In this article, we will take a look at some of the best Dow stocks according to hedge funds.
The Dow Jones Industrial Average, often called the Dow Jones or just the Dow, is a stock market index that tracks 30 major publicly traded companies in the United States. It’s one of the oldest and most widely recognized benchmarks for the US stock market.
Stocks showed mixed movement on June 11 following the release of inflation figures that came in lower than anticipated, alongside news of a preliminary trade deal between the US and China.
The DJIA gained 158 points, or 0.4%, while the broader market remained mostly unchanged and the Nasdaq Composite slipped by 0.2%. The S&P index has now risen in six of the past seven sessions and is trading less than 2% below its February record high. Earlier this year, it had fallen nearly 20% from that peak.
Meanwhile, the Consumer Price Index (CPI) rose just 0.1% in May compared to April, coming in below the 0.2% increase forecasted by economists. Core CPI, which excludes food and energy, also rose by 0.1%, falling short of expectations.
Alexandra Wilson-Elizondo, global co-CIO of multi-asset solutions at Goldman Sachs Asset Management, made the following comment regarding the current market:
“Inflation in May was lower than anticipated, suggesting the tariffs aren’t having a large immediate impact because companies have been using existing inventories or slowly adjusting prices due to uncertain demand. As we wait for the 90-day tariff pause to pass, the market will be caught between inflation and job prints. If inflation stays under control or the job market weakens, the Federal Reserve will likely consider cutting interest rates down the road.”
Given this market situation, we have compiled the list of 20 best Dow stocks according to hedge funds.
Our Methodology
For this list, we scanned a list of 30 Dow stocks and picked 20 that were the most popular among hedge funds. The stocks are ranked in ascending order of hedge funds having stakes in them, as per Insider Monkey’s Q1 2025 database.
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).
20. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 57
International Business Machines Corporation (NYSE:IBM) is one of the best Dow stocks to invest in. On June 10, the company revealed that it’s working on a large-scale, fault-tolerant quantum computer named Quantum Starling as part of its broader quantum roadmap.
A key component of this effort is the upcoming IBM Quantum Nighthawk processor, which is expected to launch later this year, according to a company blog post.
Like several other tech giants and well-funded startups, International Business Machines Corporation (NYSE:IBM) is racing to advance quantum computing. The core challenge they all face lies in qubit reliability—while qubits can perform rapid calculations, they tend to generate significant errors. Researchers often dedicate some qubits to correcting these errors, but that leaves fewer available for practical computation.
International Business Machines Corporation (NYSE:IBM) shifted its strategy in 2019, and now claims it has developed a new algorithm that could dramatically reduce the number of qubits required for error correction.
Jay Gambetta, International Business Machines Corporation (NYSE:IBM) vice president of quantum initiatives, explained that, unlike the company’s earlier approach, where theory dictated chip design, the current strategy focuses on building chips that are feasible first and then designing the error-correction method around them. This more pragmatic path has given IBM the confidence to roll out a series of increasingly advanced systems through 2027, paving the way for much larger quantum machines.
IBM has surged by over 25.6% since the start of 2025.
19. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 65
On June 6, Verizon Communications Inc. (NYSE:VZ) declared a quarterly dividend of $0.6775 per share, which was in line with its previous dividend.
While the company didn’t raise its dividend this time around, it has maintained a consistent track record, increasing it for 18 straight years. This steady growth has been supported, in part, by its strong cash position. In the most recent quarter, Verizon Communications Inc. (NYSE:VZ) posted solid financial results, with operating cash flow rising to $7.8 billion, up from $7.1 billion in the same period last year. Free cash flow also improved, climbing from $2.7 billion to $3.6 billion.
Chairman and CEO Hans Vestberg made the following comment regarding the company’s dividend policy:
“As the nation’s leader in mobility and broadband for consumers and businesses, we create great experiences for a broad and high-quality base of customers. This allows us to continue paying our dividend even in uncertain economic environments, while investing in our business to extend our network leadership, enhance America’s communications infrastructure and meet the present and future needs of all our customers.”
Verizon Communications Inc. (NYSE:VZ) is maintaining a focused and thoughtful strategy to reach its financial objectives by concentrating on specific customer groups and tailoring its services for a more personalized experience. With a solid financial foundation, the company keeps reinvesting in its operations and advancing innovation to enhance customer service.
VZ has surged by nearly 10% since the start of 2025.
18. McDonald’s Corporation (NYSE:MCD)
Number of Hedge Fund Holders: 75
McDonald’s Corporation (NYSE:MCD) is one of the best Dow stocks to consider. Morgan Stanley suggested that the company may soon start feeling some of the broader challenges affecting the fast food industry. On June 9, the firm downgraded the stock from “Overweight” to “Equal Weight” and lowered its price target from $329 to $324 per share, indicating a potential upside of about 5% from last Friday’s closing price.
Analyst Brian Harbour made the following comment:
“MCD is a top quality business but hasn’t been, and probably will not be, insulated from some structural pressures on fast food.”
He further said:
“YTD, the stock is up 6% and has behaved defensively, 5% off all time highs despite fundamental headwinds for over a year. Simply, we see more balanced risk/reward skew today, weighing MCD’s leadership position in the [quick service restaurant] segment against what we think are some structural headwinds that could continue.”
The analyst pointed to economic uncertainty affecting lower-income consumers and changing preferences toward health and wellness as key challenges. While McDonald’s Corporation (NYSE:MCD) has outperformed its competitors so far, the firm noted that its momentum may begin to taper off.
MCD is up by nearly 3% since the start of 2025.
17. Honeywell International Inc. (NASDAQ:HON)
Number of Hedge Fund Holders: 75
Honeywell International Inc. (NASDAQ:HON) is among the best Dow stocks to invest in. On June 9, the company announced that it had finalized its $2.16 billion all-cash acquisition of Sundyne from private equity firm Warburg Pincus.
Sundyne, known for its advanced pumps and gas compressors used in process industries, is expected to contribute immediately to Honeywell International Inc. (NASDAQ:HON)’s revenue growth, segment margins, and adjusted earnings per share during the first full year of ownership.
Sundyne brings strong customer relationships and top-tier technology, which are expected to enhance Honeywell UOP’s presence in areas like refining, petrochemicals, LNG, and clean energy. Integrated with the Honeywell Forge platform, the combined offering strengthens Honeywell’s position in the energy transition by providing a comprehensive, scalable solution.
This acquisition comes on the heels of Honeywell International Inc. (NASDAQ:HON)’s recent announcement to spin off its Aerospace Technologies and Solstice Advanced Materials units, moves aimed at creating three separate publicly traded companies, each with focused strategies and growth opportunities.
Since December 2023, Honeywell has pursued several strategic initiatives to boost organic growth and streamline its operations, including $13.5 billion in value-enhancing acquisitions. The company operates globally across a wide range of industries.
HON has surged by over 7% in the past 12 months.
16. The Goldman Sachs Group, Inc. (NYSE:GS)
Number of Hedge Fund Holders: 77
The Goldman Sachs Group, Inc. (NYSE:GS) is one of the best Dow stocks to invest in. After more than ten years of effort, the company secured its first institutional asset management client in Japan last year. A second pension fund followed in early 2025, and roughly 10 more potential clients are now in the pipeline, according to Kenro Tsutsumi, head of Goldman Sachs Asset Management Japan.
This recent uptick in interest highlights a growing trend among Japanese institutional investors to outsource the management of their vast assets. As a result, more global financial firms are entering the market for outsourced chief investment officer (OCIO) services in hopes of earning steady fee-based revenue.
In Japan, The Goldman Sachs Group, Inc. (NYSE:GS) faces competition from other major players like BlackRock Inc. and Mercer Inc., a subsidiary of Marsh & McLennan, both of which have also recently landed significant clients in the space.
Tsutsumi, who stepped into his current role at the start of 2024 and has over 20 years of experience at Goldman, noted that the firm’s edge in the OCIO market lies in its ability to offer in-house investment products spanning both traditional and alternative assets. While he didn’t disclose the names of Goldman’s Japanese clients due to confidentiality, he emphasized the firm’s strategic focus on expanding its asset and wealth management footprint in Japan, particularly by managing a portion of assets for corporate pensions and insurance firms. Senior leadership views Japan as a key growth market within the newly restructured division.
15. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 81
Chevron Corporation (NYSE:CVX) is among the best Dow stocks to consider. However, the company has been impacted recently because of the Angola platform fire. In a video message to employees on April 29, Chevron CEO Mike Wirth stressed the need to strengthen safety protocols following a rise in near-miss incidents.
His remarks came just weeks before a fatal fire on one of the company’s offshore platforms in Angola claimed the lives of three workers and injured 15 others.
The warning followed Chevron Corporation (NYSE:CVX)’s February announcement of plans to cut up to 20% of its workforce in a cost-saving move, as several major energy companies have turned to layoffs this year amid the lowest oil prices in four years.
In the two-minute message, titled “Do it safely or not at all,” Wirth urged employees to prioritize safety despite internal and external pressures. He acknowledged concerns that speaking up or halting work might be seen as risky in the current climate, but reassured staff that raising safety issues remains essential.
Wirth emphasized that Chevron Corporation (NYSE:CVX) is working to renew its commitment to a safety-first culture. The fatal incident on May 20 occurred on a deepwater platform located about 60 miles off Angola’s coast. According to Chevron’s latest corporate sustainability report, the company recorded 12 serious injuries and one fatality in the previous year.
14. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 82
According to a detailed report from J.P. Morgan, Cisco Systems, Inc. (NASDAQ:CSCO) is positioned for a potential boost in revenue as it prepares for a wave of upgrades and replacements in its Campus infrastructure, driven by the upcoming release of its next-generation Catalyst switch series, expected next week.
The firm has an Overweight rating on the stock and a price target of $73.
J.P. Morgan analysts, led by Samik Chatterjee, made the following comment:
“We expect to see the launch of Catalyst-2026 switches to support revenue tailwinds for the company, driven largely by an ASP uplift associated with the next-generation product and a faster adoption ramp for Catalyst-2026 relative to the Catalyst 9K series. We forecast +3% port shipment growth, in line with historical trends for Cisco, to remain consistent going forward, and to lead to a medium-term revenue growth CAGR of +6% in Campus revenue for Cisco relative to +3% in the past few years.”
Cisco Systems, Inc. (NASDAQ:CSCO)’s fiscal third-quarter 2025 results, released in mid-May, led to several upward revisions in analyst ratings and price targets, fueled by strong performance in networking and growing momentum in artificial intelligence. Following the earnings, Wells Fargo raised its rating on the stock from Equal-weight to Overweight and increased its price target from $72 to $75.
The company has benefited from the global expansion of AI, securing new agreements in markets such as Saudi Arabia and the UAE. Cisco has also stepped into the quantum computing space. Chatterjee further said:
“Historically, Cisco has tended to upgrade its flagship Catalyst campus portfolio every 6-7 years. The company is likely to launch their next-generation Catalyst product portfolio—the next generation of the Catalyst 9K series—later this year (likely at Cisco Live 2025 next week) with the products being commercially available in 2026.”
Its annual Cisco Live event is taking place from June 8 to 12 in San Diego.
13. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 87
The Coca-Cola Company (NYSE:KO) is one of the best Dow stocks to consider. In one of the recent developments, the company’s Diet Cherry Coke is set to return this summer, but only for a short time.
The fan-favorite drink, which first hit shelves in 1986, was discontinued in 2020 as part of a broader phase-out of several The Coca-Cola Company (NYSE:KO) flavors. Among them, Diet Cherry Coke’s absence seemed to hit longtime fans the hardest.
Now, The Coca-Cola Company (NYSE:KO) has confirmed that the drink will be making a limited-time comeback starting in mid-July, available exclusively at stores within the Kroger family. These include Kroger, City Market, Dillon’s, Foods Co., Food 4 Less, and Fred Meyer.
The returning version will come in nostalgic “retro packaging”—a white box featuring the “Diet Cherry Coke” name and a cherry illustration. Each pack will contain 12 cans and will be distinct from the currently available Coca-Cola Zero Sugar Cherry flavor.
The Coca-Cola Company (NYSE:KO) is an American multinational beverage company. The stock has surged by 17% since the start of 2025.
12. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 91
Johnson & Johnson (NYSE:JNJ) is one of the best Dow stocks. Recently, a federal judge ruled that a Johnson & Johnson subsidiary must pay $442 million in damages after a jury concluded last month that the company had broken antitrust laws by withholding support from hospitals that used reprocessed catheters.
U.S. District Judge James Selna ordered the company to pay three times the $147 million in damages awarded by the jury, as permitted under antitrust regulations. This sum does not include legal fees or other related costs.
Daniel Vukelich, CEO of the Association of Medical Device Reprocessors, described the decision as “a seismic result.” In response, a Johnson & Johnson (NYSE:JNJ) spokesperson said the company intends to appeal the verdict but will comply with the court’s decision and any required relief for now. The spokesperson added, “We strongly disagree with the jury’s verdict and believe it will not withstand appellate review.”
Innovative Health sued Johnson & Johnson (NYSE:JNJ)’s Biosense Webster in 2019, claiming the company used its market power to block hospitals from using reprocessed heart-mapping catheters by tying support for its Carto 3 system to purchases of its own products.
A jury found Johnson & Johnson (NYSE:JNJ)violated antitrust laws by withholding support for the reprocessed devices. AMDR’s CEO said the ruling signals that anti-competitive tactics against reprocessing won’t be tolerated. The case was heard in the U.S. District Court for the Central District of California.
11. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 93
Merck & Co., Inc. (NYSE:MRK) is among the best Dow stocks to invest in. On June 9, the company announced that its drug, enlicitide decanoate, achieved its primary goal of lowering a specific type of cholesterol in two late-stage clinical trials.
The medication is being studied as a potential treatment for hyperlipidemia, a condition marked by high levels of fat in the bloodstream. According to the company, enlicitide led to significant reductions in LDL-C, or “bad” cholesterol, in patients with existing heart disease or those at risk of developing it.
Merck & Co., Inc. (NYSE:MRK) is a global healthcare organization focused on providing innovative health solutions through its medicines, vaccines, biologic therapies, and animal health products.
The stock has surged by over 1% in the past month.
10. The Boeing Company (NYSE:BA)
Number of Hedge Fund Holders: 96
The Boeing Company (NYSE:BA) is among the best Dow stocks to invest in. On June 9, a Boeing 737 MAX aircraft landed in China, marking what appears to be the resumption of deliveries to Chinese airlines after a pause linked to trade tensions between the US and China. Flight tracking data showed the jet, painted in Xiamen Airlines livery, arrived at Boeing’s Zhoushan completion center near Shanghai after departing from Seattle and stopping in Hawaii and Guam to refuel.
The Boeing Company (NYSE:BA) had suspended deliveries to China in April when both countries escalated tariffs. However, the company indicated in late May that shipments would restart in June, following a temporary 90-day easing of those tariffs.
The same aircraft had initially been ferried to Zhoushan in March but was sent back to the US in mid-April after Chinese airlines halted acceptance of new Boeing jets. According to Flightradar24, it was the first of at least three planes returned by Boeing from Zhoushan that month.
China accounts for about 10% of The Boeing Company (NYSE:BA)’s commercial order backlog and remains a key market for the manufacturer. Talks between Chinese and US officials on a potential trade agreement are set to take place in London.
The Boeing Company (NYSE:BA), Xiamen Airlines, and the Civil Aviation Authority of China did not immediately comment on the resumed delivery.
Previously, Boeing had stated that due to tariffs, Chinese customers had declined to take delivery of new jets, prompting the company to consider reselling dozens of aircraft, though none were redirected. The company had forecast delivering 50 planes to China over the rest of the year, with 41 already built or in production.
9. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 100
Walmart Inc. (NYSE:WMT), one of the best Dow stocks, is expanding its drone delivery service to three additional states, aiming to boost convenience for its customers. The retail giant announced plans to roll out the service at 100 locations over the next year in cities including Atlanta, Charlotte, Houston, Orlando, and Tampa. This expansion will bring drone deliveries to a total of five states: Arkansas, Florida, Georgia, North Carolina, and Texas.
Customers can place orders through the app of Wing, the drone operator partnering with Walmart Inc. (NYSE:WMT). These drones can deliver within a six-mile radius of participating stores.
The move is part of Walmart Inc. (NYSE:WMT)’s broader strategy to stay competitive with rivals like Amazon by enhancing convenience alongside affordability. Leveraging its network of over 4,600 stores nationwide, Walmart has been focusing on faster delivery options. It already offers Express Delivery for rapid doorstep service and InHome, a subscription program that delivers directly to customers’ refrigerators. The retailer also expanded same-day prescription delivery, which it introduced last fall.
Walmart Inc. (NYSE:WMT) is expanding its drone delivery service in response to high customer demand for fast, urgent deliveries like medicine, eggs, and fresh food. The service promises 30-minute delivery times, with over half of in-store items eligible.
Since 2021, Walmart Inc. (NYSE:WMT) has completed over 150,000 drone deliveries, though a previous plan to scale to 4 million homes fell short. It currently operates 21 drone sites in Arkansas and Texas through partners Wing and Zipline.
8. The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders: 102
The Home Depot, Inc. (NYSE:HD) is one of the best Dow stocks to invest in. Recently, the company has become a focal point in the recent federal immigration raids and the protests that followed in Los Angeles.
On June 6, federal agents targeted a Home Depot in the Westlake area, along with other sites like Ambiance Apparel in downtown L.A., resulting in dozens of arrests. The arrests near The Home Depot, Inc. (NYSE:HD) involved day laborers hired by the store’s customers, such as homeowners and contractors who often rely on undocumented workers for home repairs and construction.
A The Home Depot, Inc. (NYSE:HD) spokesperson confirmed that the company was not informed about the raids beforehand and was not involved in the enforcement actions. The Atlanta-based retailer now faces challenges as its stores have become common targets for raids, which may discourage customers. On June 9, Home Depot’s shares fell 0.6%, closing at $36.20.
7. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 104
The Walt Disney Company (NYSE:DIS) is among the best Dow stocks. Disney has agreed to pay Comcast $438.7 million to buy out its remaining stake in the streaming service Hulu, ending a lengthy appraisal process.
In 2023, The Walt Disney Company (NYSE:DIS) announced its plan to acquire Comcast’s 33% share of Hulu, paying $8.6 billion based on a minimum value of $27.5 billion that the companies had agreed on in 2019. This move wasn’t unexpected, as reports had indicated Disney’s intention to gain full control of Hulu.
The Walt Disney Company (NYSE:DIS) had originally acquired a two-thirds stake in Hulu through its purchase of Fox Corp.’s entertainment assets.
After the initial payment, Disney and Comcast entered an appraisal process initially set to finish in 2024. The deal is expected to be finalized by July 24.
Disney CEO Bob Iger made the following statement:
“We are pleased this is finally resolved. We have had a productive partnership with NBCUniversal, and we wish them the best of luck.”
Meanwhile, The Walt Disney Company (NYSE:DIS) has started merging Hulu with its other streaming services, which are also bundled with ESPN+, its sports streaming platform.
6. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 129
JPMorgan Chase & Co. (NYSE:JPM) is one of the best Dow stocks to consider. In one of the recent developments, the company is tightening rules for junior employees taking other jobs while still employed at the bank, according to a leaked email.
Private equity firms often offer positions up to two years before the start date, leading many recent graduates to pursue these lucrative roles before or during their time as investment banking analysts at firms like JPMorgan Chase & Co. (NYSE:JPM).
Now, JPMorgan is warning new US analysts that accepting a future job offer within 18 months of starting at the bank could result in termination. This policy aims to prevent any “potential conflicts of interest” and preserve client trust. The memo also notes that analysts could be fired for missing onboarding or summer training sessions.
JPMorgan Chase & Co. (NYSE:JPM) CEO Jamie Dimon called out the issue of losing talent to private equity last year, labeling it “unethical.” He explained that job hopping to private equity puts the bank in a difficult spot since analysts might already be committed elsewhere while handling sensitive information at JPMorgan.
5. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 139
UnitedHealth Group Incorporated (NYSE:UNH) is among the best Dow stocks to invest in. The company is considering several offers for its Latin American business, according to two insiders familiar with the situation, as it works to recover from a series of major setbacks, including the removal of its CEO and a reported criminal accounting investigation.
The largest US health insurer has aimed to exit Latin America since 2022, but selling its Banmedica unit has become more urgent recently due to multiple challenges, one source said.
New CEO Steve Hemsley told shareholders last week that he is focused on regaining their confidence following a disappointing earnings report and a Wall Street Journal story about a criminal probe into alleged Medicare fraud. UnitedHealth Group Incorporated (NYSE:UNH) maintains it has not been notified by the Department of Justice and stands by its business integrity.
UnitedHealth Group Incorporated (NYSE:UNH) has received four non-binding bids for Banmedica, which operates in Colombia and Chile, totaling around $1 billion, according to sources who requested anonymity due to the confidential nature of the negotiations.
4. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 140
Salesforce, Inc. (NYSE:CRM) is among the best Dow stocks to invest in. On June 11, the company announced that the Indiana Fever and its parent company, Pacers Sports & Entertainment (PS&E), are implementing its Agentforce digital platform to strengthen fan engagement and support their marketing and sales efforts using AI.
Following a record-breaking year in 2024, with franchise highs in ticket sales, viewership, and digital interactions, including a 265% surge in attendance, the Fever aimed to expand their personalized outreach as their fan base rapidly grows.
By using Agentforce, the team will enhance and automate fan interactions across various channels. Salesforce’s Data Cloud will also help by bringing together fragmented data to build complete fan profiles, tracking ticket purchases, merchandise sales, and customer service history.
Joey Graziano, EVP, Strategy & New Business Ventures, Pacers Sports & Entertainment, made the following comment:
“We are building the most valuable database in professional sports, and this partnership with Salesforce is a significant step in that direction. Agentforce will help us enhance how we engage with our fanbase by offering personalized recommendations at scale, unlocking new opportunities for the Indiana Fever and the entire PS&E ecosystem.”
Salesforce, Inc. (NYSE:CRM) enables businesses of all sizes to transform how they operate using AI. Its enterprise solution, Agentforce, connects effortlessly with Customer 360 apps, Data Cloud, and Einstein AI to form a unified, AI-powered workforce. This platform brings together people and digital agents to drive customer success through a single, reliable system.
3. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 159
Apple Inc. (NASDAQ:AAPL) is among the best Dow stocks to invest in. In one of the recent developments, the company is giving millions of app developers access to its AI models for the first time, aiming to leverage its vast hardware and software ecosystem to stay ahead of competitors.
At its annual developer event, the company introduced a cautious update, unveiling refreshed operating systems and modest new AI tools, rather than making major announcements.
CEO Tim Cook said Apple Inc. (NASDAQ:AAPL) was looking to “harness the power of Apple Intelligence”, an AI-driven software update first introduced last year. Developers began testing the new features on June 9, with a broader rollout expected in the fall. These AI capabilities will only be available on newer iPhone models.
Analysts have been watching to see how Apple Inc. (NASDAQ:AAPL) might monetize AI within its App Store, which earned over $30 billion in 2024, according to Bank of America. One potential route could involve paid AI features within apps, with Apple taking a share as it does with other digital purchases.
Among the updates are real-time AI translations of phone calls and messages processed directly on users’ devices, along with enhancements like letting the “Visual Search” tool interact with on-screen content.
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 212
NVIDIA Corporation (NASDAQ:NVDA) is one of the best Dow stocks to invest in. Recently, Britain’s financial regulator announced a partnership with the company to help banks safely explore artificial intelligence technologies.
The Financial Conduct Authority (FCA) revealed plans to launch a new “Supercharged Sandbox” in October, aimed at supporting financial institutions in the early stages of AI experimentation. Through this initiative, firms will gain access to NVIDIA Corporation (NASDAQ:NVDA)’s accelerated computing tools and AI Enterprise Software, along with improved data, technical expertise, and regulatory guidance to help speed up innovation.
The FCA noted that this program is intended for companies still in the early “discovery and experiment” stage of AI adoption, while a separate testing environment is already available for firms further along in development.
Jessica Rusu, the FCA’s chief data, intelligence and information officer, made the following comment:
“This collaboration will help those that want to test AI ideas but who lack the capabilities to do so. We’ll help firms harness AI to benefit our markets and consumers, while supporting economic growth.”
NVIDIA Corporation (NASDAQ:NVDA) produces the graphics processing units (GPUs) that power the training and operation of advanced AI models. The stock has surged by nearly 4% since the start of 2025.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 284
Microsoft Corporation (NASDAQ:MSFT) is one of the best Dow stocks to invest in. The company is entering the handheld gaming market for the first time with the upcoming launch of the ROG Xbox Ally devices.
Created in partnership with ASUS, these handhelds are designed to deliver a full Xbox gaming experience in a portable format. Users will be able to play Xbox titles, stream content, and use cloud gaming features while on the move.
Microsoft Corporation (NASDAQ:MSFT) made the following comment:
“Players can look forward to an approachable gaming experience that travels with you wherever you go, featuring several new and first-of-their kind features on both devices,”
The announcement comes shortly after Nintendo revealed its Switch 2, signaling a new phase in the competition for portable gaming dominance. Microsoft Corporation (NASDAQ:MSFT) described this move as part of its broader strategic vision.
A Microsoft spokesperson made the following statement in an email to CNBC:
“Everything we do starts with the player. We’re continuously pushing ourselves to innovate and bring new product offerings and choice to players.”
While we acknowledge the potential of MSFT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MSFT and that has 100x upside potential, 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.
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