Latest news with #LouisBacon
Globe and Mail
27-05-2025
- Business
- Globe and Mail
Billionaires Are Buying an AI Index Fund That Could Turn $500 per Month Into $432,300
Institutional asset managers recently filed their latest Forms 13F, disclosures required by the SEC for anyone who owns at least $100 million in equity securities like stocks and index funds. Several hedge fund billionaires purchased the Invesco QQQ Trust (NASDAQ: QQQ) in the first quarter, as detailed below: Louis Bacon's Moore Capital Management purchased 31,000 shares. The Invesco QQQ Trust remains a relatively small position in the portfolio. Steven Cohen's Point72 Asset Management added 7,950 shares. The Invesco QQQ Trust remains a relatively small position in the portfolio. Ken Griffin's Citadel Advisors added 2.2 million shares. The Invesco QQQ Trust is now the third-largest position in the portfolio, excluding options. Israel Englander's Millennium Management added 474,300 shares. The Invesco QQQ Trust now ranks among the 25 largest positions in the portfolio, excluding options. Investors should know two things about the Invesco QQQ Trust. First, the index fund tracks 100 stocks in the Nasdaq Composite (NASDAQINDEX: ^IXIC), which dropped into market correction territory in the first quarter. Second, history says the index fund can turn $500 per month into $432,300 in 20 years. The Invesco QQQ Trust provides exposure to many technology companies likely to benefit from artificial intelligence The Nasdaq-100 tracks 100 of the largest companies listed on the Nasdaq Stock Exchange. The index is rebalanced quarterly and reconstituted annually. It excludes financial companies and is heavily weighted toward the technology sector. The Invesco QQQ Trust measures the performance of the Nasdaq-100. The 10 largest positions in the index fund are listed by weight below: Microsoft: 8.6% Nvidia: 8.2% Apple: 7.5% Amazon: 5.4% Alphabet: 4.9% Broadcom: 4.5% Meta Platforms: 3.5% Netflix: 3.2% Tesla: 3.1% Costco Wholesale: 2.8% Importantly, several companies listed above are likely to benefit from demand for artificial intelligence (AI) in the coming years. Microsoft, Amazon, and Alphabet are the three largest cloud computing platforms. Nvidia is the leading supplier of data center GPUs. Broadcom is the market leader in custom AI chips. Meta Platforms is using AI to improve engagement across its social media properties. And Tesla is developing robotaxis and autonomous humanoid robots. How the Invesco QQQ Trust can turn $500 per month into $432,300 The Invesco QQQ Trust advanced 1,250% during the last two decades, compounding at 13.9% annually. But if dividend payments are included, the index fund achieved a total return of 1,470%, increasing at 14.7% annually. Admittedly, anticipating an annual return of 14.7% may be overly optimistic. So, investors should introduce a margin of safety by assuming a more modest annual return of 12%. At that pace, $500 invested monthly in the Invesco QQQ Trust will be worth $105,200 in one decade and $432,300 in two decades. Importantly, some investors may wish to save more or less than $500 per month. The chart below details how different monthly contribution amounts will grow over time, assuming an annual return of 12%. Returns were determined using the compound interest calculator. Investors need two more pieces of information. First, the Invesco QQQ Trust has been very volatile throughout history because it is so heavily weighted toward the technology sector. In the last decade, the index fund fell more than 10% from its record high eight times, and it fell more than 20% from its record high four times. Second, the Invesco QQQ Trust has a modest expense ratio of 0.20%, so shareholders will pay $20 annually on every $10,000 invested in the index fund. Comparatively, the average expense ratio of U.S. index funds and mutual funds was 0.34% in 2024. Should you invest $1,000 in Invesco QQQ Trust right now? Before you buy stock in Invesco QQQ Trust, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Invesco QQQ Trust wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor 's total average return is957% — a market-crushing outperformance compared to167%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Trevor Jennewine has positions in Amazon, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Costco Wholesale, Meta Platforms, Microsoft, Netflix, Nvidia, and Tesla. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Yahoo
27-05-2025
- Business
- Yahoo
Billionaires Are Buying an AI Index Fund That Could Turn $500 per Month Into $432,300
In the first quarter, several hedge fund billionaires bought shares of the Invesco QQQ Trust, an index fund that provides heavy exposure to technology stocks. The Invesco QQQ Trust returned 14.7% annually in the last two decades, but even a more modest performance could turn $500 per month into $432,300 over the same period. The Invesco QQQ Trust has historically been a very volatile investment; it fell more than 10% from a record high eight times in the last decade. 10 stocks we like better than Invesco QQQ Trust › Institutional asset managers recently filed their latest Forms 13F, disclosures required by the SEC for anyone who owns at least $100 million in equity securities like stocks and index funds. Several hedge fund billionaires purchased the Invesco QQQ Trust (NASDAQ: QQQ) in the first quarter, as detailed below: Louis Bacon's Moore Capital Management purchased 31,000 shares. The Invesco QQQ Trust remains a relatively small position in the portfolio. Steven Cohen's Point72 Asset Management added 7,950 shares. The Invesco QQQ Trust remains a relatively small position in the portfolio. Ken Griffin's Citadel Advisors added 2.2 million shares. The Invesco QQQ Trust is now the third-largest position in the portfolio, excluding options. Israel Englander's Millennium Management added 474,300 shares. The Invesco QQQ Trust now ranks among the 25 largest positions in the portfolio, excluding options. Investors should know two things about the Invesco QQQ Trust. First, the index fund tracks 100 stocks in the Nasdaq Composite (NASDAQINDEX: ^IXIC), which dropped into market correction territory in the first quarter. Second, history says the index fund can turn $500 per month into $432,300 in 20 years. The Nasdaq-100 tracks 100 of the largest companies listed on the Nasdaq Stock Exchange. The index is rebalanced quarterly and reconstituted annually. It excludes financial companies and is heavily weighted toward the technology sector. The Invesco QQQ Trust measures the performance of the Nasdaq-100. The 10 largest positions in the index fund are listed by weight below: Microsoft: 8.6% Nvidia: 8.2% Apple: 7.5% Amazon: 5.4% Alphabet: 4.9% Broadcom: 4.5% Meta Platforms: 3.5% Netflix: 3.2% Tesla: 3.1% Costco Wholesale: 2.8% Importantly, several companies listed above are likely to benefit from demand for artificial intelligence (AI) in the coming years. Microsoft, Amazon, and Alphabet are the three largest cloud computing platforms. Nvidia is the leading supplier of data center GPUs. Broadcom is the market leader in custom AI chips. Meta Platforms is using AI to improve engagement across its social media properties. And Tesla is developing robotaxis and autonomous humanoid robots. The Invesco QQQ Trust advanced 1,250% during the last two decades, compounding at 13.9% annually. But if dividend payments are included, the index fund achieved a total return of 1,470%, increasing at 14.7% annually. Admittedly, anticipating an annual return of 14.7% may be overly optimistic. So, investors should introduce a margin of safety by assuming a more modest annual return of 12%. At that pace, $500 invested monthly in the Invesco QQQ Trust will be worth $105,200 in one decade and $432,300 in two decades. Importantly, some investors may wish to save more or less than $500 per month. The chart below details how different monthly contribution amounts will grow over time, assuming an annual return of 12%. Holding Period $200 Per Month $400 Per Month $600 Per Month 10 Years $42,100 $84,200 $126,300 20 Years $172,900 $345,800 $518,700 Returns were determined using the compound interest calculator. Investors need two more pieces of information. First, the Invesco QQQ Trust has been very volatile throughout history because it is so heavily weighted toward the technology sector. In the last decade, the index fund fell more than 10% from its record high eight times, and it fell more than 20% from its record high four times. Second, the Invesco QQQ Trust has a modest expense ratio of 0.20%, so shareholders will pay $20 annually on every $10,000 invested in the index fund. Comparatively, the average expense ratio of U.S. index funds and mutual funds was 0.34% in 2024. Before you buy stock in Invesco QQQ Trust, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Invesco QQQ Trust wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Trevor Jennewine has positions in Amazon, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Costco Wholesale, Meta Platforms, Microsoft, Netflix, Nvidia, and Tesla. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Billionaires Are Buying an AI Index Fund That Could Turn $500 per Month Into $432,300 was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-05-2025
- Business
- Yahoo
ConocoPhillips (COP): Among Billionaire Louis Bacon's Stock Picks with Huge Upside Potential
We recently published a list of Billionaire Louis Bacon's 10 Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where ConocoPhillips (NYSE:COP) stands against other stock picks with huge upside potential. Louis Moore Bacon is the founder, Chairman, and principal investment manager of Moore Capital Management, a global investment management firm that provides services to institutional and high-net-worth clients through diversified hedge funds and specialized funds that focus on global fixed-income and emerging markets. It was established in March 1989 and is headquartered in New York City with offices in London and Hong Kong. He holds an MBA in Finance from Columbia Business School and a BA in American Literature from Middlebury College. Bacon's investment philosophy is based on risk management and capital preservation principles. His trading strategies are focused on macroeconomic trends and fundamental analysis of the markets. Bacon emphasizes diversification, which allows him to invest across different geographies and asset classes. He is known for his contrarian investment style and takes positions against prevailing market sentiment. Moore Capital Management is a hedge fund with 4 clients and discretionary assets under management (AUM) of $33.20 billion, as reported in the firm's Form ADV dated 19 November 2024. Their last reported 13F filing for Q4 2024 included $8.70 billion in managed 13F securities and a top 10 holdings concentration of 25.53%. He believes that there are opportunities to profit from mispricing that come with volatility or fear. Louis Moore Bacon is also the Founder and Co-Chair of The Moore Charitable Foundation, which was established in 1992 to support conservation-focused nonprofits dedicated to preserving land, water, and wildlife habitats. Bacon has received several awards in this regard, including the Theodore Roosevelt Conservation Partnership (TRCP) Lifetime Conservation Achievement Award and the Audubon Medal. To compile the list of billionaire Louis Bacon's 10 stock picks with huge upside potential, we sifted through Q4 2024 13F filings of Moore Global Investments from Insider Monkey. From these filings, we checked each stock's upside potential from CNN and ranked the stocks in ascending order of this upside potential. We have also added Moore Global Investments' stake in each company and the hedge fund sentiment around each stock. Note: All data was sourced on May 2. 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). An underground network of pipelines transporting oil through an expansive terrain. Moore Global Investments' Stake: $43.75 million Number of Hedge Fund Holders: 86 Average Upside Potential as of May 2: 31.83% ConocoPhillips (NYSE:COP) explores, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids. It operates in six segments: Alaska, Lower 48, Canada, Europe-Middle East-North Africa, Asia Pacific, and Other International. ConocoPhillips' Lower 48 operations delivered a 5% production growth year-over-year for the full year 2024. This contributed to the company's overall 4% production growth. In Q4 of 2024, the Lower 48 produced 1,308,000 BOE/d. The $22.5 billion acquisition of Marathon Oil in late November 2024 also enhanced the Lower 48 portfolio and added high-quality and low-cost supply inventory. The company's revenue of $14.74 billion beat estimates by almost $515 million. The overall production also rose 14.8% to 2.183 million BOE/d in Q4. The company expects to achieve over $1 billion of run-rate synergies by the end of 2025. A portion of this is already reflected in the capital guidance. ConocoPhillips also plans to reduce its workforce as part of a broader initiative to cut costs and streamline operations. Overall, COP ranks 7th on our list of billionaire Louis Bacon's stock picks with huge upside potential. While we acknowledge the potential of COP as an investment, our conviction lies in the belief that AI stocks hold great promise for delivering high 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 COP but that trades at less than 5 times its earnings, check out our report about the 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. Sign in to access your portfolio
Yahoo
08-05-2025
- Business
- Yahoo
Taiwan Semiconductor Manufacturing Company Limited (TSM): Among Billionaire Louis Bacon's Stock Picks with Huge Upside Potential
We recently published a list of Billionaire Louis Bacon's 10 Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stands against other stock picks with huge upside potential. Louis Moore Bacon is the founder, Chairman, and principal investment manager of Moore Capital Management, a global investment management firm that provides services to institutional and high-net-worth clients through diversified hedge funds and specialized funds that focus on global fixed-income and emerging markets. It was established in March 1989 and is headquartered in New York City with offices in London and Hong Kong. He holds an MBA in Finance from Columbia Business School and a BA in American Literature from Middlebury College. Bacon's investment philosophy is based on risk management and capital preservation principles. His trading strategies are focused on macroeconomic trends and fundamental analysis of the markets. Bacon emphasizes diversification, which allows him to invest across different geographies and asset classes. He is known for his contrarian investment style and takes positions against prevailing market sentiment. Moore Capital Management is a hedge fund with 4 clients and discretionary assets under management (AUM) of $33.20 billion, as reported in the firm's Form ADV dated 19 November 2024. Their last reported 13F filing for Q4 2024 included $8.70 billion in managed 13F securities and a top 10 holdings concentration of 25.53%. He believes that there are opportunities to profit from mispricing that come with volatility or fear. Louis Moore Bacon is also the Founder and Co-Chair of The Moore Charitable Foundation, which was established in 1992 to support conservation-focused nonprofits dedicated to preserving land, water, and wildlife habitats. Bacon has received several awards in this regard, including the Theodore Roosevelt Conservation Partnership (TRCP) Lifetime Conservation Achievement Award and the Audubon Medal. To compile the list of billionaire Louis Bacon's 10 stock picks with huge upside potential, we sifted through Q4 2024 13F filings of Moore Global Investments from Insider Monkey. From these filings, we checked each stock's upside potential from CNN and ranked the stocks in ascending order of this upside potential. We have also added Moore Global Investments' stake in each company and the hedge fund sentiment around each stock. Note: All data was sourced on May 2. 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 close-up of a complex network of integrated circuits used in logic semiconductors. Moore Global Investments' Stake: $26.23 million Number of Hedge Fund Holders: 186 Average Upside Potential as of May 2: 22.29% Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a tech company that manufactures, packages, tests, and sells integrated circuits and other semiconductor devices globally. It provides various wafer fabrication processes. It also offers customer & engineering support services, invests in tech start-up companies, and provides investment services. The HPC segment made 59% of the company's total revenue in Q1 2025, which totaled $25.78 billion and improved by 41.40% year-over-year. This revenue itself improved by 7% sequentially due to the demand for AI-related applications. TSMC is also at the forefront of advanced chip manufacturing. As of Q1, 3nm chips made up 22% of TSMC's total wafer revenue, while 5nm and 7nm accounted for 36% and 15%, respectively. Altogether, advanced technologies (7nm and below) made 73% of the total wafer revenue. To support AI and HPC growth, TSMC is investing in advanced packaging technologies, particularly CoWoS, intending to double its CoWoS capacity in 2025. Despite projecting a mid-40% revenue CAGR from AI accelerators for the 5 years starting from 2024, Barclays analyst Simon Coles lowered the price target on the stock to $215 from $255 on April 21 while maintaining an Overweight rating. The company also plans to launch 2nm and 1.6nm chips, which would further strengthen its competitive edge. The company's results and guidance showcased strong AI chip demand, which is why Sands Capital Technology Innovators Fund stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q4 2024 investor letter: 'Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) third-quarter 2024 results and guidance showcased strong continued demand for artificial intelligence (AI) chips. Revenue increased by 29 percent, and earnings saw a 54 percent rise year-over-year. Gross margins were at their highest since 2022, bolstered by price hikes and record utilization at both the 3 nanometer (nm) and 5nm nodes. TSMC's full-year revenue outlook was revised upward from 25 percent to 30 percent growth. The company also anticipates higher capital expenditure in 2025, a leading indicator for revenue. Overall, TSM ranks 10th on our list of billionaire Louis Bacon's stock picks with huge upside potential. While we acknowledge the potential of TSM as an investment, our conviction lies in the belief that AI stocks hold great promise for delivering high 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 TSM but that trades at less than 5 times its earnings, check out our report about the 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.
Yahoo
08-05-2025
- Business
- Yahoo
Applied Materials, Inc. (AMAT): Among Billionaire Louis Bacon's Stock Picks with Huge Upside Potential
We recently published a list of Billionaire Louis Bacon's 10 Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where Applied Materials, Inc. (NASDAQ:AMAT) stands against other stock picks with huge upside potential. Louis Moore Bacon is the founder, Chairman, and principal investment manager of Moore Capital Management, a global investment management firm that provides services to institutional and high-net-worth clients through diversified hedge funds and specialized funds that focus on global fixed-income and emerging markets. It was established in March 1989 and is headquartered in New York City with offices in London and Hong Kong. He holds an MBA in Finance from Columbia Business School and a BA in American Literature from Middlebury College. Bacon's investment philosophy is based on risk management and capital preservation principles. His trading strategies are focused on macroeconomic trends and fundamental analysis of the markets. Bacon emphasizes diversification, which allows him to invest across different geographies and asset classes. He is known for his contrarian investment style and takes positions against prevailing market sentiment. Moore Capital Management is a hedge fund with 4 clients and discretionary assets under management (AUM) of $33.20 billion, as reported in the firm's Form ADV dated 19 November 2024. Their last reported 13F filing for Q4 2024 included $8.70 billion in managed 13F securities and a top 10 holdings concentration of 25.53%. He believes that there are opportunities to profit from mispricing that come with volatility or fear. Louis Moore Bacon is also the Founder and Co-Chair of The Moore Charitable Foundation, which was established in 1992 to support conservation-focused nonprofits dedicated to preserving land, water, and wildlife habitats. Bacon has received several awards in this regard, including the Theodore Roosevelt Conservation Partnership (TRCP) Lifetime Conservation Achievement Award and the Audubon Medal. To compile the list of billionaire Louis Bacon's 10 stock picks with huge upside potential, we sifted through Q4 2024 13F filings of Moore Global Investments from Insider Monkey. From these filings, we checked each stock's upside potential from CNN and ranked the stocks in ascending order of this upside potential. We have also added Moore Global Investments' stake in each company and the hedge fund sentiment around each stock. Note: All data was sourced on May 2. 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 technician in a clean room assembling a semiconductor chip using a microscope. Moore Global Investments' Stake: $48.79 million Number of Hedge Fund Holders: 80 Average Upside Potential as of May 2: 37.62% Applied Materials, Inc. (NASDAQ:AMAT) provides manufacturing equipment and services. It also offers software to the semiconductor, display, and related industries. The company operates through three segments: Semiconductor Systems, Applied Global Services, and Display. It operates in the US, China, Korea, Taiwan, Japan, Southeast Asia, Europe, and internationally. In Q1 2025, the company's Semiconductor Systems segment generated $5.36 billion in sales, which marked a 9% year-over-year increase. This was fueled by a 20% surge in foundry logic sales, which benefit from the industry's transition to advanced nodes like gate-all-around transistors and backside power delivery. Applied Materials, Inc. (NASDAQ:AMAT) estimates that this transition alone expands the company's total available market by over 15%. For Q2 2025, the company projects Semiconductor Systems revenue to be ~$5.3 billion, with an 8% growth year-over-year. Jefferies analysts recently upgraded the stock to Buy from Hold with a $195 price target, up from the previous target of $185. This upgrade was backed by recovering demand, which can help the company's stock to continue to rise despite the US-China trade tensions. Vltava Fund viewed the company as a strong tech company with excellent profitability, cash flow, and growth potential, and stated the following regarding Applied Materials, Inc. (NASDAQ:AMAT) in its Q4 2024 investor letter: 'In the quarter just ended, we added to the portfolio two new companies from the technology sector: Applied Materials, Inc. (NASDAQ:AMAT) and Lam Research. Both are in the same industry as is another of our investments that we have held for some time, KLA Corporation. This industry is termed semiconductor devices and materials. One chapter in Hidden Investment Treasures is devoted to investing in technology companies and, among other things, the controversy over what really constitutes a technology company. As investors, we try to view technology companies not according to the industry into which they are formally classified but by whether the technologies and technological processes used in the production of their products and services are an essential element in value creation or if they are a source of long-term, sustainable competitive advantage. Among the companies that are formally categorized as technology-based and fall into either the Information Technology or the Communications Services sector, we find some that can be said to be just that but also others for which this classification is at least debatable. Similarly, among companies that do not formally belong to these two sectors, we find many that clearly are built to a large extent on technology and base their market positions and competitiveness on it. In the cases of Applied Materials and Lam Research, there can be no doubt that these are technology companies not only as a formality but also in fact. Overall, AMAT ranks 3rd on our list of billionaire Louis Bacon's stock picks with huge upside potential. While we acknowledge the potential of AMAT as an investment, our conviction lies in the belief that AI stocks hold great promise for delivering high 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 AMAT but that trades at less than 5 times its earnings, check out our report about the 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
