In this article, we will look at the 10 Best Booming Stocks to Buy According to Hedge Funds.
On April 23, HSBC’s Max Kettner appeared on CNBC’s ‘Closing Bell’ to talk about how investors should position amid earnings season, where he is bullish, and more.
According to him, sentiment positioning is screaming “buy” right now, and a lot further depends on the next two weeks, especially the mega cap earnings. He does not think that you want to be underweight stocks here going into these earnings, adding that he would really struggle to find a particular bearish reason to be underweight tech or bearish on the tech side. Investors, therefore, do not want to be underweight stocks before mega cap earnings, according to him.
READ ALSO: 8 Best Low Priced Stocks to Buy Right Now AND 8 Best Bitcoin Stocks to Buy Now.
Kettner further believes that in the next two weeks, that is probably the sector that can propel us a bit higher, perhaps to new all-time highs once again. He also said that he is pretty much bullish on every risk asset that he can, whether it is high yield, emerging market credit, emerging market local currency debt, or equities; it is really across the risk asset spectrum.
With these broader market trends in view, let’s look at the best booming stocks to buy according to hedge funds.
Our Methodology
We used screeners to identify U.S.-based stocks with market capitalizations of at least $2 billion that had surged at least 20% over the past three months. To validate the bullish trend, we narrowed our list to companies with a 50-DMA above a 200-DMA. From there, we selected the top 10 stocks with the highest number of hedge fund holders, as of Q4 2025. We sourced the hedge fund sentiment data from Insider Monkey’s database.
Note: All data was recorded on April 23.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10 Best Booming Stocks to Buy According to Hedge Funds
10. Dell Technologies Inc. (NYSE:DELL)
Dell Technologies Inc. (NYSE:DELL) is one of the best booming stocks to buy according to hedge funds. On April 21, Citi lifted the price target on Dell Technologies Inc. (NYSE:DELL) to $235 from $180 and maintained a Buy rating on the shares. The firm sees strong order visibility for the company due to AI server momentum and improving storage execution, and views its second half of 2026 guidance as prudent.
For reference, in its financial results for fiscal Q4 2026 and full year fiscal 2026, Dell Technologies Inc. (NYSE:DELL) reported record full-year revenue of $113.5 billion, up 19% year over year, record full-year diluted earnings per share (EPS) of $8.68, up 36% year over year, and record full-year non-GAAP diluted EPS of $10.30, up 27%. It also reported record full-year cash flow from operations of $11.2 billion, and announced a cash dividend increase of 20% and a $10 billion increase in share repurchase authorization.
Dell Technologies Inc. (NYSE:DELL) also provided FY27 financial guidance, with a full-year revenue growth of 23% at the midpoint, diluted EPS growth of 33% at the midpoint, and non-GAAP diluted EPS growth of 25% at the midpoint.
Dell Technologies Inc. (NYSE:DELL) is a technology company that offers customers an innovative and broad solution portfolio to help customers address workforce transformation, modernize their information technology (IT) infrastructure, and offer critical solutions to keep organizations and people connected. Its operations are divided into the following segments: Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG).
9. KLA Corporation (NASDAQ:KLAC)
KLA Corporation (NASDAQ:KLAC) is one of the best booming stocks to buy according to hedge funds. On April 21, UBS lifted the price target on KLA Corporation (NASDAQ:KLAC) to $1,835 from $1,575 while reaffirming a Neutral rating on the shares. The firm updated its model on the stock ahead of the quarterly earnings report. KLA Corporation (NASDAQ:KLAC) is set to report fiscal Q3 2026 earnings on Wednesday, April 29, at 2 p.m. PT.
For additional reference, in its financial and operating results for fiscal Q2 2026, KLA Corporation (NASDAQ:KLAC) reported total revenues of $3.30 billion, above the midpoint of the guidance range of $3.225 billion +/- $150 million. Management further reported that GAAP diluted EPS was $8.68 and non-GAAP diluted EPS was $8.85, both above the midpoints of the respective guidance ranges. In addition, cash flow from operating activities for the quarter and last twelve months were $1.37 billion and $4.77 billion, respectively, while free cash flow was $1.26 billion and $4.38 billion, respectively.
KLA Corporation (NASDAQ:KLAC) is involved in the supply of process control and yield management solutions for the semiconductor and related nano-electronics industries. The company’s operations are divided into the following operations: Semiconductor Process Control, Specialty Semiconductor Process, and PCB, Display, and Component Inspection.
8. Sandisk Corporation (NASDAQ:SNDK)
Sandisk Corporation (NASDAQ:SNDK) is one of the best booming stocks to buy according to hedge funds. On April 20, Wells Fargo lifted the price target on Sandisk Corporation (NASDAQ:SNDK) to $975 from $675 and maintained an Equal Weight rating on the shares. Stating that “we’ve clearly missed SNDK,” the firm meaningfully increased its 2026 and 2027 EPS estimates to $125 and $150. However, it sees a consensus valuation view at about 6-7 times price to earnings on peak EPS, leaving limited upside to support a more constructive view.
Sandisk Corporation (NASDAQ:SNDK) also received a rating update from BofA on April 17. The firm lifted the price target on the stock to $1,080 from $900, maintaining a Buy rating on the shares and telling investors that NAND pricing is up “massively”. BofA sees a longer cycle this time around, given a mix shift to data centers, NAND demand from AI inferencing, which it views as sustainable in the medium-term, and NAND suppliers being rational and adding supply “judiciously”.
Sandisk Corporation (NASDAQ:SNDK) is involved in the development, manufacture, and provision of storage devices and solutions based on NAND flash technology. The company’s products include solid-state drives, memory cards, and USB flash drives.
7. Texas Instruments Incorporated (NASDAQ:TXN)
Texas Instruments Incorporated (NASDAQ:TXN) is one of the best booming stocks to buy according to hedge funds. On April 23, Truist lifted the price target on Texas Instruments Incorporated (NASDAQ:TXN) to $278 from $225 while reaffirming a Hold rating on the shares. The firm told investors in a research note that the company delivered an excellent fiscal Q1 result and fiscal Q2 guidance, with demand strength broadening from AI and data centers to Industrial. It further stated that trends should be even better for suppliers with greater leverage or margins that haven’t recovered yet.
The same day, Cantor Fitzgerald also lifted the price target on Texas Instruments Incorporated (NASDAQ:TXN) to $280 from $250 while reiterating a Neutral rating on the shares. The firm stated in a research note that the quarter was solid for the company, with results exceeding expectations across the board and reinforcing the bullish analog semiconductor outlook. It further told investors that although the near-term momentum appears solid, geopolitical risks and uncertainty around memory constraints in the second half warrant a more cautious and selective stance for the broader sector medium term.
Texas Instruments Incorporated (NASDAQ:TXN) is involved in the design and manufacture of semiconductors. The company’s operations are divided into the following segments: Analog, Embedded Processing, and Other.
6. Western Digital Corporation (NASDAQ:WDC)
Western Digital Corporation (NASDAQ:WDC) is one of the best booming stocks to buy according to hedge funds. UBS lifted the price target on Western Digital Corporation (NASDAQ:WDC) to $350 from $285 on April 21, reaffirming a Neutral rating on the shares. The firm told investors in a research note that the company is anticipated to report results near the top end of guidance for Q3, with strong sequential growth driven by higher ASPs and healthy hyperscaler demand. In addition, further improvement in fiscal Q4 is expected through continued pricing gains and margin expansion.
UBS also noted that although near-term fundamentals remain solid and supported by capacity and demand dynamics, the view remains that HDD stocks are still cyclical, with a longer-term downcycle pushed to at least late 2028 despite the current market treating the sector as more structurally stable than memory. Western Digital Corporation (NASDAQ:WDC) also received a rating update from Barclays on April 22. The firm lifted the price target on the stock to $405 from $325 and reaffirmed an Overweight rating on the shares.
Western Digital Corporation (NASDAQ:WDC) is involved in the development, manufacture, marketing, and sale of data storage devices and solutions.
While we acknowledge the potential of WDC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WDC and that has 100x upside potential, check out our report about the cheapest AI stock.
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