In this article, we will look at the 11 Hot Large Cap Stocks to Buy According to Hedge Funds.
What Will September Hold For the Markets?
On August 30, Ryan Detrick, Carson Group chief market strategist, appeared on CNBC’s ‘Closing Bell’ to talk about his thoughts on the markets. He stated that we are still in a bull market, and is overweight on equities, including industrials, financials, and technologies.
READ ALSO: 14 Best Long-Term Penny Stocks to Buy Right Now and 10 Best Strong Buy Growth Stocks to Buy Now.
However, he also added that while the overall outlook appears bullish, some potential seasonal weakness would not come as a surprise. A seasonal weakness is possible after a 30% rally in a four-month win streak. Still, we should not expect more than a mild pullback of 4%-6%. The message of the markets, according to him, remains “very strong.”
With these optimistic trends in view, let’s look at the top hot large cap stocks to buy according to hedge funds.
Our Methodology
We used the Finviz stock screener to compile a list of large cap stocks with the highest gains over the past 1 month (over 20%) and chose the top 11 most popular among hedge funds, as of Q2 2025. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund holders.
Note: All data was sourced on August 29.
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).
11 Hot Large Cap Stocks to Buy According to Hedge Funds
11. Pan American Silver Corp. (NYSE:PAAS)
Market Cap: $16.86 billion
Gain Over the Past 1 Month: 25.54%
Number of Hedge Fund Holders: 41
Pan American Silver Corp. (NYSE:PAAS) is one of the best hot large cap stocks to buy according to hedge funds. On August 29, Bank of America Securities analyst Lawson Winder maintained a Buy rating on Pan American Silver Corp. (NYSE:PAAS) and set a price target of $40.00.
Pan American Silver Corp. (NYSE:PAAS) released its unaudited earnings for fiscal Q2 2025 on August 6, reporting record net earnings of $189.6 million.
The company attained record free cash flow of $233.0 million in the quarter, which resulted in a record high cash balance of $1.1 billion at quarter end.
Pan American Silver Corp. (NYSE:PAAS) also announced a 20% dividend hike from $0.10 to $0.12 per common share with respect to Q2 2025.
Pan American Silver Corp. (NYSE:PAAS) operates, develops, and explores silver and gold producing assets and properties. Its operations are divided into the Silver and Gold segments.
10. Pure Storage, Inc. (NYSE:PSTG)
Market Cap: $25.36 billion
Gain Over the Past 1 Month: 30.39%
Number of Hedge Fund Holders: 41
Pure Storage, Inc. (NYSE:PSTG) is one of the best hot large cap stocks to buy according to hedge funds. On August 29, Barclays raised the firm’s price target on Pure Storage, Inc. (NYSE:PSTG) to $70 from $57 while keeping an Equal Weight rating on the shares.
The firm told investors in a research note that Pure Storage, Inc. (NYSE:PSTG) reported strength across the board and lifted its fiscal 2026 outlook, supporting the price target upgrade.
Pure Storage, Inc. (NYSE:PSTG) reported its fiscal Q2 2025 earnings on August 27, with total revenue growth of 13% year-over-year in the quarter. Subscription services revenue for the quarter rose 15% year-over-year to $414.7 million.
Pure Storage, Inc. (NYSE:PSTG) is involved in the delivery of innovative and disruptive data storage, services, and products that allow customers to maximize the value of data.
9. Bloom Energy Corporation (NYSE:BE)
Market Cap: $12.39 billion
Gain Over the Past 1 Month: 41.59%
Number of Hedge Fund Holders: 43
Bloom Energy Corporation (NYSE:BE) is one of the best hot large cap stocks to buy according to hedge funds. On August 21, Bloom Energy Corporation (NYSE:BE) announced the appointment of Aaron Hoover to lead business and corporate development. He would be assigned with developing and overseeing strategic partnerships with energy ecosystem players, driving corporate development initiatives.
In other news, Lloyd Byrne from Jefferies reiterated a Hold rating on Bloom Energy Corporation (NYSE:BE) in a report released on August 18, setting a price target of $24.00.
Bloom Energy Corporation (NYSE:BE) is involved in the manufacture and installation of a solid oxide fuel-cell based power generation platform. The company’s product, Bloom Energy Server, converts standard low-pressure natural gas or biogas into electricity via an electrochemical process without combustion.
8. Celsius Holdings, Inc. (NASDAQ:CELH)
Market Cap: $16.22 billion
Gain Over the Past 1 Month: 38.69%
Number of Hedge Fund Holders: 52
Celsius Holdings, Inc. (NASDAQ:CELH) is one of the best hot large cap stocks to buy according to hedge funds. On August 29, Jefferies analyst Kaumil Gajrawala maintained a Buy rating on Celsius Holdings, Inc. (NASDAQ:CELH), keeping the associated price target the same at $64.00.
The analyst expects the recent Rockstar acquisition and integration into PepsiCo’s distribution network to be significant factors boosting Celsius Holdings, Inc.’s (NASDAQ:CELH) market share, raising it to around 20%.
Gajrawala told investors that this move bolsters the alignment between PepsiCo and Celsius Holdings, Inc. (NASDAQ:CELH) while raising PepsiCo’s ownership stake, which he considers a positive development for both the companies. He also expects the acquisition to improve margins and boost revenue growth as the business integrates.
Celsius Holding (NASDAQ:CELH) develops, processes, markets, sells, and distributes functional energy drinks to various consumers. It markets its flagship asset, CELSIUS, as a fitness drink or supplement that accelerates metabolism and burns body fat with exercise while providing energy.
The company’s product formulation includes supplements and ingredients such as green tea (EGCG), calcium, ginger, B vitamins, vitamin C, and chromium. The product line is marketed in two versions: a ready-to-drink version and an on-the-go powder form.
7. EchoStar Corporation (NASDAQ:SATS)
Market Cap: $17.78 billion
Gain Over the Past 1 Month: 89.60%
Number of Hedge Fund Holders: 52
EchoStar Corporation (NASDAQ:SATS) is one of the best hot large cap stocks to buy according to hedge funds. On August 29, Citi analyst Michael Rollins raised the firm’s price target on EchoStar Corporation (NASDAQ:SATS) to $67 from $28.50, keeping a Neutral rating on the shares.
The firm told investors that it updated EchoStar Corporation’s (NASDAQ:SATS) model to take into account the spectrum sale to AT&T.
EchoStar Corporation (NASDAQ:SATS) is a provider of television entertainment, networking services, connectivity, and technology. Its portfolio of brands includes EchoStar, Sling TV, DISH TV, Hughes, Boost Mobile, HughesNet, HughesON, and JUPITER.
6. Astera Labs, Inc. (NASDAQ:ALAB)
Market Cap: $30.29 billion
Gain Over the Past 1 Month: 33.26%
Number of Hedge Fund Holders: 56
Astera Labs, Inc. (NASDAQ:ALAB) is one of the best hot large cap stocks to buy according to hedge funds. On August 29, Morgan Stanley analyst Joseph Moore raised the firm’s price target on Astera Labs, Inc. (NASDAQ:ALAB) to $200 from $155, keeping an Overweight rating on the shares.
The analyst told investors that the rack scale AI business brought about a greenfield opportunity worth $17 billion “virtually overnight,” bringing opportunities for Astera Labs, Inc. (NASDAQ:ALAB), and other companies, including Broadcom, Nvidia, Marvell, and more.
Astera Labs, Inc. (NASDAQ:ALAB) is a global semiconductor company that provides hardware and software solutions for AI and cloud infrastructure applications to solve data, memory, and networking bottlenecks. The company’s operations are divided into the following geographical segments: Taiwan, China, United States, and Other.
5. Natera, Inc. (NASDAQ:NTRA)
Market Cap: $23.09 billion
Gain Over the Past 1 Month: 25.88%
Number of Hedge Fund Holders: 66
Natera, Inc. (NASDAQ:NTRA) is one of the best hot large cap stocks to buy according to hedge funds. On August 29, Natera, Inc. (NASDAQ:NTRA) provided an update on its intellectual property litigation with NeoGenomics, Inc., announcing that the US District Court for the Middle District of North Carolina issued a ruling “invalidating certain claims in two patents that Natera asserted against NeoGenomics’ v1.1 RaDaR test.”
Management stated that the company is looking into its options, including an appeal and further enforcement with other patents.
Natera, Inc. (NASDAQ:NTRA) holds a comprehensive portfolio of over 500 issued or pending patents across the globe, and is committed to the protection of its significant investments in innovation.
Natera, Inc. (NASDAQ:NTRA) is a diagnostics company that develops and commercializes molecular testing services, applying its technological services in oncology, women’s health, and organ health.
The company provides various diagnostic tests, including Panorama non-invasive prenatal test (NIPT), Vistara, horizon carrier screening (HCS), spectrum pre-implantation genetic screening and spectrum pre-implantation genetic diagnosis, Anora products of conception (POC), and non-invasive paternity testing (PAT).
4. Affirm Holdings, Inc. (NASDAQ:AFRM)
Market Cap: $28.81 billion
Gain Over the Past 1 Month: 29.03%
Number of Hedge Fund Holders: 70
Affirm Holdings, Inc. (NASDAQ:AFRM) is one of the best hot large cap stocks to buy according to hedge funds. On August 29, JPMorgan raised the firm’s price target on Affirm Holdings, Inc. (NASDAQ:AFRM) to $94 from $91, keeping an Overweight rating on the shares.
The rating update came after the fiscal Q4 report, with the firm telling investors in a research note that Affirm Holdings, Inc.’s (NASDAQ:AFRM) gross merchandise volume growth surpassed 40% for the first time since the pandemic.
It added that the company’s notional volume growth attained the highest level on record. The firm also stated that Affirm Holdings, Inc.’s (NASDAQ:AFRM) guidance surpassed expectations on most key metrics.
Affirm Holdings, Inc. (NASDAQ:AFRM) is involved in the operation of a platform for digital and mobile-first commerce. The company’s platform comprises three core elements, including merchant commerce solutions, a point-of-sale payment solution for consumers, and a consumer-focused app.
3. Reddit, Inc. (NYSE:RDDT)
Market Cap: $42.13 billion
Gain Over the Past 1 Month: 40.16%
Number of Hedge Fund Holders: 74
Reddit, Inc. (NYSE:RDDT) is one of the best hot large cap stocks to buy according to hedge funds. In a report released on August 22, Brad Erickson from RBC Capital maintained a Hold rating on Reddit, Inc. (NYSE:RDDT) with a price target of $210.00.
Similarly, Argus Research initiated coverage of Reddit, Inc. (NYSE:RDDT) with a Buy rating on August 18, setting a price target of $250.00.
The firm told investors in a research note that Reddit, Inc. (NYSE:RDDT) boasts an impressive growth record, with its recent results trending positively.
It added that while the stock is not cheap, its growth runway is promising, and that justifies the premium.
Reddit, Inc. (NYSE:RDDT) operates a social networking, entertainment, and news website that allows registered community members to share and submit content.
2. MongoDB, Inc. (NASDAQ:MDB)
Market Cap: $25.68 billion
Gain Over the Past 1 Month: 32.67%
Number of Hedge Fund Holders: 75
MongoDB, Inc. (NASDAQ:MDB) is one of the best hot large cap stocks to buy according to hedge funds. On August 28, Morgan Stanley analyst Sanjit Singh raised the firm’s price target on MongoDB, Inc. (NASDAQ:MDB) to $325 from $255, keeping an Overweight rating on the shares.
The analyst told investors that MongoDB, Inc. (NASDAQ:MDB) has experienced a business acceleration across all fronts for the second consecutive quarter, resulting in a “major” second-half rise.
Singh further stated that MongoDB, Inc.’s (NASDAQ:MDB) multiyear growth outlook is continually improving, with fundamentals improving even with AI yet to contribute.
MongoDB, Inc. (NASDAQ:MDB) is involved in the development and provision of a general-purpose database platform, with its products including MongoDB Enterprise Advanced, MongoDB Atlas, and Community Server. The company also offers professional services such as training and consulting.
1. Insmed Incorporated (NASDAQ:INSM)
Market Cap: $28.77 billion
Gain Over the Past 1 Month: 26.86%
Number of Hedge Fund Holders: 82
Insmed Incorporated (NASDAQ:INSM) is one of the best hot large cap stocks to buy according to hedge funds. In a report released on August 22, Liisa Bayko from Evercore ISI maintained a Buy rating on Insmed Incorporated (NASDAQ:INSM) with a price target of $110.00.
The company also received a Buy from Mizuho Securities’s Graig Suvannavejh in a report issued on August 21.
The same day, Morgan Stanley analyst Maxwell Skor raised the firm’s price target on Insmed Incorporated (NASDAQ:INSM) to $144 from $126, keeping an Equal Weight rating on the shares.
The analyst told investors that conversations held with management and a key opinion leader physician led the firm to revise its model to take into account the broader lifecycle potential of the company’s portfolio and the durability of brensocatib’s cash flows.
Insmed Incorporated (NASDAQ:INSM) is a global biopharmaceutical company that develops and commercializes therapies for patients with rare diseases. The company focuses on the Brensocatib and Treprostinil Palmitil Inhalation Powder (TPIP) pipeline.
While we acknowledge the potential of INSM 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 INSM and that has 100x upside potential, check out our report about this cheapest AI stock.
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