In this article, we will take a look at the 15 Best FAANG Stocks to Buy According to Hedge Funds.
FAANG stands for Facebook (now Meta Platforms), Apple, Amazon, Netflix, and Google, five of the most significant American tech companies. The phrase was made popular in 2013 by Jim Cramer, who used it to highlight a collection of tech stocks that were performing exceptionally well and seemed to be gaining momentum. It was only “FANG” at first, but in 2017, Apple was added owing to its similar size and market influence.
These companies have an enormous bearing on the global economy, are renowned for innovation, and dominate their respective industries. These days, FAANG companies, which were first lumped together owing to their robust stock market performance and growth potential, have gained popularity as a shorthand for US tech heavyweights.
In recent years, tech companies have served as a haven for the stock market at different points, including during the COVID-19 pandemic. In that regard, Todd Rosenbluth, director of research at VettaFi, stated that the broadest bets on technology are also the broadest bets on a robust US stock market.
While Rosenbluth acknowledges that the tech industry was viewed as a somewhat safe sanctuary for investors during COVID, 2020 also saw an abrupt increase in reliance on technology, which resulted in a boom in the tech sector that was unlike any other. Despite a decline in 2022, he claimed that the development of AI and the growth of the chip industry, which was led by NVIDIA, had kept the tech sector a rather stable grower.
Furthermore, Mark Malek, the CIO of Siebert Financial, stated in an interview with CNBC on May 30 that he continues to believe tech and communication stocks, particularly those that power the larger tech sector, can be held for the long run. Notably, he views AI as a significant long-term opportunity and likened it to other technological revolutions like the PC and software revolutions.
Our Methodology
For this list, we noted down all stocks that comprise FAANG. However, we also added stocks that, although not part of the original FAANG group, possess valuations and influence that position them at the forefront of the tech industry. These tech stocks were ranked based on the number of hedge fund investors that hold stakes in them, as of Q1 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).
15. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 104
Tesla, Inc. (NASDAQ:TSLA) ranks among the best FAANG stocks to buy according to hedge funds. On June 27, TD Cowen maintained its $330 price target and Buy rating on Tesla, Inc. (NASDAQ:TSLA), ahead of the electric vehicle manufacturer’s second-quarter delivery report.
From its initial prediction of 400,000 vehicles, the firm lowered its Q2 delivery projection to 362,000. While forecasts for Europe were largely the same, the adjustment reflected lower delivery expectations in China and the US, which were somewhat offset by other international markets. Even with the decrease, the updated delivery estimate is still greater than the 337,000 vehicles that Tesla, Inc. (NASDAQ:TSLA) shipped in the first quarter of 2025.
Based on the lower delivery prediction, the firm also decreased its second-quarter earnings per share estimate from $0.37 to $0.33. That said, TD Cowen stuck to its longer-term earnings forecasts for the company.
Based in Austin, Texas, Tesla, Inc. (NASDAQ:TSLA) is a well-known clean energy company that is best known for its electric vehicles (EVs). In addition to designing, producing, and marketing EVs, Tesla also offers solar panels, solar shingles, and energy storage devices.
14. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 111
Adobe Inc. (NASDAQ:ADBE) ranks among the best FAANG stocks to buy according to hedge funds. Citizens JMP analyst firm reaffirmed its Market Perform rating on Adobe Inc. (NASDAQ:ADBE) on June 23 as the software behemoth deals with renewed competition in the market. The rating followed the announcement by privately held rival Canva that it will acquire MagicBrief, an AI-powered ad platform that assists marketers in comprehending and reacting to high-performing content forms and strategies.
MagicBrief attracted Canva’s attention after completing a $1.3 million pre-seed fundraising round in July 2023, which was headed by Blackbird Ventures. Although the acquisition price has not been formally disclosed, Citizens JMP’s report indicates that Canva spent about $10 million for MagicBrief.
On the other hand, Adobe Inc. (NASDAQ:ADBE) has also advanced in terms of both its financial outlook and product offerings. Notably, the company extended its AI-assisted content creation platform to mobile devices with the release of Firefly for iOS and Android. Features like text-to-image and text-to-video are included in this new software, which also integrates many third-party AI models. The company further reported that Firefly has seen a 30% rise in traffic quarter-over-quarter.
Adobe Inc. (NASDAQ:ADBE) is a world leader in software creation, known for its cutting-edge digital media solutions. Its major products, including Photoshop and Acrobat are essential tools for creative sectors and organizations across the globe.
13. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders: 125
Alibaba Group Holding Limited (NYSE:BABA) ranks among the best FAANG stocks to buy according to hedge funds. Alibaba Group Holding Limited (NYSE: BABA) announced on June 23 that it will combine its online travel agency, Fliggy, and food delivery platform Ele.me into its core e-commerce business. The change, according to the company, was a “strategic upgrade” as it moves from a standard e-commerce company to a more comprehensive platform that is centered on customers.
Alibaba Group Holding Limited (NYSE: BABA) views e-commerce as essential to its future expansion, both domestically and internationally. To that end, the company intends to improve AI-driven search and suggestions, as well as monetization capabilities, to increase the quality of consumption rather than just volume. It is expected that growing cross-border demand will also help its international platforms, such as AliExpress and Lazada.
Alibaba Group Holding Limited (NYSE:BABA) is an e-commerce and technology company that caters to small business owners and consumers. The company is also a pioneer in cloud computing, logistics, and digital media.
12. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 140
Salesforce, Inc. (NYSE:CRM) ranks among the best FAANG stocks to buy according to hedge funds. On June 26, Cantor Fitzgerald reaffirmed its $325 price target and Overweight rating on Salesforce, Inc. (NYSE:CRM). The firm’s update coincides with Salesforce’s ongoing efforts to enhance its artificial intelligence capabilities by offering customers pre-built agent solutions.
These pre-built agents, according to Cantor Fitzgerald, are a calculated move to encourage Salesforce, Inc. (NYSE:CRM) users to embrace AI. In an analysis note, the firm explained further:
“These pre-built agents are yet another way to lower barriers and make AI Agent adoption as seamless and painless as possible for customers, while also removing friction from high-cost implementation schedules.”
Additionally, Salesforce, Inc. (NYSE:CRM) recently launched Agentforce 3, an update to its digital labor platform that includes new tools, including a Command Center for AI agent monitoring. According to reports, this modification has significantly improved administrative chat interactions for early adopters and reduced customer case handle time by 15%.
Salesforce, Inc. (NYSE:CRM) is a cloud-based software company focused on customer relationship management. The company offers custom software and solutions for various applications, such as analytics, marketing automation, and sales.
11. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 145
Uber Technologies, Inc. (NYSE:UBER) ranks among the best FAANG stocks to buy according to hedge funds. Bernstein maintained its $95 price target and Outperform rating on Uber Technologies, Inc. (NYSE:UBER) following reports that the company would be considering purchasing Pony.ai’s US operations.
Uber Technologies, Inc. (NYSE:UBER) is reportedly in talks to support Travis Kalanick, its founder and former CEO, in his attempt to acquire the Chinese automaker’s US operations, according to the New York Times. The discussions are still in their early stages, with little financial information provided and no clear definition of Uber’s precise role.
According to Nikhil Devnani, an analyst at Bernstein, the deal seems to be a possible equity investment from Uber Technologies, Inc. (NYSE:UBER) and other investors, with Kalanick positioned to manage the company and collaborate with Uber’s network. The analyst stated that this “creative deal” might be spurred by regulatory issues that make Chinese autonomous vehicles “untenable in the US.”
Uber Technologies, Inc. (NYSE:UBER) is a prominent global supplier of ride-hailing, food delivery, and freight services. Since its inception, the company has revolutionized urban transportation by bringing drivers and passengers together via its mobile app.
10. Netflix Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders: 150
Netflix Inc. (NASDAQ:NFLX) ranks among the best FAANG stocks to buy according to hedge funds. On June 13, JPMorgan reaffirmed its $1,220 price target and Neutral rating for Netflix Inc. (NASDAQ:NFLX). The firm clarified that the reason for its previous May 19 downgrade to Neutral was not concerns about Netflix’s dominant position in the streaming market, but rather that “the risk/reward in NFLX shares has become more balanced” after considerable stock price growth.
Investors have consistently resisted JPMorgan in three areas since the May downgrade: the expectation that the second half content slate might be “the strongest 6-month period ever,” the beginning stages of advertising with potential for stronger monetization, and forecasts that estimates will rise in response to pricing power, advertising growth, and content strength.
That said, despite its growth potential, JPMorgan upheld its assessment that Netflix Inc. (NASDAQ:NFLX)’s shares are “well owned and the risk/reward is less compelling,” weighing the company’s solid fundamentals against its current valuation measures.
Netflix Inc. (NASDAQ:NFLX) is a well-known global streaming platform that provides limitless access to a vast collection of films, TV series, and video games on devices with internet connections.
9. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders: 155
Mastercard Incorporated (NYSE:MA) ranks among the best FAANG stocks to buy according to hedge funds. On June 24, Mastercard Incorporated (NYSE:MA) and Chainlink announced a collaboration that will enable Mastercard cardholders to use a fiat-to-crypto conversion service to purchase cryptocurrency assets directly on blockchain networks.
The partnership makes direct bitcoin purchases possible by fusing Chainlink’s interoperability technology with Mastercard Incorporated (NYSE:MA)’s worldwide payments network. Moreover, the collaboration attempts to eliminate obstacles that have kept the general public from using blockchain-based financial services. The companies claim that the integration gives users a consistent experience that renders it easier for payment cardholders to acquire cryptocurrencies.
According to Raj Dhamodharan, Executive vice president of Blockchain & Digital Assets at Mastercard Incorporated (NYSE:MA):
“People want to be able to connect to the digital assets ecosystem easily.”
Mastercard Incorporated (NYSE:MA) is a multinational payments technology company. By facilitating safe and effective electronic payments, it links customers, banks, retailers, governments, and enterprises.
8. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 158
Broadcom Inc. (NASDAQ:AVGO) ranks among the best FAANG stocks to buy according to hedge funds. On June 17, Broadcom Inc. (NASDAQ:AVGO) announced that VMware Cloud Foundation (VCF) 9.0, a platform made for contemporary private cloud environments, was now generally available. The company claims that the new platform offers a uniform operating paradigm for private cloud across edge computing, data centers, and managed cloud infrastructure from hyperscalers and service providers.
Platform and development teams will now be able to have a more efficient experience with VCF 9.0, which also offers a uniform interface for cloud managers. The platform supports traditional, cloud-native, and artificial intelligence applications through the incorporated vSphere Kubernetes Service, which allows virtual machines and containers to be managed together.
Additionally, the platform incorporates improvements to Broadcom Inc. (NASDAQ:AVGO)’s advanced services portfolio, including VMware Live Recovery, VMware vDefend, VMware Data Services Manager, VMware Private AI Foundation with NVIDIA, and Avi Load Balancer.
Broadcom Inc. (NASDAQ:AVGO) is a multinational semiconductor company specializing in the design, development, and distribution of a wide range of products.
7. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 159
Apple Inc. (NASDAQ:AAPL) ranks among the best FAANG stocks to buy according to hedge funds. On June 26, UBS maintained its $210 price target and Neutral rating on Apple Inc. (NASDAQ:AAPL), despite reports that the tech giant is considering purchasing or collaborating with Perplexity AI. According to UBS, the alleged purchase would be the largest in Apple’s history, costing at least $14 billion, or more than 10% of the company’s annual free cash flow.
Despite being financially feasible, UBS pointed out Apple’s “mixed” history of incorporating larger acquisitions like Beats and Intel’s modern division. UBS also pointed out that Perplexity has been accused of plagiarism and unauthorized material use in the past, further complicating the potential deal.
Given Apple’s “underwhelming” AI efforts thus far, the firm warned that acquiring Perplexity would be seen as “defensive in nature, not a positive catalyst,” especially since the Google DOJ case is scheduled for remedies in August 2025.
Apple Inc. (NASDAQ:AAPL) is a global tech company that is known for its core offerings, the iPhone, Mac, and Apple Watch, as well as its expansive service portfolio, which includes iCloud and Apple Music.
6. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 165
Visa Inc. (NYSE:V) ranks among the best FAANG stocks to buy according to hedge funds. Mizuho analysts raised their price target for Visa Inc. (NYSE:V) from $359 to $425 while upgrading it from Neutral to Outperform on June 5. The analysts emphasized that Visa’s cash-to-card conversion rate, which has historically made a substantial contribution to the company’s volume growth, has the potential for continued growth.
The analysts stated that since the epidemic, spending has moved away from card-based categories, which has had an impact on Visa’s growth. However, this trend has begun to shift, and there is hope that the U.S. cash-to-card conversion runway will be longer than previously thought.
Visa’s performance in areas like Canada and the Nordics, where card penetration is above 90%, comes as additional proof of possible expansion beyond personal consumption expenditures. In expectation of better volume growth in the United States, the analysts raised their projections for fiscal years 2026 and 2027.
Visa Inc. (NYSE:V) is a global payments technology company that operates one of the world’s largest electronic payment networks.
5. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 187
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) ranks among the best FAANG stocks to buy according to hedge funds. BofA analyst Brad Lin maintained his Buy rating on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) at $220 on June 5. The semiconductor company has reaffirmed its 2025 revenue guidance with strong growth in the mid-20% range expected due to rising demand for AI-related technology.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) now has a stronger competitive edge in the semiconductor sector thanks to its strategic partnerships with major industry leaders like Hon Hai and NVIDIA. The company is also in a solid position to benefit from the growing AI sector, with applications ranging from data centers to edge devices like PCs, smartphones, and IoT.
The company is expected to maintain its growth trajectory due to its proactive global expansion and R&D spending, even in the face of possible macroeconomic concerns and currency fluctuations.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a leading Taiwanese company that offers semiconductor manufacturing services.
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 212
NVIDIA Corporation (NASDAQ:NVDA) ranks among the best FAANG stocks to buy according to hedge funds. According to The Logic, NVIDIA Corporation (NASDAQ:NVDA) bought Canadian AI firm CentML on June 27, integrating its personnel and leadership.
Founded in 2022, CentML is a machine learning company that offers an optimization platform to improve the performance and affordability of AI model training and deployment. NVIDIA Corporation (NASDAQ:NVDA) already had ties to the firm, having invested in CentML’s US$27 million seed fundraising round in October 2023. In November 2024, CentML also became a member of NVIDIA’s accelerator program, which granted the firm access to technical resources and hardware savings.
The Logic further states that NVIDIA Corporation (NASDAQ:NVDA) has employed at least 15 engineers and two interns from CentML this month, based on their LinkedIn profiles.
NVIDIA Corporation (NASDAQ:NVDA), a world leader in networking and graphics processing, provides GPUs for the AI, gaming, HPC, and other industries. The company’s products span data centers, gaming, professional visualization, and the automotive markets.
3. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 227
Alphabet Inc. (NASDAQ:GOOGL) ranks among the best FAANG stocks to buy according to hedge funds. On June 26, Citizens JMP raised Alphabet Inc. (NASDAQ:GOOGL) from Market Perform to Market Outperform, with a $220 price target. Given that OpenAI has 800 million weekly active users compared to Google’s more than 5 billion, Citizens JMP believes AI is evolving into a net benefit for Google rather than an imminent risk.
According to the firm, AI Overviews, which went live in the US in May, caused a 10% increase in testing queries and is anticipated to grow from 1.5 billion monthly users in Q1 2025 to 4 billion by Q3 2025. According to the research firm, although ChatGPT is gaining some market share in searches based on OpenAI’s $10 billion yearly recurring revenue revealed in June, its subscriber base is only expected to reach 20 million in the second quarter of 2025. This suggests that Google’s query growth can pick up speed in both the second and third quarters of 2025.
Alphabet Inc. (NASDAQ:GOOGL) is a leading tech giant with a diverse portfolio, offering products such as Google ads, Google Chrome, Search, and YouTube, holding a dominant position in each of these markets.
2. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 273
Meta Platforms, Inc. (NASDAQ:META) ranks among the best FAANG stocks to buy according to hedge funds. Piper Sandler maintained its Overweight rating on Meta Platforms, Inc. (NASDAQ:META) on June 27 and raised its price target to $808, stating that new artificial intelligence tools are raising ad conversion rates to a level that will sustain revenue growth in the mid-teens for several years.
Having analyzed the effects of new machine-learning technologies that the social media behemoth began implementing earlier this year, the firm named it its “top large-cap pick” and pushed Meta’s 2026 and 2027 revenue projections up 1% and 3%, respectively.
Additionally, the firm projects that, under conservative projections, WhatsApp’s ad sales may reach $7 billion in 2026, while Threads’ could surpass $500 million.
Meta Platforms, Inc. (NASDAQ:META) is a renowned technology company known primarily for its flagship platforms Facebook, Instagram, and WhatsApp, as well as its revolutionary advances in augmented reality (AR) and virtual reality (VR).
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 328
Amazon.com, Inc. (NASDAQ:AMZN) ranks among the best FAANG stocks to buy according to hedge funds. On June 25, JPMorgan reaffirmed its $240 price target and Overweight rating for Amazon.com, Inc. (NASDAQ:AMZN), emphasizing the growing value of the company’s Prime membership service.
According to the investment bank, the expected value of a Prime subscription has increased steadily, from $544 in 2016 to roughly $1,345 in 2024 and now to almost $1,430 annually in 2025. JPMorgan’s study indicates that this valuation is around ten times the actual annual Prime subscription cost and marks a 6% rise from the firm’s 2024 projection.
The bank predicts that Amazon.com, Inc. (NASDAQ:AMZN) may raise the price of Prime in 2026, continuing the company’s practice of price increases about every four years, as was mirrored in its 2022 price update.
Amazon.com, Inc. (NASDAQ:AMZN) is a major technology company that runs the world’s largest e-commerce and cloud computing businesses. The company also offers digital streaming and AI technology.
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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