In this article, we discuss the 5 best cryptocurrency stocks to buy according to hedge funds. If you want to read our detailed analysis of cryptocurrencies, go directly to see the 11 Best Cryptocurrency Stocks To Buy According To Hedge Funds.
5. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hegde Fund Holders: 63
Advanced Micro Devices, Inc. (NASDAQ:AMD) stands fifth on our list of the best cryptocurrency stocks to buy according to hedge funds. The company makes CPUs and GPUs which are used for bitcoin mining. In June, Advanced Micro Devices, Inc. (NASDAQ:AMD) underperformed as China sharpened its crackdown on crypto mining. However, the stock gained 26.14% in 2021 and 41.99% in the past year.
This October, Goldman Sachs called Advanced Micro Devices, Inc. (NASDAQ:AMD) as its best idea in the semiconductor market and lifted its price target on the stock to $127, with a Buy rating on the shares. In Q2 2021, Advanced Micro Devices, Inc. (NASDAQ:AMD) posted an EPS of $0.63, beating the estimates by $0.09.
Ken Fisher’s Fisher Asset Management is one of the leading shareholders of Advanced Micro Devices, Inc. (NASDAQ:AMD), with shares worth $941 million. Overall, 63 hedge funds tracked by Insider Monkey reported having stakes in the company, valued at over $4.6 billion. In the previous quarter, 61 hedge funds had stakes in Advanced Micro Devices, Inc. (NASDAQ:AMD).
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 86
NVIDIA Corporation (NASDAQ:NVDA) reported solid earnings in Q2, with a record gaming revenue of $3.06 billion, up 85% from the prior-year quarter. The company posted an EPS of $1.04, beating the estimates by $0.02. NVIDIA Corporation (NASDAQ:NVDA) stands fourth on our list of the best cryptocurrency stocks to buy according to hedge funds.
Mainly a technology company, NVIDIA Corporation (NASDAQ:NVDA) develops processors that are used to mine cryptocurrencies. As of Q2, Aubrey Capital Management is the company’s largest shareholder, owning shares worth $11.2 billion. In addition to this, 86 hedge funds tracked by Insider Monkey were bullish on NVIDIA Corporation (NASDAQ:NVDA), valued at over $9 billion. In the previous quarter, 80 hedge funds had stakes in the company, highlighting a positive hedge fund sentiment.
Recently, KeyBanc lifted its price target on NVIDIA Corporation (NASDAQ:NVDA) to $260, with an Outperform rating on the shares. The stock is up 69.4% in 2021.
Harding Loevner mentioned NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2021 investor letter. Here is what the firm has to say:
“Within IT, shares of US-based computer chip developer NVIDIA continued their climb as rising demand across segments-from work-from-home laptops to data centers to cryptocurrency mining rigs-led to shortages that translated into surging prices for its chips. Such was the windfall that NVIDIA even made technical changes to some of its products to make them towards waht it believes are more sustainable uses. Less attractive to cryptocurrency miners, to steer scarce supply viewed by geography, the lion’s share of excess returns came from good stock performance in the US. In addition to the contributions from NVIDIA and our health care holdings, a pair of IT software and service providers also aided relative returns.”
3. Square, Inc. (NYSE:SQ)
Number of Hedge Fund Holders: 94
Earlier this year, Square, Inc. (NYSE:SQ) announced that it plans to develop bitcoin mining hardware as the company witnessed a surge in digital payments. Square, Inc. (NYSE:SQ) is a financial services and digital payments company that ranks third on our list of the best cryptocurrency stocks to buy according to hedge funds.
Recently, Atlantic Equities upgraded Square, Inc. (NYSE:SQ) to an Overweight rating with a $300 price target, highlighting the company’s future growth potential. In Q2 2021, the company posted an EPS of $0.66, beating the estimates by $0.35. Square, Inc. (NYSE:SQ) reported revenue of $4.6 billion, up 143% from the prior-year quarter.
Of the 873 elite funds tracked by Insider Monkey, 94 hedge funds have stakes in Square, Inc. (NYSE:SQ) in Q2, up from 92 in the previous quarter. The total value of these stakes is $10.2 billion.
RiverPark Funds mentioned Square, Inc. (NYSE:SQ) in its Q1 2021 investor letter. Here is what the firm has to say:
“We established a position in leading Financial Technology provider Square during the quarter. Through one integrated system, SQ is a hybrid of two businesses: its Seller Business (charging small and medium-sized businesses about 3% for transaction payment processing, plus other services such as instant funds access, and software for everything from customer engagement to payroll), and its Cash App (originally for person-to-person cash transfers and now a growing digital financial services provider for consumers).
The combined business has grown gross profit at a 37% CAGR over the past five years to $2.7 billion (due to pass through costs, gross profit is more reflective of top-line growth) and we believe that the company has an enormous long-term runway, as it has less than a 2% share of a more than $160 billion market. It is our view that the company’s Cash App (which has grown
from nothing in 2015 to $1.2 billion gross profit last year) has a particularly large opportunity with its powerful ecosystem of digital financial services including digital wallets, direct deposits, stock trading, bitcoin trading, and business and tax services, which are all relatively new. The vast majority of Cash App’s more than 36 million users are younger and, importantly, are willing to replace their bank and other financial services accounts with the app.We estimate that the company can grow its gross profit more than 30% and EBITDA more than 50% annually for the foreseeable future, and while most of the company’s current profit is from its Seller Business, we believe most of Square’s future value will be from its Cash App business.”
2. PayPal Holdings, Inc. (NASDAQ:PYPL)
Number of Hedge Fund Holders: 143
PayPal Holdings, Inc. (NASDAQ:PYPL) is a financial services company that facilitates online money transfers and has recently allowed users to checkout with cryptocurrencies as well. The company stands second on our list of the best cryptocurrency stocks to buy according to hedge funds.
Since the beginning of the year, PayPal Holdings, Inc. (NASDAQ:PYPL) delivered a 17.15% return to shareholders, while the stock gained 34.5% in the past year. This September, DA Davidson lifted its price target on PayPal Holdings, Inc. (NASDAQ:PYPL) to $325, while keeping a Buy rating on the shares.
As of Q2 2021, Codex Capital is the leading shareholder of PayPal Holdings, Inc. (NASDAQ:PYPL), with shares worth $9.5 billion. In addition to this, 143 hedge funds tracked by Insider Monkey have stakes in the company in Q2, the same as in the previous quarter. These stakes are valued at $16.3 billion.
Wedgewood Partners mentioned PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q2 2021 investor letter. Here is what the firm has to say:
“Top performance detractors for the first quarter include PayPal. PayPal reported +40% growth in total payment volume to $311 billion during the second quarter’s most recent report. In spite of this impressive growth, the stock detracted from performance as the market became overly concerned about the pace at which its legacy eBay business rolled off. Despite the stock’s premium valuation, we continue to hold PayPal as a core position and think eBay represents short-term noise in PayPal’s longer-term drive to become a “super-app” with payments at its core.”
1. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders: 156
Mastercard Incorporated (NYSE:MA) recently revealed a new deal in its crypto segment by acquiring CipherTrace, a cryptocurrency intelligence company, to ensure the security of digital payments. The company tops our list of the best cryptocurrency stocks to buy according to hedge funds.
On September 20, Mastercard Incorporated (NYSE:MA) announced a quarterly dividend of $0.44 per share, yielding 0.52%. The company has a track record of 7 years of dividend growth. In Q2, Mastercard Incorporated (NYSE:MA) posted an EPS of $1.95, beating the estimates by $0.20. This August, JPMorgan lifted its price target on the stock to $430, while keeping an Overweight rating on the shares.
In Q2 2021, the number of hedge funds tracked by Insider Monkey having stakes in Mastercard Incorporated (NYSE:MA) increased to 156, from 151 in the previous quarter. The total value of these stakes is over $17 billion.
Ensemble Capital mentioned Mastercard Incorporated (NYSE:MA) in its recently published Q3 2021 investor letter. Here is what the firm has to say:
“Mastercard: Mastercard’s role as a payment network has seen strong growth as the economic recovery around the world continues, and customers go back to more regular spending habits. Core spending growth of 38% against the highly impacted COVID affected quarter last year and 25% over 2019 levels are fueling revenue growth of 20%+ despite still depressed cross border fees, whose expected recovery from a resumption in travel, has been delayed by the Delta variant waves. In addition, a lot of news flow about potential rival small but fast-growing payment tech firms has dampened sentiment on the stock but we believe the bar is high for firms to compete instead of partnering with Mastercard to transact payments. The stock finished the quarter down 3% and is flat for the year.”
You can also take a look at 10 Best Cryptocurrencies to Invest in According to Hedge Fund Billionaires and 10 Biggest Cryptocurrency Predictions in 2021
