Do You Believe in the Long-Term Favorable Growth Trend of Visa (V)?

Macquarie Asset Management, an investment management company, released its “Macquarie Large Cap Growth Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, Macquarie Large Cap Growth Fund Institutional Class shares posted negative absolute returns; however, they surpassed the performance of the Fund’s benchmark, the Russell 1000® Growth Index. Despite market challenges, the firm’s investment style performed well, focusing on higher-quality businesses. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its first-quarter 2025 investor letter, Macquarie Large Cap Growth Fund highlighted stocks such as Visa Inc. (NYSE:V). Headquartered in San Francisco, California, Visa Inc. (NYSE:V) is a payment technology company. The one-month return of Visa Inc. (NYSE:V) was -2.13%, and its shares gained 28.55% of their value over the last 52 weeks. On June 24, 2025, Visa Inc. (NYSE:V) closed at $351.63 per share, with a market capitalization of $686.909 billion.

Macquarie Large Cap Growth Fund stated the following regarding Visa Inc. (NYSE:V) in its Q1 2025 investor letter:

“At the individual stock level, the greatest contribution was attributable to not owning Tesla, and our positions in Intercontinental Exchange Inc. (ICE) and Visa Inc. (NYSE:V). Visa, the US-based financial technology company, is consistently one of the most profitable business models we can invest in. The stock fell under pressure in 2024 as there were expectations for guidance revisions, volume growth slowed, and chatter heightened around anti-competitive practices. The core business may be more mature in the US but still grows at a healthy and durable pace. Meanwhile, the cash-to-card conversion is still underpenetrated internationally, and the company’s Value Add Services segment is still immature and has a long runway for growth. The recent rerating in the stock was warranted, and we believe long-term trends are still quite favorable.”

Is Visa Inc. (V) the Best Blue Chip Stock to Buy for 2025?

A close-up of a credit card being swiped on a payment terminal, reflecting the company’s payments technology.

Visa Inc. (NYSE:V) is in 6th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 165 hedge fund portfolios held Visa Inc. (NYSE:V) at the end of the first quarter, which was 181 in the previous quarter.  In Q1 2025, Visa Inc. (NYSE:V) reported $9.5 billion in net revenue, up 10% year-over-year. While we acknowledge the potential of Visa Inc. (NYSE:V) 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 timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Visa Inc. (NYSE:V) and shared the list of best performing Warren Buffett stocks in 2025. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of V as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.