On October 9, Scott Ladner, Chief Investment Officer at Horizon Investments, appeared on CNBC to suggest that AI remains the key market driver along with tech. Ladner stated that it’s important to go back to the fundamentals and broadly affirmed that the market is still a tech trade and an all-tech-driven, AI-driven market. He explained that this is driven not only by AI itself but also by the massive infrastructure that is needed for the scale of AI necessary to be built out and fused through the US and global economic system.
Talking about the circularity of the AI trade and questioning whether the companies themselves truly understand the magnitude of the necessary build-out, Ladner acknowledged that questioning the valuations and the funding mechanism is always acceptable but defended this by stating that if the market is only a few hundred billion dollars into a multi-trillion dollar infrastructure build like an AI build, then the current valuations are fairly well supported. He noted that the much-discussed circularity is being funded through cash flows and operating profits, not through debt, as was the case in the late 90s and early 2000s. He concluded that the current build is sustainable and healthy. Shifting to specific investment opportunities within the tech trade, Ladner stated that outside the hyperscalers and chips, given the huge run-ups in those areas, his firm is interested in the infrastructure play itself. He clarified that while the rest of the current year will likely remain focused on Tech, as the market moves into the following year, if people realize the scale of the necessary infrastructure built to roll out the technology to the worldwide economy, those areas are still undervalued.
That being said, we’re here with a list of the 11 best NASDAQ stocks under $5 to buy now.
Our Methodology
We sifted through the Finviz stock screener to compile a list of the top NASDAQ stocks under $5. We then selected the 10 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q2 2025.
Note: All data was sourced on October 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
11 Best NASDAQ Stocks Under $5 to Buy Now
11. Clean Energy Fuels Corp. (NASDAQ:CLNE)
Share Price as of October 23: $2.76
Number of Hedge Fund Holders: 25
Clean Energy Fuels Corp. (NASDAQ:CLNE) is one of the best NASDAQ stocks under $5 to buy now. On October 22, Clean Energy Fuels Corp. announced the launch of its second heavy-duty truck demo program. The new program features the 2026 Freightliner Cascadia Gen 5 day cab equipped with the Cummins X15N natural gas engine.
The announcement follows the success of Clean Energy’s first Peterbilt X15N demo truck program, which was launched last year and was praised by fleets for the engine’s smooth handling, impressive torque, fuel efficiency, and per-gallon cost savings when running on RNG. The 2026 Freightliner demo truck will be initially showcased at the American Trucking Associations’ Management Conference & Exhibition/ATA MCE in San Diego, running from October 25 to October 28.
The program is designed to give fleets across the country the opportunity to experience the capabilities of the Freightliner Cascadia Gen 5 with the X15N engine firsthand. Participating carriers will be able to refuel using Clean Energy’s nationwide network of RNG stations, demonstrating the ease of integrating this low-carbon fueling option into their operations.
Clean Energy Fuels Corp. (NASDAQ:CLNE) offers natural gas as an alternative fuel for vehicle fleets and related fueling solutions in the US and Canada.
10. Repay Holdings Corporation (NASDAQ:RPAY)
Share Price as of October 23: $4.38
Number of Hedge Fund Holders: 25
Repay Holdings Corporation (NASDAQ:RPAY) is one of the best NASDAQ stocks under $5 to buy now. On October 14, Repay Holdings Corporation announced a partnership with Emotive Software, which is an all-in-one automotive finance and compliance platform. The collaboration empowers automotive sales and finance companies by combining Repay’s automation-enabling payment technology with Emotive’s loan management capabilities into a single platform.
The integration expands loan payment automation and offers numerous benefits to dealerships and lenders using the Emotive platform. Repay’s advanced automation ensures payments are processed and tracked instantly. Automotive lenders and dealerships providing financing services can now offer borrowers flexible payment options through Repay.
Repay Holdings Corporation (NASDAQ:RPAY) is a payments technology company that provides integrated payment processing solutions for consumers and businesses to make payments using electronic payment methods through two segments: Consumer Payments and Business Payments.
9. Talkspace Inc. (NASDAQ:TALK)
Share Price as of October 23: $2.63
Number of Hedge Fund Holders: 26
Talkspace Inc. (NASDAQ:TALK) is one of the best NASDAQ stocks under $5 to buy now. On October 6, Talkspace announced the acquisition of Wisdo Health, which is a clinically-proven and AI-powered social health and peer support platform. The acquisition aligns with Talkspace’s mission to provide mental health care to address the critical public health crisis of loneliness and isolation.
The integration of Wisdo Health’s capabilities complements Talkspace’s existing services and enables the combined entity to offer personalized, stepped care solutions that address both social and mental health needs and improve user outcomes.
Wisdo has shown significant health improvements, including reductions in loneliness and depression of up to 28%, along with measurable gains in quality of life. The acquisition expands peer community capabilities to support all demographics.
Talkspace Inc. (NASDAQ:TALK) operates as a virtual behavioral healthcare company that connects patients with licensed mental health providers in the US.
8. Xerox Holdings Corporation (NASDAQ:XRX)
Share Price as of October 23: $3.19
Number of Hedge Fund Holders: 26
Xerox Holdings Corporation (NASDAQ:XRX) is one of the best NASDAQ stocks under $5 to buy now. On October 22, Xerox announced the launch of its new Xerox Proficio Production Series. This introduction included the debut of two new digital presses, the Xerox Proficio PX300 and the Xerox Proficio PX500 Production Presses, which are designed to help print providers compete and grow in the mid-production color market by representing Xerox’s next-generation production technology.
The introduction of Proficio marks a new master brand for the company’s production press lineup. The name is derived from the Latin verb meaning to make progress, advance, and succeed, embodying Xerox’s mission to help clients adapt and accelerate in a changing marketplace. The Proficio Production Series is built on a unified platform that incorporates Xerox’s most advanced imaging, automation, and AI-assisted intelligence.
The Proficio PX300 and PX500 presses are specifically created for graphic arts and commercial print applications. Key features include print speeds of 85 and 100 pages per minute, respectively, giving providers flexible options to match their production needs. They offer Ultra HD resolution with an optional fifth color station, enabling Beyond CMYK embellishments such as fluorescent Pink with gamut extension, clear, and low-gloss clear.
Xerox Holdings Corporation (NASDAQ:XRX), together with its subsidiaries, operates as a workplace technology company that integrates hardware, services, and software for enterprises internationally. It operates in two segments: Print & Other and Xerox Financial Services/XFS.
7. GoodRx Holdings Inc. (NASDAQ:GDRX)
Share Price as of October 23: $3.77
Number of Hedge Fund Holders: 28
GoodRx Holdings Inc. (NASDAQ:GDRX) is one of the best NASDAQ stocks under $5 to buy now. On October 15, GoodRx announced the launch of a new subscription service called GoodRx for Hair Loss designed to simplify access to affordable treatment for men. The subscription is an all-in-one solution for a health concern that affects about half of all men in the US by age 50, who experience some degree of thinning or baldness.
The service aims to overcome the difficulty many men face in pursuing treatment due to high costs, complicated routines, or uncertainty about effective options, despite treatments like oral finasteride and oral minoxidil being clinically proven, especially when started early. GoodRx for Hair Loss starts as low as $16 per month, with the final pricing depending on the specific prescribed medication and the delivery cadence chosen.
The subscription service bundles three key benefits. First, customers connect with a licensed healthcare professional online, often within an hour, without needing an in-person visit, and retain ongoing access for any treatment questions. Second, if appropriate following the consultation, customers receive a prescription for clinically-proven treatments, specifically oral finasteride or oral minoxidil. Third, the prescribed medication is delivered directly to the customer’s door, in GoodRx’s standard packaging, with no additional fee for discreet delivery.
GoodRx Holdings Inc. (NASDAQ:GDRX), together with its subsidiaries, offers information and tools that enable consumers to compare prices and save on their prescription drug purchases in the US.
6. Taboola.com Ltd. (NASDAQ:TBLA)
Share Price as of October 23: $3.32
Number of Hedge Fund Holders: 28
Taboola.com Ltd. (NASDAQ:TBLA) is one of the best NASDAQ stocks under $5 to buy now. On October 22, Taboola and Paramount Advertising announced a partnership to launch Performance Multiplier, which is a new Paramount-branded solution to extend and measure the impact of Connected TV/CTV advertising across the open web, specifically for small and medium-sized businesses/SMBs.
The solution underscores the power of TV advertising to augment a brand’s digital performance, using Taboola’s extensive network and performance marketing expertise. The Performance Multiplier will be integrated into Paramount Ads Manager, Paramount Advertising’s self-service buying platform that allows SMB advertisers to access premium streaming advertising regardless of their budget.
By using Taboola’s Realize AI technology, Paramount Ads Manager will enhance its targeting and attribution capabilities. The integration enables advertisers to extend their brand message from Paramount’s massive CTV reach to matched and lookalike viewers across Taboola’s network of over 9,000 publisher partners, reaching hundreds of millions of users in premium, brand-safe environments.
Taboola.com Ltd. (NASDAQ:TBLA), together with its subsidiaries, operates an AI-based algorithmic engine platform in Israel, the US, the UK, Germany, and internationally.
5. Ventyx Biosciences Inc. (NASDAQ:VTYX)
Share Price as of October 23: $3.86
Number of Hedge Fund Holders: 28
Ventyx Biosciences Inc. (NASDAQ:VTYX) is one of the best NASDAQ stocks under $5 to buy now. On October 22, Ventyx Biosciences announced positive topline results from its Phase 2 study of the oral, once-daily drug VTX3232 in 175 participants with obesity and cardiovascular risk factors. The study was a randomized, double-blind, placebo-controlled, multicenter trial that evaluated VTX3232 versus placebo, alone or combined with semaglutide.
The primary goal was safety and tolerability, and the secondary endpoint was the effect on high-sensitivity C-reactive protein/hsCRP. VTX3232 was found to be safe and well-tolerated in all groups, with rates of adverse events comparable to placebo over the 12-week study period. Efficacy in Reducing InflammationVTX3232 monotherapy demonstrated significant reductions in inflammation.
The drug, which is an NLRP3 inhibitor, also reduced other key cardiovascular risk biomarkers. Ventyx Biosciences plans to provide future updates on the continued development of VTX3232, highlighting its potential to reduce the risk of cardiovascular events by targeting underlying inflammation.
Ventyx Biosciences Inc. (NASDAQ:VTYX) is a clinical-stage biopharmaceutical company that develops oral therapies for patients with autoimmune, inflammatory, and neurodegenerative diseases.
4. Marqeta Inc. (NASDAQ:MQ)
Share Price as of October 23: $4.66
Number of Hedge Fund Holders: 31
Marqeta Inc. (NASDAQ:MQ) is one of the best NASDAQ stocks under $5 to buy now. On October 23, Citi analyst Bryan Keane initiated coverage of Marqeta with a Neutral rating and a $5 price target. The firm sees low visibility into the company sustaining its H2 2025 revenue growth rates in 2026.
Earlier on October 13, Goldman Sachs downgraded Marqeta to Sell from Neutral with a price target of $5, which was down from $7.50.
Goldman Sachs believes that customer concentration issues concerning Block XYZ are likely to resurface for Marqeta. The firm noted that Marqeta recently changed its partnership with Block by announcing it will add a new issuer processing partner. Goldman Sachs sees this move as a potential long-term headwind for the partnership, which adds to the existing concerns about Marqeta’s total addressable market/TAM.
Marqeta Inc. (NASDAQ:MQ) operates a cloud-based open API platform for card issuing and transaction processing services.
3. Taysha Gene Therapies Inc. (NASDAQ:TSHA)
Share Price as of October 23: $4.94
Number of Hedge Fund Holders: 34
Taysha Gene Therapies Inc. (NASDAQ:TSHA) is one of the best NASDAQ stocks under $5 to buy now. On October 16, Taysha Gene Therapies announced that it had regained full global rights to its lead program, TSHA-102, which is in clinical evaluation for the treatment of Rett syndrome. The 2022 Option Agreement between Taysha and Astellas has officially expired.
The agreement granted Astellas an exclusive option to negotiate an exclusive license to TSHA-102 for Rett syndrome. Taysha now holds unencumbered rights to the program, granting the company full strategic flexibility and optionality to drive long-term value.TSHA-102 Clinical Data and Regulatory StatusTaysha had delivered a TSHA-102 data package to Astellas in mid-2025, which contained the previously disclosed Part A REVEAL Phase 1/2 clinical data (with a May 2025 data cutoff).
TSHA-102 MechanismTSHA-102 is a self-complementary intrathecally delivered AAV9 investigational gene transfer therapy designed as a one-time treatment. It addresses the genetic root cause of Rett syndrome by delivering a functional form of the MECP2 gene to CNS cells. The therapy uses a novel miRNA-Responsive Auto-Regulatory Element/miRARE technology, which is engineered to mediate MECP2 levels in the CNS on a cell-by-cell basis without the risk of overexpression.
Taysha Gene Therapies Inc. (NASDAQ:TSHA) is a clinical-stage biotechnology company that develops and commercializes adeno-associated virus-based gene therapies for the treatment of monogenic diseases of the central nervous system.
2. Sabre Corporation (NASDAQ:SABR)
Share Price as of October 23: $2.18
Number of Hedge Fund Holders: 35
Sabre Corporation (NASDAQ:SABR) is one of the best NASDAQ stocks under $5 to buy now. On October 14, Sabre Corporation announced the launch of SabreMosaic Continuous Revenue Optimizer/CRO. CRO is an industry-first, AI-driven, classless revenue engine designed to help airlines move beyond traditional fare classes and deliver continuous, optimal pricing recommendations for every shopping request.
The innovation is expected to help airlines unlock up to a 3.5% uplift in overall revenue without needing to add capacity, by delivering the right price to the right customer at the right time. The solution addresses a decades-old limitation of legacy revenue management systems in the airline industry.
CRO is built upon the foundation of SabreMosaic, the modular, AI-native platform introduced last year that has already delivered over 16 new products for more than 10 airline customers, generating tens of millions of dollars in estimated incremental revenue. CRO is powered by Sabre IQ, Sabre’s systemic AI layer that combines proprietary algorithms with the vast scale of its Travel Data Cloud, which contains over 50 petabytes of aggregated, anonymized travel intelligence.
Sabre Corporation (NASDAQ:SABR), together with its subsidiaries, operates as a software and technology company for the travel industry in the US, Europe, Asia-Pacific, and internationally. It operates in two segments: Travel Solutions and Hospitality Solutions.
1. Rocket Pharmaceuticals Inc. (NASDAQ:RCKT)
Share Price as of October 23: $3.80
Number of Hedge Fund Holders: 38
Rocket Pharmaceuticals Inc. (NASDAQ:RCKT) is one of the best NASDAQ stocks under $5 to buy now. On October 14, Rocket Pharmaceuticals announced that the US FDA accepted the resubmission of the Biologics License Application/BLA for KRESLADI (marnetegragene autotemcel; marne-cel).
KRESLADI is a lentiviral vector/LV-based investigational gene therapy intended for the treatment of severe Leukocyte Adhesion Deficiency-I (LAD-I), which is a rare genetic immune disorder. The BLA resubmission is supported by positive clinical efficacy and safety data from the global Phase 1/2 study of KRESLADI.
The study achieved 100% overall survival at 12 months post-infusion (and for the entire duration of follow-up) for all enrolled patients. All primary and secondary endpoints were met, and the therapy was well tolerated with no treatment-related serious adverse events reported. Data showed substantial reductions in the incidence of significant infections compared to pre-treatment levels, along with evidence of improved skin lesions and restored wound-healing capabilities.
Rocket Pharmaceuticals Inc. (NASDAQ:RCKT), together with its subsidiaries, operates as a late-stage biotechnology company that develops gene therapies for rare and devastating diseases in the US.
While we acknowledge the potential of RCKT 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 RCKT and that has 100x upside potential, check out our report about this cheapest AI stock.
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