In this article, we will look at the 13 Best Long Term Growth Stocks to Buy According to Hedge Funds.
On January 9, Rich Saperstein, founding principal and chief investment officer of Treasury Partners, appeared on CNBC’s “Closing Bell” to talk about the market trends. He stated that we are in a capex supercycle, with $350 billion of tax cuts and an accommodative Fed. These factors are adding to the balance sheet, which is why the overall landscape for owning common stocks is “absolutely tremendous” right now, according to him.
In addition, Mike Wilson, Morgan Stanley CIO and chief U.S. equity strategist, also appeared on CNBC’s ‘Squawk Box’ to talk about the latest market trends on January 8.
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He was of the view that what was happening last year is still playing out, namely, considerable consternation around the policy changes. The market has fully adopted that narrative now, and the Fed appears to be in a good place. The big surprise, or the change from the end of last year to the present, according to Wilson, is that the Fed is now addressing the liquidity concerns proactively, purchasing assets again to ensure that the funding markets are stable. He thinks that this wildcard has been taken off the table now.
Wilson further stated that the earnings picture is crystal clear to him, which likely informs his view of where earnings can be this year. He believes it broadens out, and that is starting to play through some of the stocks already. That, according to him, is the year we are looking at.
With these trends in view, let’s look at the 13 best long term growth stocks to buy according to hedge funds.
Our Methodology
We sifted through financial media reports and ETFs tracking blue chip and high quality stocks to find companies that satisfied the following criteria:
- EPS Diluted Growth (YoY) above 20%.
- EPS Diluted Growth (FWD) above 20%.
- 5-year revenue growth rate over 15%.
We then selected the top 13 stocks with the highest number of hedge fund holders, as of Q3 2025. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order 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).
13 Best Long Term Growth Stocks to Buy According to Hedge Funds
13. Fortinet, Inc. (NASDAQ:FTNT)
Number of Hedge Fund Holders: 44
Fortinet, Inc. (NASDAQ:FTNT) is one of the best long term growth stocks to buy according to hedge funds. Fortinet, Inc. (NASDAQ:FTNT) received rating updates from RBC Capital and Piper Sandler on January 5. RBC Capital reiterated a Hold rating on the stock and set a price target of $85, while Piper Sandler lifted the price target on Fortinet, Inc. (NASDAQ:FTNT) to $90 from $85 but maintained a Neutral rating on the shares.
Piper told investors that 2025 was a tough year for its Security & Infrastructure Software coverage, since the average name reflected negative performance and only four names managed to outperform the NASDAQ. The firm exhibited cautious optimism for a better year in 2026, as several names entered the year with interesting valuation levels, well-structured to be longer-term GenAI winners. The firm believes in these trends despite monetization not yet occurring at scale at the software layer.
The two ratings came on the same day Fortinet, Inc. (NASDAQ:FTNT) announced that it would release its fiscal Q4 and full-year 2025 financial results on February 5.
Fortinet, Inc. (NASDAQ:FTNT) is a provider of cybersecurity solutions to a range of businesses, including government organizations, communication service providers, enterprises, and small to medium-sized businesses. The company’s portfolio includes secure access service edge, network security, application security, enterprise networking, and operational technology.
12. KLA Corporation (NASDAQ:KLAC)
Number of Hedge Fund Holders: 61
KLA Corporation (NASDAQ:KLAC) is one of the best long term growth stocks to buy according to hedge funds. KLA Corporation (NASDAQ:KLAC) received a rating update from Cantor Fitzgerald on January 8. The firm lifted the price target on the stock to $1,750 from $1,500 and maintained an Overweight rating on the shares.
The firm told investors that conviction remains high despite the recent outperformance, with increasing wafer fabrication equipment through CY2026 to CY2028 anticipated to propel solid secular growth, supporting an “All-In” stance. Cantor added that the overweight outlook on large-cap semiconductor capital equipment names remains unchanged, which exhibits confidence in the group being in the early stages of the investment cycle.
Cantor Fitzgerald previously released a rating update on KLA Corporation (NASDAQ:KLAC) on December 16, upgrading the stock to Overweight from Neutral and lifting the price target to $1,500 from $1,350. It told investors that the SOX is positioned to lead markets upwards after outperforming the S&P by roughly 30 points in CY2025, with the trends supported by the early stages of the AI era, and bolstering demand across memory, computer, networking, and equipment.
The firm further stated that while cyclical factors may lead to mixed signals, other factors, such as the anticipated exponential growth in AI infrastructure spending and the macro backdrop, support a long position in the SOX, along with an overweight exposure to AI-related plays into CY2026.
Cantor Fitzgerald’s January 8 rating came the same day KLA Corporation (NASDAQ:KLAC) announced that it will review second-quarter fiscal year 2026 earnings on January 29 at 2 p.m. PT.
KLA Corporation (NASDAQ:KLAC) is involved in the supply of process control and yield management solutions for the semiconductor and related nano-electronics industries. The company’s operations are divided into the following operations: Semiconductor Process Control, Specialty Semiconductor Process, and PCB, Display and Component Inspection.
11. Block, Inc. (NYSE:XYZ)
Number of Hedge Fund Holders: 64
Block, Inc. (NYSE:XYZ) is one of the best long term growth stocks to buy according to hedge funds. Block, Inc. (NYSE:XYZ) received bullish rating updates from several firms on January 8, including Citi, Wolfe Research, and Bernstein. Citi reiterated a Buy rating on the stock and set a price target of $105. Similar to Citi, Wolfe Research and Bernstein also maintained a Buy rating on Block, Inc. (NYSE:XYZ), both setting a price target of $85 on the shares.
In a separate development, Block, Inc. (NYSE:XYZ) reported on December 16 the expansion of a partnership between Square and Thrive, aimed at simplifying multi-channel inventory management for retailers. The company stated that the new integration allows Square sellers to sync inventory, catalogs, and sales seamlessly with Shopify, while simultaneously keeping Square as their “source of truth”.
Retailers can create and edit products within Square, with those updates automatically getting reflected on Shopify. The new integration allows them to automate re-ordering, avoid overselling, and save time managing several systems.
Block, Inc. (NYSE:XYZ) is a technology company that creates ecosystems for distinct customer audiences and operates through the Square and Cash App segments.
10. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 81
Palantir Technologies Inc. (NASDAQ:PLTR) is one of the best long term growth stocks to buy according to hedge funds. Truist initiated coverage of Palantir Technologies Inc. (NASDAQ:PLTR) with a Buy rating on January 6, and set a price target of $223. The firm told investors that the adoption of GenAI could “compress the market impact” of the last four decades of enterprise technology into a mere five to ten upcoming years, which is a backdrop that provides Palantir Technologies Inc. (NASDAQ:PLTR) with a “unique market position”, “ideally positioned for increased AI adoption by both governments & enterprises.”
The firm added that AI-driven momentum has propelled the company’s US business, resulting in a 77% year-over-year growth in fiscal Q3 2025. It expects similar tailwinds to gradually expand Palantir Technologies Inc.’s (NASDAQ:PLTR) international operations as well. In addition, the company holds the potential to meaningfully bolster capital returns over time, with free cash flow margins surpassing 40%. According to the firm, this is likely through share repurchases that can position the company to offset stock-based compensation dilution.
However, RBC Capital reiterated a Sell rating on Palantir Technologies Inc. (NASDAQ:PLTR) on January 5 and set a price target of $50.00.
Palantir Technologies Inc. (NASDAQ:PLTR) builds and deploys software platforms that serve as central operating systems for customers. The company focuses on augmenting human intelligence and developing products for human-driven real-world data analysis. Its commercial segment manages customers in non-government industries, while the government sector includes customers from the United States government and non-United States government agencies.
9. Arista Networks, Inc. (NYSE:ANET)
Number of Hedge Fund Holders: 92
Arista Networks, Inc. (NYSE:ANET) is one of the best long term growth stocks to buy according to hedge funds. Arista Networks, Inc. (NYSE:ANET) was upgraded to Overweight from Neutral by Piper Sandler on January 5, with the firm lifting the price target on the stock to $159 from $145.
It told investors that 2026 is positioned as a “Year of Refresh”, with growing hyperscaler and AI exposure, enterprise investment, and a conservative setup at a reasonable valuation, all enhancing model visibility. The firm added that while concerns regarding share shifts to whitebox and Nvidia (NVDA) and the broader capex/AI cycle exist, Arista Networks, Inc. (NYSE:ANET) appears to be holding share, deriving benefit from typically lagged capex trends, and gaining large enterprise customers.
Arista Networks, Inc. (NYSE:ANET) also received a rating update from Melius Research on January 5, with the firm maintaining a Buy rating on the stock with a $200 price target.
In another development, Morgan Stanley cut the price target on Arista Networks, Inc. (NYSE:ANET) to $159 from $171 on December 17 and reaffirmed an Overweight rating on the stock. The firm told investors in a year-ahead note on the group that the AI trade broadened out from semi names in 2025, paving the way for infrastructure names, especially within optical. It believes that the trade can continue through H1 2026, particularly in optical, but investors would “need to get more selective for full year returns given multiples.”
Arista Networks, Inc. (NYSE:ANET) develops, markets, and sells cloud networking solutions. The company’s solutions include EOS, a set of network applications, and Gigabit Ethernet switching and routing platforms. It also offers various product categories, including Core, Cognitive Adjacencies, and Network Software and Services.
8. ServiceNow, Inc. (NYSE:NOW)
Number of Hedge Fund Holders: 104
ServiceNow, Inc. (NYSE:NOW) is one of the best long term growth stocks to buy according to hedge funds. On January 9, Stifel cut the price target on ServiceNow, Inc. (NYSE:NOW) to $200 from $230 while maintaining a Buy rating on the shares. In a note titled “4Q Should Be Fine; But Not Expecting Great”, the firm stated that the tone of its system integrator checks down-ticked modestly quarter-over-quarter. However, it believes that management would likely take a conservative stance to start the year in terms of Q1 organic cRPO guidance, in keeping with historical trends.
In addition to Stifel, Wells Fargo also cut the price target on ServiceNow, Inc. (NYSE:NOW) to $225 from $255 on January 8 and maintained an Overweight rating on the shares. The firm told investors that it believes AI to still be “the name of the 2026 game”, and sees three primary ways to play: incumbents, innovation, and infrastructure. It contended that while adoption may be uneven, secular trends are likely to ultimately drive 2026 performance.
The rating updates came after ServiceNow, Inc. (NYSE:NOW) announced on January 7 that it will release financial results for fiscal Q4 and the full-year ended December 31 after the close of market on January 28.
ServiceNow, Inc. (NYSE:NOW) offers an AI platform for business transformation, boosting productivity and maximizing business outcomes. Its intelligent platform, Now Platform, provides end-to-end workflow automation for digital businesses. Now Platform functions as a cloud-based solution embedded with AI and ML.
7. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 114
Eli Lilly and Company (NYSE:LLY) is one of the best long term growth stocks to buy according to hedge funds. On January 9, Jefferies reaffirmed a Buy rating on Eli Lilly and Company (NYSE:LLY) and set a price target of $1,300.00. The rating update came after Eli Lilly and Company (NYSE:LLY) announced on January 8 that its Taltz (ixekizumab) and Zepbound (tirzepatide) used together delivered superior efficacy in first-of-its-kind Phase 3b trial for adults with active psoriatic arthritis and obesity or overweight.
The TOGETHER-PsA study met its primary endpoint of 50% improvement in psoriatic arthritis (PsA) activity based on ACR50 at 36 weeks, along with ≥10% weight drop with concomitant Taltz and Zepbound in comparison with Taltz monotherapy. In addition, in a key secondary endpoint, the use of Taltz and Zepbound delivered a 64% relative growth in the proportion of patients attaining ACR50 compared to Taltz alone. Management reported that Taltz is now the first and only biologic for PsA with data supporting a potential comprehensive treatment approach.
In a separate development, Eli Lilly and Company (NYSE:LLY) announced on January 7 that it entered into a definitive agreement to acquire Ventyx Biosciences, Inc., which is a clinical-stage biopharmaceutical company that develops innovative oral therapies for patients with inflammatory-mediated diseases.
The terms of the agreement entail that Eli Lilly and Company (NYSE:LLY) would acquire all the outstanding shares of Ventyx for $14.00 per share of common stock in an all-cash transaction, which equals an aggregate equity value of approximately $1.2 billion.
Eli Lilly and Company (NYSE:LLY) develops, manufactures, discovers, and sells pharmaceutical products. These products span oncology, diabetes, immunology, neuroscience, and other therapies
6. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 115
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the best long term growth stocks to buy according to hedge funds. Advanced Micro Devices, Inc. (NASDAQ:AMD) introduced the AMD Ryzen™ AI Embedded processors on January 5, which is a new portfolio of embedded x86 processors specialized to power AI-driven applications at the edge.
Management reported that the new P100 and X100 Series processors offer tier-1 suppliers, OEMs, and system and software developers in industrial and automotive markets with efficient and high-performance AI compute in a compact BGA (ball grid array) package, ranging from smart healthcare and automotive digital cockpits to physical AI for autonomous systems, such as humanoid robotics.
Advanced Micro Devices, Inc. (NASDAQ:AMD) added that the processors integrate an XDNA 2 NPU for low-latency, low-power AI acceleration, the high-performance “Zen 5” core architecture for deterministic control and scalable x86 performance, and an XDNA 2 NPU for low-latency, low-power AI acceleration, all into a single chip.
In another development, Advanced Micro Devices, Inc. (NASDAQ:AMD) announced on January 2 an expanded collaboration with HPE for the acceleration of the next generation of open, scalable AI infrastructure built on the company’s compute technologies. It added that HPE would take the position of one of the first system providers to adopt the AMD “Helios” rack-scale AI architecture, integrating a purpose-built HPE Juniper Networking scale-up switch (in collaboration with Broadcom) and software for high-bandwidth connectivity over Ethernet.
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global semiconductor company focused on high-performance computing, visualization technologies, and graphics.
5. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 143
Uber Technologies, Inc. (NYSE:UBER) is one of the best long term growth stocks to buy according to hedge funds. On January 9, Mizuho Securities reaffirmed a Buy rating on Uber Technologies, Inc. (NYSE:UBER) with a price target of $130. However, Cantor Fitzgerald cut the price target on the stock to $99 from $108 on January 8 and maintained an Overweight rating on the shares, telling investors that the outlook for the Global Internet stocks into 2026 is increasingly positive despite lingering macro concerns.
This, according to the firm, is supported by AI entering a “Synergy” phase expected to drive improved value capture, accelerating revenue growth, and clearer long-term returns on capex. Cantor added that the group is well positioned to outperform in 2026 in a backdrop featuring improving sentiment and positive estimate revisions, with valuations still around 20% below medium-term ranges despite 2025 outperformance.
In another development, Uber Technologies, Inc. (NYSE:UBER) received rating updates from Jefferies and BofA on January 6. Both maintained a Buy rating on the stock, with Jefferies maintaining a $120 price target and BofA reiterating a price target of $119. Jefferies anticipates durable Mobility growth and progress in the company’s AV partnerships, which support its bullish outlook.
These rating updates came the same day Uber Technologies, Inc. (NYSE:UBER), along with Lucid Group, Inc. and Nuro, Inc., revealed on January 5 the production intent vehicles to be used in their global robotaxi service. They introduced for the first time the Uber-designed in-cabin rider experience at the Consumer Electronics Show (CES) 2026, and also announced that autonomous on-road testing began last month. This marked a notable milestone in the development and validation of the robotaxi service ahead of its anticipated launch in the San Francisco Bay Area later this year.
Uber Technologies, Inc. (NYSE:UBER) operates as a technology platform that offers ride services and merchant delivery service providers for food, groceries, meal preparation, and other delivery services. The company’s operations are divided into Delivery, Mobility, and Freight. The Delivery segment allows users to order food, while the Mobility segment provides access to Mobility Drivers who provide rides in various vehicles. The Freight segment connects Carriers and Shippers.
4. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 183
Broadcom Inc. (NASDAQ:AVGO) is one of the best long term growth stocks to buy according to hedge funds. On January 9, Mizuho Securities lifted the price target on Broadcom Inc. (NASDAQ:AVGO) to $480 from $450 and reaffirmed an Outperform rating on the shares. The firm detailed that it adjusted price targets in the semiconductor and semiconductor capital equipment group to reflect its 2026 outlook, adding that it sees continued upside for the group in 2026 because of “attractive valuations” that are, however, more modest than 2025.
The firm’s top sectors for 2026 include AI accelerators and wafer fab equipment, Optical, and memory. However, Mizuho is remaining cautious on autos and analogs, electric vehicles, and computers and handsets. Broadcom Inc. (NASDAQ:AVGO) is among the firm’s top picks for 2026.
In another development, Goldman Sachs analysts added Broadcom Inc. (NASDAQ:AVGO) to their US Conviction List on January 5 and maintained a Buy rating on the stock with a $450 price target. The addition came as part of the firm’s monthly update, with the firm stating that Broadcom Inc.’s (NASDAQ:AVGO) “dominant” position in the enterprise networking silicon is expected to drive market share gains in customer silicon processors for the major hyperscalers in the US.
Broadcom Inc. (NASDAQ:AVGO) is a leading multinational technology company specializing in semiconductor and infrastructure software products.
3. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 194
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the best long term growth stocks to buy according to hedge funds. On January 9, Citi lifted the price target on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) to NT$2,450 from NT$1,800 and reaffirmed a Buy rating on the shares. The firm also added an “upside 30-day catalyst watch” on the stock, stating that it expects Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) to issue a positive outlook on solid demand for its process node and advanced packaging business when reporting earnings.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) announced its December 2025 revenue report on the same day, reporting that the net revenue for December 2025 reached approximately NT$335.00 billion on a consolidated basis, reflecting a decrease of 2.5% from November 2025 and a growth of 20.4% from December 2024. In addition, revenue for January through December 2025 totaled NT$3,809.05 billion, up 31.6% compared to the same period last year.
Reuters reported the same day that the 20.45% increase in Q4 revenue surpassed the market forecast, with demand for Taiwan Semiconductor Manufacturing Company Limited’s (NYSE:TSM) products surging in response to the growing interest in AI applications.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the largest contract semiconductor manufacturer in the world. Some of its prominent customers include semiconductor companies that outsource all or part of their chip production, including Advanced Micro Devices, Nvidia, Broadcom, and more.
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 234
NVIDIA Corporation (NASDAQ:NVDA) is one of the best long term growth stocks to buy according to hedge funds. Mizuho lifted the price target on NVIDIA Corporation (NASDAQ:NVDA) to $275 from $245 on January 9 and maintained an Outperform rating on the shares as part of its price target adjustments in the semiconductors and semiconductor capital equipment group to reflect its 2026 outlook.
Mizuho sees continued upside for the sector in 2026, primarily due to “attractive valuations”, with NVIDIA Corporation (NASDAQ:NVDA) being one of its top picks for 2026. The firm told investors that its top sectors for the year include AI accelerators and wafer fab equipment, Optical, and memory, and that it is remaining cautious on electric vehicles, autos, and analogs, as well as computers and handsets.
In another development, Citi reiterated a Buy rating on NVIDIA Corporation (NASDAQ:NVDA) on January 7 and set a price target of $270.00. The firm exhibited confidence in the company’s leadership, stating that a new wave of physical AI, along with reasoning and agent-based AI, is expected to drive demand beginning in 2026. Citi also expects the Groq acquisition to expand NVIDIA Corporation’s (NASDAQ:NVDA) addressable market by pairing its high-throughput strengths with Groq’s ultra-low-latency capabilities.
NVIDIA Corporation (NASDAQ:NVDA) designs and manufactures computer graphics processors, chipsets, and other multimedia software. It operates in the Compute & Networking and Graphics Processing Unit (GPU) segments.
1. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 243
Alphabet Inc. (NASDAQ:GOOGL) is one of the best long term growth stocks to buy according to hedge funds. Mizuho raised the price target on Alphabet Inc. (NASDAQ:GOOGL) to $365 from $325 on January 9 and reaffirmed an Outperform rating on the share. The firm told investors that it upgraded the price target estimates to reflect its 2026 internet outlook, and that it sees considerable potential sales upside at Google Cloud.
Alphabet Inc. (NASDAQ:GOOGL) also received a rating update from Scotiabank the same day, with the firm raising the price target to $375 from $336 while maintaining an Outperform rating. The firm believes Google to be a structural winner among hyperscalers, and stated that the stock should outperform given its position to benefit from AI monetization.
In addition to Scotiabank, Canaccord Genuity also lifted the price target on Alphabet Inc. (NASDAQ:GOOGL) to $390 from $330 on January 7 and maintained a Buy rating on the shares, telling investors that while it is exercising near-term caution, in part attributed to the stock’s recent run, the firm continues to have high conviction on the company in the long term.
It cited the continual and rapid scaling of the Gemini chatbot, with Similarweb data showing most recently an over 18% rise in Gemini’s share of generative AI web traffic. The firm added that the recently launched Gemini 3 Flash model may prove to be a game-changer by making frontier-comparable performance available at a highly attractive cost.
Alphabet Inc. (NASDAQ:GOOGL) is a holding company with segments including Google Services, Google Cloud, and Other Bets. The Google Services segment operates various services and products, including Android, Google Maps, Google Play, Chrome, Search, and YouTube.
While we acknowledge the potential of GOOGL 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 GOOGL and that has 100x upside potential, check out our report about this cheapest AI stock.
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