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FedEx Corporation (FDX): Among the Best Stocks to Buy According to the Bill & Melinda Gates Foundation Trust

We recently compiled a list of the 10 Best Stocks to Buy According to the Bill & Melinda Gates Foundation Trust. In this article, we are going to take a look at where FedEx Corporation (NYSE:FDX) stands against Bill & Melinda Gates Foundation Trust’s other stock picks.

Bill Gates has invested billions of dollars in stocks to fund the Seattle-based Bill & Melinda Gates Foundation Trust, widely regarded as the world’s largest private foundation, formed through the merger of the William H. Gates Foundation and the Gates Learning Foundation. According to the Trust, its aim is to address major humanitarian concerns such as poverty, a lack of opportunity, and infectious diseases. Over the past 30 years, Bill and Melinda have contributed an estimated $47.7 billion of their fortune to their foundation and predecessor. The foundation’s trust maintains a highly concentrated equities portfolio, reflecting the influence of Bill Gates and his longtime friend and former foundation trustee, Warren Buffett.

The Bill & Melinda Gates Foundation has set a record $8.74 billion budget for 2025, with intentions to increase yearly distributions to $9 billion the following year. Mark Suzman, the foundation’s CEO, stated that the record approval by its governing council is consistent with the foundation’s goal of a world “where everyone, everywhere, deserves the chance to live a healthy, productive life.”

Gates’ predictions for AI

Previously regarded as an aspect of science fiction, AI appears to have entered ordinary life and is now finding its way to consumers and businesses. Bill Gates predicts that by 2035, artificial intelligence will take over roles traditionally held by doctors, teachers, and other professionals, ushering in what he calls the era of “free intelligence.” According to Gates, this transition will result in rapid advancements in AI technology that will become firmly integrated into daily life, ranging from better healthcare solutions and more accurate diagnoses to broad access to AI tutors and virtual assistants.

However, while the potential is enormous, Gates admits that there are “understandable and valid” concerns about AI’s existing capabilities. In a 2023 blog post, he stated that even the most advanced AI systems make mistakes and can contribute to the spread of misinformation. Still, Gates is optimistic: if he were to establish a new firm today, he told CNBC Make It in September 2024, it would be an “AI-centric” startup.

Our Methodology

For this list, we picked stocks from Bill & Melinda Gates Foundation Trust’s 13F portfolio as of the end of the fourth quarter of 2024. These equities are also popular among elite hedge funds.

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).

A driver unloading packages from a van for a time-critical delivery.

FedEx Corporation (NYSE:FDX)

Bill & Melinda Gates Foundation Trust’s Stake: $712.9 million

Number of Hedge Fund Holders: 66

FedEx Corporation (NYSE:FDX), previously Federal Express Corporation and then FDX Corporation, is an American multinational conglomerate holding corporation specializing in transportation, e-commerce, and business services.

FedEx’s third-quarter fiscal year 2025 earnings release showed adjusted earnings per share of $4.51, slightly below the average expectation of $4.56. The company has lowered its full-year EPS guidance downward to a range of $18 to $18.60, citing persistent economic headwinds and cost increases. Analysts at JPMorgan, Stifel, and Raymond James have all adjusted their FedEx Corporation (NYSE:FDX) price targets, which now range from $276 to $354, while retaining favorable ratings such as Overweight and Outperform.

Furthermore, FedEx Corporation (NYSE:FDX)’s DRIVE program saved $600 million in costs this quarter, ensuring it meets its annual target of $2.2 billion. The company is also moving forward with strategic projects like the Network 2.0 and the anticipated spin-off of its less-than-truckload (LTL) division.

Overall FDX ranks 9th on our list of Bill & Melinda Gates Foundation Trust’s stock picks. While we acknowledge the potential for FDX as an investment, our conviction lies in the belief that some 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 FDX but 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. This article is originally published at Insider Monkey.

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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