In this article, we will look at the 11 Hot Growth Stocks to Invest in Now.
On October 16, Tim Urbanowicz, Innovator Capital Management chief investment strategist, joined CNBC Television for an interview. Urbanowicz discussed his AI investment strategy to capitalize on the substantial amounts of money being invested by major tech companies. He noted that in the current market situation, demand for AI continues to outweigh the supply. Urbanowicz noted Meta as an example; the company is set to increase spending by 50% next year and by 35% for the two subsequent years after 2026.
While highlighting his firm’s investment approach, Urbanowicz highlighted that they are looking at tech companies with market caps below $500 billion. He believes that such stocks have a lot of room to run. These companies act as partners for other big tech companies by building a lot of hardware, data center cooling technologies, and racks. He acknowledged that some of these smaller names look expensive at the moment; however, when considered along with their projected growth rates and earnings, these companies look really attractive. Urbanowicz clarified that this does not mean that the mega-cap stocks are going to sell off, but noted that his firm sees more upside looking outside.
With that, let’s take a look at the 11 Hot Growth Stocks to Invest in Now.
Our Methodology
To compile the list of 11 Hot Growth Stocks to Invest in Now, we used the Finviz Stock Screener, Yahoo Finance, and Insider Monkey’s Q2 2025 database. Using the screener, we aggregated a list of growth stocks and sorted the list in descending order of the 6-month performance. Next, we cross-checked the performance of each stock from Yahoo Finance and ranked the stocks in ascending order of the number of hedge fund holders, sourced from Insider Monkey’s database. Please note that the data was recorded on October 16, 2025.
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 Hot Growth Stocks to Invest in Now
11. Ondas Holdings Inc. (NASDAQ:ONDS)
6-Month Performance: 1001.08%
Number of Hedge Fund Holders: 9
Ondas Holdings Inc. (NASDAQ:ONDS) is one of the Hot Growth Stocks to Invest in Now. On October 13, Ondas Holdings Inc. (NASDAQ:ONDS) expanded its partnership with Rift Dynamics. The partnership now includes Nammo Raufoss as well, which is an advanced munitions provider with a strong manufacturing presence in the United States.
Under the extended collaboration, all the companies will develop fully integrated Wasp Drones with munition payloads. These upgraded Wasp drones would then be sold exclusively in the United States by Ondas Holdings Inc.’s (NASDAQ:ONDS) American Robotics subsidiary. Management noted that the updated system, which combines Nammo’s warhead with Rift’s Wasp platform, will deliver NDAA-compliant systems capable of rapid scale-up and mass deployment.
Eric Brock, CEO and Chairman of Ondas Holdings Inc. (NASDAQ:ONDS), believes that integrating Nammo’s proven munition technology with the Wasp platform would be a game-changer for US defense customers.
Ondas Holdings Inc. (NASDAQ:ONDS) engages in providing drone-based automated data solutions and advanced wireless connectivity.
10. ABIVAX Société Anonyme (NASDAQ:ABVX)
6-Month Performance: 1,420.03%
Number of Hedge Fund Holders: 17
ABIVAX Société Anonyme (NASDAQ:ABVX) is one of the Hot Growth Stocks to Invest in Now. On October 13, Etzer Darout from Barclays initiated ABIVAX Société Anonyme (NASDAQ:ABVX) with an Overweight rating and a $142 price target.
Analysts noted that they initiated coverage on eight companies in the inflammation, immunology, oncology, and rare disease sectors. He elaborated that while investment in small and mid-cap biotechnology stocks has binary risks. However, investments based on the prior clinical data and other de-risked mechanisms present a favorable risk/reward situation that presents significant upside.
Moreover, the firm also believes that the market is currently rewarding new mechanisms and treatments that have the potential to improve dosing and compliance.
In addition to Barclays, earlier on October 10, Yatin Suneja from Guggenheim reiterated a Buy rating on ABIVAX Société Anonyme (NASDAQ:ABVX) with a price target of $150.
ABIVAX Société Anonyme (NASDAQ:ABVX) is a clinical-stage biotechnology company that develops antiviral compounds and therapeutic vaccines for severe infectious diseases.