In this article, we will be looking at the 12 Stocks Most Bought by Hedge Funds in Q1 2026.
On May 25, Reuters reported that technology stocks were among the top picks for hedge funds last week. According to a Goldman Sachs note, speculators bought tech stocks at the fastest pace seen in nearly three months.
The report by Reuters noted that companies that can benefit from developments in AI, especially semiconductor and chip manufacturing, have appeared largely unaffected by concerns over the Iran war and its impact on the global economy.
Hedge funds increased their exposure to tech stocks across most regions, with the exception of Europe. In dollar terms, buying activity was strongest in North America and in Asian emerging markets. Hedge funds also bought back stocks they had previously bet against.
Additionally, hedge funds also put on long positions, betting that these assets would rise in value. Speculators bought semiconductor-related manufacturers and software companies. At the same time, funds cut their exposure to communications equipment and IT services providers.
Hedge fund portfolios now hold their largest tech positions relative to the MSCI World Index in more than five years.
With this background in mind, let’s take a look at the 12 stocks most bought by hedge funds in Q1 2026.
Our Methodology
To compile our list of the 12 stocks most bought by hedge funds in Q1 2026, we looked for stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q1 2026 database of 1022 elite hedge funds. Finally, the 12 stocks most bought by hedge funds were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q1 2026.
Why do we care about what hedge funds do? 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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
12 Stocks Most Bought by Hedge Funds in Q1 2026
12. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 153
Uber Technologies, Inc. (NYSE:UBER) ranks among stocks most bought by hedge funds in Q1 2026. On May 29, Citizens reaffirmed its Market Outperform rating on Uber Technologies, Inc. (NYSE:UBER) with a price target of $100 on the stock.
The update followed an announcement from Waymo that it will soon start offering rides to the general public using its new Ojai vehicle and its 6th-generation Waymo Driver platform. Waymo has recently faced supply limitations as it shifts from the I-PACE to the new Ojai model.
Citizens expects Waymo to speed up the growth of its fleet in current cities and expand into new cities as the Ojai begins to take rides. Waymo also maintained its earlier production forecast of tens of thousands of vehicles each year.
The Ojai is simpler to produce because it already comes with punch outs for sensors and drive-by-wire systems installed before arriving at Waymo’s facility. The I-PACE vehicles did not include these features.
Waymo’s expansion shows increasing competition in the ride-sharing market. However, Citizens said it believes autonomous vehicles will help grow the overall ride-share market. It also noted that Uber Technologies, Inc.’s (NYSE:UBER) non-Waymo autonomous vehicle partners are continuing toward commercialization, with several partnerships expected to launch in the second half of 2026.
Uber Technologies, Inc. (NYSE:UBER) is a global transportation technology company that focuses on ride-hailing, courier services, food delivery, and freight transport.
11. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 154
Micron Technology, Inc. (NASDAQ:MU) ranks among stocks most bought by hedge funds in Q1 2026. On May 27, Mizuho lifted its price target on Micron Technology, Inc. (NASDAQ:MU) from $800 to $1,150 while keeping an Outperform rating.
The new price target represents 5.3 times Mizuho’s fiscal 2027 price-to-book estimate, compared with the earlier 3.8 times multiple. On a price-to-earnings basis, the target represents about 10 times the firm’s fiscal 2027 earnings per share forecast.
Mizuho expects Micron Technology, Inc.’s (NASDAQ:MU) fiscal 2027 revenue to increase by 70% year-over-year, while earnings per share are expected to rise by 85%. The firm believes growth will be supported by DRAM and NAND tailwinds.
The firm also highlighted high-bandwidth memory (HBM) as a major growth driver, which it forecasts could make up 23% of Micron Technology, Inc.’s (NASDAQ:MU) fiscal 2028 revenue. Mizuho expects HBM prices to grow between 70% and 100% year-over-year in calendar 2027.
In addition, Mizuho noted that the expansion of Agentic AI into 2027 could be another tailwind as it further supports DRAM and NAND demand while industry capacity growth remains limited through calendar 2027.
Micron Technology, Inc. (NASDAQ:MU) is a leading semiconductor technology company that is known for its innovative memory and storage solutions. The company offers a portfolio of high-performance DRAM, NAND, and NOR memory and storage products.
10. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders: 157
Mastercard Incorporated (NYSE:MA) ranks among stocks most bought by hedge funds in Q1 2026. On May 1, TD Cowen reiterated its Buy rating on Mastercard Incorporated (NYSE:MA) with a $671 price target on the stock.
The research firm pointed to the company’s Q1 results, which showed 12% growth in net revenue on a foreign exchange-neutral basis and 10% growth in adjusted transactions. Value-added services and solutions also increased 18% on a foreign exchange-neutral basis.
TD Cowen noted that cross-border travel slowed in April because of the impact related to Iran. However, the firm noted that much of this is transitory. Mastercard Incorporated (NYSE:MA) also reaffirmed its fiscal 2026 outlook for foreign exchange-neutral growth.
The company has increased capital returns as pressure on the stock continues. TD Cowen expects this trend to continue. In Q1 2026, Mastercard Incorporated (NYSE:MA) repurchased 7.8 million shares worth $4 billion and paid $777 million in dividends.
TD Cowen also highlighted agentic technology and stablecoins as possible long-term growth opportunities for the company.
Mastercard Incorporated (NYSE:MA) is an American multinational financial services company that provides transaction processing and payment-related products and services to individuals, businesses, and organizations worldwide.
9. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 170
Apple Inc. (NASDAQ:AAPL) ranks among stocks most bought by hedge funds in Q1 2026. On May 26, Melius increased its price target on Apple Inc. (NASDAQ:AAPL) from $355 to $385, noting that the company “may be on the brink of some real AI sizzle.”
The update comes ahead of Apple Inc.’s (NASDAQ:AAPL) Worldwide Developers Conference, set for June 8 to June 12. This annual event is where the company is expected to unveil new software updates, AI features, and advancements.
Melius pointed to growing user comfort with voice commands, saying the company could benefit from this trend as technology becomes more voice-driven. The firm also noted that an upgraded Siri could be a standalone tool that users rely on, potentially even replacing some use cases of apps like ChatGPT. The firm described this as an “agent-style interface” that could make Apple Inc.’s (NASDAQ:AAPL) ecosystem more unique and spark fresh excitement among developers.
The research firm also noted that no other consumer tech company has both the hardware and software sides under one trusted setup like Apple Inc. (NASDAQ:AAPL). Melius believes this advantage could become more important as AI systems grow more complex and independent. According to the firm, the company could reach about $613 billion in total revenue by fiscal 2028.
Apple Inc. (NASDAQ:AAPL) is an American multinational technology company that is known for its products like the iPhone, iPad, and Mac computers.
8. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 173
Broadcom Inc. (NASDAQ:AVGO) ranks among stocks most bought by hedge funds in Q1 2026. On May 28, Susquehanna analyst Christopher Rolland increased the firm’s price target on Broadcom Inc. (NASDAQ:AVGO) from $450 to $490 and maintained a Positive rating on the stock.
The research firm updated its model ahead of the company’s fiscal second-quarter 2026 financial results. Susquehanna expects custom XPU momentum to continue amidst TPU strength. Demand for Broadcom Inc.’s (NASDAQ:AVGO) AI networking products is also expected to grow.
However, Susquehanna noted that the company’s initial TPU shipments to Anthropic no longer include racks. As a result, the firm reduced its forecast for Broadcom Inc.’s (NASDAQ:AVGO) custom XPU revenue for calendar year 2026. The company is scheduled to announce its fiscal second-quarter 2026 financial results and business outlook on June 3, 2026.
Earlier, on May 18, UBS also increased its price target on Broadcom Inc. (NASDAQ:AVGO) from $475 to $490 while keeping a Buy rating.
UBS updated its estimates after changes were made to Broadcom Inc.’s (NASDAQ:AVGO) Anthropic order, which shifted from full racks to a more standard ASIC arrangement. While the revised arrangement represents about 25% of the revenue that had originally been expected, it is expected to generate much higher margins.
Broadcom Inc. (NASDAQ:AVGO) is an American multinational technology company that designs, develops, and supplies a wide range of semiconductor, enterprise software, and security solutions.
7. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 181
Visa Inc. (NYSE:V) ranks among stocks most bought by hedge funds in Q1 2026. On May 27, Visa Inc. (NYSE:V) announced that it is expanding its Visa Commercial Solutions Hub (VCS Hub) to make it easier for issuers and suppliers to scale virtual card programs.
According to the report, a new integration with Visa Accounts Receivable Manager (Visa AR Manager) will give eligible issuers built-in access to end-to-end processing. This will help reduce operational friction and speed up commercial card growth.
Virtual cards are one of the fastest-growing payment methods in commercial payments but many businesses still face challenges when trying to expand their use. Visa Inc. (NYSE:V) is bringing issuer and supplier networks together through embedding access to Visa AR Manager in the VCS Hub. The company said this will help offer a more seamless and automated payment experience.
According to Visa Inc. (NYSE:V), early adopters of Visa AR Manager have already reported significant benefits. One customer reported an 89% reduction in days sales outstanding, realized a 300-basis-point net benefit, and fully automated its virtual card processing in less than two weeks after implementation.
Visa Inc. (NYSE:V) is an American multinational digital payments company that provides a wide range of payment products and payment processing to facilitate electronic payments in over 200 countries and territories.
6. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 234
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) ranks among stocks most bought by hedge funds in Q1 2026. On May 28, Reuters reported that Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) said that the rapid growth of AI is increasing electricity demand and making energy efficiency a more important challenge than computing power in future computer chip development.
Kevin Zhang, Senior Vice President of Business Development at Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), told reporters at a conference in Amsterdam that “the area customers most want improvement in is energy efficiency. This is true across the board, whether you are the edge guy, smartphone, mobile, IoT application, or high-performance AI data center.”
Zhang pointed out that improving transistor density remains a key part of Taiwan Semiconductor Manufacturing Company Limited’s (NYSE:TSM) roadmap. However, he explained that other approaches, including advanced packaging, chip stacking, and photonics, are becoming more important in improving efficiency.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) expects its chips to reduce power consumption by as much as 30% between its current N2 technology and its A14 generation, which is expected around 2028, while also offering over 20% higher computing performance.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a Taiwanese multinational semiconductor contract manufacturing and design company that manufactures, packages, and tests integrated circuits for various industries.
While we acknowledge the potential of TSM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TSM and that has 100x upside potential, check out our report about the cheapest AI stock.
Click to continue reading and see the 5 Stocks Most Bought by Hedge Funds in Q1 2026.
Disclosure: None. Follow Insider Monkey on Google News.
