In this article, we will take a look at the 5 Best Most Active Stocks to Buy According to Hedge Funds. For a deeper discussion and an expanded list, please see 10 Best Most Active Stocks to Buy According to Hedge Funds.
5. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 234
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) ranks among the best most active stocks to buy according to hedge funds. Bernstein SocGen Group increased its price target for Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) to $430 from $351 on May 18, while upholding an Outperform rating on the company stock. The firm anticipates the company’s earnings per share to expand at a compound annual rate of 28% over the coming two-and-a-half years.
Bernstein stated that it sees little evidence that competitors like Intel are closing the technological or price gap with Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM). The firm believes that any prospective manufacturing by Apple at Intel would be restricted to smaller products and would not diminish Taiwan Semi’s revenue, given the company’s sales are limited by capacity.
Meanwhile, Bank of America reaffirmed its Buy rating on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) following the company’s technology conference in Taiwan. The firm feels that “recent concerns are overdone” as TSMC’s scalability and technological edge in advanced nodes continue to expand its lead against competitors.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a Taiwanese multinational semiconductor contract manufacturing and design company that manufactures, packages, and tests integrated circuits for various industries.
4. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 262
Meta Platforms, Inc. (NASDAQ:META) ranks among the best most active stocks to buy according to hedge funds. On May 29, Citizens reiterated a Market Outperform rating and a $825 price target for Meta Platforms, Inc. (NASDAQ:META). The firm stated that Meta collaborated with Stripe earlier in March to offer a checkout solution backed by Stripe’s Agentic Commerce Suite.
After choosing their size on a product description page, customers proceed to the checkout page to complete their transaction. The user experience, according to Citizens, is comparable to that of the defunct Facebook and Instagram Shops.
As Meta Platforms, Inc. (NASDAQ:META) expands product labeling throughout its content, Citizens anticipate an increased push for on-platform checkout. The firm pointed out that compared to Meta’s prior checkout process, the Universal Checkout Platform offers more functionality, such as subscription and loyalty options.
The same day, BofA Securities reaffirmed its Buy rating and $835 price target for META shares in response to the company’s introduction of a new enterprise-focused AI project.
To encourage businesses to use its AI tools, Meta Platforms, Inc. (NASDAQ:META) created a new Enterprise Solutions division. With the aim of generating repeatable deployment methodologies to increase adoption, the newly formed group focuses primarily on tailoring AI solutions for enterprise clients.
Meta Platforms, Inc. (NASDAQ:META) develops products that allow people to share and connect with their family and friends using PCs, mobile devices, virtual reality (VR) headsets, and AI glasses. Some of its well-known apps include Facebook, Instagram, and WhatsApp. It operates in the Reality Labs (RL) and Family of Apps (FoA) segments.
3. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 265
Alphabet Inc. (NASDAQ:GOOGL) ranks among the best most active stocks to buy according to hedge funds. Following recent industry developments, Goldman Sachs restated its Buy rating and $450 price target for Alphabet Inc. (NASDAQ:GOOGL) on May 21.
Analyst Eric Sheridan emphasized Alphabet’s AI advancements over the last few years as the company recently promoted Google I/O 2026, Google Marketing Live, YouTube Brandcast, and The Android Show.
The analyst mentioned investor concerns around capital investment and return on expenditure in both its core advertising and Cloud operations, in addition to the long tail of legacy search ads in a progressively agentic-based user compute environment.
The same day, TD Cowen maintained a Buy rating and a $450 price target for GOOGL shares in light of the tech giant’s I/O developer conference. The firm observed that Alphabet has introduced new artificial intelligence products and provided consumption numbers for existing AI services.
Alphabet Inc. (NASDAQ:GOOGL) is a holding company that operates Google services such as search engines, ad platforms, Internet browsers, devices, mapping software, app stores, video streaming, and more. The company also offers cloud infrastructure and platform services, collaboration tools, and other services for enterprise customers, as well as healthcare-related services and internet services.
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 275
NVIDIA Corporation (NASDAQ:NVDA) ranks among the best most active stocks to buy according to hedge funds. On May 29, Tigress Financial boosted its price target for NVIDIA Corporation (NASDAQ:NVDA) to $425 from $360, while retaining a Strong Buy rating on the company. The firm underlined NVIDIA’s status as the key infrastructure driver of the AI industrial age, as well as its full-stack technology superiority.
The firm noted NVIDIA’s record first-quarter 2027 results, with revenue up double-digit percentages and non-GAAP EPS up low-triple-digit percentages.
Furthermore, on May 27, NVIDIA Corporation (NASDAQ:NVDA) CEO Jensen Huang unveiled the company’s Constellation campus in Taipei, indicating plans to invest as much as $150 billion per year in Taiwan. The facility is intended to house approximately 4,000 personnel and will function as one of the largest AI research and development centers in the Asia-Pacific.
Huang stated during the unveiling ceremony that the company’s annual expenditure in Taiwan has increased from $10 to $15 billion some years ago to $100 billion now, with plans to reach $150 billion.
NVIDIA Corporation (NASDAQ:NVDA) is a fabless semiconductor and AI computing company that designs GPUs, AI accelerators, Application Programming Interfaces (APIs), and system-on-a-chip units. Through its CUDA ecosystem, the company enables industries ranging from autonomous vehicles to scientific research by advancing AI, accelerated computing, and data center infrastructure.
1. Amazon.com Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 353
Amazon.com Inc. (NASDAQ:AMZN) ranks among the best most active stocks to buy according to hedge funds. On May 29, Wolfe Research reaffirmed its Outperform rating and $320 price target for Amazon.com Inc. (NASDAQ:AMZN), noting potential for growth in the company’s supply chain services division.
On May 4, Amazon.com Inc. (NASDAQ:AMZN) launched Amazon Supply Chain Services, which includes two new solutions for non-Amazon vendors: Amazon Freight for under-truckload shipping and Global Logistics for maritime and air transport.
Wolfe Research believes the overall addressable market for Amazon Supply Chain Services exceeds $1.2 trillion. The market is estimated to be worth $750 billion for freight, $120 billion for distribution and fulfillment, $200 billion for US shipping, and $100 billion for international parcel shipping.
Additionally, UBS reaffirmed its Buy rating on Amazon.com Inc. (NASDAQ:AMZN) and set a price target of $333 on May 27. After exceeding its estimate for the first quarter of 2026, the firm improved its methodology for projecting AWS segment revenue.
The firm projects that AWS will rake in $350 billion to its backlog by 2026 and beyond. In contrast to consensus forecasts of $166.6 billion and a 29% increase, this corresponds to a revenue prediction of $175.9 billion for the segment, reflecting a 36% year-over-year growth.
Amazon.com Inc. (NASDAQ:AMZN) operates across e-commerce, digital content, advertising, and cloud computing. Its online and offline stores offer both in-house and third-party products, while its Amazon Web Services (AWS) division runs one of the world’s largest data center networks.
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 the cheapest AI stock.
READ NEXT: Starter Stock Portfolio: 14 Safe Stocks to Buy Now and 40 Most Popular Stocks Among Hedge Funds Heading Into 2026.
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