In this article, we will take a look at the 13 Most Promising QQQ Stocks According to Hedge Funds.
On January 28, the S&P 500 reached 7,000 for the first time, before falling as the Fed retained its target rate range of 3.5% to 3.75% and boosted its economic growth assessment. Treasury yields rose in light of the announcement, as the central bank’s statement indicated that the economy has been “expanding at a solid pace”, while the jobless rate has “shown some signs of stabilization.”
Notably, the Federal Reserve’s decision to keep interest rates unchanged implies that investors won’t be concerned about their cash yields declining. Speaking on this, Stephen Kates, a financial analyst at Bankrate, stated the following:
“Yields on savings products such as high-yield savings accounts and CDs are likely to remain unchanged for now.”
Following the Fed’s announcement, investors focused on reports from the “Magnificent Seven”, which have propelled the AI trade and pushed markets to historically high levels. Investors are closely monitoring the group’s financial plans as valuations shift towards discounted regions, raising concerns about the impact of AI investment on profits.
Our Methodology
We sifted through the Invesco QQQ exchange-traded fund (ETF) holdings to find the 13 best stocks that had an upside potential of over 40%. We have also added the hedge fund sentiment for each stock, as of Q3 2025, which was sourced from Insider Monkey’s database.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
13. Thomson Reuters Corporation (NASDAQ:TRI)
Analyst Upside: 46.05%
Number of Hedge Fund Holders: 32
On January 16, CIBC’s Robert Bek reaffirmed Thomson Reuters Corporation’s (NASDAQ:TRI) Outperform rating while lowering the price target for the stock from $198 to $183.
To strengthen its position in the compliance sector, Thomson Reuters Corporation (NASDAQ:TRI) released ONESOURCE Sales and Use Tax AI on January 16, a software application designed to automate essential aspects of sales and use tax compliance for US firms and accounting processes.
Moreover, Thomson Reuters Corporation (NASDAQ:TRI) recently completed one of its most significant legal AI advances by introducing CoCounsel Legal in the United Kingdom on January 26 and integrating agentic AI capabilities into its flagship Westlaw and Practical Law offerings.
The UK rollout follows the launch of CoCounsel Legal in the United States last year, but with greater integration into Thomson Reuters’ most important content archives.
Thomson Reuters Corporation (NASDAQ:TRI) operates as a content and technology company in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through five segments: Legal Professionals, Corporates, Tax & Accounting Professionals, Reuters News, and Global Print.
12. Arm Holdings plc (NASDAQ:ARM)
Analyst Upside: 47.15%
Number of Hedge Fund Holders: 37
Susquehanna raised Arm Holdings plc (NASDAQ:ARM) from Neutral to Positive on January 21, with a $150 price target. The firm noted two “company-changing initiatives” as major triggers for the upgrade, including the production of an AI XPU ASIC together with SoftBank and Broadcom for OpenAI, as well as a custom server CPU, possibly for Meta, which will be Arm’s first full silicon product.
Although details on the AI XPU are scant, Susquehanna believes the program could ultimately earn more than $1 billion in royalty revenue each year, in contrast to the $2.5 billion in total company royalties projected for this year.
Susquehanna expects a royalty default for 2026 models given memory-driven headwinds in Mobile and PC markets, though it notes that such obstacles are “well known”, contrasting the stock’s recent 40% drop with efforts that might boost growth above Arm’s existing “modest ~10% royalty contribution.”
Arm Holdings plc (NASDAQ:ARM) designs and licenses CPU architectures, system IP, and software used across automotive, computing, consumer, and IoT applications.
11. Zscaler Inc. (NASDAQ:ZS)
Analyst Upside: 54.60%
Number of Hedge Fund Holders: 50
On January 20, Citizens reaffirmed its Market Outperform rating and $355 price target for Zscaler Inc. (NASDAQ:ZS), citing the cybersecurity company’s solid client retention metrics. The firm reported that elevated switching prices, prolonged onboarding processes, and transfer complexities all contribute to customer loyalty, even as certain customers consider downgrading their services.
According to Citizens, the typical onboarding duration for network security services ranges between 50 and 180 days, requiring companies to pay both current and prospective vendors. As such, Citizens expects substantial renewal activity for Zscaler Inc. (NASDAQ:ZS).
Additionally, on December 16, Mizuho raised Zscaler Inc. (NASDAQ:ZS) to Outperform, citing valuation support despite lingering worries about near-term growth prospects. Despite the firm’s continued demand for “more transparency from management on ZS’s organic growth this year,” Mizuho believes that Zscaler Inc. (NASDAQ:ZS) is “very well-positioned within SASE/Zero Trust.”
Zscaler Inc. (NASDAQ:ZS) is a cloud-based security company that provides cybersecurity solutions by protecting user access to applications and data, regardless of location.
10. Charter Communications, Inc. (NASDAQ:CHTR)
Analyst Upside: 43.75%
Number of Hedge Fund Holders: 53
On January 26, KeyBanc reiterated its Sector Weight rating on Charter Communications, Inc. (NASDAQ:CHTR), citing caution in anticipation of the company’s Q4 2025 results, which are due on January 30. The bank predicts a deteriorating broadband competition climate in 2026, with fiber-to-the-home (FTTH) construction speeding throughout the telecommunications sector, potentially jeopardizing Charter’s market dominance.
Given the competitive constraints, KeyBanc feels consensus projections for Charter’s net subscriber gains are excessively optimistic, implying that broadband customer losses may increase in 2026.
Although the firm admits it could be overlooking the potential benefits of a cyclical advertising rebound in 2026 and cost savings from reduction-in-force (RIF) programs, it also highlights Charter’s leverage and anticipated refinancing issues as causes for concern.
Charter Communications, Inc. (NASDAQ:CHTR) is a broadband connectivity company. It has evolved from providing cable TV to streaming, and from high-speed Internet to providing converged broadband, WiFi, and mobile experience.
9. Atlassian Corporation (NASDAQ:TEAM)
Analyst Upside: 77.05%
Number of Hedge Fund Holders: 60
Before the company’s second-quarter earnings report on February 5, TD Cowen lowered its price target for Atlassian Corporation (NASDAQ:TEAM) from $205 to $175 on January 20, keeping a Hold rating on the company’s shares. According to the firm’s analysis, the software company’s Jira Service Management momentum, cloud migrations, improved packaging options, and strong sales hiring are all “fairly constructive” indicators.
Despite these encouraging signs, TD Cowen’s data indicates that Atlassian Corporation (NASDAQ:TEAM) has gained “little traction” with its AI solutions, which may have an effect on the company’s potential for future development. The firm pointed out that investors remain concerned about medium-term seat growth pressure from AI, even if Atlassian’s valuation “may look more attractive,” and that there may be space for a short-term stock rebound. Overall, these AI-related growth worries will remain “an overhang” for Atlassian.
Atlassian Corporation (NASDAQ:TEAM) provides team collaboration and productivity software, offering products such as Jira Software, Confluence, Jira Service Management, and Loom.
8. Workday, Inc. (NASDAQ:WDAY)
Analyst Upside: 44.48%
Number of Hedge Fund Holders: 63
Goldman Sachs began covering Workday, Inc. (NASDAQ:WDAY) on January 12 with a Neutral rating and a $238 price target. In comparison to its software-as-a-service competitors, Goldman Sachs analyst Gabriela Borges highlights several significant issues that the company faces.
The firm claims that Workday’s core human capital management market is smaller and more crowded than the enterprise resource planning and customer relationship management categories, which could limit growth from market gains associated with the SaaS switch.
Additionally, the firm notes that Workday’s AI plan “has taken longer to crystallize,” with 2026 being a critical year for updating its core technology stack and integrating recent acquisitions, including Sana.
However, Goldman Sachs sees the possibility of a more favorable picture through 2026, highlighting Workday’s efforts to boost its AI positioning, which may deliver stable and increasing revenue growth above 13-14%.
Workday, Inc. (NASDAQ:WDAY) is a technology company that provides cloud-based software (SaaS) for businesses to manage their finance and human resources functions, including financial management, human capital management (HCM), planning, and payroll.
7. Datadog, Inc. (NASDAQ:DDOG)
Analyst Upside: 52.46%
Number of Hedge Fund Holders: 72
Bernstein reaffirmed its Outperform rating and $180 price target for Datadog, Inc. (NASDAQ:DDOG) on January 23, citing market chatter about the possibility of a GitLab acquisition. Bernstein analyst Peter Weed expressed reservations about the arrangement, saying it “doesn’t make a lot of sense” based on the firm’s analysis.
According to Bernstein’s interactions with Datadog, Inc. (NASDAQ:DDOG) management during Q3 earnings, the company indicated an affinity for smaller technology acquisitions over substantial agreements. The firm also stated that Datadog, Inc. (NASDAQ:DDOG) is focusing on expanding its CI Visibility product and Code Security capabilities locally, implying that it will develop a GitLab-adjacent capability natively as opposed to through acquisition.
Moreover, Stifel boosted Datadog, Inc. (NASDAQ:DDOG) to Buy from Hold, citing recent checks indicating another above-average quarterly beat driven by accelerated core expansion and stability in OpenAI-related revenue. Stifel’s more optimistic outlook is further supported by signs that previous sales and marketing expenditures have gained traction. into a crucial bottleneck in AI systems.
Datadog, Inc. (NASDAQ:DDOG) is a software company that provides an observability solution built for cloud-scale applications, monitoring servers, databases, tools, and services via its SaaS-based data analytics platform.
6. Marvell Technology, Inc. (NASDAQ:MRVL)
Analyst Upside: 49.02%
Number of Hedge Fund Holders: 77
On January 14, RBC Capital launched coverage of Marvell Technology, Inc. (NASDAQ:MRVL), with an Outperform rating and a price target of $105. The firm underlined Marvell’s dominant position in the data center sector, citing the company’s significant contracts for AWS Trainium3 chips and its new Celestial acquisition, implying that Marvell Technology, Inc. (NASDAQ:MRVL) will continue to be an important ASIC supplier for Trainium 4.
Analyst Srini Pajjuri described Marvell’s optical division as “on solid footing,” but identified scale-up and custom SmartNICs as “underappreciated growth opportunities” for the company.
Moreover, on January 6, Marvell Technology, Inc. (NASDAQ:MRVL) signed a definitive deal to acquire XConn Technologies for roughly $540 million. This acquisition is expected to be paid for with a combination of cash and stock, totaling about 2.5 million shares of MRVL common stock.
Marvell Technology, Inc. (NASDAQ:MRVL) is a semiconductor development and manufacturing company with a major focus on data centers.
5. T-Mobile US Inc. (NASDAQ:TMUS)
Analyst Upside: 42.21%
Number of Hedge Fund Holders: 81
On January 21, Benchmark reaffirmed its Buy rating on T-Mobile US Inc. (NASDAQ:TMUS) with a $295 price target, classifying the telecom provider as a “2026 Benchmark Best Idea.” The firm remains confident that T-Mobile’s network strengths and potential for expanded adoption in non-top 100 US regions and among corporate users will sustain continued robust growth in a backdrop of competitive environments. The firm also recognized T-Mobile Home Internet and fiber initiatives with private equity as further development opportunities for the company.
According to the firm, T-Mobile’s shares dropped 33% from their 12-month high of $276.49, despite what it claimed was “exemplary operating and strategic performance relative to peers.”
According to Benchmark, T-Mobile US Inc. (NASDAQ:TMUS) has remained true to its “disruptor mentality” in spite of being the leading U.S. network, continuing to prioritize improving product value over enacting “naked price increases.”
T-Mobile US Inc. (NASDAQ:TMUS) provides wireless communications services in the US, Puerto Rico, and the United States Virgin Islands. The company offers voice, messaging, and data services to postpaid, prepaid, and wholesale & other services customers.
4. Constellation Energy Corporation (NASDAQ:CEG)
Analyst Upside: 40.93%
Number of Hedge Fund Holders: 91
On January 9, TD Cowen began coverage of Constellation Energy Corporation (NASDAQ:CEG) with a Buy rating and a $440 price target, citing the scale benefits of the Calpine Corporation acquisition, and the potential of continuous power contraction over forward market pricing into 2026.
The demand for power in the United States seems substantial, with load predictions indicating that demand will continue to surpass supply for several years. TD Cowen expects these trends to support higher spark spreads and capacity pricing, with data center capital spending serving as a primary source of additional demand.
The Calpine acquisition is a key component of TD Cowen’s bullish outlook. The firm stated that the settlement with the United States DoJ was more positive than expected, considering the minimal divestitures in relation to the transaction’s scale and the age of the assets that were being sold.
Constellation Energy Corporation (NASDAQ:CEG) is an American energy company that produces and sells electricity, natural gas, and sustainable energy solutions across the United States.
3. Intuit Inc. (NASDAQ:INTU)
Analyst Upside: 42.98%
Number of Hedge Fund Holders: 96
On January 15, Mizuho reiterated its Outperform rating and $875 price target for Intuit Inc. (NASDAQ:INTU), despite a share dip caused by recent concerns about artificial intelligence disruption. The firm stated that INTU shares had fallen after the launch of Claude Cowork and online rumors that users would file taxes using AI.
Mizuho saw such worries as “overblown” and likened them to prior doubts about OpenAI and “ChatGPT filing taxes,” which were subsequently alleviated once Intuit collaborated with OpenAI to incorporate the TurboTax process.
In a similar vein, Intuit Inc. (NASDAQ:INTU) also opened a new TurboTax flagship store in New York City’s SoHo neighborhood, representing a substantial rise from almost 600 Expert Office locations to 20 TurboTax stores across the country. This approach combines digital tax filing with in-person expertise, resulting in a more efficient tax experience.
Intuit Inc. (NASDAQ:INTU) provides financial management, payments & capital, compliance, and marketing products and services in the US. The company operates in four segments: Global Business Solutions, Consumer, Credit Karma, and ProTax.
2. AppLovin Corporation (NASDAQ:APP)
Analyst Upside: 45.23%
Number of Hedge Fund Holders: 110
Evercore ISI began coverage of AppLovin Corporation (NASDAQ:APP) on January 14 with an Outperform rating and a price target of $835, citing the platform’s widening growth runway as it establishes an effective advertising unit for e-commerce.
According to the firm, AppLovin Corporation (NASDAQ:APP) continues to be the top ad tech platform in mobile gaming and is developing as a substantial avenue for e-commerce marketers, something it sees as a significant increase in the company’s overall market.
Evercore anticipates that combined mobile gaming and e-commerce ad expenditure would drive revenue and EBITDA up by at least 30% annually from 2025 to 2028. In addition, the firm stated that third-party pixel tracking and industry assessments indicate robust recent momentum. AppLovin Corporation (NASDAQ:APP) intends to achieve strong single-digit to low double-digit adoption of direct-to-consumer e-commerce ad spend by fiscal year 2028, equating to roughly $3.4 billion in revenue on $7.5 billion in advertising expenditures.
AppLovin Corporation (NASDAQ:APP) is a software-based advertising and app monetization company. It operates through two segments, Advertising and Apps. The company also develops and publishes free-to-play mobile games through its studios and partners.
1. Broadcom Inc. (NASDAQ:AVGO)
Analyst Upside: 43.69%
Number of Hedge Fund Holders: 183
On January 15, Wells Fargo boosted Broadcom Inc. (NASDAQ:AVGO) price target to $430 from $410, and upgraded the stock from Equal-weight to Overweight. The bank noted the recent decline in Broadcom Inc. (NASDAQ:AVGO) shares, as well as increased confidence in potentially important new catalysts through 2026, as grounds for its more favorable outlook.
According to the firm’s updated calendar, Broadcom’s AI semiconductor revenue is now estimated to reach $52.6 billion (increasing 116% year-over-year) in 2026 and $93.4 billion (increased 78% year-over-year) in 2027.
Wells Fargo reiterated its outlook for Broadcom’s non-AI semiconductor revenue while projecting modest double-digit year-over-year growth for the company’s Infrastructure Software business in FY2026, pointing out that Broadcom Inc. (NASDAQ:AVGO) ended FY25 with an Infrastructure Software pipeline of around $73 billion.
Broadcom Inc. (NASDAQ:AVGO) designs, develops, and supplies various semiconductor devices and infrastructure software solutions worldwide. The company operates in two segments: Semiconductor Solutions and Infrastructure Software.
While we acknowledge the potential of AVGO 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 AVGO and that has 100x upside potential, check out our report about this cheapest AI stock.
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