On April 21, Chris Davis of Davis Advisors appeared on ‘The Exchange’ on CNBC to talk about selectivity in today’s market. Davis pointed out that putting companies in groups like the MAG7 covers their underlying businesses, which can have different fundamentals and therefore prospects. For this reason, he acknowledged that he owns certain stocks from MAG7 but not all. Davis also clarified that his overall focus is on value and growth, which leads him to a diverse set of holdings and not just tech, such as financials and healthcare names. He then argued that the market is shifting back toward selectivity and active management. He suggested that active management is positioned for a resurgence because the indexes have become highly concentrated and richly valued.
Davis acknowledged that while he cannot predict the market’s short-term movements, the present environment is ideal for stock pickers who can identify resilient businesses that are trading at reasonable valuations. He sees this as an opportunity for active management to outperform, as investors move away from momentum-driven index investing toward a more selective approach. He noted the growing popularity of actively managed ETFs as evidence that investors are beginning to act on this shift away from index concentration. He also believes that within the MAG7, only a few companies are truly well-positioned. Similarly, within the S&P 500, only 5% to 10% of companies possess the resiliency and durability needed for such volatile times.
Davis laid out what he sees as the major transitions shaping the current investment environment. First, he described the shift from nearly 15 years of free money to a more normal interest rate environment. Second, he pointed to the end of a multi-decade era of globalization, which was replaced by deglobalization, rising nationalism, and geopolitical tensions. Third, he highlighted the impact of AI. He said that these transitions are occurring against a backdrop of market complacency, with high valuations and concentrated growth expectations.
He believes that this is a time for investors to focus on resiliency, valuation, and the underlying business model of companies. That being said, we’re here with a list of the 12 best stocks under $100 to buy according to hedge funds.
A financial adviser looking over a portfolio of securities and stocks.
Our Methodology
We first used the Finviz stock screener to compile a list of the top stocks that were trading under $100 as of April 22. We then selected the 12 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 1000 elite money managers.
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).
12 Best Stocks Under $100 to Buy According to Hedge Funds
12. Micron Technology Inc. (NASDAQ:MU)
Share Price as of April 22: $66.74
Number of Hedge Fund Holders: 94
Micron Technology Inc. (NASDAQ:MU) designs, develops, manufactures, and sells memory and storage products. It operates through four segments: Compute & Networking Business Unit, Mobile Business Unit, Embedded Business Unit, and Storage Business Unit. It markets its products through its direct sales force, independent sales representatives, distributors, and retailers.
Micron’s FQ2 2025 revenue was $8.1 billion, with DRAM revenue at $6.1 billion, which was up 47% year-over-year. NAND revenue was at $1.9 billion, which was up 18%. HBM revenue exceeded $1 billion for the first time, which marked a 50% sequential improvement. The company is the sole high-volume shipper of low-power data center DRAM. It has sold out of 2025 HBM output and is developing HBM4, which boasts a 60% bandwidth increase.
The company plans further growth in DRAM and NAND bit shipments in FQ3, with revenue forecasted at ~$8.8 billion. On March 16, Baird analyst Tristan Gerra reaffirmed a Buy rating on the company with a $130 price target due to its growth potential in AI-related memory products. On April 17, Micron Technology Inc. (NASDAQ:MU) announced that it will be concentrating on the AI-linked demand for its memory chips from large-scale cloud providers.
Parnassus Value Equity Fund stated the following regarding Micron Technology, Inc. (NASDAQ:MU) in its Q2 2024 investor letter:
“Micron Technology, Inc. (NASDAQ:MU) posted fiscal-third-quarter results that met expectations. Micron’s DRAM (dynamic random access memory) and NAND (non-volatile storage technology) segments grew revenue strongly, continuing the company’s recovery from a cyclical downturn last year. We believe Micron is well positioned to capitalize on AI-driven demand for greater memory.”
11. PayPal Holdings Inc. (NASDAQ:PYPL)
Share Price as of April 22: $60.28
Number of Hedge Fund Holders: 94
PayPal Holdings Inc. (NASDAQ:PYPL) is a technology platform that enables digital payments for merchants and consumers worldwide. It operates a two-sided network at scale that connects merchants and consumers. It provides payment solutions under the PayPal, PayPal Credit, Braintree, Venmo, Xoom, Zettle, Hyperwallet, Honey, and Paidy names.
PayPal has more than $11 billion in cash and assets on its balance sheet, along with ~$5 billion in annual free cash flow. The company now has 432 million active accounts in 200+ countries. In 2024, PayPal’s branded checkout segment saw consistent quarterly growth in transaction margin dollars, with US growth particularly accelerating in Q4.
Upgraded checkout experiences, which are now live for more than 25% of US traffic, reduce latency by 40% when fully implemented and boost conversion rates by 1%. Fastlane, which is PayPal Holdings Inc.’s (NASDAQ:PYPL) streamlined checkout feature, also reached around 2,000 merchants and attracted 75% new or re-engaged PayPal users. Guidance for 2025 suggests that the company now has a focus on becoming a commerce platform and expanding into B2B bill pay.
Wedgewood Partners stated the following regarding PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q1 2025 investor letter:
“PayPal Holdings, Inc. (NASDAQ:PYPL) was a leading detractor from performance for portfolios during the quarter. The Company’s branded checkout grew by a healthy +6% while total payment volumes grew by +7% during the Company’s most recent quarter. PayPal also outlined several reinvestment initiatives across its platform that continue to accelerate its branded checkout volume growth back to double digits. In addition, the Company has authorized nearly $20 billion in share repurchases which represents nearly a third of its market cap as of quarter end. We continue to hold PayPal as one of our largest active weights in portfolios.”
10. Advanced Micro Devices Inc. (NASDAQ:AMD)
Share Price as of April 22: $85.56
Number of Hedge Fund Holders: 96
Advanced Micro Devices Inc. (NASDAQ:AMD) is a semiconductor company that operates through four segments: Data Center, Client, Gaming, and Embedded. The company offers AI accelerators, x86 microprocessors, and GPUs among other products. It serves a diverse clientele, such as original equipment and design manufacturers, and public cloud service providers.
In 2024, AMD’s annual revenue rose by 14% to $25.8 billion. Data centers generate nearly half of the company’s annual revenue, with AI-related data center sales topping $5 billion. This growth comes from gaining market share in server CPUs and client processors, together with the strong demand for MI300X AI accelerators. In Q4, AMD’s Data Center revenue particularly reached a record $3.9 billion, which was up 69% year-over-year. The company launched the MI325X and began sampling the MI350 series.
The company is now preparing to launch its MI400 series in 2026. However, on March 27, Jefferies analyst Blayne Curtis downgraded its stock rating from Buy to Hold with a price target lowered from $135 to $120. This revision came from AMD’s slower-than-anticipated AI market progress, despite expansions in its market share in the PC and server sectors. This also raises doubts regarding Advanced Micro Devices Inc.’s (NASDAQ:AMD) projected AI revenue for 2026 and 2027.
9. Boston Scientific Corp. (NYSE:BSX)
Share Price as of April 22: $93.58
Number of Hedge Fund Holders: 96
Boston Scientific Corp. (NYSE:BSX) develops, manufactures, and markets medical devices for use in various interventional medical specialties. It operates in two segments: MedSurg and Cardiovascular. It offers devices to diagnose and treat a range of gastrointestinal conditions, urological conditions, and neurological movement disorders.
In Q4 2024, the company’s Electrophysiology (EP) sales surged by 172% year-over-year, while for the full year 2024, this segment was up 139%. This is attributed to the continued and rapid adoption of the company’s FerraPulse Pulsed Field Ablation (PFA) system, which has become a transformative technology in the Atrial Fibrillation (AFib) market. FerraPulse surpassed $1 billion in global revenue in 2024 and is treating more than 200,000 patients.
Boston Scientific Corp. (NYSE:BSX) is building clinical evidence for FerraPulse, which is highlighted by positive initial results from the ADDvantage AF trial (for evaluating the safety and effectiveness of the system). An updated label for persistent AF is expected in H2 2025, and enrollment for the Avantgarde trial (FerraPulse as a first-line treatment) is almost complete. Data for FerraPoint is expected in H1 2025, with potential FDA approval by year-end.
Janus Henderson Enterprise Fund stated the following regarding Boston Scientific Corporation (NYSE: BSX) in its Q2 2024 investor letter:
“Medical device company Boston Scientific Corporation (NYSE:BSX) was another contributor. The stock rose on excitement over the company’s U.S. launch of FARAPULSE, a state-of-the-art pulsed field ablation system that treats atrial fibrillation with less damage to surrounding tissues relative to previous therapies. Boston Scientific is currently the only provider of this technology, which taps into a large and growing addressable market. Even beyond our excitement around FARAPULSE, we continue to like Boston Scientific for its diversified product portfolio, which has provided many potential drivers of revenue growth.”
8. Wells Fargo & Co. (NYSE:WFC)
Share Price as of April 22: $64.01
Number of Hedge Fund Holders: 96
Wells Fargo & Co. (NYSE:WFC) is a financial services company that provides diversified banking, investment, mortgage, and consumer & commercial finance products and services. It operates through four segments: Consumer Banking & Lending, Commercial Banking, Corporate & Investment Banking, and Wealth & Investment Management.
The company’s revenue in the Consumer Small & Business Banking area fell by 2% year-over-year in 2024. This was due to higher deposit costs, which shows that customers are shifting towards higher-yielding deposit products. However, deposit balances grew year-over-year and marked the first such increase since Q4 2022. WFC’s debit card spending also remained strong and was up 4% year-over-year. The credit card business grew by 2% due to higher loan balances.
On April 8, Evercore ISI analyst John Pancari reiterated his bullish stance on the company and assigned its stock a Buy rating. Wells Fargo & Co.’s (NYSE:WFC) strategic business investments, active capital deployment, and efficiency improvements contribute to its financial performance. The company’s extensive branch network and large customer base provide numerous cross-selling opportunities and a source of low-cost deposits.
Hotchkis & Wiley Large Cap Fundamental Value Fund stated the following regarding Wells Fargo & Company (NYSE:WFC) in its Q4 2024 investor letter:
“Wells Fargo & Company (NYSE:WFC) is one of the nation’s largest depositories and banks by assets. In addition to having a very high market share of deposits, they also enjoy high market share within the geographies they operate in such as western and southeastern US. In our opinion, WFC is one of the best franchises in banking with a history of very high returns on assets and equity. Performance over the quarter was strong due to potential deregulation with the onboarding of a new presidential regime and speculation that the company’s asset cap could be lifted as early as 1H25.”
7. Citigroup Inc. (NYSE:C)
Share Price as of April 22: $62.69
Number of Hedge Fund Holders: 101
Citigroup Inc. (NYSE:C) is a diversified financial services holding company that provides various financial products and services to consumers, corporations, governments, and institutions. It has five segments: Services, Markets, Banking, US Personal Banking, and Wealth. It operates in North America, the UK, Japan, North & South Asia, Australia, Europe, the Middle East, and Africa.
In Q1 2025, the company’s Wealth revenues surged by 24% year-over-year, with all three of its constituent businesses (Citi Gold, the Private Bank, and Wealth at Work) contributing to this expansion. This growth was driven by fee revenue, which fueled non-interest revenue growth of 16%. The business also showed a strong ability to attract client assets, which is evidenced by the ~11% organic growth in client investment. This translates to net new investment assets of $16.5 billion in Q1 and over $56 billion in the last 12 months.
While expenses were roughly flat due to offsetting factors like prior workforce reductions and increased revenue-related costs, the pre-tax margin for the Wealth segment at Citigroup Inc. (NYSE:C) stood at a healthy 17%. The segment achieved positive operating leverage for the fourth consecutive quarter. End-of-period client balances also increased by 7%, which was driven by strong net new investment asset flows and positive market valuation.
Diamond Hill Capital Long-Short Fund stated the following regarding Citigroup Inc. (NYSE:C) in its first quarter 2024 investor letter:
“Other top Q1 contributors included Meta Platforms, Citigroup Inc. (NYSE:C) and Walt Disney. Banking and financial services company Citigroup’s restructuring efforts are ongoing, and it continues remediating regulatory issues and building capital in anticipation of increased requirements. The company expects to see expenses fall meaningfully in the second half of 2024, bolstering the outlook from here.”
6. Marvell Technology Inc. (NASDAQ:MRVL)
Share Price as of April 22: $49.38
Number of Hedge Fund Holders: 105
Marvell Technology Inc. (NASDAQ:MRVL) provides data infrastructure semiconductor solutions that span the data center core to the network edge. It develops and scales system-on-a-chip architectures, integrating analog, mixed-signal, and digital signal processing functionality. It offers a portfolio of Ethernet solutions and custom application-specific integrated circuits.
Marvell’s data center segment improved by 88% year-over-year to exceed its $1.5 billion AI revenue target in FY2025. In FQ4 alone, this revenue surged by 78%, with the company exceeding its $1.5 billion. Marvell Technology Inc. (NASDAQ:MRVL) now aims to make over $2.5 billion in FY2026. The company is investing in technologies like 1.6T PAM DSPs and 2-nanometer silicon IP, which are needed by next-gen data center interconnects for AI and cloud computing.
Marvell is also collaborating with AWS to provide AWS with ASICs for next-gen XPUs that are crucial for cloud computing, which will further support the company’s growth. However, on April 17, Stifel lowered the stock’s price target to $80 from $115 while keeping a Buy rating. Stifel anticipates the Analog, Connectivity, and Processors group to have generally in-line March quarter results due to tariff impacts. It stated that June quarter outlooks appear even softer.
5. Walt Disney Co. (NYSE:DIS)
Share Price as of April 22: $84.00
Number of Hedge Fund Holders: 108
Walt Disney Co. (NYSE:DIS) is an entertainment company that operates through three segments: Entertainment, Sports, and Experiences. It produces and distributes film and television content under the ABC Television Network, Disney, Freeform, FX, Fox, National Geographic, and Star brand television channels, as well as ABC television stations and A+E television networks.
In Q1 2025, growth in the company’s Experiences business contributed to its overall positive results. Disney has now provided guidance for 6% to 8% growth for 2025 in this segment. This growth is fueled by the launch of the Disney Treasure cruise ship. The ship started with strong bookings and excellent initial guest feedback, aligning with the standards of the company’s other ships. Disney anticipates that this new ship will be profitable in its first quarter of operation.
Bernstein analysts, led by Laurent Yoon, recently reiterated an Outperform rating on Walt Disney Co.’s (NYSE:DIS) stock, while maintaining a price target of $120. This sentiment came from the multifaceted nature of the company’s operations, which consist of Linear/Sports, Parks, and streaming segments, with each possessing unique challenges and opportunities. Over the mid-term, Bernstein expects Disney to witness margin expansion in its DTC segment and additional cruise ship capacity.
4. Bank of America Corp. (NYSE:BAC)
Share Price as of April 22: $36.92
Number of Hedge Fund Holders: 113
Bank of America Corp. (NYSE:BAC) provides various financial products and services for individual consumers, small & middle-market businesses, institutional investors, large corporations, and governments. It operates through four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets.
On April 8, Truist Financial analyst John McDonald CFA maintained a Buy rating on the stock with a $50 price target. This sentiment is supported by the bank’s position as the second-largest bank in the developed world and the third-largest branch network in the US. The bank makes 86% of its revenue from the US and is expected to benefit from the Trump administration.
In Q1 2025, the bank’s Global Markets segment made $1.9 billion in net income, which was an 8% increase year-over-year. Revenue, excluding DVA (Debit Valuation Adjustment), improved by 10% and reached $5.6 billion in sales and trading revenue. This growth was led by Equities, which saw a 17% increase, and FIC (Fixed Income, Currencies, and Commodities), which grew by 5%. Both Equities and FICC benefited from increased client activity during market volatility
Hardman Johnston Global Equity Strategy stated the following regarding Bank of America Corporation (NYSE:BAC) in its Q4 2024 investor letter:
“Bank of America Corporation (NYSE:BAC) is the second largest bank in the developed world and operates the third largest branch network in the US. With 86% of revenues coming from the US, the bank is a clear beneficiary of the lower regulatory environment expected from the incoming administration. The company’s business is highly diversified across retail, commercial, wealth management, and investment banking, with significant scale across all verticals. Management believes there is a big opportunity going forward in growing and monetizing its mass retail client base. Wealth is another huge opportunity, with the Merrill Lynch platform enabling customers to make more transactions and purchase additional products. Lastly, Bank of America has an opportunity to increase efficiency through cost reduction and online banking. Our expectation is for the bank’s ROE to move significantly higher, driving EPS growth and higher multiples.”
3. Walmart Inc. (NYSE:WMT)
Share Price as of April 22: $92.41
Number of Hedge Fund Holders: 116
Walmart Inc. (NYSE:WMT) operates retail and wholesale stores & clubs, eCommerce websites, and mobile applications. It has three segments: Walmart US, Walmart International, and Sam’s Club. It operates supermarkets, warehouse clubs, cash & carry stores, and discount stores under Walmart & Walmart Neighborhood Market brands, membership-only warehouse clubs, and ecommerce websites.
In FQ4 2025, Walmart US alone saw comparable sales increase by 4.6%, which included a 20% growth in e-commerce sales. This was due to increased customer transactions both in physical stores and online. Grocery remains a standout category with mid-single-digit growth. Health and wellness saw mid-teens growth, partly driven by GLP-1 sales, which contributed ~one percentage point to the segment’s sales.
During FQ4, Walmart Inc. (NYSE:WMT) expanded its store-fulfilled delivery catchment area to reach 93% of US households with same-day delivery. The popularity of expedited delivery is evident with over 30% of orders coming from customers opting to pay a convenience fee for delivery in under one or three hours. Walmart is also utilizing technology like AI, with initiatives such as a new AI agent for merchants aimed at improving inventory management and reducing out-of-stocks or overstocks.
2. Uber Technologies Inc. (NYSE:UBER)
Share Price as of April 22: $72.92
Number of Hedge Fund Holders: 166
Uber Technologies Inc. (NYSE:UBER) develops and operates proprietary technology applications in the US, Canada, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. It operates through three segments: Mobility, Delivery, and Freight. The company was formerly known as Ubercab Inc. and changed its name to Uber Technologies Inc. in February 2011.
The company’s progress in the AV space, particularly its partnership with Waymo, positions it well for the future of transportation. Jefferies analyst John Colantuoni recently kept a Buy rating on the stock with a price target of $90. Similarly, Needham and TD Cowen also previously gave the company Buy ratings with respective price targets of $90 and $88.
Analysts believe in the competitive advantage of the company, especially its strategic position in the global mobility and delivery markets, as well as its lower wait times. During Q4 2024, Uber Technologies Inc. (NYSE:UBER) grew its gross bookings by 18% year-over-year. This resulted in the revenue growing 20% during the same time to reach $12 billion.
Hardman Johnston Global Equity Strategy remains bullish on the company while acknowledging the current macroeconomic headwinds. The firm stated the following regarding Uber Technologies Inc. (NYSE:UBER) in its Q4 2024 investor letter:
“During the quarter, we initiated three new positions in Lennar Corporation, Bank of America Corp., and Uber Technologies, Inc. (NYSE:UBER). Uber is a leading platform company that facilitates ride-hailing, food delivery, and freight booking services, which each represent large and underpenetrated markets. Uber is active in more than 10,000 cities and approximately 70 countries globally, and Uber is a market leader with more than 65% market share in nearly all ride-sharing regions in which it operates. Uber should continue to benefit from secular tailwinds, product innovation, expansion, and network effects. The cross-selling of the Uber One membership program should drive both loyalty and engagement. International markets represent half the business and continue to be an important growth driver. Overall, we see sustained healthy topline growth for the company over the next three years with some insulation to global economic trends.”
1. NVIDIA Corp. (NASDAQ:NVDA)
Share Price as of April 22: $96.91
Number of Hedge Fund Holders: 223
NVIDIA Corp. (NASDAQ:NVDA) is a computing infrastructure company that provides graphics and compute & networking solutions. Its products are used in gaming, professional visualization, data centers, and automotive markets. It sells its products to several customers, which include OEMs, original device manufacturers, system integrators & distributors, and independent software vendors.
NVIDIA’s Data Center segment made a record $35.6 billion in revenue in FQ4 2024, which was up 93% year-over-year. The Blackwell revenue totaled $11 billion in this quarter, which marked the fastest product ramp in the company’s history. However, Argus lowered the stock’s price target to $150 from $175 with a Buy rating on April 17. The firm believes that the fresh US licensing requirements for AI chip exports, which include NVIDIA’s H20 models, will impact quarterly earnings by as much as $55 billion.
NVIDIA Corporation (NASDAQ:NVDA) is positioned for continued growth, driven by its leadership in AI infrastructure, data center solutions, and gaming technology. NVIDIA’s revenue has more than doubled in each of the last two fiscal years. Its bargaining power is evident in its operating margin, which has expanded to 62.4% in 2024.
Guinness Global Innovators is highly bullish on NVIDIA Corp. (NASDAQ:NVDA) due to its dominant AI chip market position. It stated the following in its Q4 2024 investor letter:
“For a second year running, NVIDIA Corporation (NASDAQ:NVDA) was the Fund’s top performing stock, delivering a stellar return of +177.7% over the year. Since the beginning of last year, Nvidia’s ‘Hopper’ GPUs have been at the centre of exploding demand for chips powerful and efficient enough to facilitate the energy intensive requirements of AI processes within datacentres. Initially possessing over 95% of market share in these types of chips, Nvidia have been quick to entrench their position as the technological leader in the space, launching the successor to the current ‘Hopper’ GPU in March, Blackwell, inhibiting the likes of AMD and Intel making meaningful inroads in taking share of the fast-growing market. Compared to the previous iteration (Hopper) which is continuing to fuel Nvidia’s extreme revenue growth, the Blackwell chip is twice as powerful for training AI models and has 5 times the capability when it comes to “inference” (the speed at which AI models respond to queries). Throughout the year, Nvidia’s financial performance has remained resilient. Quarterly revenues hit $35.1 billion in their most recent quarter, beating consensus expectations by 6% and representing a +94% year-over-year increase. Additionally, Nvidia’s data centre segment, driven by the Hopper (H100) chip, grew fivefold over the past year, underscoring the sustained demand for advanced AI infrastructure. The H100 chip, priced at around $40,000, continues to see significant adoption due to its ability to enhance AI model training efficiency while lowering overall costs. This growth is expected to continue as companies invest in upgrading existing data centres and building new ones, with Nvidia well-positioned to capture a significant share of the estimated $2 trillion market opportunity over the next five years. There have been some concerns over Blackwell production delays causing share price volatility however, Nvidia has recovered swiftly, driven by positive earnings results through the year and assurances from management regarding future supply. Additionally, the release of the H200 chip promises to extend Nvidia’s technological leadership, ensuring continued momentum into 2025. While Nvidia’s valuation remains a topic of debate, the stock is not at a significant premium to history, and it still appears reasonable given its dominant market position, innovative prowess, and exposure to long-term secular growth trends in AI, cloud computing, and data infrastructure. As a result, Nvidia remains well-positioned to deliver sustained outperformance over the long term, making it a cornerstone of growth-oriented portfolios.”
While we acknowledge the growth potential of NVIDIA Corp. (NASDAQ:NVDA), our conviction lies in the belief that AI stocks hold great promise for delivering high 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 NVDA but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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