In this article, we will discuss: 11 Most Volatile Stocks to Buy According to Hedge Funds.
On February 17, 2026, Bloomberg reported that stocks fluctuated significantly as investors assessed the risks of artificial intelligence. The S&P 500 climbed 0.1%, while a software ETF sank 2.2%. Bitcoin held around $67,500, continuing its February slump. The 10-year Treasury yield increased one basis point to 4.06%. Gold dipped below $4,900 per ounce, retreating from recent record highs, as much of Asia stayed closed for the Lunar New Year. Morgan Stanley strategist Michael Wilson identified AI disruption, high capital spending, weak seasonals, and crowded momentum trades as volatility factors. Chris Larkin of Morgan Stanley’s E*Trade noted that prolonged fluctuations could result in a bumpy road. According to a Bloomberg analysis, AI disruption comments on earnings calls almost doubled from quarter to quarter.
Michael Hartnett of Bank of America said 35% of fund managers perceive overinvestment risk, while a quarter of respondents to the most recent BofA study identified an “AI bubble” as the top tail risk. JPMorgan strategists, headed by Dubravko Lakos-Bujas, predicted a 53% spike in AI-related capital expenditures over the next 12 months. Jean Boivin of BlackRock noted that markets are now considering AI an active threat.
With that said, here are the 11 Most Volatile Stocks to Buy According to Hedge Funds.
Photo by Arturo Añez on Unsplash
Our Methodology
We chose companies with betas ranging from 2 to 5 and market capitalizations over $2 billion. From the resultant dataset, we selected the 11 Most Volatile Stocks with the highest number of hedge fund holders for each stock using Insider Monkey’s database of hedge funds as of Q3 2025. Finally, we ranked these stocks in ascending order based on the number of hedge fund holders.
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. Adaptive Biotechnologies Corporation (NASDAQ:ADPT)
Number of Hedge Fund Holders: 31
Beta Rating as of February 18: 2.18
Adaptive Biotechnologies Corporation (NASDAQ:ADPT) is among the Most Volatile Stocks.
On February 6, 2026, TD Cowen upgraded Adaptive Biotechnologies Corporation (NASDAQ:ADPT)’s price target to $21 from $20 while keeping a Buy rating, citing a Q4 beat and an improved outlook. TD Cowen said that community adoption, new indications, pharma guidelines, EMR integrations, and a shift to blood-based testing were major driving factors.
On February 6, 2026, BTIG maintained a Buy rating on Adaptive Biotechnologies Corporation (NASDAQ:ADPT) and increased its price target from $21 to $22, following Q4 earnings. BTIG describes the company as a leading growth story in specialty labs.
On February 6, 2026, JPMorgan boosted Adaptive Biotechnologies Corporation (NASDAQ:ADPT)’s price objective from $20 to $21 while retaining an Overweight rating, citing the Q4 report as strong. The corporation anticipates FY26 MRD business revenue of $255 million to $265 million, with total operating expenses, including cost of revenue, ranging from $350 million to $360 million.
Adaptive Biotechnologies Corporation (NASDAQ:ADPT) develops an immune medicine platform. The company provides immunoSEQ, clonoSEQ, cellular treatment, and vaccinations.
10. CAVA Group, Inc. (NYSE:CAVA)
Number of Hedge Fund Holders: 34
Beta Rating as of February 18: 2.43
CAVA Group, Inc. (NYSE:CAVA) is among the Most Volatile Stocks.
On February 18, 2026, UBS increased its price objective for CAVA Group, Inc. (NYSE:CAVA) from $66 to $69 while maintaining a Neutral rating. UBS anticipates Q4 same-store sales and profitability to outperform expectations, stating improved momentum into 2026 due to softer comps and sales initiatives. The firm said that the investment case remains appealing, but it seeks clearer 2026 visibility and sustained outsized growth before becoming more constructive.
On February 5, 2026, Benchmark commenced coverage on CAVA Group, Inc. (NYSE:CAVA) with a Buy rating and a price target of $80. Benchmark noted the company’s scale leadership in the Mediterranean category, reporting 450 units in 29 states and an industry-leading unit economic model that supports 15% annual unit growth.
On January 26, 2026, BofA hiked CAVA Group, Inc. (NYSE:CAVA)’s price goal to $82 from $80 while maintaining a Buy rating, updating forecasts, and valuation multiples across its restaurant coverage universe.
CAVA Group, Inc. (NYSE:CAVA) is a holding company that owns and operates the category-defining Mediterranean fast-casual restaurant brand. It operates in two segments: CAVA and CAVA Foods.
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