Earlier on August 19, Erik Woodring of Morgan Stanley joined CNBC’s ‘The Exchange’ to discuss the most under-owned tech stocks and what’s behind the bifurcation in the sector. Woodring believes that mega-cap tech is under-owned in the market, as Morgan Stanley revealed that these stocks are the most under-owned by actively managed funds in over 16 years. The gap between the portfolio weightings of these stocks and their weightings in the S&P 500 index widened significantly in the second quarter. Despite this under-ownership, Morgan Stanley suggested it could actually be a good thing for the sector. Woodring noted that actively managed portfolios have plausible reasons to be underweight, such as tepid top-line growth, a perceived lack of an AI strategy, and possible pressure from tariffs.
Woodring explained the broader context, stating that most mega caps are generally under-owned relative to their large weighting in the S&P 500 because owning too many can lead to over-concentration. Consequently, active managers are naturally underweight these stocks. Shifting to the broader theme of active portfolios lagging the benchmark, Woodring confirmed that the degree of relative underweighting has changed throughout the year. Overall, mega-cap tech is under-owned on average by about 1.4% exiting the second quarter, an increase from 1.15% exiting the first quarter, suggesting that perhaps a return to a more even distribution may occur.
That being said, we’re here with a list of the 14 best NASDAQ stocks to buy according to hedge funds.
Our Methodology
We sifted through the Finviz stock screener to compile a list of the top NASDAQ stocks. We then selected the 14 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 Q2 2025. The hedge fund sentiment was sourced from Insider Monkey’s database.
Note: All data was sourced on September 30.
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).
14 Best NASDAQ Stocks to Buy According to Hedge Funds
14. Regeneron Pharmaceuticals Inc. (NASDAQ:REGN)
Number of Hedge Fund Holders: 73
Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) is one of the best NASDAQ stocks to buy according to hedge funds. On September 26, Evkeeza (evinacumab-dgnb), an ANGPTL3 antibody developed by Regeneron Pharmaceuticals, received an extended indication approval from the US FDA for the treatment of children from age 1 to less than 5 years old with homozygous familial hypercholesterolemia/HoFH.
Evkeeza is used as an adjunct to diet, exercise, and other lipid-lowering therapies. HoFH is an ultra-rare, inherited condition and the most severe form of familial hypercholesterolemia, affecting ~1,300 people in the US. It results in dangerously high levels of low-density lipoprotein cholesterol/LDL-C, usually >400 mg/dL, putting patients at risk for premature atherosclerotic disease and cardiac events even in their teenage years.
Evkeeza was initially approved in 2021 for adults and adolescents aged 12 years and older with HoFH, based on a placebo-controlled trial showing it could lower LDL-C by about 50% compared to placebo when added to standard lipid-lowering therapies. The indication was subsequently extended in 2023 for children aged 5 to 11. All FDA submissions for Evkeeza were evaluated under Priority Review.
Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) discovers, invents, develops, manufactures, and commercializes medicines for treating various diseases worldwide.
13. MongoDB Inc. (NASDAQ:MDB)
Number of Hedge Fund Holders: 75
MongoDB Inc. (NASDAQ:MDB) is one of the best NASDAQ stocks to buy according to hedge funds. On September 16, MongoDB announced the launch of MongoDB AMP, which is an AI-powered Application Modernization Platform. The platform is designed to help enterprises transform legacy applications quickly into modern, scalable services, thereby reducing technical debt and speeding innovation.
MongoDB AMP combines an AI-powered software platform, a proven delivery framework, and experienced AMP delivery engineers to guide the implementation. MongoDB, with its flexible document model and architecture built for continuous change, serves as the foundation of the platform. By using the AMP tooling and MongoDB’s framework, customers have seen tasks like code transformation sped up by 10x or more, with overall modernization projects being accelerated by 2−3 times.
Enterprises are burdened by critical but outdated legacy applications, which are expensive to maintain, difficult to adapt for modern use cases like GenAI, and pose security and compliance risks due to their rigid data foundations and tech stacks. According to the Consortium for Information & Software Quality, the cost of technical debt in the US has been estimated at ~4 trillion dollars. MongoDB AMP offers a transformative approach to modernization, contrasting with traditional methods that involve multi-year consulting engagements or merely lift & shift migrations from one relational database to another.
MongoDB Inc. (NASDAQ:MDB) provides a general-purpose database platform worldwide. The company was formerly known as 10gen and changed its name to MongoDB in August 2013.
12. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 76
QUALCOMM Incorporated (NASDAQ:QCOM) is one of the best NASDAQ stocks to buy according to hedge funds. On September 25, Qualcomm Technologies announced the Snapdragon 8 Elite Gen 5 Mobile Platform, touting it as the world’s fastest mobile System-on-a-Chip/SoC. The latest premium offering in the Snapdragon 8 Elite series is purpose-built to amplify existing mobile experiences and introduce breakthrough new ones through state-of-the-art performance, efficiency, and on-device AI processing.
Flagship devices featuring the Snapdragon 8 Elite Gen 5 from global OEMs and smartphone brands (including Honor, iQOO, Nubia, OnePlus, OPPO, POCO, realme, REDMI, RedMagic, ROG, Samsung, Sony, vivo, Xiaomi, and ZTE) are scheduled to launch in the coming days. The Snapdragon 8 Elite Gen 5 delivers significant performance upgrades across its core components. The 3rd Gen Qualcomm Oryon CPU is highlighted as the fastest mobile CPU ever, boosting performance by 20%.
A new Qualcomm Adreno GPU architecture enhances graphics-rich gaming performance by 23%. Furthermore, the Qualcomm Hexagon NPU offers a 37% faster performance for on-device AI processing. These collective upgrades power lightning-fast multitasking and seamless app switching, alongside the ability to support long game sessions with both incredible performance and power efficiency.
QUALCOMM Incorporated (NASDAQ:QCOM) develops and commercializes foundational technologies for the wireless industry worldwide. It has three segments: Qualcomm CDMA Technologies/QCT, Qualcomm Technology Licensing/QTL, and Qualcomm Strategic Initiatives/QSI.
11. Linde (NASDAQ:LIN)
Number of Hedge Fund Holders: 77
Linde (NASDAQ:LIN) is one of the best NASDAQ stocks to buy according to hedge funds. On September 29, Linde announced that its Board of Directors has appointed Sanjiv Lamba, the current Chief Executive Officer, to the additional role of Chairman of the Board, effective January 31, 2026. Lamba will succeed Steve Angel, who plans to retire from Linde’s Board on the same date.
The Board believes this combined leadership structure, with Lamba serving as both CEO and Chair, is the most effective model for the company at this time. Steve Angel will retire after 25 years of distinguished service to Linde and its predecessor company. His tenure included serving as Chairman since 2022, Chief Executive Officer from 2018 to 2022, and Chairman and Chief Executive Officer of Praxair from 2007 to 2018.
In conjunction with these Board-level changes, Linde also announced the appointment of Sean Durbin as Chief Operating Officer, effective October 1. Durbin, who has been with Linde for more than 30 years, most recently served as Executive Vice President of Linde North America since September 2023.
Linde (NASDAQ:LIN) operates as an industrial gas company in the US, China, Germany, the UK, Australia, Mexico, Brazil, and internationally.
10. Constellation Energy Corporation (NASDAQ:CEG)
Number of Hedge Fund Holders: 79
Constellation Energy Corporation (NASDAQ:CEG) is one of the best NASDAQ stocks to buy according to hedge funds. On September 29, Constellation announced the election of Alan S. Armstrong to its board of directors, with his appointment becoming effective on January 1, 2026. Armstrong is currently the executive chairman of the board of directors for Williams, a major US energy infrastructure company primarily focused on natural gas.
Prior to this role, he served as Williams’ president and CEO for 14 years before being named board chair earlier in 2025. Armstrong brings nearly 40 years of experience at Williams, having joined the company in 1986 as an engineer and later holding numerous operational and commercial roles. Before becoming CEO in 2011, he led the company’s North American midstream and olefins businesses as Senior Vice President – Midstream.
His deep industry knowledge is considered invaluable to Constellation as it moves to integrate America’s largest natural gas portfolio, acquired through its deal with Calpine, into its generation fleet. Armstrong also serves as chair of the National Petroleum Council and is a founding member of Natural Allies for a Clean Energy Future, in addition to being a board member for BOK Financial Corp. He holds a bachelor’s degree in civil engineering from the University of Oklahoma.
Constellation Energy Corporation (NASDAQ:CEG) produces and sells energy products and services in the US. It has five segments: Mid-Atlantic, Midwest, New York, ERCOT, and Other Power Regions.
9. Applied Materials Inc. (NASDAQ:AMAT)
Number of Hedge Fund Holders: 81
Applied Materials Inc. (NASDAQ:AMAT) is one of the best NASDAQ stocks to buy according to hedge funds. On September 24, Applied Materials announced a partnership with GlobalFoundries Inc. (NASDAQ:GFS) to accelerate the photonics revolution, which is being driven by AI. The collaboration will establish a state-of-the-art waveguide fabrication facility at GlobalFoundries’ Singapore site.
The initiative positions photonics as a cornerstone technology for next-gen AI applications. Under the partnership, Applied Materials will be responsible for designing and developing advanced waveguide components, while GlobalFoundries will serve as the high-volume manufacturing partner at its facility in Singapore.
The partnership uses Applied Materials’ leadership in materials science with GlobalFoundries’ manufacturing scale and builds upon the emerging photonics ecosystem already present in Singapore, which includes materials, sensors, integration, assembly, test, and applications.
Applied Materials Inc. (NASDAQ:AMAT) provides manufacturing equipment, services, and software to the semiconductor, display, and related industries. The company has three segments: Semiconductor Systems, Applied Global Services, and Display.
GlobalFoundries Inc. (NASDAQ:GFS) is a semiconductor foundry that provides a range of mainstream wafer fabrication services and technologies worldwide.
8. Comcast Corporation (NASDAQ:CMCSA)
Number of Hedge Fund Holders: 82
Comcast Corporation (NASDAQ:CMCSA) is one of the best NASDAQ stocks to buy according to hedge funds. On September 29, Comcast and Harmonic Inc. (NASDAQ:HLIT) announced a partnership to expand fiber broadband access as Comcast continues to grow its network into new markets. Comcast’s expansion efforts are significant: in 2024, the company expanded its network to more than one million new locations, with plans for over 1.2 million new locations by the end of 2025.
Comcast is using Harmonic’s industry-leading cOS virtualized broadband platform and network edge devices to deliver multi-gigabit symmetrical broadband with low lag to both residential and commercial customers. The cOS platform provides Comcast with the flexibility to use fiber or extend its existing DOCSIS-based infrastructure, allowing for the rapid and cost-effective deployment of fiber-based services that seamlessly co-exist with coax-based offerings on the same platform.
The converged solution simplifies operations, reduces costs, and supports cost-effective fiber rollouts to rural communities, including those funded by BEAD projects. The key innovations being used include Harmonic’s virtual Broadband Network Gateway/vBNG and the Jetty Remote Switch with Fin Remote OLT in Harmonic’s Ripple DAA node.
Comcast Corporation (NASDAQ:CMCSA) is a media and technology company that operates through Residential Connectivity & Platforms, Business Services Connectivity, Media, Studios, and Theme Parks segments.
Harmonic Inc. (NASDAQ:HLIT) provides broadband access solutions worldwide. The company operates through Broadband and Video segments.
7. PayPal Holdings Inc. (NASDAQ:PYPL)
Number of Hedge Fund Holders: 89
PayPal Holdings Inc. (NASDAQ:PYPL) is one of the best NASDAQ stocks to buy according to hedge funds. On September 24, PayPal Holdings and alternative asset manager Blue Owl Capital Inc. (NYSE:OWL) executed a two-year agreement. Under this deal, funds managed by Blue Owl will purchase ~$7 billion of Buy Now, Pay Later/BNPL receivables originated by PayPal in the US.
This transaction aligns with PayPal’s balance sheet-light model for credit, but PayPal will retain full responsibility for all customer-facing activities for its US Pay in 4 BNPL products. The financial impact of this transaction is already factored into PayPal’s Q3 and full-year 2025 guidance for both GAAP and adjusted EPS, as well as adjusted transaction margin dollars, which were announced earlier on July 29.
Online consumer financing has been a strategic offering for PayPal since 2008, with the company launching its Pay in 4 product in 2020. The service allows consumers to split eligible purchases into 4 interest-free payments over 6 weeks. For merchants, this option drives higher sales. Globally, consumers who select BNPL spend over 80% per transaction on average compared with standard branded checkout.
PayPal Holdings Inc. (NASDAQ:PYPL) is a technology platform that enables digital payments for merchants and consumers worldwide.
Blue Owl Capital Inc. (NYSE:OWL) is an alternative asset manager in the US. It offers its solutions through permanent capital vehicles and long-dated private funds.
6. DoorDash Inc. (NASDAQ:DASH)
Number of Hedge Fund Holders: 100
DoorDash Inc. (NASDAQ:DASH) is one of the best NASDAQ stocks to buy according to hedge funds. On September 29, DoorDash and The Kroger Co. (NYSE:KR) announced that they are expanding their grocery delivery partnership. The expansion is a significant milestone for DoorDash, as Kroger will become the largest grocer available on its app.
The original partnership between the two companies began in 2022, and until recently, DoorDash was delivering a limited assortment of items: specifically, sushi from 900 Kroger stores and flowers from 1,700 Kroger stores. Starting October 1, DoorDash will begin offering delivery of Kroger’s full grocery assortment from all of Kroger’s 2,700 US stores.
DoorDash first launched grocery delivery in 2020 with a handful of partners, including Fresh Thyme and Meijer. The company previously offered grocery delivery from Walmart, but that partnership ended in 2022. Cincinnati-based Kroger operates stores in 35 states and the District of Columbia under various brands, including Ralphs, Smith’s, King Soopers, Fred Meyer, Harris Teeter, and Mariano’s.
DoorDash Inc. (NASDAQ:DASH) is a commerce platform that connects merchants, consumers, and independent contractors in the US and internationally.
The Kroger Co. (NYSE:KR) is a food and drug retailer in the US. The company operates a combination of food and drug stores, multi-department stores, marketplace stores, and price impact warehouses.
5. Intuit Inc. (NASDAQ:INTU)
Number of Hedge Fund Holders: 105
Intuit Inc. (NASDAQ:INTU) is one of the best NASDAQ stocks to buy according to hedge funds. On September 23, Intuit announced the rapid advancement of its proprietary GenAI Operating System/GenOS. Over the past 90 days, Intuit has accelerated the development of done-for-you agentic AI experiences at scale across its platform to fuel financial success for its ~100 million consumer and business customers worldwide.
Intuit’s foundation of AI and data capabilities includes generating 60 billion ML predictions daily, and maintaining 625,000 customer and financial attributes per small business and 70,000 tax and financial attributes per consumer. Intuit’s investment in a robust GenOS has been ongoing for the past 3 years. The company has supported GenOS with several new capabilities to streamline end-to-end agent development.
These include New custom-trained Financial Intuit LLMs fine-tuned on financial data, which power existing agentic AI capabilities in QuickBooks Online Virtual Team of AI Agents and Intuit Enterprise Suite Agentic AI Experiences and Financial Management Capabilities (introduced in July). Early results for some accounting workflows using these proprietary models show a 5% improvement in accuracy and a 50% reduction in latency compared to certain general-purpose off-the-shelf LLMs.
Intuit Inc. (NASDAQ:INTU) provides financial management, payments & capital, compliance, and marketing products & services in the US through four segments: Global Business Solutions, Consumer, Credit Karma, and ProTax.
4. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 156
Apple Inc. (NASDAQ:AAPL) is one of the best NASDAQ stocks to buy according to hedge funds. On September 26, Bloomberg reported that Apple has developed an internal, ChatGPT-like iPhone application code-named Veritas (Latin for truth) to test and prepare for a long-anticipated, high-stakes overhaul of its voice assistant, Siri. The existence of this internal tool marks a new phase in Apple’s AI preparations, as the new Siri is now slated to debut as early as March of the upcoming year, after multiple delays.
The Veritas app is currently for internal use only, and Apple has no immediate plans for a consumer release, reflecting executive reluctance about entering the general chatbot market, as articulated by Apple software chief Craig Federighi in a June interview with Tom’s Guide. The Veritas app allows Apple’s AI division to quickly evaluate new features for the revamped Siri, which include the ability to search through personal data, such as songs and emails, and perform in-app actions like editing photos.
The app, which is similar to popular chatbots, allows users to manage multiple conversations across different topics, save and reference past chats, follow up on earlier queries, and support extended back-and-forth exchanges. The software is designed to test the revamped underlying system, code-named Linwood, which relies on LLMs and combines work from Apple’s own Foundation Models team with a third-party model.
Apple Inc. (NASDAQ:AAPL) designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide.
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 235
NVIDIA Corporation (NASDAQ:NVDA) is one of the best NASDAQ stocks to buy according to hedge funds. On September 29, NVIDIA announced major updates to its robotics platform at CoRL in Seoul, South Korea, introducing new open-source models and simulation libraries designed to accelerate robotics R&D.
These technologies provide an open, accelerated platform that helps developers speed up iteration, standardize testing, unify training with on-robot inference, and enable robots to transfer skills safely and reliably from simulation to the real world. A cornerstone of this announcement is the open-source Newton Physics Engine, which is now available in NVIDIA Isaac Lab.
Codeveloped with Google DeepMind and Disney Research, and managed by the Linux Foundation, Newton is a GPU-accelerated physics engine built on the NVIDIA Warp and OpenUSD frameworks. Its flexible design supports complex robot actions, like walking on challenging terrain or handling delicate objects, which is crucial for humanoid robots whose complexity pushes current physics engines to their limits.
NVIDIA Corporation (NASDAQ:NVDA) is a computing infrastructure company that provides graphics and compute & networking solutions internationally.
2. Meta Platforms Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 260
Meta Platforms Inc. (NASDAQ:META) is one of the best NASDAQ stocks to buy according to hedge funds. On September 26, Meta Platforms announced that it will launch an ad-free subscription option for users of Facebook and Instagram in the UK in the coming weeks. This move is a response to regulatory guidance from the UK’s data protection authority, which had raised concerns about how platforms handle personal information for targeted advertising.
The subscription model offers users a choice: they can continue to use the services for free with targeted advertising or pay a monthly fee to use the apps without ads. Users who opt for the paid plan will not see ads, and their data will not be used for advertising purposes. The introduction of this ad-free tier is part of a broader industry trend where tech companies, including Apple and Alphabet’s Google, are adjusting their models due to increasing regulatory pressure over personal data use and targeted ads.
The pricing for the ad-free subscription is set at £2.99 a month for access via the web. For subscriptions made through iOS and Android mobile apps, the price will be £3.99 a month, with the higher price accounting for service charges imposed by Apple and Google. The company’s ads business accounted for about $164.5 billion in total revenue last year, with ads representing about 98% of that revenue.
Meta Platforms Inc. (NASDAQ:META) develops products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality and mixed reality headsets, augmented reality, and wearables worldwide.
1. Amazon.com Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 335
Amazon.com Inc. (NASDAQ:AMZN) is one of the best NASDAQ stocks to buy according to hedge funds. On September 27, Amazon Vice President Karthik Ramakrishnan, who was involved in the development of artificial general intelligence/AGI, stepped down from the company after 13 years of service. Ramakrishnan was a member of the team responsible for creating the Alexa voice assistant and Echo devices.
His prior professional experience includes roles at Netscape and Tellme Networks, the latter of which was later acquired by Microsoft Corp. (NASDAQ:MSFT). Ramakrishnan’s departure is the latest in a series of exits among Amazon’s senior AI leadership. Other recent departures include Vasi Philomin, who oversaw generative AI projects, and Jon Jones, who led AWS’s startups and venture capital division.
The resignations occur while Amazon is aggressively increasing its investment in AI to remain competitive with rivals such as OpenAI and Google. Amazon has invested ~$8 billion in Anthropic, the developer of the Claude model. Claude powers certain features of Amazon’s Alexa and an internal chatbot known as Cedric.
Amazon.com Inc. (NASDAQ:AMZN) engages in the retail sale of consumer products, advertising, and subscription services through online and physical stores in North America and internationally.
While we acknowledge the potential of AMZN 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 AMZN and that has 100x upside potential, check out our report about this cheapest AI stock.
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