as of May 5: 39.37%
Number of Hedge Fund Holders: 91
Merck & Co., Inc. (NYSE:MRK) is a science and technology company that develops and markets innovative medicines, vaccines, and diagnostics for oncology, diabetes, cardiovascular, and virology. While the stock has been under pressure over the past year, analysts at Guggenheim Securities insist it is a Buy despite cutting the price target to $108 from $115.
The analysts maintain a buy rating in the aftermath of the healthcare company delivering solid first-quarter 2025 results that exceeded Wall Street estimates. Revenue totaled $15.53 billion against $15.31 billion expected as earnings per share totaled $2.22, beating consensus estimates of $2.14. The impressive results were fueled by strong sales of the company’s flagship cancer drug, Keytruda, which helped offset the slow growth of Gardasil sales in China.
Nevertheless, Merck & Co., Inc. (NYSE:MRK) lowered its profit outlook for the year by $200 million, citing additional tariff costs. The company has built a significant presence in China that will be hit hard by the US-China trade war. Nevertheless, the company is poised to spend $1 billion on a new factory to make US supplies for its blockbuster cancer drug Keytruda. The facility is to produce an array of biological medicines and an easier-use version of Keytruda as the company seeks to reduce its dependence on China.
3. UnitedHealth Group Incorporated (NYSE:UNH)
Gamco Investors Equity Stake: $1.48 Million
Market Capitalization as of May 5: $365.14 Billion
Stock Upside Potential as of May 5: 39.57%
Number of Hedge Fund Holders: 150
UnitedHealth Group Incorporated (NYSE:UNH) is a healthcare company offering consumer-oriented health benefit plans and services for national and public sector employers. It provides care delivery, management, wellness and consumer engagement, and health financial services. The stock cratered to its worst day since 1998 as disappointing Q1 2025 results triggered a 22% sell-off. While Jefferies cut its stock price target to $530 from $609 following the disappointing results, the firm still maintains a Buy rating.
The Medicare Advantage company posted adjusted earnings per share of $7.20 against $7.27 expected. Likewise, revenues missed estimates of $111.6 billion, coming in at $109.6 billion. UnitedHealth Group Incorporated (NYSE:UNH) was forced to cut its full-year earnings forecast to between $26 and $26.50 a share, owing to higher-than-anticipated Medicare advantage costs.
Nevertheless, UnitedHealth Group remains in a solid position to grow across its business lines. Its Medicare Advantage will serve an additional 800,000 people in 2025, with the Optum Health unit poised to add 650,000 net new patients. In addition, UnitedHealth Group Incorporated (NYSE:UNH) received a boost after the US Centers for Medicare & Medicaid Services (CMS) finalized a significant increase in 2026 Medicare Advantage payments. The agency has confirmed a rate hike that is more than double the initial proposal.
2. ConocoPhillips (NYSE:COP)
Gamco Investors Equity Stake: $5.06 Million
Market Capitalization as of May 5: $110.75 Billion
Stock Upside Potential as of May 6: 39.58%
Number of Hedge Fund Holders: 85
ConocoPhillips (NYSE:COP) is an independent exploration and production (E&P) company that explores, produces, transports, and markets crude oil, bitumen, natural gas, and liquefied natural gas (LNG). Last year, the company acquired Marathon Oil, adding high-quality and low-cost oil supply inventory. With the acquisition, it is well-positioned to achieve $1 billion of run-rate synergies.
The acquisition lifted the company into the top tier of US oil and natural gas producers. Likewise, it boasts the second-largest land inventory to develop at a relatively low average cost of $30 a barrel. That may explain why ConocoPhillips (NYSE:COP) has remained resilient despite oil prices plunging below $70 a barrel. UBS analyst Josh Silverstein maintained a Buy rating on the stock on expectation of growth in cash flow from major projects and a $10 billion return on capital.
ConocoPhillips (NYSE:COP) plans to increase its dividend dramatically and boost its share buybacks, hiking dividends by 34% and upping its buyback authorization to $20 billion. The stock currently yields 3.41% on dividends, much higher than the S&P 500 average of 1.4%.
1. NVIDIA Corporation (NASDAQ:NVDA)
Gamco Investors Equity Stake: $42.93 Million
Market Capitalization as of May 5: $2.75 Trillion
Stock Upside Potential as of May 5: 44.29%
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA) is a semiconductor giant that designs and develops graphic processing units that are key to powering artificial intelligence models and are also used in gaming platforms. The company has lost about 18% in market value due to factors outside its control. US export controls on chips, a tariff-fueled trade war, and concerns over spending on AI have all hit the stock’s sentiments hard.
Amid the headwinds, Piper Sandler maintains an Overweight rating with a $150 price target. The bullish stance stems from the strong demand for AI-focused data center chips. Concerns about a slowdown in AI infrastructure spending appear to be overblown. Taiwan Semiconductor has already affirmed that it expects AI chip revenue to double this year.
Alphabet hinting that it is the first cloud provider to leverage Blackwell Processors further affirms NVIDIA Corporation’s (NASDAQ:NVDA) revenue base. Google plans to spend $75 billion in capital expenditure in 2025, with Oracle also deploying Nvidia’s Blackwell processor, which underscores the ready market for chip giant products.
While we acknowledge the potential of NVIDIA Corporation (NASDAQ:NVDA) as an investment, our conviction lies in the belief that 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 that trades at less than 5 times its earnings check out our report about this cheapest AI stock.
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