In this article, we will look at the 11 Most Promising Future Stocks According to Hedge Funds.
The past year has seen investors pour money into futuristic trends such as electric vehicles and AI. These trends have raised the question of whether regulators will slow their growth in 2025 or attain more space to run with a green signal from the government. Venture Capitalist Bradley Tusk appeared on CNBC to talk about the industries that are expected to thrive in 2025 and how policy changes could affect investments across these hot industries.
He said that while some of the policies on big tech might continue, we would likely see a friendlier climate towards M&A activity and new technology in fintech, healthcare tech, and energy. The various factors are thus coming together well, especially in the world of venture capital. While it has not been all that vibrant there in the past few years, things are starting to turn around now.
What Could the Future Look Like for AI?
However, Tusk said that he does not feel confident that the current administration would provide the necessary safety and security while also letting technology get competitive. He provides Internet 2.0 as evidence, saying that we still have to regulate social media while we are a decade and a half into this experiment now. While we have a good idea of how to regulate AI, the federal and state-level authorities have not been particularly competent at broadly regulating new technologies. If you leave it to the state, you will likely get 50 different intellectual and analytical frameworks on regulating AI, which becomes almost impossible for the companies to comply with. Tusk thus opines that we could really use some competent leadership at the federal level, as these factors might be a potential hindrance to the upside of this technology.
Talking further about the future of the AI industry, he said that people will likely continue to build an arms race in the area, and the momentum and excitement will continue irrespective of the circumstances. Companies in this area are so heavily invested that they have to keep investing no matter what. At the same time, AI is still a world of unfulfilled potential. There is a lot of talk about what it could be and how it could change the way we create new drugs, teach children, discover minerals, or anything else. But at some point, it has to go from a cool search engine and exciting potential idea to actual revenue and savings. Tusk said that this is the year it has to start being shown, as you can’t just forever continue investing for the potential that may come someday; at one point, the economics have to come in too.
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Outlook for the Crypto and Fintech Sectors
Talking about the crypto world and its potential future, Tusk said he expects regulations to be positive for the asset class. According to him, it couldn’t have been much worse over the last four years with Gary Gensler, the former chair of SEC, who was considerably anti-crypto. He expects the institution leaders of the current administration to be a lot more friendlier to crypto. That does not necessarily mean that the world would be happy with every signal crypto legislation that comes out, just that it is likely to be more reasonable.
Moving to the fintech industry, Tusk agreed that the last four years have been one with the reputation of being more heavy-handed in terms of legislation in the sector. There is a broad expectation that the fintech and banking industry would undergo a massive sweep of deregulation, at least administratively. If we are trying to read the tea leaves, it would likely happen if the deregulation could be done without legislation. But he didn’t express confidence about it happening if it requires legislation.
With these trends in mind, let’s examine the 11 most promising future stocks according to hedge funds.
A stock market data. Photo by Alesia Kozik on Pexels
Our Methodology
We sifted through stock screeners, financial media reports, and ETFs to compile a list of the most promising future stocks and then chose the top 11 with the highest number of hedge fund holders as of Q4 2024. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is ordered in ascending order of hedge fund sentiment.
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 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
11 Most Promising Future Stocks According to Hedge Funds
11. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 64
Palantir Technologies Inc. (NASDAQ:PLTR) builds and deploys software platforms that serve as central operating systems for customers. The company focuses on augmenting human intelligence and developing products for human-driven real-world data analysis. It ranks 11th on our list of the most promising future stocks as organizations worldwide are increasingly employing its technology to uncover human trafficking rings, unravel complex financial crimes, and more. Its commercial segment manages customers in non-government industries, while the government sector includes customers from the United States government and non-United States government agencies.
Palantir Technologies Inc. (NASDAQ:PLTR) is also making significant strides in AI. Its collaboration with Google Cloud to bolster its FedStart program has been received notably well, as it aims to deliver advanced AI solutions to American government agencies. The partnership has boosted investment sentiment for the company and resulted in the stock’s upward trajectory.
The company’s recent deal with NATO has proved to be another major catalyst for the stock, as the latter had adopted Palantir Technologies Inc.’s (NASDAQ:PLTR) AI-driven military system. Investors hailed the partnership as a key validation of the company’s technology, positioning it as a key player in the defense sector and enhancing its global trustworthiness. The company’s financial performance has further fueled investor optimism, with revenue rising to $2.87 billion last year.
10. QUALCOMM, Inc. (NASDAQ:QCOM)
Number of Hedge Fund Holders: 79
QUALCOMM Inc. (NASDAQ:QCOM) develops and commercializes foundational technologies for the wireless industry, including 3G, 4G, and 5G wireless connectivity and high-performance and low-power computing, including on-device AI. The company ranks on our list of the most promising future stocks because of its operations across various high-growth markets, including autonomous vehicles and smartphones. Its Snapdragon augmented reality technology is the next generation of mobile computing. The company continuously innovates to deliver intelligent computing with proven solutions that transform major industries.
On May 1, DBS analyst Fang Boon Foo maintained their bullish stance on QUALCOMM Inc. (NASDAQ:QCOM) and gave it a Buy rating. The analyst highlighted the company’s strong performance in fiscal Q1 2025, exceeding expectations across multiple segments. It also provided strong revenue guidance for fiscal Q2 2025, reflecting confidence in its future performance.
The analyst opined that QUALCOMM Inc.’s (NASDAQ:QCOM) leadership in the smartphone industry and strategic diversification into high-growth areas like automotive, IoT, 5G, and edge networking are key drivers of its positive outlook. It holds significant investment appeal because of its dividend growth and consistent capital return policy, and the extension of its collaboration with Apple until 2026 provides further earnings visibility and stability.
9. Intuitive Surgical, Inc. (NASDAQ:ISRG)
Number of Hedge Fund Holders: 95
Intuitive Surgical, Inc. (NASDAQ:ISRG) has an elaborate ecosystem of services and products that provides robotic-assisted surgical solutions and invasive care, ranking it ninth on our list of the most promising future stocks to buy according to hedge funds. The company’s products include the Ion Endoluminal and the Da Vinci Surgical systems, which hold key significance in the minimally invasive surgery sector.
Intuitive Surgical, Inc. (NASDAQ:ISRG) reported a 17% growth in its Da Vinci procedures in fiscal Q1 2025, with significant contributions from US general surgery and regional markets such as the UK, Korea, and India. It attained a record 367 Da Vinci systems installations in the quarter. This growth reflects the Da Vinci system’s rising adoption and successful expansion in various geographies and surgical fields.
Intuitive Surgical, Inc.’s (NASDAQ:ISRG) revenue for fiscal Q1 2025 also increased 19% over last year, reaching $2.25 billion. The notable revenue growth highlights the company’s successful strategies in improving its product offerings and expanding its market presence. In a report released on April 23, Rick Wise from Stifel Nicolaus maintained a Buy rating on Intuitive Surgical, Inc. (NASDAQ:ISRG) and set a price target of $670.00.
8. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 126
Tesla, Inc. (NASDAQ:TSLA) designs, manufactures, and sells high-performance electric vehicles and energy generation and storage systems. However, it isn’t merely an automotive manufacturer; it also focuses on innovative technologies, including robotics and AI. The company has a humanoid robot line, Optimus, and an autonomous vehicle fleet, Cybercabs.
Tesla, Inc. (NASDAQ:TSLA) plans to begin selling Optimus robots by 2026, and Elon Musk announced that they have the potential to generate over $10 trillion in revenue. The company also has plans to build a ride-hailing network for Cybercabs, which operate without steering wheels or pedals and do not require a human driver. They can thus operate round the clock and potentially generate a high-profit margin revenue stream for the company.
On April 29, Morgan Stanley analyst Adam Jonas maintained a Buy rating on Tesla, Inc. (NASDAQ:TSLA) and set a price target of $410.00. The analyst reasoned that the company’s strategic positioning in emerging technologies justifies this buy rating and ranks it on our list of the most promising future stocks to invest in. He highlighted the company’s capabilities in innovative areas such as humanoid robots, autonomous vehicles, and other technologies present significant growth and margin opportunities that extend beyond the traditional EV market.
Jones said that Tesla, Inc.’s (NASDAQ:TSLA) involvement in these advanced sectors, including energy storage, robotics, and infrastructure, positions it to capitalize on the expected growth in the humanoid robotics market. The market is anticipated to exceed the global auto industry in size, lending the company a considerable competitive advantage for long-term revenue growth.
7. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 161
Broadcom Inc. (NASDAQ:AVGO) is a leading multinational technology company that specializes in semiconductor and infrastructure software products that serve broadband, networking, data centers, storage, and industrial markets. It also has a software portfolio that comprises cybersecurity, enterprise automation, and mainframe operations. The company ranks seventh on our list of the most promising future stocks to invest in now due to its focus on innovation, as its products are used by leading cloud providers, OEMs, and telecom firms across the globe.
One of the company’s most substantial growth opportunities comes from its application-specific integrated circuits (ASICs) used in AI data center infrastructure. Broadcom Inc. (NASDAQ:AVGO) estimates the serviceable addressable market (SAM) for its AI chips to rise to between $60 billion and $90 billion over three fiscal years. The company has also estimated substantial growth in its AI-related revenue, projecting a serviceable addressable market of $60–90 billion by fiscal 2027. Broadcom Inc. (NASDAQ:AVGO) underwent a 77% year-over-year growth in its AI revenue in fiscal Q1 2025, reaching $4.1 billion.
On April 30, Seaport Research analyst Jay Goldberg initiated coverage of Broadcom Inc. (NASDAQ:AVGO) with a Buy rating and set a $230 price target. The analyst argued that the company is one of the leading beneficiaries of the present AI spending boom. However, its prospects are misunderstood by the Street and thus not priced into the stock. Barclays analyst Thomas O’Malley also maintained a Buy rating on the company on March 22 and set a price target of $215.00.
6. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 162
Salesforce, Inc. (NYSE:CRM) designs and develops cloud-based enterprise software for customer relationship management. Analysts are bullish on the stock because of Agentforce, an autonomous, proactive AI application that offers specialized support to customers and employees. It presents a significant opportunity for the company to capitalize on the elevated demand for AI-powered customer support solutions. Since the platform integrates generative AI agents into business workflows, Salesforce, Inc. (NYSE:CRM) holds a strong position in this rapidly evolving market, ranking it sixth on our list of the most promising future stocks to buy now.
The company is also strengthening its AI and data protection capabilities through various initiatives. This includes the 2024 acquisition of Own Company, which coincides with the market trends around growing enterprise priorities associated with security and automation. On April 29, WestPark Capital analyst Curtis Shauger initiated coverage of Salesforce, Inc. (NYSE:CRM) with a Buy rating and a $320 price target.
5. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 166
Uber Technologies, Inc. (NYSE:UBER) operates a leading technology platform that offers ride services and merchant delivery service providers for food, groceries, meal preparation, and other delivery services. It is also pioneering the global use of autonomous vehicles. On May 2, the company announced a collaboration with the Chinese self-driving startup Momenta to launch robotaxi services outside China and the US. The first release is planned for early 2026 in Europe, and the partnership aims to make autonomous rides more affordable and reliable globally.
Uber Technologies, Inc. (NYSE:UBER) also announced a new multi-year strategic partnership with May Mobility to deploy thousands of AVs on its platform over the next few years. The initial launch is planned for the end of 2025 in Arlington, Texas.
In a report released on April 22, Justin Post from Bank of America Securities reiterated a Buy rating on Uber Technologies, Inc. (NYSE:UBER) and set a price target of $95.00. The analyst said that the overall gig economy is favorably viewed in the broader internet sector, and Uber Technologies, Inc.’s (NYSE:UBER) operations in that sector support the Buy rating.
4. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 186
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 a part of their chip production, including Advanced Micro Devices, Nvidia, Broadcom, and more. This makes it one of the top promising future stocks to invest in now.
On May 1, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) announced plans to start construction on a third chip plant in Arizona. Bloomberg reported that the company is expediting its US expansion as the Trump administration’s threats of further tariffs deepen. In a report released on April 21, Simon Coles from Barclays maintained a Buy rating on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) with a price target of $215.00.
Investors are bullish on the stock, and demand for its innovative services is one of the primary reasons behind the sentiment. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has plans to grow its capital expenditures (capex) to between $38 billion and $42 billion in 2025, which translates to an annual growth of 28% to 41%.
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 223
NVIDIA Corp (NASDAQ:NVDA) is a full-stack computing infrastructure company that uses accelerated computing to help solve challenging computational problems. Its state-of-the-art data center GPUs, such as the H100 and Blackwell chips, are critical for AI workloads. The company is thus a pivotal player in the AI infrastructure, as its GPUs power key AI platforms and models.
NVIDIA Corp (NASDAQ:NVDA) also powers some of the leading AR and VR devices worldwide. For instance, the NVIDIA Omniverse delivers the world’s first full-fidelity, fully ray-traced XR experiences. The company is also advancing technology to employ AR technology in vehicles, with its NVIDIA Drive AR processor collecting data and displaying it to drivers through AR.
On April 30, Bernstein analyst Stacy Rasgon maintained a Buy rating on NVIDIA Corp (NASDAQ:NVDA) and set a price target of $185.00. Morgan Stanley analyst Joseph Moore also expressed bullish sentiments for the stock on April 28, raising his revenue and earnings estimates for 2026. He cited “explosive” demand for inference chips and said that the company’s focus on AI-driven growth and the strong demand for its GPUs makes it a “top pick” for investors seeking exposure to the AI revolution.
2. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 262
Meta Platforms, Inc. (NASDAQ:META) builds technological products that allow people to share, connect, grow businesses, and find communities. These products help people connect through personal computers, mobile devices, virtual reality (VR), mixed reality (MR) headsets, and wearables. The company is making significant progress toward AI and AR/VR technologies. Reality Labs, Meta Inc.’s (NASDAQ:META) division dedicated to AR and VR innovations, is known for its substantial financial investments in these emerging consumer platforms, and Orion, the most advanced pair of AR glasses ever made, is a testament to that. The company has also launched the first version of the Meta AI app, with significant advancements expected in the technology in the near future.
On April 1, Monness analyst Brian White maintained their bullish stance on Meta Inc. (NASDAQ:META), giving a Buy rating after the company reported notable fiscal Q1 2025 results. Revenue and EPS both surpassed the analyst’s and the market’s expectations, supported by a solid operating margin and robust advertising revenue growth. This reflects the company’s ability to navigate challenging economic conditions.
Meta Inc.’s (NASDAQ:META) strong and strategic focus on digital advertising trends and AI positions it well for future growth, ranking it second on our list of the most promising future stocks to invest in now. The analyst opined that Meta AI’s user base expansion to nearly one billion monthly active users and the introduction of new AI models highlight Meta Inc.’s (NASDAQ:META) innovative capabilities, justifying the buy rating and its position on our list.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 339
Amazon.com, Inc. (NASDAQ:AMZN) is a multinational technology company that offers online retail shopping services. The company also has a cloud unit and its AWS segment covers global sales of storage, computers, databases, and other services for government agencies, academic institutions, startups, and enterprises. It has made significant strides in AI and AR/VR and its capital expenditures (capex) for 2025 anticipated to be around $100 billion.
Reuters reported that Amazon.com, Inc. (NASDAQ:AMZN) has plans to spend over $4 billion to expand its US rural delivery network by the end of 2026. It is focusing on expedited shipments to boost shopper demand in these areas. The investments are expected to expand the rural delivery network by more than 200 delivery stations, further bolstering the company’s substantial market standing.
On May 1, analyst Daniel Kurnos from Benchmark Co. maintained a Buy rating on Amazon.com, Inc. (NASDAQ:AMZN) and set a $260.00 price target based on its present and future performance. The analyst said that the company is exhibiting resilience and benefiting from improving operational efficiencies and incremental e-commerce share gains that are expected to support its performance. In addition, the company’s strategic initiatives, such as the launch of new services like Kuiper and the potential extension of Prime Days, support the optimism surrounding its future outlook.
Overall, AMZN ranks first among the most promising future stocks to buy according to hedge funds. While we acknowledge the potential of future stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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