In this article, we will list the 5 Best Hot Stocks to Buy for June. Please visit 10 Best Hot Stocks to Buy for June if you would like to see the extended list and the methodology behind it.
5. Onto Innovation Inc. (NYSE:ONTO)
Stock Upside Potential: 28.03%
Year to Date Gain: 62.17%
Number of Hedge Fund Holders: 67
Onto Innovation Inc. (NYSE:ONTO) is one of the best hot stocks to buy for June. On June 4, Stifel reiterated Onto Innovation Inc. (NYSE:ONTO) as a Buy with a $350 price target. The research firm remains bullish on the company, impressed by the accelerated adoption of its inspection technology by customers.
The company’s long-term prospects for Dragonfly inspection tools also remain intact, with qualification by two key high-bandwidth memory and foundry logic customers. Management had expected the qualification to take three to six months. Stifel expects the faster-than-expected qualification to act as a catalyst, strengthening the company’s sentiment in the second half of the year.
In addition, the research firm expects Onto Innovation to benefit from the strengthening demand for G3 advanced packaging inspection in high-bandwidth memory and foundry logic systems. Consequently, advanced packaging inspection revenue is expected to grow by more than 50%, and overall revenue to grow by more than 30%.
Onto Innovation Inc. (NYSE:ONTO) is a leading U.S. semiconductor company that designs and builds the advanced equipment and software required to manufacture microchips. Their technology enables chipmakers to inspect microscopic defects, measure nanoscale chip structures, and automate production processes, thereby improving overall yield and reliability.
4. TeraWulf Inc. (NASDAQ:WULF)
Stock Upside Potential: 42.18%
Year to Date Gain: 102.98%
Number of Hedge Fund Holders: 68
Terawulf Inc. (NASDAQ:WULF) is one of the best hot stocks to buy for June. On June 5, reports emerged indicating that Terawulf Inc. (NASDAQ:WULF) is exploring leveraged loan opportunities following successful bond sales. The company is reportedly eyeing a leveraged loan to finance its AI infrastructure expansion following a landmark junk bond sale.
The data center giant has already engaged Morgan Stanley and other banks to develop loan products to raise the much-needed capital. The push comes on the heels of a $3.2 billion high-yield bond sale in October, which the company is using to expand its data center in New York. Terawulf received $11 billion worth of orders from investors as part of the bond sale.
Terawulf is tapping the debt market as it continues to pivot away from its Bitcoin mining roots. It has set its sights on expanding its data center footprint to capitalize on the AI boom. The company has already acquired a high-performance computing development site to build an HPC infrastructure.
TeraWulf Inc. (NASDAQ:WULF) is a digital infrastructure company that builds, owns, and operates large-scale data centers for Bitcoin mining, Artificial Intelligence (AI), and high-performance computing (HPC) hosting. The company is strategically transitioning into a diversified computing platform by repurposing legacy industrial sites into massive, low-carbon, power-dense energy campuses.
3. Ciena Corporation (NYSE:CIEN)
Stock Upside Potential: 24.93%
Year to Date Gain: 89.66%
Number of Hedge Fund Holders: 73
Ciena Corporation (NYSE:CIEN) is one of the best hot stocks to buy for June. On June 9, Ciena Corporation (NYSE:CIEN) priced a private offering of $2.5 billion 0.00% convertible senior notes due 2031. It is a significant increase from a previously announced $2 billion offering.
The company has since granted an initial purchase option to purchase an additional $375 million of notes within 13 days of issuance. The offering should close on June 11, subject to customary closing conditions.
Ciena Corporation intends to use $100 million of net proceeds from the $2.5 billion offering to pay net costs of convertible note hedge transactions. About $140 million is to be used to repurchase 0.3 million shares of common stock at $466.67 per share. On the other hand, $1.14 billion of net proceeds is to be used to repay amounts under the term loan and related fees. The remainder is to be used for general corporate purposes and investments to enhance supply chain capacity.
Ciena Corporation (NYSE:CIEN) is a global telecommunications networking equipment and Software Company that specializes in optical and packet networking. It provides the hardware and software foundational to the internet, allowing service providers, cloud companies, and governments to build, manage, and scale high-speed data networks.
2. Vertiv Holdings Co (NYSE:VRT)
Stock Upside Potential: 24.74%
Year to Date Gain: 71.16%
Number of Hedge Fund Holders: 96
Vertiv Holdings Co (NYSE:VRT) is one of the best hot stocks to buy for June. On June 3, Vertiv Holdings Co (NYSE:VRT) board of directors approved a quarterly cash dividend of $0.0625 to be paid on June 25, 2026, to shareholders of record as of June 15, 2026.
The company has demonstrated consistent dividend growth, starting with a flat $ 0.01-per-share quarterly dividend in 2022. The dividend has since increased to $0.0625, translating to an annualized payout of $0.25 and a forward yield of approximately $0.08%.
The latest quarterly dividend comes on the heels of an impressive first quarter, in which sales were up 30% year over year to $2.65 billion, driven by 23% organic sales growth and 4% from acquisitions. Net cash generated from operating activities was up 153% to $767 million as adjusted free cash flow increased 147% to $653 million.
The robust sales and free cash flow growth underpin Vertiv Holdings’ investments in technology and capacity, combined with strategic acquisitions, which are translating into market share gains. Similarly, the stock’s addition to the S&P 500 underscores its strong financial position and market leadership in digital infrastructure.
Vertiv Holdings Co (NYSE:VRT) is a global leader in critical digital infrastructure. It designs, manufactures, and services software for power management, thermal management (cooling), and IT management. Their hardware and systems are essential to keeping data centers, communication networks, and industrial facilities running continuously without overheating.
1. Revolution Medicines Inc. (NASDAQ:RVMD)
Stock Upside Potential: 23.09%
Year to Date Gain: 87.91%
Number of Hedge Fund Holders: 106
Revolution Medicines Inc. (NASDAQ:RVMD) is one of the best hot stocks to buy for June. On June 8, RBC Capital reiterated an Outperform rating on Revolution Medicines Inc. (NASDAQ:RVMD) and a $182 price target.
The research firm remains bullish on the company’s outlook for candidate drug daraxonrasib (formerly referred to as daraxibart), which demonstrated an overall survival benefit in patients with metastatic pancreatic cancer. The candidate drug has demonstrated significant, clinically meaningful improvements in progression-free survival (PFS) and overall survival (OS) compared with the standard of care.
According to RBC Capital, the positive clinical trials strengthen Revolution Medicine’s position in the pancreatic ductal adenocarcinoma market. Consequently, it expects the company to become a leader in the space on daraxibart, achieving $5.6 billion in peak sales by combining with other treatment regimens.
Pancreatic cancer is the most RAS-addicted of all major cancers, with patients harboring tumors driven by mutations in RAS proteins. The positive clinical trial results validate the company’s ability to target common RAS-addicted cancers through RAS(ON).
Revolution Medicines Inc. (NASDAQ:RVMD) is a clinical-stage precision oncology company that discovers and develops targeted therapies for patients with RAS-addicted cancers. Their focus is on developing specialized drugs called RAS(ON) inhibitors that target and block the specific proteins driving tumor growth in hard-to-treat diseases such as pancreatic, lung, and colorectal cancers.
While we acknowledge the potential of RVMD 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 RVMD and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Defensive Stocks to Buy Amid Geopolitical Tensions and 10 Best Forever Stocks to Buy According to Analysts.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email below.
Hedge Fund Resource Center