12 Best Nickel Stocks to Buy According to Hedge Funds

2. ATI Inc. (NYSE:ATI)

Number of Hedge Fund Holders: 45

ATI Inc. (NYSE:ATI) manufactures and markets complex components and specialty materials. The HPMC business manufactures a range of materials, including superalloys, nickel- and cobalt-based alloys, titanium, and titanium-based alloys. The AA&S section manufactures zirconium and related alloys, such as hafnium and niobium, nickel-based alloys, titanium, and titanium-based alloys, among others. It is ranked second on our list of the Best Nickel Stocks.

The firm reported $1.2 billion in revenue for the fourth quarter that concluded on December 29, 2024, which is a 10% year-over-year growth and a 12% sequential gain. Adjusted EBITDA hit $210 million, which was higher than expected. Rising to $4.4 billion, ATI Inc. (NYSE:ATI)’s full-year sales were the highest since 2012 and represented a 5% increase over 2023. Jet engine revenue jumped to 9%, airframe revenue increased by 4.5%, and aerospace and defense continued to be major growth drivers.

However, the defense market, a major buyer of magnesium-based alloys from ATI Inc. (NYSE:ATI), saw a 38% sequential increase in Q4 2024 and is expected to grow by an additional 7% in 2025. A potential $200 billion increase in U.S. defense funding, of which 50% goes toward its programs, supports this expansion. Additionally, the firm secured $4 billion in new client commitments in 2024, strengthening its long-term revenue pipeline.

Record levels of output and operational efficiency have resulted from the company’s large investments in AI technology and equipment reliability. ATI Inc. (NYSE:ATI) announced $4 billion in new sales agreements, and higher defense spending is expected to benefit its products.

Benchmark maintained its Buy rating on the company shares and increased its price objective from $80 to $81. The analyst informs investors that ATI Inc. (NYSE:ATI)’s FY25 projection “looks beatable,” backed by record MRO backlogs, and that the company is well-positioned with rising titanium capacity to experience faster growth after FY25.