In this article, we will take a look at the 5 Best Under-the-Radar Stocks to Invest In. For a deeper discussion and an extended list, please see the 10 Best Under-the-Radar Stocks to Invest In.
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5. AXT, Inc. (NASDAQ:AXTI)
Number of Hedge Fund Holders: 37
On June 25, Northland reiterated its Outperform rating on AXT, Inc. (NASDAQ:AXTI). The firm maintained its recently increased $125 price target. In an investor note, Northland said investors should buy the recent pullback following the company’s “very positive” appearance at the firm’s NCM Growth Conference.
Earlier, on June 18, AXT, Inc. (NASDAQ:AXTI) disclosed that its subsidiary, Beijing Tongmei Xtal Technology, entered a long-term supply agreement with Nanjing Casela Technologies. Under the deal, Tongmei will reserve production capacity and allocate raw materials. It will also grant supply priority in exchange for Casela’s commitment to purchase a fixed quantity of indium phosphide wafer substrates during 2027. The agreement is worth $25.4 million, with monthly deliveries scheduled throughout the year. Casela must purchase at least 80% of the committed volume or pay a cancellation fee on any remaining unpurchased quantity, the company said.
AXT, Inc. (NASDAQ:AXTI) designs, develops, manufactures, and distributes compound and single-element semiconductor substrates. It also sells specialty material substrates and raw materials.
4. Exelixis, Inc. (NASDAQ:EXEL)
Number of Hedge Fund Holders: 41
On June 22, Exelixis, Inc. (NASDAQ:EXEL) reported final Phase 3 STELLAR 303 data, which showed zanzalintinib plus atezolizumab produced a non-statistically significant overall survival trend. It was in favor of the combination among metastatic colorectal cancer patients without active liver metastases. The company reported a median overall survival of 15.9 months for the combination as compared to 12.7 months for regorafenib. It also disclosed a hazard ratio of 0.83 and P = 0.1185, and no new safety signals emerged.
The oncology firm also said STELLAR 303 previously achieved its other dual primary endpoint by delivering a statistically significant survival benefit in the intention-to-treat population. Detailed findings were presented at the 2025 European Society for Medical Oncology Congress and published in The Lancet. The corporation noted the FDA accepted its New Drug Application for the combination in February 2026 and assigned a target action date of December 3, 2026.
Exelixis, Inc. (NASDAQ:EXEL) is an oncology company. Its products include cabometyx, cometriq, and cotellic.
3. Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL)
Number of Hedge Fund Holders: 47
On June 11, BofA lowered its price target on Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) to $542 from $550. It maintained a Neutral rating on the stock. The firm said Rezdiffra’s launch in MASH has impressed, but debate has shifted to whether that momentum can continue. The analyst reduced the firm’s 2028 Rezdiffra revenue forecast to $2.6 billion from $2.7 billion after discussions with key opinion leaders and prior management feedback.
Separately, on July 1, Ribo and Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) achieved the first candidate drug nomination milestone under their siRNA collaboration for MASH. Ribo said the partnership consists of multiple preclinical assets targeting liver diseases.
Li Ming Gan, Ribo’s co-CEO and Global R&D President, said the companies reached the milestone within months. It combined Madrigal’s clinical expertise in MASH with Ribo’s siRNA discovery and delivery capabilities. Both partners plan to speed up development of the novel therapy.
Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) is a biopharmaceutical company. It delivers novel therapeutics for metabolic dysfunction-associated steatohepatitis in the United States.
2. IREN Limited (NASDAQ:IREN)
Number of Hedge Fund Holders: 53
IREN Limited (NASDAQ:IREN) is among the best under-the-radar stocks.
On July 2, Forbes reported that IREN Limited (NASDAQ:IREN)’s board approved a four-year equity compensation package valued at $788 million for co-founders and co-CEOs Will Roberts and Daniel Roberts. They are receiving more than 9 million shares each that vest through 2030. The company said the program plans to attract and motivate leadership and align pay with long-term shareholder value.
The report said the firm builds data centers powered by green energy and recently introduced plans for a $10 billion, 800 MW AI campus in South Australia. It has moved aggressively toward AI infrastructure.
Forbes also reported the firm signed a $9.7 billion compute agreement with Microsoft and purchased US$1.6 billion of AI infrastructure from Dell. While Bitcoin mining remained IREN Limited (NASDAQ:IREN)’s largest business, AI Cloud revenue jumped 94% quarter over quarter to $33.6 million. However, crypto revenue dropped to $111.2 million from $167 million in the prior quarter.
IREN Limited (NASDAQ:IREN) is a vertically integrated AI cloud provider that provides large-scale data centers and GPU clusters for AI training and inference. Its platform is supported by its extensive portfolio of grid-connected land and power across areas of North America, Europe, and APAC.
1. Axsome Therapeutics, Inc. (NASDAQ:AXSM)
Number of Hedge Fund Holders: 55
On July 1, Forbes reported that Axsome Therapeutics, Inc. (NASDAQ:AXSM) shares have doubled over the past nine months. It lifted the company’s market value to $12.6 billion from $6.1 billion after the approval and launch of Auvelity for agitation associated with Alzheimer’s disease. CEO Herriot Tabuteau told Forbes the launch received “tremendous” early reception and raised his peak sales forecast for the Auvelity franchise to $8 billion from $6 billion.
The report said Axsome Therapeutics, Inc. (NASDAQ:AXSM) generated $709 million in revenue over the latest 12 months through the first quarter. It grew by 64% YoY. William Blair analyst Myles Minter projected $975 million in 2026 sales and $1.7 billion in 2027. He said there is a growing demand for the corporation’s daytime sleepiness treatment and multiple late-stage pipeline opportunities. Tabuteau said the biopharmaceutical firm expects to file at least one new drug application annually through 2030. He believes its pipeline could go beyond $20 billion in peak sales.
Axsome Therapeutics, Inc. (NASDAQ:AXSM) is a commercial-stage biopharmaceutical company. It develops therapies for the management of central nervous system disorders.
While we acknowledge the potential of AXSM 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 AXSM and that has 100x upside potential, check out our report about the cheapest AI stock.
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