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5 Best Growth Stocks To Buy According To Hedge Funds

In this article, we will be taking a look at the 5 best growth stocks to buy according to hedge funds. To read our detailed analysis of the US markets today, you can go directly to see the 16 Best Growth Stocks To Buy According To Hedge Funds.

5. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 175

NVIDIA Corporation (NASDAQ:NVDA) is a semiconductor company based in Santa Clara, California. The company provides graphics, computing, and networking solutions.

An Overweight rating and a $750 price target were placed on NVIDIA Corporation (NASDAQ:NVDA) shares on October 3 by John Vinh at Keybanc.

NVIDIA Corporation (NASDAQ:NVDA) was seen in the portfolios of 175 hedge funds in the second quarter, with a total stake value of $25.9 billion.

Follow Nvidia Corp (NASDAQ:NVDA)

4. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 204

There were 204 hedge funds long Alphabet Inc. (NASDAQ:GOOGL) in the second quarter, with a total stake value of $17.3 billion.

Alphabet Inc. (NASDAQ:GOOGL) is an interactive media and services company. It is based in Mountain View, California.

Justin Post at BofA Securities maintains a Buy rating and a $146 price target on Alphabet Inc. (NASDAQ:GOOGL) shares as of October 4.

Oakmark Funds mentioned Alphabet Inc. (NASDAQ:GOOGL) in its third-quarter 2023 investor letter:

Alphabet Inc. (NASDAQ:GOOG)(U.S.) was the top contributor for the fiscal year. Alphabet reported multiple strong sets of earnings releases over the past year, and its results generally exceeded consensus estimates across key metrics. Most recently, search revenue growth accelerated from 5% to 6.5% sequentially in the second quarter, a notable development given lingering economic uncertainty and broader advertising weakness. Cloud growth remained at 30%, stable versus the previous quarter, despite continued headwinds from customers optimizing cloud usage. Margin progression also continued, and cloud margins reached 5%. CFO Ruth Porat emphasized that the largest impact from the company’s cost[1]saving initiatives will not be felt until 2024. YouTube continues to prioritize its Shorts segment, which is experiencing strong viewership growth. Although this is a near-term revenue headwind, we believe Shorts’ monetization will accelerate over time. Addressing the year’s hottest topic, CEO Sundar Pichai said Alphabet is an “AI-first company” that is “extremely well-positioned as AI reaches an inflection point.” At Alphabet’s annual developer conference in May, it showcased an impressive array of new AI-powered consumer tools to be rolled out over the course of the year. Investors reacted positively to these presentations, which highlighted the company’s impressive innovations in AI technologies. Overall, we believe the company is positioned well to reap the benefits of the scale of its search business and years of its investment into AI capabilities. We also appreciate that the company is undergoing a transformation on how it views cost discipline and efficiency.”

Follow Google Inc. (NASDAQ:GOOG)

3. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 225

An Overweight rating and a $372 price target were placed on shares of Meta Platforms, Inc. (NASDAQ:META) on October 9 by Ken Gawrelski at Wells Fargo.

Meta Platforms, Inc. (NASDAQ:META) is another interactive media and services company on our list. It operates several social media platforms like Facebook, Instagram, and WhatsApp.

In the second quarter, 225 hedge funds held stakes in Meta Platforms, Inc. (NASDAQ:META). Their total stake value in the company was $30.9 billion.

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

Number of Hedge Fund Holders: 278

Amazon.com, Inc. (NASDAQ:AMZN) is a broad-line retail company. It also owns and operates a high-end cloud computing business under the name of Amazon Web Services.

We saw 278 hedge funds long Amazon.com, Inc. (NASDAQ:AMZN) in the second quarter, with a total stake value of $34.9 billion.

Ken Gawrelski at Wells Fargo reiterated an Overweight rating and a $165 price target on Amazon.com, Inc. (NASDAQ:AMZN) shares on October 10.

Follow Amazon Com Inc (NASDAQ:AMZN)

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 300

Brent Thill at Jefferies holds a Buy rating and a $400 price target on Microsoft Corporation (NASDAQ:MSFT) as of October 2.

At the end of the second quarter, 300 hedge funds were long Microsoft Corporation (NASDAQ:MSFT). Their total stake value was $69.8 billion.

Microsoft Corporation (NASDAQ:MSFT) is a systems software company based in Redmond, Washington. It develops and supports software, services, devices, and solutions worldwide.

Follow Microsoft Corp (NASDAQ:MSFT)

See also 10 Oversold Growth Stocks To Buy and 12 Best Growth Stocks Under $10.

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.

Since March 2017, my stock picks have returned 16.5% annually. Today, I’ve found an opportunity even bigger than my British American Tobacco call.

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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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