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14 Most Undervalued NASDAQ Stocks to Buy Now

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In this article, we will take a look at the 14 Most Undervalued NASDAQ Stocks to Buy Now.

On September 22, stocks surged to mark a third consecutive day of record-high closes, driven by hopes that the AI trade and additional Fed policy easing would boost the upward trend. However, the surge was put on hold on a variety of fronts by Powell’s caution on September 23. The Nasdaq saw a nearly 1% drop in tech companies, with market favorites Nvidia and Amazon leading the selloff.

After resuming rate cuts again this past week, Powell hinted at a speech in Rhode Island that the central bank would proceed gradually, stressing the difficulty of managing its dual mandate.

Powell’s remarks prepared the scene for the release of the Personal Consumption Expenditures index, the Fed’s favored inflation indicator, on September 26. Expectations for two more rate cuts this year may be dampened if Wall Street sees indications that the already stubborn inflation isn’t becoming worse.

Our Methodology

To come up with our list of the most undervalued NASDAQ stocks to buy now, we went through a variety of online publications, ETFs, and stock screeners to note down equities with forward price-to-earning ratios less than 15. We also used the number of hedge fund investors to rank the stocks, as of Q2 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

14. Incyte Corporation (NASDAQ:INCY)

Forward P/E Ratio as of September 20: 12.28

Number of Hedge Fund Holders: 42

Incyte Corporation (NASDAQ:INCY) ranks among the most undervalued NASDAQ stocks to buy now. Citizens JMP reaffirmed its Market Perform rating on Incyte Corporation (NASDAQ:INCY) on September 18 after the company revealed updated clinical trial findings for its medication povorcitinib. The company evaluated povorcitinib in patients with moderate-to-severe hidradenitis suppurativa in its pivotal Phase 3 STOP-HS1/HS2 trials, presenting 24-week data at the EADV 2025 Congress.

According to Citizens JMP, povorcitinib continues to show promise in a field that is becoming increasingly competitive, with Phase 3 trials in vitiligo, prurigo nodularis, and CSU currently underway.

Although the firm estimates that the approval of povorcitinib could result in peak revenues of $1 billion, it says that Incyte shares are fairly valued as it waits for a significant acquisition and pipeline discipline to balance the projected $3 billion+ ruxolitinib patent gap by 2029.

Incyte Corporation (NASDAQ:INCY), an American global pharmaceutical company, operates as a market leader in developing treatments for patients suffering from various diseases, including cancer.

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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