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5 Best Growth Stocks to Buy According to Hedge Funds

In this article, we discuss 5 best growth stocks to buy according to hedge funds. If you want to see more of the best growth stocks, go directly to 15 Best Growth Stocks to Buy According to Hedge Funds.

5. Mastercard Incorporated (NYSE:MA)

Number of Hedge Fund Holders: 146

Mastercard Incorporated (NYSE:MA) offers payment processing and other payment-related products and services domestically and internationally. Donald Fandetti, an analyst at Wells Fargo, maintained an ‘Overweight’ rating on the shares of Mastercard Incorporated (NYSE:MA) and increased his price objective to $405 from $365 on December 15.

As per Insider Monkey’s database, 146 hedge funds were bullish on Mastercard Incorporated (NYSE:MA) at the end of the third quarter.

In its Q2 2022 investor letter, Baron Funds highlighted a few stocks and Mastercard Incorporated (NYSE:MA) was one of them. Here is what the fund said:

“The Fund’s holdings in the Payments and Information Services themes also contributed to relative performance. Within Payments, lower exposure to this lagging theme and outperformance of Mastercard Incorporated (NYSE:MA) added the most value. These global payment networks are viewed as safe havens during market downturns but are also benefiting from resilient payment volumes and a sharp rebound in international travel.”

4. Visa Inc. (NYSE:V)

Number of Hedge Fund Holders: 165

Visa Inc. (NYSE:V.A) is a global payments technology firm. Consumers, retailers, financial institutions, and governments worldwide use the company’s payments service. Darrin Peller, an analyst at Wolfe Research, boosted his price objective on Visa Inc. (NYSE:V.A) to $255 from $240 on January 5 and reiterated an ‘Outperform’ rating on the stock.

Visa Inc. (NYSE:V.A) shares have gained about 77.67% in value over the last five years. As of Q3 2022, 165 hedge funds have positions in Visa Inc. (NYSE:V.A).

Follow Visa Inc. (NYSE:V)

3. Alphabet Inc. (NASDAQ:GOOGL.A)

Number of Hedge Fund Holders: 196

Alphabet Class A has a consensus recommendation of ‘Strong Buy’ from 31 Wall Street analysts based on 31 buy ratings, 0 hold ratings, and 0 sell ratings.

According to our database, Alphabet Inc. (NASDAQ:GOOGL.A)’s long hedge funds positions increased during the third quarter of 2022. There were 196 hedge funds that hold a position in Alphabet Inc. (NASDAQ:GOOGL.A) compared to 191 funds in the second quarter.

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2. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 269

Amazon.com, Inc. (NASDAQ:AMZN) offers its customers a wide range of products and services. At the end of the third quarter of 2022, 269 hedge funds in the database of Insider Monkey held stakes worth $34.60 billion in Amazon.com, Inc. (NASDAQ:AMZN), up from 252 in the preceding quarter worth $30.08 billion.

On January 4, New Street analyst Dan Salmon initiated coverage of Amazon.com, Inc. (NASDAQ:AMZN), labelling the business his Top Pick in the US Internet sector and rating the stock as a ‘Buy’ with a $130 price target. He anticipated that a continuous move in the revenue mix toward higher margin industries, led by Amazon Web Services and advertising, would support further operating leverage and margin potential.

Lakehouse Capital, an investment management company, mentioned Amazon.com, Inc. (NASDAQ:AMZN) in its November 2022 investor letter. Here is what the fund said:

“Meanwhile, the largest detractor was Amazon.com, Inc. (NASDAQ:AMZN), which remained under pressure due to concerns around near-term profitability. We continue to believe that Amazon’s cost pressures will prove to be short-term in nature and that the company remains on track to deliver significant profit improvements over the next twelve months. For more commentary on their most recent earnings report please see last month’s letter here.”

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1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 269

Microsoft Corporation (NASDAQ:MSFT) creates and supports software, services, hardware, and other products. Michael Larson’s Bill & Melinda Gates Foundation Trust is the biggest stakeholder of Microsoft Corporation (NASDAQ:MSFT) as of September this year, increasing its stake in the company by an impressive 4057% in Q3, holding 39.26 million shares worth almost $9.14 billion.

Gil Luria, an analyst at DA Davidson, initiated coverage of Microsoft Corporation (NASDAQ:MSFT) on January 4 rating the stock as ‘Buy’ with a $270 price target. According to the analyst, the firm should remain robust in the face of a future global economic crisis, which justifies the stock’s premium value.

Here’s what TimesSquare Capital Management said about Microsoft Corporation (NASDAQ:MSFT) in its Q3 2022 investor letter:

“Microsoft Corporation (NASDAQ:MSFT) develops, licenses, and supports software solutions worldwide. Fiscal fourth quarter results were generally in line with consensus estimates, though profits missed slightly. While its Azure cloud business continues to perform well, the personal computer market has declined with inflation having an impact. Its shares experienced a -9% selloff.”

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Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily newsletter to get  the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out our articles on 11 Best Small Cap AI Stocks to Invest In and 12 Best Affordable Stocks to Buy Under $5.

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

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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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Buy This $3 Stock Now Before the 400% Surge Begins

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

My name is Inan Dogan. I’m the co-founder and Research Director of Insider Monkey. I have an important message for you today.

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We looked under the cover and realized they were wrong.

We alerted our subscribers, and BTI returned 90% in just 16 months.

Now if you had invested just $10,000 in BTI in June 2024, you’d be sitting on $19,000 in October 2025.

Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

While the market panics over a surface-level revenue decline, our PhD-led research shows management has actually surgically cut $100 million in waste to focus on high-margin growth.

This pattern is a hallmark of our 16.5% annual return track record. The current opportunity offers a 400% upside potential—dwarfing even our 90% BTI return.

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