Among billionaires, Steve Cohen’s large cap stocks have big upside down potential
Recently I published the list Billionaire Steve Cohen’s 10 large cap picks. In this article, we look at where Nvidia Corporation (NASDAQ:NVDA) is fighting against a massive stock pick with great potential for other billionaire Steve Cohen’s large stock picks.
Amidst punitive tariffs, immigration crackdowns and federal spending cuts, what is the future of the US economy and stocks holding? That’s a million dollar question as a hedge fund chairman and CEO Point 72 Asset ManagementSteve Cohen hears an alarm bell warning that the US economy could be on the brink amid macroeconomic uncertainty.
Billionaire investors argue that President Donald Trump’s aggressive trade policy could slow the economy at the second half of 1.5%, potentially falling from the 2.5% initial growth forecast. The warning concerns Trump’s propaganda, which promotes tariffs for a variety of purposes, including reducing trade imbalances and gaining more negotiation power than other countries. Nevertheless, their negative impact continues as the services sector, the key economic driver, grows slowly from 2023.
“The tariffs aren’t positive, are you okay? I mean, it’s a tax,” Cohen said Friday at the FII Priority Summit in Miami Beach, Florida. “Add to that, we’re slowing down immigration. This means our workforce hasn’t grown as fast as the last five years.”
Cohen warns that the good times when we saw stock market trickles hit the highest are over, as the outlook for the US economy is uncertain due to Trump’s tariff plans. True to Cohen’s warning, the US stock market has been pulled back significantly from its record highs. Given the uncertain macro environment, the S&P 500 has already fallen by about 8% in cusp that year and into the revision phase.
Similar sentiments are reflected by Morgan Stanley Sio Mike Wilson. He claims that since 2023 there have been quite a few fixes on the cards. According to Wilson, investors push stocks upwards, and valuations go beyond historical norms and beyond fundamental values. Therefore, the other side of the left, right and center must descent rapidly.
“I’ve actually only been quite negative after a while,” Cohen said. “It may last for about a year, but it’s definitely a time when you think you’ve made the best profits and you won’t be surprised to see any important fixes.”
Meanwhile, Cohen remains optimistic about the outlook for artificial intelligence despite Deepseek’s revelation and development on the development of cost-effective AI models that rattle the US market. According to Cohen, Deepseek’s development of cost-effective AI models is positive despite raising concerns about spending on powerful AI chips developed by US companies.
Cohen is one of the billionaire investors who are taking advantage of the artificial intelligence boom through strategic investments. His portfolio at Point72 Asset Management Hedge boasts significant exposure to high-tech giants developing and leveraging a wide range of AI innovations. Similarly, Point72’s Asset Management has already announced a new artificial intelligence-focused fund that has grown to $1.5 billion over the past three months of 2024.
Points 72 seconds Q4 2024 13F filing collaborates to identify billionaire Steve Cohen’s 10 large cap picks, with great opposite potential. We focus on stocks with market capitalizations of over $40 billion, with significant potential for a rise. We then analyzed why they stand out as they are poised to generate enough value even when stocks turn bearish. Finally, I listed stocks in ascending order.
Why are hedge funds interested in the stocks they accumulate? The reason is simple. Our research shows that mimic the top stock picks of the best hedge funds can outperform the market. Quarterly Newsletter’s strategy was to select 14 small and large caps per quarter, returning 373.4% since May 2014, surpassing the benchmark by 218 percentage points (For more information, please see here).
Nvidia Corporation (NVDA): Big handstand potential amid billionaire Steve Cohen’s massive stock pick
Point 72 Steven Cohen from Asset Management
Market capitalization as of April 24th: $2.51 trillion
Point72 Asset Management Stock Shares: $562.55 million
Analysts’ upward potential as of April 24th: 64.04%
Number of hedge fund holders: 223
Nvidia Corporation (NASDAQ: NVDA) is a technology company that designs and develops cutting-edge chip systems and software for artificial intelligence. It also offers graphical computing and networking solutions for data center computing and end-to-end networking platforms.
Nvidia Corporation (NASDAQ: NVDA) is under pressure as the company is subject to trade tariffs and export control curbs. Similarly, Citi analysts have reduced their stock price target from $150 to $163, due to the slowdown in data center spending in the US. Intensifying competition in the AI chip market and a massive increase in manufacturing costs due to the trade war are other headwinds.
Management has already repeated that new US management over exports of artificial intelligence chips cost the company around $5.5 billion. The US government has already notified the company that it will bid on a special license to export H20 chips made for the Chinese market.
Since 2022, NVIDIA Corporation (NASDAQ: NVDA) has produced many specific chips for its Chinese clients, including the successors of the A800, H800 and H800. The company had to develop China-specific chips to comply with US regulations that attempt to restrict access to the hardware needed for AI innovation. The focus on China is no surprise as the Chinese market accounted for 13% or $17 billion in Nvidia revenue in 2025.
Overall, NVDA 1st place Billionaire Steve Cohen’s large list of stock picks has a big potential for the opposite. While we acknowledge the potential of NVDA investment, our conviction lies in the belief that AI stocks provide higher returns and hold a greater commitment to doing so within a shorter time frame. There have been AI stocks that have risen since the beginning of 2025, and the popular AI stocks have lost around 25%. If you are looking for more promising AI stocks than NVDA, but are trading below 5x revenue, check out our report on this Cheapest AI stocks.
