In this article, we will take a look at the 12 most buzzing stocks to buy according to hedge funds.
Economist Expects Prices to Rise in 2025
Data for the gross domestic product (GDP) in the fourth quarter of 2024 came out at 2.3%, slightly under economist expectations of 2.6%. On January 31, Lauren Saidel-Baker, an economist at ITR Economics, appeared in an interview on Yahoo Finance to share her outlook on the economy ahead of 2025.
Baker suggested that the economy is growing slower, which is rather a normalization of the economy and, therefore a very normal circumstance. She added that the economy is still feeling the ripple effects of the pandemic and we are now finally seeing the economy getting back to its “feat.” Baker also shared her optimistic approach towards the economy suggesting that the fundamentals point towards stable economic growth. She added that most of the growth has been driven by the consumer, meaning that the average consumer in the United States is strong and has showcased resilience.
On the flip side, the economist did share concern over government spending, exceeding its means, which has been a “long-going problem” in her opinion. Baker also shed light that government spending beyond its means may spiral in the very near term, especially with relatively higher interest rates pushing a much larger debt burden.
She highlighted that it is very important for individuals to read the economy through the noise. She added that the market has heard a lot of noise about the impending tariffs and the supposed growers and shrinkers of the economy, which she believes risk higher inflation rather than economic growth. She emphasized that there is no optimal number at which the economy is supposed to grow, and the economy is likely expected to operate in waves.
Baker believes that the economy may grow between 2-3% by the end of the year, and expects to see a slight acceleration by 2026. She also added that while the consumer is feeling higher prices, the general trend is in fact “disinflation,” which means a positive rate of inflation but slightly lower. She explained that while the consumer is bearing the brunt of higher prices, the prices are not rising fast enough to be a concern. She also added that while she does expect prices to rise further, the balancing act of “disinflation” may be good news for wages.
The consumer continues to show resilience towards the volatile and uncertain economic conditions, which is reflected in the performance of the stock market. That said, let’s take a look at the 12 most buzzing stocks according to hedge funds.
A trader in a financial institution using fundamentals analysis to select stocks for a portfolio.
Our Methodology
To compile our list, we sifted through Yahoo Finance’s list of stocks that are experiencing high trading volumes. We looked at the analyst and investor sentiment for each stock and narrowed down our selection to 12 stocks that were the most popular among elite hedge funds. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q3 2024.
Note: All price/volume data is as of January 31, 2025.
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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
12 Most Buzzing Stocks to Buy According to Hedge Funds
12. Rigetti Computing, Inc. (NASDAQ:RGTI)
Volume: 94.1 Million
Average Volume (3-Month): 137.9 Million
Number of Hedge Fund Holders: 7
Rigetti Computing, Inc. (NASDAQ:RGTI) is an integrated systems company that builds quantum computers and superconducting quantum processors. Through its quantum could platform, RGTI can integrate its machines into any private, public, or hybrid cloud platforms. The company closed 2024 with a solid update to its quantum computing stack with the launch of its 84-qubit Ankaa-3 system, which is capable of 3D signal delivery and boasts superior performance.
RGTI has a mission to build one of the world’s most powerful computers for mission-critical activities, through its hybrid quantum-classical systems. On January 27, analyst firm, Needham raised its price target on the stock from $2 to $17, keeping a buy rating on Rigetti Computing, Inc. (NASDAQ:RGTI). The analyst firm is extremely positive on the quantum computing industry and expects pure-play companies like RGTI to benefit from the wave, which is expected to stretch over a decade. Overall, over the past six months, the stock has jumped by a whopping 1,133%.
11. Nokia Oyj (NYSE:NOK)
Volume: 54.3 Million
Average Volume (3-Month): 15.7 Million
Number of Hedge Fund Holders: 16
Nokia Oyj (NYSE:NOK) is one of the oldest telecommunications companies in the world and ranks 10th on our list of the most buzzing stocks according to hedge funds. The company provides mobile network solutions, data center network solutions, IP network solutions, and private network solutions. Nokia is making strides in artificial intelligence and is immensely focused on improving its network services. For instance, on January 28, the company was selected by 1GLOBAL, a communications service provider, to provide core and security solutions in key markets across the globe, such as the UK, USA, and Brazil.
Nokia Oyj (NYSE:NOK) also celebrates sound financial performance. In the fourth quarter of 2024, the company saw a 9% increase in net sales, with network infrastructure sales growing the strongest. In addition to that, the company closed the quarter with EUR 0.05 billion in free cash flow, and a net cash balance of EUR 4.9 billion. During the quarter, the company also expanded its ecosystem, garnering 18,000 additional base station sites, since the start of 2024. For the full year 2025, Nokia Oyj (NYSE:NOK) expects the business to grow originally with operating profit reaching EUR 1.9-2.4 billion.