10 Best New Stocks to Invest In According to Hedge Funds

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6. Toast Inc. (NYSE:TOST)

Number of Hedge Fund Holders: 68

Toast Inc. (NYSE:TOST) is one of the best new stocks to invest in according to hedge funds. On April 14, Toast launched Toast Drive-Thru, a unified enterprise-grade solution designed to modernize quick-service restaurant/QSR operations. The platform integrates hardware, POS-native software, and AI voice ordering into a single ecosystem, replacing the fragmented systems often used by drive-thru brands.

By combining these technologies, Toast aims to help operators increase order accuracy and throughput while optimizing labor efficiency in high-volume environments. The solution features specialized hardware from Delphi by Toast, Inc. (NYSE:TOST), including high-brightness outdoor digital menu boards capable of performing in various weather conditions.

On the software side, a new POS drive-thru mode allows staff to tag vehicles and manage orders more efficiently, while an advanced order confirmation screen lets guests verify their items in real time. The platform also supports AI voice ordering integrations with partners like Incept AI to automate order-taking and uses speed-of-service reporting to identify operational bottlenecks.

Toast Inc. (NYSE:TOST) offers financial technology solutions and restaurant management software. It provides a cloud-based, all-in-one digital technology platform designed for the restaurant industry, offering software and financial technology solutions that help restaurants across point-of-sale, payments, operations, digital ordering and delivery, marketing and loyalty, and team management.

While we acknowledge the potential of TOST 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 TOST and that has 100x upside potential, check out our report about the cheapest AI stock.

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