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.
9. Rigetti Computing, Inc. (NASDAQ:RGTI)
6-Month Performance: 582.91%
Number of Hedge Fund Holders: 17
Rigetti Computing, Inc. (NASDAQ:RGTI) is one of the Hot Growth Stocks to Invest in Now. Rigetti Computing, Inc. (NASDAQ:RGTI) has surged by more than 20% since October 13, when JP Morgan announced to invest $1.5 trillion in the United States over the next decade. The list of critical industries mentioned by the bank also included quantum computing, thereby taking the stock to an all-time high.
The company is making strides in the quantum computing space, as earlier on September 30, Rigetti Computing, Inc. (NASDAQ:RGTI) announced securing purchase orders for two quantum computing systems worth around $5.7 million. As per the company’s press release, the order was for two 9-qubit Novera quantum computing systems. These systems are upgradeable, meaning customers can increase the qubits for more complex research. The delivery of these systems is expected during the first half of 2026.
Overall, Wall Street appears bullish on the stock, as earlier on October 7, David Williams from Benchmark Co. raised the price target on Rigetti Computing, Inc. (NASDAQ:RGTI) from $20 to $50, while reiterating a Buy rating.
Rigetti Computing, Inc. (NASDAQ:RGTI) develops and operates full-stack quantum computers accessible through its Quantum Cloud Services platform.
8. Navitas Semiconductor Corporation (NASDAQ:NVTS)
6-Month Performance: 776.30%
Number of Hedge Fund Holders: 17
Navitas Semiconductor Corporation (NASDAQ:NVTS) is one of the Hot Growth Stocks to Invest in Now. On October 13, Navitas Semiconductor Corporation (NASDAQ:NVTS) announced new power semiconductor products purpose-built for Nvidia’s 800 VDC AI factory architecture.
The products include the new 100 V GaN FETs, 650 V GaN, and high voltage SiC devices. Management noted that these new products are aimed at delivering breakthrough efficiency, enhanced performance, and power density.
Nvidia’s 800 VDC architecture is a new power distribution system tailored for AI factories, which can handle large-scale and high-performance AI workloads. This distribution system directly powers IT racks to drive infrastructures such as Nvidia’s Rubin Ultra. Navitas Semiconductor Corporation’s (NASDAQ:NVTS) new 100 V GaN FET portfolio provides superior efficiency, power density, and thermal performance. Whereas the 650 V GaN portfolio features high-power GaN FETs and GaNSafe power ICs that integrate drive, control, sensing, and protection, thereby supporting Nvidia to shift to 800 VDC for its AI factory.
Navitas Semiconductor Corporation (NASDAQ:NVTS) is a power semiconductor company that designs gallium nitride (GaN) and silicon carbide (SiC) integrated circuits and devices.
7. Stoke Therapeutics, Inc. (NASDAQ:STOK)
6-Month Performance: 370.90%
Number of Hedge Fund Holders: 22
Stoke Therapeutics, Inc. (NASDAQ:STOK) is one of the Hot Growth Stocks to Invest in Now. On October 10, Ananda Ghosh from H.C. Wainwright reiterated a Buy rating on Stoke Therapeutics, Inc. (NASDAQ:STOK) with a $35 price target.
The analyst noted the promising potential of the company’s Zorevunersen for treating Dravet syndrome as one of the key reasons behind their bullish sentiment. Ghosh highlighted that the drug’s 36-month open-label extension data showed long-term reduction in major motor seizure frequency along with cognitive and behavioral improvements. The analyst believes these results suggest that the treatment has the potential to become the first disease-modifying therapy for Dravet syndrome.
In addition, Zorevunersen differentiates itself from the existing treatments due to its primary focus on symptomatic relief.
Stoke Therapeutics, Inc. (NASDAQ:STOK) is a biotech company that develops RNA-based medicines for treating various diseases by increasing protein expression. Zorevunersen is one of the company’s lead drugs.
6. D-Wave Quantum Inc. (NYSE:QBTS)
6-Month Performance: 595.34%
Number of Hedge Fund Holders: 24
D-Wave Quantum Inc. (NYSE:QBTS) is one of the Hot Growth Stocks to Invest in Now. On October 16, Sujeeva De Silva from Roth Capital raised the firm’s price target on D-Wave Quantum Inc. (NYSE:QBTS) from $20 to $50, while keeping a Buy rating.
The increased price target follows the company’s announcement regarding signing an agreement with Swiss Quantum Technology to deploy a D-Wave Advantage2 quantum computer in Europe. The deal is worth 10 million euros.
The analyst noted that he is encouraged by the company’s latest agreement in Europe. He highlighted that this deal paves the way for potential hardware sales. He noted that by securing additional customers, D-Wave Quantum Inc. (NYSE:QBTS) has validated the firm’s constructive thesis on the company.
D-Wave Quantum Inc. (NYSE:QBTS) is a quantum computing company that develops quantum computing systems, software, and cloud services for enterprises and developers.
5. SolarEdge Technologies, Inc. (NASDAQ:SEDG)
6-Month Performance: 224.50%
Number of Hedge Fund Holders: 27
SolarEdge Technologies, Inc. (NASDAQ:SEDG) is one of the Hot Growth Stocks to Invest in Now. On October 13, Charles Minervino from Susquehanna raised the firm’s price target on SolarEdge Technologies, Inc. (NASDAQ:SEDG) from $25 to $40, while maintaining a Hold rating on the stock.
The analyst noted in a research note that their firm has updated price targets in the alternative energy space, ahead of the Q3 earnings. This is because they remain extremely bullish on the sector, due to the favourable policies. The firm believes the sector benefits from the latest policies that preserve tax credit and other key provisions in the Inflation Reduction Act that favour the sector’s manufacturing.
In addition, on October 16, Mark Strouse from J.P. Morgan also raised the price target on SolarEdge Technologies, Inc. (NASDAQ:SEDG) from $27 to $29, while keeping a Hold rating.
SolarEdge Technologies, Inc. (NASDAQ:SEDG) provides inverter solutions and power optimizers for solar photovoltaic systems. Its products maximize energy output at the module level and include energy storage and monitoring software.
4. Applied Digital Corporation (NASDAQ:APLD)
6-Month Performance: 825.49%
Number of Hedge Fund Holders: 28
Applied Digital Corporation (NASDAQ:APLD) is one of the Hot Growth Stocks to Invest in Now. Applied Digital Corporation (NASDAQ:APLD) has surged more than 25% since the release of its FQ1 2026 results on October 9.
The company posted a revenue of $64.22 million, up 5.79% year-over-year and ahead of the consensus by $18.75 million. Following the release on October 14, Joe Flynn from Lucid Capital initiated coverage of Applied Digital Corporation (NASDAQ:APLD) with a Buy rating and a $44 price target.
The analyst noted they initiated coverage on 5 companies, including bitcoin miners and high-performance computing companies. The firm believes that these companies are positioned to capitalize on power shortages and other related constraints. Moreover, the firm also believes that companies like Applied Digital Corporation (NASDAQ:APLD) have interesting supply/demand dynamics and can capitalize on their ability to scale up infrastructures on accelerated timeframes.
In addition to Lucid Capital, on October 10, John Todaro from Needham also raised the price target on the stock from $21 to $41, while keeping a Buy rating on the stock.
Applied Digital Corporation (NASDAQ:APLD) is a technology company that designs and operates advanced digital infrastructure across North America. Its technologies focus on data centers for blockchain, high-performance computing, and AI applications.
3. Cidara Therapeutics, Inc. (NASDAQ:CDTX)
6-Month Performance: 450.68%
Number of Hedge Fund Holders: 34
Cidara Therapeutics, Inc. (NASDAQ:CDTX) is one of the Hot Growth Stocks to Invest in Now. On October 16, Maxwell Skor from Morgan Stanley initiated coverage of Cidara Therapeutics, Inc. (NASDAQ:CDTX) with a price target of $190.
The analyst noted the company’s lead candidate, CD388, as one of the key reasons backing his bullish sentiment. He believes that CD388, which is an antiviral, is positioned as a major player in the influenza prophylaxis market. This is because it offers single-dose prevention, while complementing existing vaccines. Skor noted that the important phase 3 interim results are expected in June 2026. The analyst anticipates the results to demonstrate season-long durability and broad protection of CD388, which he believes are key differentiating factors.
Skor also likes the drug’s Fast Track and Breakthrough Therapy designation. He noted that the drug’s total addressable market extends over $5 million, which presents a sizable market opportunity for the company.
Cidara Therapeutics, Inc. (NASDAQ:CDTX) is a biotechnology company that uses its Cloudbreak platform to create drug-Fc conjugates to target diseases and activate the immune system.
2. uniQure N.V. (NASDAQ:QURE)
6-Month Performance: 569.12%
Number of Hedge Fund Holders: 36
uniQure N.V. (NASDAQ:QURE) is one of the Hot Growth Stocks to Invest in Now. On October 6, Patrick Trucchio from H.C. Wainwright raised the firm’s price target on uniQure N.V. (NASDAQ:QURE) from $70 to $110, while keeping a Buy rating on the stock.
The analyst based his bullish sentiment on the promising results from the company’s AMT-130 trials, which were released on September 24. The stock has surged more than 339% since the announcement. The all-important 3-year data from the drug’s phase 1/2 trials for Huntington’s disease demonstrated a significant slowdown in disease progression along with improvements in biomarkers. The analyst in his research note highlighted that these results suggest that AMT 130 has the potential to become the first treatment to alter the diseased natural course.
uniQure N.V. (NASDAQ:QURE) specializes in gene therapy by developing one-time gene therapies aimed at potentially curing genetic and serious diseases.
1. CommScope Holding Company, Inc. (NASDAQ:COMM)
6-Month Performance: 351.74%
Number of Hedge Fund Holders: 38
CommScope Holding Company, Inc. (NASDAQ:COMM) is one of the Hot Growth Stocks to Invest in Now. On October 13, CommScope Holding Company, Inc. (NASDAQ:COMM) and Nokia announced their joint initiative to streamline FTTH deployments in APAC.
The joint initiative aims to streamline deployments in the APAC region by integrating CommScope Holding Company, Inc.’s (NASDAQ:COMM) FLX ODN terminals with Nokia’s Broadband Easy digital automation platform. Both companies anticipate that the combined solution will enable service providers with a digitized path to FTTH, with speed, automation, and accuracy.
Management noted that one of the biggest challenges in FTTH projects is the precise installation and provisioning of network components. The combined solution will enable providers to get the installation right the first time, thereby reducing errors and the need for highly specialized technicians.
CommScope Holding Company, Inc. (NASDAQ:COMM) is an international provider of infrastructure solutions for communication and entertainment networks.
While we acknowledge the potential of COMM 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 COMM and that has 100x upside potential, check out our report about this cheapest AI stock.
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