In today’s evolving market, investor attention is beginning to shift away from the dominant “Magnificent Seven” mega-cap stocks and toward lesser-known opportunities on the Nasdaq. While giants like Nvidia, Apple, and Microsoft continue to command headlines and index weightings, many analysts and investors are warning that overconcentration in these names may pose hidden risks. Recently, renowned NYU finance professor Aswath Damodaran commented that several non-Mag 7 stocks appear “undervalued relative to their fundamentals,” offering a more attractive risk-reward profile for long-term investors. These overlooked names often operate in innovative niches and are beginning to quietly outperform as the market broadens.
Echoing this sentiment, legendary value investor Mohnish Pabrai remarked that the major indexes are “too dumb to know they own Nvidia, and will never sell it,” pointing to the passive nature of index investing and the resulting bloated exposure to a handful of tech giants. His view underscores the growing concern that even diversified portfolios are becoming unintentionally concentrated.
Against this backdrop, savvy investors are turning to smaller Nasdaq stocks that combine strong fundamentals with growth potential without the sky-high valuations. In this list, we highlight the 10 best non-mega cap Nasdaq stocks to buy right now, based on business quality, valuation, and market momentum.
Photo by Pascal Bernardon on Unsplash
Our Methodology
We used stock screeners to accumulate a list of 30 NASDAQ stocks that are trading at a market cap of less than $200 billion, as of July 14. We then picked the 10 stocks from our initial screen that are the most popular among elite hedge funds.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Non-Mega Cap NASDAQ Stocks to Buy Right Now
10. Synopsys, Inc. (NASDAQ:SNPS)
Average analyst upside: 10.12%
Market cap: $88.30 billion
Number of Hedge Fund Holders: 67
Synopsys, Inc. (NASDAQ:SNPS) is one of the Best Non-Mega Cap NASDAQ Stocks to Buy Right Now. Synopsys, Inc. (NASDAQ:SNPS) received a boost on Monday, July 14, after Needham analyst Charles Shi raised the firm’s price target on the stock to $660 from $650, while reiterating a Buy rating. The revision follows the announcement that China has conditionally approved Synopsys’s acquisition of engineering software firm Ansys, a key regulatory hurdle in the deal’s global approval process.
According to Needham, the transaction is expected to close around July 17, marking a significant milestone for both companies. The merger brings together Synopsys’s strength in semiconductor design automation with Ansys’s expertise in multiphysics simulation, creating what the firm describes as the definitive chip-to-system design software leader.
Once combined, the companies are projected to generate over $10 billion in total revenue by fiscal year 2026, according to Needham’s estimates. The scale and breadth of the unified platform are expected to unlock long-term synergies, particularly in the areas of AI-driven design, automotive, and industrial markets.
Investors have closely followed the deal since it was first announced, viewing it as a transformative move for Synopsys, Inc. (NASDAQ:SNPS) in a consolidating software landscape. With Chinese regulatory clearance now secured, attention shifts to final closing logistics and early integration plans. Synopsys shares edged higher following the update, reflecting growing confidence in the strategic upside of the Ansys acquisition.
9. PayPal Holdings, Inc. (NASDAQ:PYPL)
Average analyst upside: 11.15%
Market cap: $70.96 billion
Number of Hedge Fund Holders: 92
PayPal Holdings, Inc. (NASDAQ:PYPL) is one of the Best Non-Mega Cap NASDAQ Stocks to Buy Right Now. PayPal Holdings, Inc. (NASDAQ:PYPL) received a vote of confidence from Seaport Research Partners on July 14, as the firm upgraded the digital payments giant to Neutral from Sell. While no price target accompanied the shift, the change in stance reflects a reassessment of PayPal’s operational resilience and forward momentum.
Seaport analysts noted that concerns surrounding potential tariff-related disruptions to PayPal’s business are easing. What were once seen as possible headwinds now appear to be having less impact than previously anticipated. This reassessment has prompted the firm to raise its financial estimates for the company.
According to the note, PayPal Holdings, Inc. (NASDAQ:PYPL) is showing signs of strengthening in its core business metrics. The firm highlighted that the company’s growth trajectory, which had slowed in recent quarters, now appears to be on a more favorable path. Improved consumer engagement and stabilizing transaction trends are among the factors contributing to the brighter outlook.
The upgrade comes at a time when PayPal is actively working to regain investor confidence after a period of underperformance. While Seaport remains cautious by holding to a Neutral rating, the upward revision suggests growing optimism in the company’s ability to navigate near-term challenges and reaccelerate growth.
8. Palo Alto Networks, Inc. (NASDAQ:PANW)
Average analyst upside: 12.68%
Market cap: $128.19 billion
Number of Hedge Fund Holders: 77
Palo Alto Networks, Inc. (NASDAQ:PANW) is one of the Best Non-Mega Cap NASDAQ Stocks to Buy Right Now. Palo Alto Networks, Inc. (NASDAQ:PANW) has been identified as one of Wedbush Securities’ top cybersecurity picks for the second half of 2025, reflecting the firm’s bullish outlook on the sector’s momentum. In a note released Sunday, Wedbush analysts, led by Daniel Ives, pointed to a “very resilient spending environment” that continues to support strong industry performance.
According to the report, cybersecurity is positioned to be one of the standout segments in the broader tech landscape through the remainder of the year. As malicious cyber activity becomes more sophisticated, enterprises are increasingly prioritizing security infrastructure, reinforcing a demand trend that Wedbush sees sustaining double-digit growth in the years ahead.
The firm emphasized that cybersecurity remains essential not only for digital protection but also as a core pillar in the deployment of artificial intelligence across industries. This strategic importance is expected to drive increased mergers and acquisitions, with companies seeking to bolster their capabilities and stay competitive in an evolving threat landscape.
Palo Alto Networks stands out, the analysts noted, due to its scale, innovation, and positioning in key enterprise accounts. Its inclusion on Wedbush’s high-conviction list underscores growing confidence in the company’s ability to capitalize on sector-wide tailwinds as 2025 unfolds.
7. Comcast Corporation (NASDAQ:CMCSA)
Average analyst upside: 13.31%
Market cap: $129.63 billion
Number of Hedge Fund Holders: 81
Comcast Corporation (NASDAQ:CMCSA) is one of the Best Non-Mega Cap NASDAQ Stocks to Buy Right Now. Scotiabank has nudged its price target on Comcast Corporation (NASDAQ:CMCSA) to $45 from $44.50, maintaining a Sector Perform rating on the stock. The adjustment reflects the bank’s cautious optimism toward the broader Telecom, Media, and Technology (TMT) space as macroeconomic pressures intensify.
In a note to clients, Scotiabank analysts described the TMT sector as a “great place to hide” amid mounting global uncertainties, including slowing economic momentum and the impact of escalating tariff disputes. The firm sees companies like Comcast as relatively well-positioned to weather volatility, offering stability in a shifting landscape.
While financial performance across the sector is expected to hold steady, Scotiabank flagged potential softness in key subscriber metrics. The bank pointed to slowing population growth, largely attributed to reduced immigration, as a factor that may weigh on new customer acquisition, particularly in broadband and wireless segments.
Still, the firm sees Comcast’s diversified portfolio, which spans broadband, content, and theme parks, as a buffer against near-term pressures. The modest target increase reflects both confidence in Comcast’s earnings potential and caution over demographic headwinds.
6. Intuitive Surgical, Inc. (NASDAQ:ISRG)
Average analyst upside: 13.86%
Market cap: $183.59 billion
Number of Hedge Fund Holders: 106
Intuitive Surgical, Inc. (NASDAQ:ISRG) is one of the Best Non-Mega Cap NASDAQ Stocks to Buy Right Now. BTIG analyst Ryan Zimmerman has raised the firm’s price target on Intuitive Surgical, Inc. (NASDAQ:ISRG) to $566 from $542 while reiterating a Buy rating ahead of the company’s second-quarter earnings report. The adjustment comes as part of a broader outlook on the MedTech sector, which has faced pressure in recent months.
In a research note to clients, Zimmerman highlighted that healthcare lagged the broader market in Q2, with MedTech stocks continuing to struggle early into the third quarter. Concerns over Medicaid reductions and potential hospital closures, stemming from recent legislative changes, have cast a shadow over the group, contributing to cautious investor sentiment.
BTIG believes, however, that these fears may be exaggerated. While the upcoming earnings season is expected to produce uneven results, the firm sees conditions that could support a rebound. Inflation remains contained, currency exchange rates have become more favorable, and equity markets are near record highs, all of which could provide a tailwind to medical technology names.
Within this mixed backdrop, Intuitive Surgical, Inc. (NASDAQ:ISRG) stands out for its consistent performance and robust fundamentals. The maker of robotic-assisted surgical systems is seen as well-positioned to weather sector-specific concerns, justifying BTIG’s upward revision. Investors will be watching closely to see if the company can deliver results strong enough to reinforce its premium valuation.
5. Keurig Dr Pepper Inc. (NASDAQ:KDP)
Average analyst upside: 17.26%
Market cap: $44.47 billion
Number of Hedge Fund Holders: 54
Keurig Dr Pepper Inc. (NASDAQ:KDP) is one of the Best Non-Mega Cap NASDAQ Stocks to Buy Right Now. Barclays has lowered its price target on Keurig Dr Pepper Inc. (NASDAQ:KDP) to $37 from $38, while maintaining an Overweight rating on the stock. The revision follows a series of investor meetings with company management, during which Barclays updated its financial model based on new insights.
Though the price target adjustment is modest, it reflects a recalibration of near-term expectations rather than a shift in overall outlook. The firm continues to view Keurig Dr Pepper Inc. (NASDAQ:KDP) as well-positioned within the beverage sector, citing stable fundamentals and a balanced portfolio spanning both hot and cold drink categories.
Barclays noted that management remains focused on execution, particularly around pricing strategies, innovation, and supply chain efficiency. While certain category pressures persist, especially in the face of changing consumer preferences and cost sensitivities, the company has shown an ability to adapt and protect margins.
The updated model incorporates refined assumptions around volume trends and promotional activity, with Barclays anticipating steady performance but acknowledging a more competitive environment. Despite trimming the target, the firm sees potential for upside, supported by brand strength and disciplined capital deployment.
Keurig Dr Pepper shares were little changed in Monday trading, as investors weighed the revised outlook against broader market conditions and sector-specific headwinds.
4. MercadoLibre, Inc. (NASDAQ:MELI)
Average analyst upside: 21.7%
Market cap: $121.17 billion
Number of Hedge Fund Holders: 108
MercadoLibre, Inc. (NASDAQ:MELI) is one of the Best Non-Mega Cap NASDAQ Stocks to Buy Right Now. Oxxo, Mexico’s largest convenience store chain, has announced a new partnership with MercadoLibre, Inc. (NASDAQ:MELI)’s fintech platform Mercado Pago that will allow users of the digital wallet to withdraw cash directly from any of Oxxo’s more than 22,000 stores across the country. The service, now available, offers a practical solution for customers who prefer or require physical cash, especially in areas where ATM access is limited or traditional banking infrastructure is scarce.
The agreement marks a significant step toward expanding financial access for millions of Mexicans. Oxxo’s widespread presence gives Mercado Pago users a convenient and secure way to access their funds without relying on bank branches. The integration is designed to be seamless, with transactions processed through Oxxo’s existing point-of-sale systems.
Executives from both companies emphasized the broader impact of the collaboration. For Oxxo, the move aligns with its strategy to become a one-stop hub for essential financial services, complementing existing offerings such as bill payments and remittances. For Mercado Pago, the deal strengthens user engagement by adding tangible value to its digital ecosystem.
The initiative comes as part of a broader trend in Latin America, where fintech firms are increasingly partnering with retail networks to bridge gaps in financial inclusion. Analysts say the partnership is likely to drive foot traffic to Oxxo stores while enhancing Mercado Pago’s competitive position in the region’s fast-evolving digital payments landscape.
3. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)
Average analyst upside: 27.5%
Market cap: $59.16 billion
Number of Hedge Fund Holders: 66
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is one of the Best Non-Mega Cap NASDAQ Stocks to Buy Right Now. UBS analyst Trung Huynh raised the price target on Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) to $584 from $560 while maintaining a Neutral rating ahead of the company’s second-quarter earnings report.
The move reflects slightly more optimistic expectations for Regeneron’s financial performance, particularly driven by the continued strength of its flagship eye treatment, Eylea. The franchise has shown resilience amid increased competition in the ophthalmology space, and investor attention is likely to focus on how well Regeneron has defended its market share.
Despite the upward revision, UBS remains cautious on the stock, pointing to a balance of risks and rewards in the near term. While the company has a robust pipeline and strong positioning in its core therapeutic areas, the firm believes the current share price already reflects much of the near-term optimism.
The note also signals that while the broader biotech sector has experienced renewed investor interest, Regeneron’s valuation leaves limited room for upside unless new catalysts emerge. The stock has performed steadily in recent months, and the upcoming earnings release may serve as a key moment for reassessing momentum into the second half of the year.
2. Micron Technology, Inc. (NASDAQ:MU)
Average analyst upside: 27.96%
Market cap: $134.42 billion
Number of Hedge Fund Holders: 96
Micron Technology, Inc. (NASDAQ:MU) is one of the Best Non-Mega Cap NASDAQ Stocks to Buy Right Now. Goldman Sachs has initiated coverage of Micron Technology (NASDAQ: MU) with a Neutral rating and a $130 price target, reflecting a cautious yet steady outlook for the broader semiconductor space. The move comes as part of the firm’s wider coverage launch on U.S. semiconductor capital equipment, storage, and foundry sectors.
In a note to investors, Goldman analysts described the semiconductor capital equipment industry as being in a “mid-cycle” phase, marked by a mix of supportive and challenging forces. The firm expects revenue across the sector to remain relatively stable through 2026, with limited upside catalysts in the near term.
Micron, a leading player in the memory and storage market, sits at the center of several key industry trends. Goldman sees signs of an eventual recovery in the NAND flash memory market, a segment that has faced pricing and demand pressures in recent years. The firm projects a rebound in NAND into 2026, offering a potential boost for Micron over the long term.
Despite some optimism, Goldman’s analysts believe the current environment presents more downside than upside risk overall, prompting the Neutral stance. However, they also noted that China may be more of a growth opportunity than a threat for U.S. semiconductor firms, given rising domestic demand.
1. Applovin Corporation (NASDAQ:APP)
Average analyst upside: 38.16%
Market cap: $119.44 billion
Number of Hedge Fund Holders: 96
Applovin Corporation (NASDAQ:APP) is one of the Best Non-Mega Cap NASDAQ Stocks to Buy Right Now. Applovin Corporation (NASDAQ:APP) shares jumped on Monday after Citi reiterated the stock as a top pick heading into the company’s second-quarter earnings report, scheduled for August 6. The firm reaffirmed its Buy rating and maintained a $600 price target, citing confidence in AppLovin’s performance and outlook.
In a note to clients, Citi said it expects second-quarter results to come in at the high end of management’s guidance ranges. The firm also highlighted strength in AppLovin’s software platform and monetization strategy as key drivers of momentum heading into the second half of 2025 and into 2026.
Citi’s note emphasized that tailwinds from AI-driven ad targeting and growing demand for mobile app optimization tools continue to support revenue acceleration. With solid execution and rising visibility into long-term growth, Applovin Corporation (NASDAQ:APP) remains well-positioned in a competitive digital ecosystem.
The company’s upcoming earnings report will be closely watched for further signs of momentum, as investors look for confirmation of Citi’s bullish stance and any upward revisions to guidance.
While we acknowledge the potential of APP 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 APP and that has 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
