In this article, we will highlight the 10 Best Growth Stocks to Buy According to Billionaire Dan Loeb.
Daniel Seth Loeb is a billionaire investor who heads Third Point, a hedge fund based in New York. The hedge fund is one of the most valuable in the market, with $24 billion in assets under management by the end of the first quarter of this year. This value is likely to close much higher by the end of the year because the fund’s offshore vehicle, which acts as a feeder fund for Third Point Master Fund LP, gained 3.2% in May, 7.9% over the three months through the end of May, and 7.3% since the start of the year. The performance trailed the S&P 500’s return over the same period by only three percentage points.
That momentum has been building for some time because the Master Fund returned 9.1% for the full year 2025. According to the fund’s disclosures, the gains are largely attributable to a bet on artificial intelligence.
Incidentally, it appears Loeb’s conviction in the AI theme won’t be going away any time soon. The billionaire investor made this point clear on the Invest Like The Best podcast on May 28, where he pushed back against growing concerns that AI investment has all the hallmarks of a bubble. He told the podcast that he is not troubled by the billions of dollars that major technology companies are pouring into microchips and data centers to power artificial-intelligence models.
“If you don’t believe the capex numbers are going to yield a return, then you would have to believe that they’re just flushing money down the toilet,” he said.
Loeb argued that the spending makes sense largely because the companies underwriting it are generating the cash flows to support it. He noted that Big Tech’s earnings are “really strong,” and that these companies are “generating enormous amounts of cash,” allowing them to fund a big chunk of the outlay “off their balance sheets.” That financial underpinning, in his view, makes the current AI buildout different from the speculative excess of the late 1990s.
“It’s very different from the dot-com bubble, which we were short going into, and had good numbers in those years,” the hedge fund manager said.
Against that backdrop, this article explores the 10 best growth stocks to buy according to Loeb.
Dan Loeb of Third Point
Our Methodology
We scanned Third Point’s Q1 2026 portfolio and picked growth stocks from the fund’s top 13F holdings. We referred to popular growth stock ETFs such as the Vanguard Russell 1000 Growth ETF (VONG), iShares Russell 1000 Growth ETF (IWF), Schwab U.S. Large‑Cap Growth ETF (SCHG), and Invesco S&P SmallCap 600 Pure Growth ETF (RZG). We also considered the overall hedge fund sentiment using Q1 2026 13F holdings data from Insider Monkey’s database. The list is in ascending order of the value of Third Point’s stake in each stock.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
Best Growth Stocks to Buy According to Billionaire Dan Loeb
10. Broadcom Inc. (NASDAQ:AVGO)
Third Point’s Stake Value: $15,475,500
Number of Hedge Fund Holders: 173
Broadcom Inc. (NASDAQ:AVGO) is one of the best growth stocks to buy according to billionaire Dan Loeb. On June 17, JPMorgan analyst Harlan Sur reiterated an Overweight rating and a $580 price target on Broadcom Inc. (NASDAQ:AVGO). Sur used the opportunity to push back against growing market fears that Broadcom’s AI chip project with Google had hit serious roadblocks.
According to the analyst, the concern arose from reports suggesting delays in Broadcom’s TPU v9 2nm chip program. The chip is a next-generation artificial-intelligence accelerator being developed for Google. Sur found those fears to be unfounded, stating that the TPU v9 program remains one of Broadcom’s highest-priority projects. The project is also firmly on schedule for a 2028 production ramp, with no delays or cancellations confirmed, Sur stated.
For context, Broadcom completed the initial IP design phase in the first half of 2025 and moved into full system-on-chip design in the second half. The chip features four compute dies, 16 High Bandwidth Memory stacks, and 400Gbps SERDES. This combination aims to handle the enormous data demands of next-generation AI workloads.
The analyst noted that even before the v9 story plays out, Broadcom’s TPU v8i 3nm chip received full qualification from Google by mid-2025 and is set to begin production ramping this quarter. In contrast, Google’s internal chip team, which is working alongside MediaTek on the rival Zebrafish TPU v8t 3nm program, is still in the design optimization phase. This gap, the analyst said, translates to an 18-month head start for Broadcom.
Broadcom Inc. (NASDAQ:AVGO) is a semiconductor and infrastructure software company. It designs, develops, and supplies a range of semiconductor devices for data center networking, broadband, wireless, and storage markets, and provides mainframe and cybersecurity software solutions.
9. Lam Research Corporation (NASDAQ:LRCX)
Third Point’s Stake Value: $16,024,500
Number of Hedge Fund Holders: 123
Lam Research Corporation (NASDAQ:LRCX) is one of the best growth stocks to buy according to billionaire Dan Loeb. On June 23, Bank of America raised its price target on Lam Research Corporation (NASDAQ:LRCX) to $480 from $330 while maintaining a Buy rating.
Lead analyst Vivek Arya said the price target hike was necessary to align with the firm’s update to its semiconductor industry models. As part of the update, Arya and team identified five forces they believe will drive the next $1 trillion in chip industry revenues, which cover AI data centers, memory, semiconductor capital equipment, and reshoring, analog chips, and agentic CPU demand.
A key factor in the price target upgrade was BofA’s revised forecast for wafer fabrication equipment (WFE) spending, the market in which Lam Research is a major player. The firm now projects the WFE spending to reach $250 billion by 2028, up from an earlier estimate of $203 billion. The spending can climb to $292 billion by 2030, the analysts noted.
From the perspective of the broader semiconductor industry, BofA now projects total chip sales of $2.7 trillion by 2030, up from a prior estimate of $2.3 trillion. This implies a 28% compound annual growth rate from 2025 levels. The firm expects memory to be the single largest driver of this growth; it expects it to grow nearly 300% this year alone.
Lam Research Corporation (NASDAQ:LRCX) is a semiconductor equipment manufacturer. It supplies wafer fabrication equipment and services to the semiconductor industry. The company specializes in etch and deposition technologies used in the production of advanced memory and logic chips.
