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2 Stocks Showing Promise for Investors Two Market Movers to Consider

When it comes to investing, originality isn’t always rewarded. Some investors choose to do extensive research and pinpoint stocks with potential for hefty returns, while others take the cue from seasoned, prosperous investors.

Following the stock moves of billionaires and hedge fund managers has become quite accessible today, allowing investors to align with their strategies. For those interested in this approach, here are two stocks favored by top investors that are worth considering.

An investor following a stock chart.

Image source: Getty Images.

Meta Platforms: Surging Forward

Meta Platforms (NASDAQ: META) has borne the fruits of a remarkable turnaround this year. The parent company of Facebook nearly tripled in value with the success of its “Year of Efficiency” initiative. After four rounds of layoffs, the company experienced a significant improvement in its core business performance, amplified monetization in its Reels product, and resurging advertising demand following a 2022 downturn.

Moreover, Meta Platforms capitalized on the burgeoning AI era, rolling out innovative products such as the LLaMa large language model and AI assistants featuring celebrity voices and likenesses.

This revival hasn’t gone unnoticed by billionaire investors, as the company adopted numerous cost-cutting recommendations from top shareholders. Notably, David Tepper’s Appaloosa Management purchased 447,500 shares in the third quarter, making it the fund’s leading holding. Tepper, known for his contrarian investment style, previously ventured into distressed bank debt during the great financial crisis, foreseeing government support for it.

Looking ahead to 2024, Meta seems poised for further growth. Its profitability is expected to continue on an upward trajectory, fueled by a rebound in the digital advertising market, especially with anticipated interest rate cuts by the Federal Reserve likely to boost business spending.

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Nvidia: A Dominant Force

Another standout performer this year is Nvidia (NASDAQ: NVDA), the semiconductor company that reigns as the preeminent leader in AI chips.

The company is the birthplace of graphics processing units (GPUs) and specialized components such as its in-demand H100 accelerators, currently facing a significant shortage. Although competitors like Advanced Micro Devices and Intel have introduced their own AI model training accelerators, Nvidia retains a substantial lead in this sector. Its recent results underscore the overwhelming success of its products, with a staggering 206% increase in revenue to $18.12 billion and a net income surge of over 1,200% to $9.24 billion in the third quarter, translating to a profit margin exceeding 50%.

Among the prominent investors increasing their stakes in Nvidia is Citadel’s Ken Griffin, whose fund outperformed all others in 2022, delivering a $16 billion return despite market turmoil. Some benchmarks even tout Citadel as the best-performing hedge fund of all time. In the third quarter, Citadel acquired 738,327 shares of Nvidia, elevating its total holding to 2,053,872 million shares, or 0.19% of its colossal portfolio.

Nvidia is well positioned for sustained momentum in 2024, facilitated by its extraordinary growth in 2023, soaring demand for AI chips outstripping supply, and relatively limited competition from other chipmakers. With the anticipated acceleration of the AI boom next year, the company appears primed to emerge as a victor.

These compelling stocks are showcasing exciting potential, prompting investors to ponder whether to seize this opportunity. It’s evident the future holds immense promise for these market leaders, making these investment prospects worth considering.