In this article, we discuss Billionaire Paul Tudor Jones’ 10 Stocks Picks with Huge Upside Potential.
It’s all gloomy regardless of what US President Donald Trump does. That’s the sentiment echoed by billionaire investor Paul Tudor Jones, who is taking issue with the aggressive tariffs aimed at settling the trade deficit between the US and its trading partners. While the US markets have pulled back by up to 8% in response to the tariff war woes, Jones believes the dust is unlikely to settle anytime soon.
The hedge fund manager insists stocks are bound to hit new lows even on Trump toning down on aggressive tariffs on China. That’s because macroeconomic conditions continue to deteriorate.
“For me, it’s pretty clear. You have Trump who’s locked in on tariffs. You have the Fed who’s locked in on not cutting rates. That’s not good for the stock market,” Jones said on CNBC’s “Squawk Box.” “We’ll probably go down to new lows, even when Trump dials back China to 50%.”
The remarks come on Trump slapping 145% tariffs on imported Chinese goods as one of the ways of getting Beijing into the negotiation table. While the administration has hinted at the possibility of dialing it back to about 50% or 40%, Jones insists it will be too little too late.
READ ALSO: Billionaire Ray Dalio’s Bridgewater’s 10 Stock Picks with Huge Upside Potential and Billionaire Mario Gabelli’s 10 Large-Cap Stock Picks with Huge Upside Potential.
“He’ll dial it back to 50% or 40%, whatever. Even when he does that … it’d be the largest tax increases since the ’60s,” Jones said. “So you can kind of take 2%, 3% off growth.”
The tariff war has put the US central bank in a tight spot as it tries to balance interest rates amid a tariff war likely to spark inflation. The US Federal Reserve has had to keep its key overnight lending rate steady since December, on growing concerns that the trade war will trigger a significant spike in inflation. Fed chair Jerome Powell, insisting that policymakers wait for greater clarity, has not only rattled the markets but also triggered a backlash from the US president.
Amid the headwinds and uncertainties, Jones has positioned his portfolio to benefit from any bounce back once the selloff dust settles. Jones, who shot to fame on profiting from the 1987 market crash, has etched his name on Wall Street owing to his extraordinary ability to foresee market shifts and try to capitalize on them.
Jones has constantly reiterated the need to concentrate on risk management and protecting current investments during heightened market volatility. Instead of daydreaming about possible gains, he advises investors to spend 90% of their time considering the cash at risk in their investments.
“People need to focus on the money that they have at risk and how much capital is at risk in any single investment they have. If everyone spent 90% of their time on that, not 90% of the time on pie-in-the-sky ideas of how much money they’re going to make, then they would be incredibly successful investors,” Jones said.
Tudor Investment Corporation, founded in 1980, is the investment firm that the hedge fund manager uses to pursue opportunities in the equity markets while leveraging solid risk management strategies. The firm has generated an average return of 19% over the years, affirming a solid stock-picking strategy. With that, let’s take a look at the firm’s top stock picks with huge upside potential.
Our Methodology
We combed Tudor Investment Corporation Q4 2024 13F filings to identify Billionaire Paul Tudor Jones’ 10 Stocks 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. Finally, we ranked the stocks in ascending order based on the stocks upside potential (as of May 7). We have also mentioned the broader hedge fund sentiment for these stocks, as of Q4 2024.
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 Paul Tudor Jones’ 10 Stocks Picks with Huge Upside Potential
10. Amazon.com, Inc. (NASDAQ:AMZN)
Tudor Investment Corporation Equity Stake: $112.92 Million
Stock Upside Potential as of May 7: 30.58%
Number of Hedge Fund Holders: 338
Amazon.com, Inc. (NASDAQ:AMZN) is one of billionaire Paul Tudor Jones’ 10 stock picks with huge upside potential owing to its diversified business empire. While the company is a market leader in e-commerce, it’s also flexing its muscle in the multibillion cloud computing and advertising segments. On May 2, UBS reiterated a Buy rating on the stock but cut the price target to $249 from $253.
The price cut comes against the backdrop of Amazon.com, Inc. (NASDAQ:AMZN) being vulnerable to trade tariffs as it maintains significant operations in China and abroad. Nevertheless, the tech giant delivered impressive first-quarter 2025 results characterized by a 9% revenue increase to $155.7 billion. North America continues to account for the biggest share of the company’s revenue at $92.9 billion, up 8% year over year.
Amid the challenging macro environment, Amazon.com, Inc.’s (NASDAQ:AMZN) Q1 2025 net income increased to $17.1 billion or $1.59 a share compared to $10.4 billion or $0.98 a share a year ago. Advertising revenue, rising by 19%, emerged as a key profit driver. The company’s investments in the cloud computing unit are increasingly paying off as more businesses turn to it for AI needs. Amazon’s management anticipates that both retail and AWS will continue to grow, although they have noted ongoing uncertainty due to possible new tariffs and macroeconomic turbulence. Consequently, it prioritizes inventory planning, supply chain flexibility, and AI technology investments.
9. Flutter Entertainment plc (NYSE:FLUT)
Tudor Investment Corporation Equity Stake: $22.02 Million
Stock Upside Potential as of May 7: 32.09%
Number of Hedge Fund Holders: 97
Flutter Entertainment plc (NYSE:FLUT) is a sports betting and gaming company that provides sportsbooks and iGaming products, such as blackjack, roulette, slot machines, poker, rummy, and lottery products. Its most popular property is FanDuel, having affirmed its status as the most popular online sports betting site.
The online sports betting and iGaming operator has seen its sentiments receive a boost on delivering impressive first-quarter 2025 results, buoyed by strong performance in the US. Revenue in the quarter was up 8% year-over-year to $3.66 billion. Adjusted EBITDA increased 20% to $616 million as net income reached $335 million, a growth of 289% year-over-year. The better-than-expected results came on Flutter Entertainment plc’s (NYSE:FLUT) US business, recording an 18% revenue increase to $1.66 billion. Average monthly players also increased 8% to $14.88 million, affirming Flutter Entertainment’s growing user base and engagement.
To accelerate growth in the year, Flutter Entertainment focuses on organic growth while leveraging mergers and acquisitions to enhance its competitive edge. While the US market is the key growth driver, Flutter Entertainment plc (NYSE:FLUT) is also gaining market share in Europe as more betting in the region shifts online.
8. Adobe Inc. (NASDAQ:ADBE)
Tudor Investment Corporation Equity Stake: $32.47 Million
Stock Upside Potential as of May 7: 32.70%
Number of Hedge Fund Holders: 117
Adobe Inc. (NASDAQ:ADBE) is a software infrastructure company that creates software and digital marketing tools for creative, marketing, and document management purposes. Individuals, businesses, and organizations develop and share content with their software solutions. Likewise, it is one of the companies benefiting from integrating artificial intelligence in its solutions.
Adobe Inc.’s (NASDAQ:ADBE) generative AI-powered solutions increasingly redefine how creative’s and marketers design and deliver personalized experiences at scale. Similarly, multiple generative AI models in Firefly are seen as game changers that strengthen the company’s edge in the segment. In its first quarter fiscal 2025, the company generated over $125 million in bookings from AI-related products and delivered 10% revenue growth.
The fact that about 35% of monthly active subscribers of Photoshop are using the generative AI features on offer underscores their growing need. Likewise, Adobe Inc. (NASDAQ:ADBE) has announced plans to roll out new Firefly web app subscriptions and support third-party AI models as it continues to capitalize on the AI boom. On April 23, Piper Sandler lowered Adobe’s price target from $600 to $500 but maintained an Overweight rating. The firm cited near-term growth challenges from tariffs, policy changes, and AI adoption hurdles. The software sector faces weakening investor sentiment as industry growth slows for the fourth straight year. Despite valuation multiples hitting a seven-year low, the direct tariff impact on software remains minimal.
7. Zoetis Inc. (NYSE:ZTS)
Tudor Investment Corporation Equity Stake: $25.03 Million
Stock Upside Potential as of May 7: 33.38%
Number of Hedge Fund Holders: 76
Zoetis Inc. (NYSE:ZTS) is a global animal health company that focuses on delivering quality medicines, vaccines, diagnostic products, genetic tests, and services. It is one of billionaire Paul Tudor Jones’ 10 stock picks with huge upside potential for gaining exposure in the healthcare sector. The company is experiencing rising demand for innovative products, according to solid Q1 2025 results.
Sales in the quarter were up 1.4% year-over-year to $2.22 billion, beating analyst estimates of $2.19 billion. Buoyed by the strong product demand, Zoetis Inc. (NYSE:ZTS) has lifted its revenue guidance for the full year to $9.5 billion from $9.3 billion initially forecasted. Adjusted earnings per share in the first quarter came in at $1.48, higher than the $1.40 a share expected. Similarly, the animal healthcare company has raised its full-year EPS guidance by 3.3% to $6.25
Zoetis Inc.’s (NYSE:ZTS) raising its full-year guidance amid a challenging macro environment underscores the strength of its diversified portfolio tailored for various markets and species. Its growth in 2025 will be driven by three key product franchises: Simparica, Dermatology, and Osteoarthritis (OA) Pain. Simparica Trio is experiencing strong adoption as a preferred canine parasiticide. The company has already expanded its label to include prevention of flea tapeworm infections. Apoquel is the company’s flagship dermatology franchise that grew 10% in Q1, emerging as the top-selling dermatology product.
6. UnitedHealth Group Incorporated (NYSE:UNH)
Tudor Investment Corporation Equity Stake: $34.16 Million
Stock Upside Potential as of May 7: 41.73%
Number of Hedge Fund Holders: 150
UnitedHealth Group Incorporated (NYSE:UNH) is a healthcare company focusing on health insurance and services. The stock has been under pressure on its first quarter results missing estimates and management lowering full year outlook. The sudden change of sentiments comes on the company’s warning that it is recording higher than expected medical costs that are eating into its margins.
UnitedHealth Group Incorporated (NYSE:UNH) delivered adjusted earnings per share of $7.20 against $7.29 in Q1 2025, as the need for medical care rose beyond what was expected. Amid the earnings miss, UnitedHealth Group earnings could receive a significant boost due in part to a large federal rate increase planned for insurers. The US Centers for Medicare & Medicaid Services (CMS) has already confirmed a 5.06% rate hike, more than double what was initially proposed, which could help the company offset rising costs.
The 5.06% average rate hike could translate to an additional $25 billion in funding for health insurers, with UnitedHealth Group Incorporated (NYSE:UNH) expected to be the biggest beneficiary. The company’s insurance unit leads the industry in private advantage plans, which have been a key source of growth over the years.
5. Reddit, Inc. (NYSE:RDDT)
Tudor Investment Corporation Equity Stake: $25.05 Million
Stock Upside Potential as of May 7: 44.43%
Number of Hedge Fund Holders: 87
Reddit, Inc. (NYSE:RDDT) is a communications services company that enables users to engage in conversations, explore passions, research new hobbies, and exchange goods and services. It also organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images, and videos. While the stock has pulled back significantly, it is one of Paul Tudor Jones’ top picks with significant upside potential.
As a hotspot of crowd-sourced discussions, Reddit, Inc. (NYSE:RDDT) has enjoyed robust growth across all business segments, affirming its long-term prospects. The daily active unique (DAU), which translates to user base, grew by 31% in the first quarter of 2025 to 108.1 million as weekly active users climbed to 401.3 million. The robust growth comes from the company enhancing user and community personalization on the platform and expanding video integrations.
In addition, Reddit, Inc. (NYSE:RDDT) delivered a 61% year-over-year revenue increase that reached $392 million, better than the $370 million analysts expected. The robust revenue increase comes as the company increasingly monetizes its vast user base through advertisements. In addition to advertising, Reddit also generates revenues from premium ad-free subscriptions and virtual items that users use on the platform. The robust growth is why Citigroup analysts rate the stock as a Buy with a $ 158 price target.
4. NVIDIA Corporation (NASDAQ:NVDA)
Tudor Investment Corporation Equity Stake: $116.39 Million
Stock Upside Potential as of May 7: 44.65%
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA) is a semiconductor giant that designs and manufactures graphic processing units and related technologies at the heart of artificial intelligence and high-performance computing. While the stock has pulled back significantly from its record highs, it is one billionaire Paul Tudor Jones’ 10 stock picks with huge upside potential amid the artificial intelligence frenzy.
Although NVIDIA Corporation (NASDAQ:NVDA) has dominated the semiconductor sector with its GPUs for powering AI models, its stock has received a rare Sell rating from Seaport Global Securities analyst Jay Goldberg. The Sell rating comes amid growing concerns that the company will feel the full brunt of recent export restrictions targeting China. Nevertheless, the analyst insists Nvidia remains the dominant player in developing advanced chips and is not at risk of losing its market-leading position.
However, NVIDIA Corporation (NASDAQ:NVDA) plans to launch a downgraded H20 AI chip for China in July, following U.S. export restrictions on the original model. The company aims to retain its market presence despite tighter semiconductor regulations. The modified H20 will have reduced memory capacity, though customers may adjust its performance. Nvidia’s China sales totaled $17B, or 13% of its revenue, in the fiscal year ended January 26.
For investors who believe in the AI opportunity overall, the company is a long-term play because of its strong position in both market share and innovation, which should help it overcome short-term obstacles. NVIDIA Corporation (NASDAQ:NVDA) CEO Jensen Huang has already reiterated that the market for AI chips is poised to reach $50 billion in China, insisting that the company should have access to the country.
3. Micron Technology, Inc. (NASDAQ:MU)
Tudor Investment Corporation Equity Stake: $25.03 Million
Stock Upside Potential as of May 7: 55.97%
Number of Hedge Fund Holders: 94
Micron Technology, Inc. (NASDAQ:MU) is a technology company that specializes in the development of memory and storage technology used in a wide range of products, including data centers, PCs, mobile devices, and automotive. While the stock has pulled back by about 8% year to date, analysts at JPMorgan remain bullish about its prospects, given its minimal exposure to specific stock keeping units (SKUs) affected by regulatory actions in China.
The company continues to outperform the overall sector, given its small exposure to the H20 and H20e SKUs. While Micron Technology, Inc. (NASDAQ:MU) has shipped a limited amount of high-performance memory in China due to regulatory restrictions by the Cyberspace Administration of China (CAC). JPMorgan insists there are tremendous opportunities around AI that it can still unlock in China. Therefore, Micron Technology is expected to achieve revenue growth of up to 41% in FY2025.
The remarks come from Micron Technology, Inc. (NASDAQ:MU), delivering impressive second-quarter fiscal 2025 results. Revenue totaled $8.05 billion against $5.82 billion delivered the same quarter last year. Net income was $1.78 billion, or $1.56 a share. The better-than-expected results came as data center revenue tripled as the company benefited from the AI boom. Micron Technology expects record quarterly revenue in fiscal Q3 FY2025, attributed to strong demand for DRAM and NAND in data center and consumer-oriented markets.
2. MongoDB Inc. (NASDAQ:MDB)
Tudor Investment Corporation Equity Stake: $21.31 Million
Stock Upside Potential as of May 7: 57.23%
Number of Hedge Fund Holders: 70
MongoDB Inc. (NASDAQ:MDB) is a software infrastructure company that provides a general-purpose database platform worldwide. It provides MongoDB Atlas, a hosted multi-cloud database-as-a-service solution, and MongoDB Enterprise Advanced, a commercial database server for enterprise customers to run in the cloud. The company has been under pressure from an uncertain macroeconomic climate and soaring competitive pressure.
While MongoDB Inc. (NASDAQ:MDB) has dropped 16% year–to–date, Piper Sandler analyst Brent Bracelin reiterated a Buy rating on April 23 with a $200 price target. Wall Street remains bullish about the company’s outlook as it increasingly capitalizes on the artificial intelligence boom. That was clear as it bounced back to profitability in the fourth quarter of fiscal 2025.
MongoDB Inc. (NASDAQ:MDB) reported earnings of $1.28 a share as it benefited from a 20% jump in revenue in the quarter to $548.4 million. Subscription revenues were up 19% in the quarter as services revenue increased 34%. MongoDB continues to add more customers, affirming strong demand for its solutions; consequently, it ended Q4 FY 2025 with over 54,500 paying customers. However, the company rattled Wall Street on projecting earnings of between $2.44 and $2.62 for fiscal 2026, well below $3.38 that analysts expect.
1. Elastic N.V. (NYSE:ESTC)
Tudor Investment Corporation Equity Stake: $21.01 Million
Stock Upside Potential as of May 7: 59.47%
Number of Hedge Fund Holders: 64
Elastic N.V. (NYSE:ESTC) is a search AI company that provides search, observability, and security solutions. It offers a search AI platform built on Elasticsearch that enables businesses to harness AI to find answers to their data in real time. It is one of the billionaire Paul Tudor Jones’ 10 stock picks, with huge upside potential, as it increasingly capitalizes on artificial intelligence opportunities.
Elastic N.V. (NYSE:ESTC) has already confirmed the availability of Elastic Cloud Serverless on Amazon Web Services. It has also been integrated with Google Cloud’s Vertex AI platform. The integration is part of Elastic NV’s bid to make it easier for developers to build next-generation generative AI experiences. Additionally, it has inked a strategic partnership with Tines to offer security and observability workflow automation.
Elastic N.V. (NYSE:ESTC) remains well-positioned to scale its footprint in cloud native enterprises owing to its partnerships with Google and Amazon. That was clear as the company’s top line increased by 17% in the third quarter of fiscal 2023, attributed to a 26% growth in cloud revenues. Likewise, Morgan Stanley analyst Sanjit Singh reiterated an Overweight rating on the stock on April 16 despite cutting the price target to $120 from $140. The bullish stance comes as the analyst expects the integration of generative AI in the cloud and into applications to be a key growth driver.
While we acknowledge the potential of Elastic N.V. (NYSE:ESTC) 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 ESTC 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.
