In this article, we will discuss Unknown Billionaire Phill Gross’ 10 Stock Picks with Huge Upside Potential.
Phillip “Phill” Gross is a seasoned investor and influential figure in the world of institutional asset management, best known as the Co-founder, Managing Director, and Healthcare Portfolio Manager of Adage Capital Management. While Robert Atchinson, his longtime collaborator and fellow Co-founder, serves as the firm’s Portfolio Manager, Gross’s leadership and strategic vision have played a foundational role in shaping Adage’s long-term investment philosophy and reputation. The two met in the mid-1980s while working as Harvard University’s endowment analysts. Their professional synergy led them to leave Harvard Management Company in the 1990s, following public scrutiny over performance-based bonuses. With the backing of an initial $1.8 billion investment from Harvard and an agreement for the university to receive 10% of the firm’s earnings, they launched Adage Capital Management in 2001 alongside an 18-person team.
Under Gross’s co-leadership, Adage has become a key player in managing assets for prominent institutional clients such as Harvard University, Dartmouth College, Northwestern University, the American Red Cross, and the Getty Foundation. The firm specializes in long/short equity strategies guided by fundamental analysis and engages in risk arbitrage and event-driven opportunities when market conditions are favourable. Adage Capital Management and its predecessor, the Select Equity Group at Harvard Management Company, have consistently outperformed broader market benchmarks by an average of 3.5% over the past 15 years. This is a testament to the disciplined, research-driven investment framework that Gross helped instill.
Gross himself brings a deep background in healthcare investing, having served for nearly two decades at Harvard Management Company in various roles, including Healthcare and Retail Analyst, Equity Research Director, and Partner. His academic credentials include a B.S. in finance and economics (1982) and an M.S. in investments (1983), both from the University of Wisconsin. He remains actively engaged with his alma mater, serving on the advisory boards of the Steve Hawk Center for Applied Securities Analysis and the Nicholas Center for Applied Corporate Finance. In recognition of his professional accomplishments and ongoing contributions, Gross received the Distinguished Alumnus Award from the University of Wisconsin Business School in 2006.
Beyond finance, Gross is a committed philanthropist. He co-founded Strategic Grant Partners, an organization focused on driving systemic change in education and family services throughout Massachusetts. He also serves as Vice President of the Board of Directors for Youth Enrichment Services, a nonprofit that provides urban youth with outdoor recreational experiences. In addition, he holds board positions with the U.S. Ski and Snowboard Association, where he is Vice-Chair of the Investment Committee, and with the T2 Foundation.
Adage Capital Management’s latest 13F filing for Q4 2024 reported $57.19 billion in managed securities, with the top 10 holdings comprising 31.7% of the total portfolio, demonstrating a strategic yet diversified approach to asset allocation. While Atchinson oversees day-to-day portfolio management, Gross’s enduring influence and expertise, particularly in healthcare investing, continue to shape the firm’s long-term success and institutional credibility.
With that context in mind, let’s analyze Phill Gross’ 10 stock picks that have huge upside potential according to analysts.
Phillip Gross of Adage Capital
Our Methodology
We searched through Adage Capital Management’s Q4 2024 13F filings to identify unknown billionaire Phill Gross’ stock picks with the highest upside potential. We compiled the equities with upside potential higher than 34% at the time of writing this article and discussed why they stood out as strong potential investments. Finally, we ranked the stocks based on the ascending order of their upside potential. To assist readers with more context, we mentioned the hedge fund sentiment around each stock using data from 1,009 hedge funds tracked by Insider Monkey in the fourth quarter of 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 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
Unknown Billionaire Phill Gross’ 10 Stock Picks with Huge Upside Potential
10. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders as of Q4: 86
Adage Capital Management’s Equity Stake: $428.23 Million
Upside Potential as of May 2: 34.90%
ConocoPhillips (NYSE:COP) is a global leader in independent exploration and production, with operations spanning the exploration, production, transportation, and marketing of crude oil, bitumen, natural gas, natural gas liquids, and liquefied natural gas. Despite a year-over-year earnings decline in 2024, the company maintained a disciplined approach to capital allocation and shareholder value. In Q4 2024, ConocoPhillips reported earnings of $2.3 billion, or $1.90 per share, down from $3.0 billion, or $2.52 per share, in the same quarter of the prior year. Annual earnings totalled $9.2 billion, or $7.81 per share, a decrease from $11.0 billion, or $9.06 per share, in 2023. Nevertheless, the company delivered solid operational results, returned $9.1 billion to shareholders, and strengthened its portfolio through the strategic acquisition of Marathon Oil. With a strong balance sheet that includes $6.4 billion in cash and short-term investments and $1.1 billion in long-term investments, the company’s stock has an expected price increase of 34.9%, which positions it among Phill Gross’ 10 stock picks that have huge upside potential.
Looking ahead to 2025, ConocoPhillips (NYSE:COP) is targeting shareholder returns of $10 billion, reaffirming its commitment to delivering consistent value through dividends and share repurchases. To that end, the company declared a first-quarter ordinary dividend of $0.78 per share. CEO Ryan Lance emphasized the company’s focus on a returns-driven strategy underpinned by operational efficiency and disciplined growth.
In a related development that underscores the value of ConocoPhillips (NYSE:COP)’s operated assets, Rising Phoenix Capital, a boutique investment firm focused on oil and gas mineral royalty acquisitions, announced a strategic acquisition of mineral interests in Ector and Midland Counties, Texas, within ConocoPhillips-operated acreage. This acquisition enhances Rising Phoenix Capital’s position in the basin, offering investors a low-risk opportunity for sustained monthly cash flow and long-term upside. The move reflects investor confidence in ConocoPhillips (NYSE:COP)’s operations and the long-term value of its core Permian assets.
Diamond Hill Large Cap Strategy stated the following regarding ConocoPhillips (NYSE:COP) in its Q2 2024 investor letter:
“Other bottom contributors in Q2 included CarMax, Target Corporation and ConocoPhillips (NYSE:COP). Shares of oil and gas exploration and production company ConocoPhillips declined against a backdrop of lower oil prices in Q2, as well as concerns about the expensive though strategically sound acquisition of Marathon Oil.”
9. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders as of Q4: 117
Adage Capital Management’s Equity Stake: $220.82 Million
Upside Potential as of May 2: 35.66%
Adobe Inc. (NASDAQ:ADBE), headquartered in San Jose, California, stands as a global leader in creative and digital software solutions. The company is widely recognized for its flagship Creative Cloud suite, which encompasses a comprehensive array of tools for photo and video editing, vector graphics, web and print design, animation, mobile app development, and audio production. Adobe has consistently set industry benchmarks with its software offerings and continues to advance rapidly into the realms of artificial intelligence and generative media, further cementing its influence across creative and technological industries.
Adobe Inc. (NASDAQ:ADBE) has also taken significant steps forward in the field of generative AI, particularly through enhancements to its Firefly platform. The recently launched Firefly Image Model 4 introduces major upgrades in image quality, speed, and creative control. It allows for refined manipulation of visual elements such as camera angles, zoom effects, and stylistic precision, and supports high-resolution outputs up to 2K. A more advanced version, Image Model 4 Ultra, further elevates output quality, enabling the generation of complex scenes with detailed structures and nuanced stylistic accuracy, thanks to more intensive computational training.
For the first quarter of fiscal year 2025, Adobe Inc. (NASDAQ:ADBE) delivered record-breaking financial results, reporting revenue of $5.71 billion, demonstrating a 10% increase year-over-year. Operating income for the quarter reached $2.16 billion, and the company posted GAAP diluted earnings per share of $4.14, with a net income of $1.81 billion. Cash flows from operations were robust at $2.48 billion, underscoring Adobe’s strong financial health and operational efficiency. Reflecting its commitment to shareholder returns, the company repurchased approximately 7 million shares during the quarter.
With strong quarterly performance, pioneering developments in generative AI, and continued investment in content authenticity and advanced technology, Adobe Inc. (NASDAQ:ADBE) is well-positioned to maintain its leadership in creative software while expanding its footprint in the emerging AI sector. The company currently holds an upside potential of 35.66%, placing it among billionaire investor Phill Gross’s stock picks with significant upside potential.
Aristotle Value Equity Strategy stated the following regarding Adobe Inc. (NASDAQ:ADBE) in its Q1 2025 investor letter:
“Adobe Inc. (NASDAQ:ADBE), the leading provider of content creation and publishing software, was a notable detractor during the quarter. This came despite the company reporting record revenue of over $5.7 billion in the first quarter—a 10% year-over-year increase, with double-digit increases across both its Digital Media and Digital Experience segments. The disconnect between strong fundamentals and share price weakness reflects ongoing market concerns around intensifying competitive threats from generative AI and lower-cost design platforms. Market sentiment has remained cautious around the perceived disruption risk posed by new AI-driven entrants, including OpenAI’s Sora for video generation and platforms like Canva, which cater to the broader prosumer and small and medium-sized business segment. However, we continue to view these as largely non-overlapping with Adobe’s core base of creative professionals, enterprises and agencies—audiences that demand precision, control and integration within larger workflows. Canva, while expanding its feature set, remains limited in its enterprise readiness and depth. Sora, meanwhile, remains early-stage and experimental, with limited commercial application at this point. Crucially, Adobe is not standing still. The company is actively embedding generative AI across its ecosystem through Firefly, which is commercially safe (i.e., free of copyrighted sources to train its models) and integrated natively into Creative Cloud applications like Photoshop and Illustrator. Firefly has shown strong early traction, generating $125 million in annualized recurring revenue, with management expecting that figure to double by year end. While modest in size relative to Adobe’s total revenue, Firefly’s monetization strategy is still in its early innings, with further potential through upselling, usage-based pricing and expanded use cases. Beyond monetization, AI integration enhances Adobe’s long-term competitive moat through product functionality, stronger customer engagement and increased switching costs. Adobe’s unique access to proprietary data, content workflows and creative content allows it to fine-tune models that serve the high-end needs of professionals—capabilities that generic AI models lack. Strategic partnerships with Microsoft (e.g., Firefly in Microsoft 365 Copilot) and ongoing momentum in Adobe Express further extend its reach into new user segments. Ultimately, we believe Adobe has a durable competitive advantage, underpinned by a large installed base, subscription-led business model, strong brand equity and a long track record of innovation. While short-term concerns over AI disruption have weighed on the stock price, we believe Adobe is well-positioned to harness AI as a driver of value rather than being displaced by it.”
8. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders as of Q4: 108
Adage Capital Management’s Equity Stake: $205.23 Million
Upside Potential as of May 2: 37.94%
The Walt Disney Company (NYSE:DIS) is a global leader in mass media and entertainment. In the first fiscal quarter of 2025, ending December 28, 2024, Disney reported strong financial performance, reflecting its strategic focus on profitability and growth. Revenue rose by 5% year-over-year to $24.7 billion, up from $23.5 billion in the same quarter of fiscal 2024. Income before income taxes climbed 27% to $3.7 billion, while diluted earnings per share increased 35% to $1.40. Additionally, total segment operating income grew by 31% to $5.1 billion, and adjusted earnings per share saw a significant 44% jump to $1.76. These figures underscore the company’s ability to adapt and thrive amid shifting industry dynamics.
Despite this growth, The Walt Disney Company (NYSE:DIS)’s stock remains undervalued compared to historical benchmarks. Currently trading below its levels from one, three, and five years ago, Disney’s share price does not fully reflect the underlying progress of the business. Since fiscal 2019, the company has increased its revenue by 31% and improved operating profits. A major contributor to this upward trajectory is the transformation of Disney’s streaming operations, which became profitable a year ago after a period of sustained investment and losses. While its linear TV networks continue to experience subscriber decline due to cord-cutting, they still generate significant cash flow. Disney has leveraged this capital to invest heavily in its theme parks and content development, reinforcing its long-term strategy.
In the competitive landscape of theme parks, The Walt Disney Company (NYSE:DIS) has continued to hold its dominant position despite heightened rivalry from Comcast’s Universal brand. Historically, even significant expansions at Universal parks did not stifle Disney World’s attendance or revenue. Instead, Disney has responded with high-impact attractions like Avatar Flight of Passage, Star Wars: Rise of the Resistance, and Guardians of the Galaxy: Cosmic Rewind, which have revitalized visitor interest and attendance. Rather than cannibalizing each other’s market share, major developments by competitors often increase overall tourism in the Orlando area, benefiting Disney as well. With a solid financial foundation and a legacy of innovation, the company continues to reinforce its leadership in both media and themed entertainment.
ClearBridge Value Strategy stated the following regarding The Walt Disney Company (NYSE:DIS) in its Q1 2025 investor letter:
“While we had already begun to shift toward a more defensive positioning entering the quarter, we made a number of adjustments in response to the rapid-fire developments in both economic and political policy. Among our largest new positions during the period was The Walt Disney Company (NYSE:DIS), as we believe that it has turned a corner on building out its streaming service, which should help margins inflect higher and help drive better earnings than the market currently anticipates. The shift in management’s strategy, from “market share growth at all costs” to a more focused approach on improving pricing should also help to improve both profitability and margins, and we believe that there remains meaningful upside compared to other streaming service providers at similar scale.”
7. WESCO International, Inc. (NYSE:WCC)
Number of Hedge Fund Holders as of Q4: 62
Adage Capital Management’s Equity Stake: $247.15 Million
Upside Potential as of May 2: 37.97%
WESCO International, Inc. (NYSE:WCC), a publicly traded American holding company based in Pittsburgh, Pennsylvania, is the parent company of Wesco Distribution. It plays a crucial role in the global electrical distribution and services industry, operating through three primary segments: Electrical & Electronic Solutions, Communications & Security Solutions, and Utility & Broadband Solutions. With a network of nearly 800 branches and a customer base exceeding 150,000 worldwide, Wesco leverages its expansive global footprint to maintain operational flexibility and efficiency, which are essential to staying competitive in a dynamic market environment.
On May 1, 2025, WESCO International, Inc. (NYSE:WCC) released its financial results for the first quarter of fiscal year 2025. The company reported adjusted earnings of $2.21 per share, representing a 3.9% decline from the previous year’s first quarter. Despite this slight dip in earnings, Wesco managed to surpass Wall Street expectations, beating the consensus estimate by 2.10%. Total net sales for the quarter stood at $5.34 billion, reflecting a modest 0.1% decrease compared to the prior year, primarily due to persistent challenges in the utility business segment.
While the overall net sales showed a minor year-over-year decline, WESCO International, Inc. (NYSE:WCC) highlighted a 5.6% increase in organic sales, indicating solid performance in its core operations outside of the utility segment. This growth in organic sales demonstrates the resilience and adaptability of Wesco’s diversified business model, even amid sector-specific headwinds. The company’s consistent performance across multiple product and service categories underscores its strategic positioning and reinforces its long-term growth prospects in both mature and emerging markets.
With an upside potential of 37.97% and a price target of $209.75 as of May 2, WESCO International, Inc. (NYSE:WCC) ranks seventh in the list of Phill Gross’ stock picks with huge upside potential.
6. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders as of Q4: 79
Adage Capital Management’s Equity Stake: $159.57 Million
Upside Potential as of May 2: 38.22%
A prominent American multinational corporation, QUALCOMM Incorporated (NASDAQ:QCOM) is a key player in the wireless technology sector. Incorporated in Delaware, the company specializes in developing semiconductors, software, and services, and holds a significant portfolio of patents essential to global mobile communication standards such as 5G, 4G, CDMA2000, TD-SCDMA, and WCDMA. Qualcomm’s influence in the mobile communications industry is substantial, as it supplies chips used in a wide range of smartphones, including flagship models produced by industry giants like Samsung and Apple.
In its fiscal second quarter, QUALCOMM Incorporated (NASDAQ:QCOM) delivered earnings that exceeded Wall Street expectations, showcasing its resilience and growing demand for its products. The company reported adjusted earnings per share of $2.85, beating analysts’ estimates of $2.82. Adjusted revenue reached $10.84 billion, also surpassing the forecasted $10.66 billion. A key driver of this performance was a 12% year-over-year increase in handset chip sales, which totaled $6.93 billion. This growth underscores Qualcomm’s strong position in the high-end smartphone market and the broader semiconductor industry. Overall, adjusted revenue rose 15% year-over-year, signaling a healthy upward trend across its business segments.
Looking ahead to the current quarter, QUALCOMM Incorporated (NASDAQ:QCOM) provided guidance that remains slightly ahead of expectations, projecting adjusted earnings per share of approximately $2.70 and revenue around $10.3 billion at the midpoint. Additionally, Qualcomm demonstrated a strong commitment to shareholder returns, spending $2.7 billion during the quarter—$1.7 billion on share repurchases and $938 million on dividend payments. This robust financial strategy reinforces the company’s stable foundation and ongoing focus on delivering long-term value to investors.
In the fourth quarter of 2024, Adage Capital Management significantly boosted its investment in QUALCOMM Incorporated (NASDAQ:QCOM), increasing its holdings to 1.04 million shares, demonstrating a rise from the 879,521 shares held in the previous quarter. This expansion brought the fund’s total stake in the company to an estimated $159.6 million, representing 0.27% of its portfolio. Additionally, data from Insider Monkey revealed that by the end of Q4 2024, 79 out of 1,009 hedge funds had positions in QUALCOMM, collectively holding nearly $3.28 billion in shares. This marked a significant increase from Q3, when only 74 hedge funds had investments in the company.
5. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders as of Q4: 96
Adage Capital Management’s Equity Stake: $170.35 Million
Upside Potential as of May 2: 38.84%
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a leading American multinational technology company headquartered in Santa Clara, California, with substantial operations in Austin, Texas. As a fabless semiconductor company, AMD specializes in designing and developing high-performance computing components, including central processing units (CPUs), graphics processing units (GPUs), field-programmable gate arrays (FPGAs), and system-on-chip (SoC) solutions. The company serves diverse sectors, ranging from gaming and embedded systems to data centers and artificial intelligence (AI). AMD’s innovative hardware plays a critical role in powering both consumer devices and enterprise-scale computing infrastructure.
In its financial results for the fourth quarter and full year of 2024, Advanced Micro Devices, Inc. (NASDAQ:AMD) reported significant achievements across several business segments. Fourth-quarter revenue reached a record $7.7 billion, with a GAAP gross margin of 51%, operating income of $871 million, and net income of $482 million. Diluted earnings per share were $0.29. On a non-GAAP basis, the company delivered even stronger results, including a 54% gross margin, $2.0 billion in operating income, $1.8 billion in net income, and $1.09 in diluted earnings per share.
CEO Dr. Lisa Su described 2024 as a transformative year for the company, marked by accelerated growth in AMD’s Data Center segment. Annual revenue in this division nearly doubled, fueled by the rapid adoption of EPYC processors and over $5 billion in AMD Instinct accelerator revenue. In Q4 alone, Data Center revenue soared to a record $3.9 billion, reflecting a 69% year-over-year increase. The Client segment also saw robust performance, with quarterly revenue rising 58% year-over-year to $2.3 billion, driven by strong demand for Ryzen processors. Conversely, the Gaming segment experienced a 59% decline to $563 million, attributed to a drop in semi-custom revenue. The Embedded segment posted $923 million in revenue, a 13% decline amid fluctuating market demand. Looking ahead to 2025, Advanced Micro Devices, Inc. (NASDAQ:AMD) anticipates continued growth, leveraging the strength of its product portfolio and increasing demand for adaptive and high-performance computing solutions.
Artisan Global Opportunities Fund stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q4 2024 investor letter:
“Among our top detractors were Advanced Micro Devices, Inc. (NASDAQ:AMD), Novo Nordisk and Danaher. Shares of AMD declined in Q4, which capped off a frustrating year of stock performance that did not seem to match its fundamental progress. Regarding its AI opportunity, the company accomplished everything we had hoped for over the past 18 months. It successfully entered the market with its MI300 graphic processing unit (GPU) chip and raised its latest 2024 AI-related revenue guidance to $5.0 billion from $4.5 billion. However, its shares have experienced weakness for two primary reasons. First is the emergence of custom AI accelerator chip solutions from Broadcom and Marvell (a Q4 buy) as alternatives to the GPU solutions from NVIDIA and AMD. While this competitive threat is more significant than we had initially anticipated, we continue to be excited about AMD’s opportunity moving forward. We believe the AI-related market will grow to $400 billion–$500 billion in the next three years (compared to $100 billion in 2024). We expect that NVIDIA’s market share will fall from ~90%in2024to60%–80%overthesameperiodasitcedes market share to AMD (from5%in2024to10%–20%) and custom accelerator solutions (from 5% in 2024 to 10%–20%). Under these assumptions, we expect AI GPUs to double AMD’s total 2024 sales. Second is cyclical struggles within other areas of its business. While data center revenues have more than doubled over the past two years, the gaming business is down more than 60%, and embedded (specialized chips found in various industrial and consumer products) is down20%.As its data center business continues to grow and the cyclical areas of its business bounce back, we expect AMD to deliver stronger earnings growth.”
4. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders as of Q4: 150
Adage Capital Management’s Equity Stake: $461.15 Million
Upside Potential as of May 2: 41.01%
UnitedHealth Group Incorporated (NYSE:UNH), based in Eden Prairie, Minnesota, is a prominent American multinational company that operates in the health insurance and healthcare services sectors. It conducts its insurance operations under the UnitedHealthcare brand and provides healthcare services through its Optum division. Known for its historical stability and conservative financial forecasting, the company has long been a bellwether in the healthcare sector. However, in the March 2025 quarter, UnitedHealth posted adjusted earnings of $7.20 per share, falling short of analyst expectations of $7.29 per share. This marked its first earnings miss since 2008 and came as a shock to investors, raising concerns across the entire health insurance sector.
UnitedHealth Group Incorporated (NYSE:UNH) attributed the miss to higher-than-anticipated medical costs, driven by a sharp increase in demand for physician and outpatient services, particularly among patients enrolled in government-backed Medicare plans. This surge, which began in mid-2023, has strained the insurance industry-wide, but UnitedHealth was particularly affected due to its reliance on the Optum Health unit, which oversees services such as Medicare prescription drug plans. Complicating matters further were changes in reimbursement structures stemming from government policy adjustments under the Biden administration, which reduced funding for Medicare Advantage programs. According to CEO Andrew Witty, these funding cuts, combined with unanticipated shifts in the health needs and engagement levels of new patients, resulted in reimbursement rates that did not accurately reflect the actual health status of the insured populations.
In response to the operational challenges facing its Optum division, UnitedHealth Group Incorporated (NYSE:UNH) announced a leadership change to steer the segment through this volatile period. On April 30, the company appointed Dr. Patrick Conway as the new Chief Executive Officer of Optum, effective May 6. Conway will take over from Heather Cianfrocco, who has been promoted to serve as UnitedHealth Group’s Executive Vice President of Governance, Compliance, and Information Security. The leadership transition signals UnitedHealth’s commitment to strengthening oversight and adjusting its strategies within Optum to better manage cost structures, patient engagement, and government reimbursements. As UnitedHealth Group Incorporated (NYSE:UNH) navigates these headwinds, its ability to recalibrate its services and forecasts will be critical to regaining investor confidence and stabilizing its financial trajectory.
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders as of Q4: 223
Adage Capital Management’s Equity Stake: $3.10 Billion
Upside Potential as of May 2: 44.30%
Headquartered in Santa Clara, California, NVIDIA Corporation (NASDAQ:NVDA) is a global leader in GPU-accelerated computing, driving innovation across industries such as gaming, professional visualization, data centers, and automotive technologies. The company’s graphics processing units and AI chips play a foundational role in emerging technologies, from powering immersive gaming experiences to enabling complex data center operations and artificial intelligence platforms. In the fourth quarter of fiscal year 2025, NVIDIA reported a record revenue of $39.3 billion, reflecting an impressive 78% increase compared to the same period the previous year. Its GAAP earnings per diluted share rose to $0.89, underscoring the company’s exceptional performance and the robust demand for its AI and data infrastructure products.
Despite its commercial success, NVIDIA Corporation (NASDAQ:NVDA) has faced challenges amid growing geopolitical tensions between the United States and China, particularly regarding restrictions on the export of advanced semiconductors. The U.S. government, through new Commerce Department regulations, now requires NVIDIA to obtain export licenses for the H20 AI chip, which was originally developed to meet prior export limitations. This development is part of a broader U.S. strategy to limit China’s access to cutting-edge AI technology while investing heavily in domestic semiconductor production. In alignment with this policy, NVIDIA announced a $500 billion investment in AI server infrastructure within the United States, while Taiwan Semiconductor Manufacturing Company (TSMC), one of its key manufacturing partners, committed an additional $100 billion to bolster its operations in Arizona. These moves reflect the growing emphasis on reshoring critical tech capabilities and reducing reliance on international supply chains.
To maintain its foothold in China—a market that contributed 13% of its total revenue last year—NVIDIA Corporation (NASDAQ:NVDA) CEO Jensen Huang traveled to Beijing to meet with high-ranking government officials. During his visit, Huang reiterated NVIDIA’s commitment to the Chinese market, signaling the company’s intent to preserve collaborative relationships in the region despite escalating trade restrictions. Nevertheless, investor confidence in NVIDIA Corporation (NASDAQ:NVDA) remains robust. The company’s stock has a bullish price target of $165.22, indicating an upside potential of 44.30%, effectively placing it among the huge upside potential stock picks of billionaire Phill Gross.
Alger Spectra Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q4 2024 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) is a leading supplier of graphics processing units (GPUs) for a variety of end markets, such as gaming, PCs, data centers, virtual reality, and high-performance computing. The company is leading in most secular growth categories in computing, and especially artificial intelligence and super-computing parallel processing techniques for solving complex computational problems. In our view, Nvidia’s computational power is a critical enabler of AI and therefore essential to AI adoption. Shares contributed to performance during the quarter, driven by strong demand for its data center products, especially the Hopper H200 chips, which generated double-digit billions in revenue, marking the fastest product ramp in the company’s history. Management provided fiscal fourth-quarter revenue guidance above analyst estimates, along with resilient operating margins supported by robust demand and limited competition. In our view, Nvidia’s leadership in scaling AI infrastructure, including advancements in inference and test-time scaling (i.e., reasoning during inference), is driving adoption among enterprises and startups, providing continued demand for its high-performance chips and software solutions. As older-generation chips are repurposed for inference and new clusters are deployed, we believe Nvidia is well-positioned to capitalize on growing compute needs across AI applications.”
2. Delta Air Lines, Inc. (NYSE:DAL)
Number of Hedge Fund Holders as of Q4: 84
Adage Capital Management’s Equity Stake: $184.78 Million
Upside Potential as of May 2: 44.58%
Delta Air Lines, Inc. (NYSE:DAL) is one of the leading U.S. airlines, operating nine hubs with Hartsfield–Jackson Atlanta International Airport as its largest in passenger volume and flight departures. In the face of shifting economic conditions during the first quarter of 2025, the airline managed to deliver steady profitability, aligning with results from the previous year. Delta reported operating revenue of $14.0 billion and an operating income of $569 million, reflecting a 4.0 percent operating margin. Earnings per share stood at $0.37, while the company generated $2.4 billion in operating cash flow. Delta also made significant progress on its financial obligations, with $531 million in payments toward debt and finance lease obligations, bringing total outstanding debt to $15.8 billion at the quarter’s end.
CEO Ed Bastian acknowledged the quarter’s unexpected challenges but praised the workforce’s dedication, emphasizing Delta Air Lines, Inc. (NYSE:DAL)’s position of strength moving forward. He projected a June quarter profitability between $1.5 billion and $2 billion. However, he noted the economic uncertainty makes it premature to revise the full-year outlook. Despite the cautious tone, Bastian expressed confidence in Delta’s capacity to deliver solid profitability and free cash flow for the remainder of the year, citing the company’s proactive strategy, improved cost environment from declining fuel prices, and a focus on financial durability and differentiation in the competitive airline industry.
Although Delta Air Lines, Inc. (NYSE:DAL) expects total revenue in the June quarter to range from 2% below to 2% above the same period last year, the airline sees continued resilience in premium, loyalty, and international segments. This strength is helping offset some softness in domestic and main cabin performance. Hauenstein noted that while 2025 is unfolding differently than initially expected, Delta Air Lines, Inc. (NYSE:DAL) remains focused on long-term strategic goals while adapting to evolving market conditions.
1. Janux Therapeutics, Inc. (NASDAQ:JANX)
Number of Hedge Fund Holders as of Q4: 54
Adage Capital Management’s Equity Stake: $163.93 Million
Upside Potential as of May 2: 189.86%
Janux Therapeutics, Inc. (NASDAQ:JANX) is a clinical-stage biopharmaceutical company dedicated to advancing innovative immunotherapies designed to generate tumor-specific immune responses. The company focuses on therapies that target and destroy cancer cells while sparing healthy tissue, thereby minimizing adverse effects often associated with traditional cancer treatments.
Financially, Janux Therapeutics, Inc. (NASDAQ:JANX) demonstrated a robust capital position at the close of 2024. As of December 31, the company reported $1.03 billion in cash, cash equivalents, and short-term investments, a substantial increase from $344.0 million reported at the end of 2023. This significant boost in financial reserves positions Janux to sustain and accelerate its research efforts over the coming years. The company’s research and development expenses rose to $20.8 million for the fourth quarter and totalled $68.4 million for the year, compared to $12.2 million and $54.9 million for the same periods in 2023, reflecting intensified clinical activity and investment in its pipeline. Likewise, general and administrative expenses grew to $8.2 million for the quarter and $41.0 million for the full year, up from $6.4 million and $26.1 million in the prior year, as the company expanded its operational infrastructure to support clinical development and long-term growth.
Despite increased expenditures, Janux Therapeutics, Inc. (NASDAQ:JANX) reported a net loss of $20.2 million for the fourth quarter and $69.0 million for the full year of 2024, compared to $11.8 million and $58.3 million in 2023. These figures are consistent with a company in the clinical development phase, where investments in research, trials, and infrastructure precede revenue generation. The increased losses correspond with the company’s strategic ramp-up of its therapeutic programs and development pipeline. Janux remains well-capitalized and committed to advancing its mission of delivering transformative immunotherapies that leverage tumor-specific biology to safely and effectively combat cancer.
In the fourth quarter of 2024, Adage Capital Management significantly increased its investment in Janux Therapeutics, Inc. (NASDAQ:JANX), increasing its position to over 3 million shares—a 48% rise from the 2.08 million shares held in the previous quarter. This expansion brought the fund’s total stake in the company to an estimated $1.6 billion.
Overall, JANX ranks first among unknown billionaire Phill Gross’ 10 stock picks with huge upside potential. While we acknowledge the potential of these stock picks, 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 JANX but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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