In this article, we will look at the 10 Best Non-US Stocks to Buy According to Hedge Funds.
On December 9, Michelle Gibley, Director of International Equity Research and Strategy at the Schwab Center for Financial Research, released her 2026 Outlook for International Stocks and Economy. She sees international markets as well-positioned for another strong year, driven by robust earnings, economic growth, and attractive valuations compared to the S&P 500. Gibley notes 2026 to be the year of broadening out and diversification. In this context, she believes that international stocks offer an attractive alternative to investors seeking to diversify away from the tech-heavy S&P 500.
In addition to this, several international economies are also expected to provide massive fiscal stimulus, which will also boost the stock market performance. She noted German and Japanese companies to be among the beneficiaries of these stimuli. Gibley added that fiscal spending in Germany is likely to pick up as the country’s multi-year spending priorities include a 500 billion euro infrastructure fund and an increase in defense spending to 3.5% of GDP from 1% by 2029.
On the other hand, the administration in Japan has also announced its largest stimulus package since the pandemic. The package totals 21.3 trillion yen, around $136 billion, targeting inflation relief measures for key industries including AI, semiconductors, and shipbuilding.
Now that we have looked at the international setup, let’s take a look at the 10 Best Non-US Stocks to Buy According to Hedge Funds.
Our Methodology
To curate the list of 10 Best Non-US Stocks to Buy According to Hedge Funds, we used the Finviz stock screener, WSJ, and Insider Monkey’s Q3 2025 database. Using the screener, we aggregated a list of ex-US stocks. Next, we ranked these stocks based on the number of hedge fund holders sourced from Insider Monkey’s database. We have also added the market capitalization of each stock sourced from the Wall Street Journal.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10 Best Non-US Stocks to Buy According to Hedge Funds
10. Shell plc (NYSE:SHEL)
Market Capitalization: $204.91 billion
Number of Hedge Fund Holders: 48
Shell plc (NYSE:SHEL) is one of the Best Non-US Stocks to Buy According to Hedge Funds. On December 16, Shell plc (NYSE:SHEL) announced the final investment decision on its waterflood project at Kaikias field in the US Gulf of America by its subsidiary Shell Offshore Inc.
Management noted that the project will use the waterflood method, which entails injecting water physically to displace oil into adjacent production wells. At Kaikias field, a waterflood method will be used to displace more oil to the company’s Ursa platform in the Mars Corridor. The first injection for this project is expected by 2028. The Kaikias waterflood project is estimated to increase recoverable resource volumes by around 60 million metric barrels of oil equivalent. Moreover, management anticipates that it will add several years to the production lifecycle of Ursa.
This strategic investment decision follows Shell plc’s (NYSE:SHEL) earlier decision to increase its stake in Ursa. The company currently holds 61.3484% ownership in the asset, along with BP Exploration & Production Inc. and ECP GOM III.
That said, Wall Street also remains bullish on the stock. Recently, on December 12, Michele Della Vigna from Goldman Sachs maintained a Buy rating on the stock with a price target of p2,686.5. On the same day, Lydia Rainforth from Barclays also maintained a Buy rating on Shell plc (NYSE:SHEL) with a price target of p2,686.5.
Shell plc (NYSE:SHEL) is a global energy and petrochemical company, providing fuel for transport, aviation, and industry, as well as lubricants, chemicals, and a wide range of other energy solutions.
9. Novo Nordisk A/S (NYSE:NVO)
Market Capitalization: $224.04 billion
Number of Hedge Fund Holders: 50
Novo Nordisk A/S (NYSE:NVO) is one of the Best Non-US Stocks to Buy According to Hedge Funds. On December 12, Novo Nordisk A/S (NYSE:NVO) announced receiving a positive opinion by the European Medicines Agency’s Committee for Medicinal Products for Human Use for a higher dosage of Wegovy.
The positive opinion is based on improved weight loss results of around 20.7% at 72 weeks in people without diabetes. Management noted that the STEP UP and STEP UP T2D clinical trial program showed that one in three obese people without diabetes in the trial achieved 25% or more weight loss at 72 weeks using Wegovy. Moreover, these results also complement the already proven benefits of the drug, which include significant reduction in cardiovascular risks and reduction in knee pain from osteoarthritis.
That said, Novo Nordisk A/S (NYSE:NVO) has also applied for a single-dose device to deliver Wegovy 7.2 mg at the European Medicines Agency. Moreover, the company’s Semaglutide 7.2 mg is also under review in the United States, the United Kingdom, and several other countries, with decisions expected in the next few months.
Wall Street has a cautious outlook on the stock. Recently, on December 10, Rajesh Kumar from HSBC reiterated a Hold rating on the stock and raised the price target from $47 to $54. However, earlier on December 5, Jasper Hellweg from Argus Research downgraded the stock from Buy to Hold, without disclosing any price target.
Novo Nordisk A/S (NYSE:NVO) is a global healthcare company focused mainly on diabetes and obesity care.
8. AstraZeneca PLC (NASDAQ:AZN)
Market Capitalization: $278.33 billion
Number of Hedge Fund Holders: 54
AstraZeneca PLC (NASDAQ:AZN) is one of the Best Non-US Stocks to Buy According to Hedge Funds. On December 16, AstraZeneca PLC (NASDAQ:AZN) announced the approval of its Saphnelo by the European Union for subcutaneous self-administration to treat adults with systemic lupus erythematosus along with the standard therapy.
Management noted that the approval is based on the positive results from the Phase III TULIP-SC trial and follows a positive opinion from the Committee for Medicinal Products for Human Use. The trial showed that Saphnelo, along with the standard therapy, resulted in a meaningful reduction in disease activity compared to the placebo. This marks an important breakthrough. SLE is an autoimmune condition impacting more than 3.4 million people internationally, and patients in Europe are two to three times greater risk of death compared to the rest of the world.
That said, Wall Street is also bullish on AstraZeneca PLC (NASDAQ:AZN). Recently, on December 10, Rajesh Kumar from HSBC reiterated a Buy rating on the stock and raised the price target from $95 to $108. Earlier, on December 9, Steve Scala from TD Cowen also reiterated a Buy rating on the stock with a $105 price target.
Rajesh Kumar of HSBC noted that he remains optimistic on the pharma group, considering that the sector is set to outperform in 2026. On the other hand, Steve Scala from TD Cowen noted the company’s promising new products and strong pipeline as one of the key reasons behind the bullish sentiment.
AstraZeneca PLC (NASDAQ:AZN) is a biopharmaceutical company that explores, develops, manufactures, and commercializes prescription medicines. It supplies its products and services to specialty and primary care physicians.
7. Accenture plc (NYSE:ACN)
Market Capitalization: $168.40 billion
Number of Hedge Fund Holders: 66
Accenture plc (NYSE:ACN) is one of the Best Non-US Stocks to Buy According to Hedge Funds. On December 18, Accenture plc (NYSE:ACN) released results for its fiscal Q1 2026. The company grew its revenue by 6% year-over-year in USD to reach $18.74 billion, surpassing Wall Street’s estimates of $18.53 billion. Moreover, the GAAP EPS of $3.54, although down 1% year-over-year also beat market expectations by $0.12.
Management attributed growth to a 4% year-over-year increase in Consulting revenue, along with an 8% increase in Managed Services revenue. Notably, the new bookings increased 12% during the quarter to reach $20.9 billion, driven by 33 clients with booking value greater than $100 million. Looking ahead, management expects fiscal second quarter of 2026 to be in the range of $17.35 billion – $18.0 billion, reflecting 1% to 5% year-over-year growth.
That said, earlier on December 16, Accenture plc (NYSE:ACN) announced its strategic partnership with Palantir Technologies Inc. (NASDAQ:PLTR) to accelerate AI reinvention.
The collaboration aims to speed up the delivery of advanced AI and data solutions that power global clients and drive growth. Moreover, Accenture plc has also been named as Palantir’s global partner for enterprise transformation. Management also announced the formation of Accenture Palantir Business Group, which consists of Palantir’s forward-deployed engineers (FDEs) working alongside over 2,000 Accenture professionals skilled in Palantir tech.
In addition, Wall Street maintains a positive outlook on Accenture plc (NYSE:ACN). Recently, on December 12, David Grossman from Stifel Nicolaus reiterated a Buy rating on the stock with a $315 price target. Earlier on December 10, Nate Svensson from Deutsche Bank raised the price target on the stock from $235 to $265, and maintained his Hold rating. Svensson noted that the company’s AI sentiment is getting better. However, the firm remains slightly cautious on the share overall, hence a Hold rating.
Accenture plc (NYSE:ACN) offers strategy and consulting services.
6. PDD Holdings Inc. (NASDAQ:PDD)
Market Capitalization: $155.86 billion
Number of Hedge Fund Holders: 73
PDD Holdings Inc. (NASDAQ:PDD) is one of the Best Non-US Stocks to Buy According to Hedge Funds. PDD Holdings Inc. (NASDAQ:PDD) has fallen more than 15.5% over the past month. Recently, on December 9, Shawn Yang from Arete Research downgraded the stock from Buy to Hold, while keeping the price target the same at $130.
The company’s e-commerce platform, Temu, continues to be under the radar of regulatory authorities. On December 10, Reuters reported that Temu’s European headquarters was raided by the European Union’s regulators on potential Chinese state subsidies to the online retailer.
The regulators have increased their attention towards Chinese e-commerce platforms, including Temu and Shein, over concerns that they have flooded the European market with free deliveries on parcels worth less than 150 euros. The regulators believe that this gives these platforms an unfair advantage. Moreover, the EU is also planning to scrap the duty exemption that allows Chinese e-commerce platforms to offer free deliveries by the end of next year, thereby further exacerbating the issue for PDD Holdings Inc. (NASDAQ:PDD).
This is not the first time that Temu has come under the radar of regulators. Last year, the EU opened an investigation into the platform under the Digital Services Act and found that the company had not done enough to prevent the sale of illegal products on its platform.
That said, the European Commission’s Foreign Subsidies Regulation has the authority to impose a 10% fine on the total turnover of Temu’s annual aggregated turnover for breaches of disrupting the competition in the European market.
PDD Holdings Inc. (NASDAQ:PDD) is a leading e-commerce group with a range of businesses. Pinduoduo and Temu are two of the main platforms of the company, among others. It has built a network of logistics, sourcing, and fulfillment capabilities to connect businesses with people.
5. Linde plc (NASDAQ:LIN)
Market Capitalization: $194.36 billion
Number of Hedge Fund Holders: 76
Linde plc (NASDAQ:LIN) is one of the Best Non-US Stocks to Buy According to Hedge Funds. On December 17, BMO Capital reiterated a Buy rating on the stock with a price target of $501. Earlier on December 12, Kenneth Lee from RBC Capital also reiterated a Buy rating on the stock, but lowered the price target from $540 to $490.
Analysts at BMO Capital noted that their bullish sentiment is based on Linde plc’s (NASDAQ:LIN) recent business review, which finds that the company has the potential to maintain and even exceed the EPS growth of 10% from multiple avenues. Moreover, the firm also likes the company’s growth potential, mainly in its core electrical segment and potential expansion in newer space application areas. Although the share price has fallen more than 8% over the past six months, BMO sees this as a buying opportunity.
On the other hand, Kenneth Lee from RBC Capital noted that they reiterated the Buy rating after attending the company’s investor event, where management highlighted its Growth6 strategy. The strategy is a non-macro-dependent initiative to support double-digit EPS growth amid challenges like European de-industrialization, persistent global trade restrictions, and consumer affordability pressures. Despite the Buy rating, RBC remains cautious due to weak industrial production, which can result in EPS being dragged by 1%-3% due to volume headwinds.
Linde plc (NASDAQ:LIN) is a global multinational chemical company and one of the world’s largest industrial gas suppliers.
4. ASML Holding N.V. (NASDAQ:ASML)
Market Capitalization: $414.90 billion
Number of Hedge Fund Holders: 82
ASML Holding N.V. (NASDAQ:ASML) is one of the Best Non-US Stocks to Buy According to Hedge Funds. ASML Holding N.V. (NASDAQ:ASML) has surged more than 32.86% and Wall Street maintains a positive outlook, suggesting further upside.
Recently, on December 11, Bernstein analyst David Dai CFA maintained a Hold rating on the stock with a €800 price target. Earlier, on December 3, Didier Scemama from Bank of America Securities reiterated a Buy rating on the stock and also raised the price target from $1,092 to $1,331.
Analyst Didier Scemama of BofA noted that ASML Holding N.V. (NASDAQ:ASML) is one of their best picks for 2026. The analyst also highlighted that they see fiscal 2027 as an inflection point for the company, which will result in a higher re-rate for the stock price. The firm expects this to be driven by increased intensity in Lithography as the company gains more DRAM market share. Moreover, BofA also expects the company to improve its gross margins and expand its revenue mix.
That said, J.P. Morgan had also reiterated a Buy rating on the stock on December 1. J.P. Morgan has also added ASML Holding N.V. (NASDAQ:ASML) to its top pick among the semiconductor capital equipment group for 2026. The firm expects the memory segment to be the driving factor for the company and also anticipates strong orders for the company in the last quarter of 2025.
ASML Holding N.V. (NASDAQ:ASML) develops, produces, markets, sells, upgrades, and services advanced semiconductor equipment systems, primarily lithography, metrology, and inspection tools.
3. Shopify Inc. (NASDAQ:SHOP)
Market Capitalization: $213.63 billion
Number of Hedge Fund Holders: 91
Shopify Inc. (NASDAQ:SHOP) is one of the Best Non-US Stocks to Buy According to Hedge Funds. On December 17, Wells Fargo reiterated a Buy rating on the stock and raised the price target from $125 to $198. Earlier on December 15, UBS reiterated a Hold rating on Shopify Inc. (NASDAQ:SHOP) with a $165 price target.
Wells Fargo noted that they believe the company to be an “under-earning asset”, which has a strong potential to benefit from AI-driven changes in search and product discovery. The firm expects Shopify to capture significant “demand-generation economics” in an AI-powered world. Moreover, Wells Fargo forecasts revenue and adjusted operating income estimates more than 20% and 50% above consensus levels by 2028, respectively.
On the other hand, despite a Neutral rating, UBS continues to expect strong growth potential for the company across four main growth pillars, including International, Enterprise, In-store POS, and B2B (EII&B). The firm believes that these pillars can help the company gain significant market share over the next decade. UBS expects Shopify Inc. (NASDAQ:SHOP) to achieve a CAGR growth of 15% to 21% in GMV, along with 15% to 20% gross profit growth till 2035. These projections are based on the firm’s analysis of Shopify’s four growth pillars.
Shopify Inc. (NASDAQ:SHOP) is a Canadian multinational commerce and financial technology company that offers a platform for e-commerce and a range of financial tools for merchants. This allows the company to offer an all-in-one e-commerce platform to start, run, and grow a business.
2. Alibaba Group Holding Limited (NYSE:BABA)
Market Capitalization: $377.90 billion
Number of Hedge Fund Holders: 130
Alibaba Group Holding Limited (NYSE:BABA) is one of the Best Non-US Stocks to Buy According to Hedge Funds. On December 10, Reuters reported that Alibaba Group Holding Limited (NYSE:BABA) has shown interest in buying Nvidia’s H200 AI chip, as the Trump administration has allowed Nvidia to export its chips to China.
According to the report, Chinese companies, including Alibaba, are yet to get a green light from the government to import chips from Nvidia. If the government allows it, this will be important news for Alibaba Group Holding Limited (NYSE:BABA) and other Chinese tech companies. These companies are currently using H20 chips, which are almost six times slower than the latest H200 chips, produced by Nvidia.
The report also highlighted that the Chinese government, in the last week, called representatives from Alibaba Group Holding Limited (NYSE:BABA), ByteDance, and Tencent to assess the demand for H200 chips. Alibaba and other companies in China are keen on securing these latest chips due to their ability to train AI models faster and more efficiently.
That said, Wall Street has a mixed opinion on the stock. Recently, on December 9, Arete downgraded the stock to Neutral from Buy with a $172 price target. However, earlier on December 2, Susquehanna reiterated a Buy rating on the stock with a $190 price target.
Alibaba Group Holding Limited (NYSE:BABA) is a technology company that operates primarily in e-commerce, cloud computing, and online payment services.
1. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Market Capitalization: $1.23 trillion
Number of Hedge Fund Holders: 194
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the Best Non-US Stocks to Buy According to Hedge Funds. On December 10, Mike Yang from Bank of America Securities reiterated a Buy rating on the stock with a price target of $390. On the same day, Bernstein SocGen Group also reiterated a Buy rating on the stock with a $330 price target.
The ratings follow the company’s release of its November 2025 revenue report. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) reported NT$ 343.614 billion in monthly revenue, reflecting 24.5% year-over-year growth. However, the November revenue was slightly lower by 6.5% from October 2025, when the company generated NT$367.473 billion.
Analysts at BofA noted that this robust year-over-year growth was driven by greater than expected demand for high-end mobile chipsets and solid growth in high-performance computing and AI sectors. Moreover, the comparison also benefited from favorable foreign exchange trends. The analyst highlighted that there are concerns regarding margin compression due to investment in new technologies. However, BofA anticipates stronger pricing and a higher utilization rate to keep the margins strong.
Moreover, Bernstein SocGen Group noted that Taiwan Semiconductor Manufacturing Company Limited’s (NYSE:TSM) October and November revenues totaled NT$711 billion. This makes almost 71% of the company’s Q4 2025 guidance at mid-point. The firm highlighted that if the company continues to perform in a similar fashion during December, it will allow the company to exceed both the guidance midpoint and consensus estimates by 3% to 4%.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the largest contract semiconductor manufacturer in the world. Some of its prominent customers include semiconductor companies that outsource all or part of their chip production, including Advanced Micro Devices, Nvidia, Broadcom, and more.
While we acknowledge the potential of TSM 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 TSM and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
