In this article, we are going to look at the 5 Stocks Most Bought by Hedge Funds in Q1 2026. For a longer list and more details on how we picked these stocks, you can go to 12 Stocks Most Bought by Hedge Funds in Q1 2026.
5. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 262
Meta Platforms, Inc. (NASDAQ:META) ranks among stocks most bought by hedge funds in Q1 2026. On May 21, Wolfe Research reiterated its Outperform rating on Meta Platforms, Inc. (NASDAQ:META) with a price target of $800, pointing to an attractive valuation despite worries about the company’s capital expenditure levels.
Wolfe Research pointed out that the stock is trading at about 16 times its estimated 2027 earnings. The firm believes Meta Platforms, Inc. (NASDAQ:META) is arguably a higher-quality asset than most of the S&P 500, even though its stock trades at a material discount.
The research firm noted that investors are concerned that Meta Platforms, Inc.’s (NASDAQ:META) growth may have peaked. Other worries include limited visibility into the company’s return on invested capital, negative free cash flow, and annual capital expenditures of around $145 billion. Investors are also skeptical about how the company is allocating its capital spending and what near-term catalysts could drive the stock higher.
Despite these concerns, Wolfe Research forecasts 2027 revenue growth of 22% year-over-year compared to Wall Street’s estimate of 19%.
Meta Platforms, Inc. (NASDAQ:META) is an American multinational technology company that owns and operates Facebook, Instagram, Threads, Messenger, and WhatsApp.
4. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 265
Alphabet Inc. (NASDAQ:GOOGL) ranks among stocks most bought by hedge funds in Q1 2026. On May 21, Goldman Sachs reiterated its Buy rating on Alphabet Inc. (NASDAQ:GOOGL) with a price target of $450 on the stock.
Analyst Eric Sheridan highlighted the company’s progress in AI progress over the past several years following a series of major events, including Google I/O 2026, Google Marketing Live, YouTube Brandcast, and The Android Show. Alphabet Inc. (NASDAQ:GOOGL) showcased a range of new products, services, and features across several businesses, including Search, YouTube, Gmail, Maps, Workspace, Google Cloud, Android, Pixel, and Gemini.
The company said it is working to integrate Gemini AI capabilities across its consumer and enterprise services to improve the user experience. Sheridan noted that investors continue to discuss the level of spending required and return on spend through the company’s core advertising and cloud businesses. The analyst also pointed to concerns about the search advertising business of Alphabet Inc. (NASDAQ:GOOGL) in an increasingly agentic-driven consumer compute environment.
Despite these debates, Goldman Sachs pointed out that Google is continuing to increase the pace of AI innovation across its businesses. The firm pointed to the announcements and updates presented during the recent company events.
Alphabet Inc. (NASDAQ:GOOGL) is an American multinational technology company and the parent company of Google. The company’s products include Search, Ads, Chrome, Cloud, YouTube, and Android. It specializes in areas like AI, cloud computing, and hardware.
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 275
NVIDIA Corporation (NASDAQ:NVDA) ranks among stocks most bought by hedge funds in Q1 2026. On May 27, Tigress Financial Partners increased its price target on NVIDIA Corporation (NASDAQ:NVDA) from $360 to $425 and kept a Strong Buy rating on the stock.
The research firm pointed to the company’s full-stack technology leadership and its position as the core infrastructure engine of the AI factory era. Tigress Financial also noted that AI capital expenditures are surging, which is supporting revenue, cash flow, and shareholder value growth.
The firm highlighted NVIDIA Corporation’s (NASDAQ:NVDA) record Q1 fiscal 2027 results, which evidenced AI factory demand and growing capital returns.
Tigress Financial also pointed out that AI data center factory build-outs and growing edge, automotive, and robotics applications are driving growth for the company. The research firm noted that NVIDIA Corporation (NASDAQ:NVDA) is well-positioned to capture a significant portion of global AI infrastructure spending in a multi-trillion-dollar market.
Additionally, Tigress Financial noted that the company’s capital allocation strategy focuses on investing in high-return growth efforts, expanding its AI ecosystem, and returning excess cash to shareholders.
NVIDIA Corporation (NASDAQ:NVDA) is an American multinational technology company known for producing graphics processing units (GPUs), AI hardware and software, and high-performance computing (HPC) solutions.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 282
Microsoft Corporation (NASDAQ:MSFT) ranks among stocks most bought by hedge funds in Q1 2026. On May 27, Morgan Stanley, in a note to clients, discussed whether Wall Street is fully valuing the scale of future AI revenues at Microsoft Corporation (NASDAQ:MSFT) and whether investors are underestimating how much monetization the company’s fast-growing AI infrastructure can support.
Analyst Keith Weiss pointed out that “GenAI demand well ahead of supply has yielded swiftly ramping Capex forecasts” for Microsoft Corporation (NASDAQ:MSFT).
However, Morgan Stanley noted that revenue expectations have not increased at the same pace. According to the bank, its “Monetization per Megawatt and Capex-Implied Azure forecasts suggest revenues estimates may be inappropriately lagging, leaving room for upward revisions.”
Weiss also said that Morgan Stanley’s analysis of hyperscaler spending and Microsoft Corporation’s (NASDAQ:MSFT) data center growth indicates significant upside. He wrote that the firm’s analysis “suggests Microsoft is deploying AI datacenter capacity well ahead of near-term monetization.” He added that the market may not have fully recognized the potential scale of the future revenue.
Microsoft Corporation (NASDAQ:MSFT) is an American technology company that specializes in AI-powered cloud, productivity, and business solutions. The company develops and markets software, services, and hardware.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 353
Amazon.com, Inc. (NASDAQ:AMZN) ranks among stocks most bought by hedge funds in Q1 2026. On May 27, UBS reiterated its Buy rating on Amazon.com, Inc. (NASDAQ:AMZN) with a price target of $333.
The research firm updated its methodology for estimating AWS segment revenue after previously overestimating its Q1 2026 forecast. UBS now separates performance obligations and backlog into different parts, including the core non-AI business, Bedrock, and recent contracts with OpenAI and Anthropic.
The firm projects that Bedrock alone had about $35 billion in backlog as of the end of Q1 2026, which represents roughly 300% growth year-over-year. UBS also expects AI to make up about 26% of AWS revenue by the end of 2026 and 30% in 2027. It estimates that AWS could add $350 billion in backlog in 2026 and beyond.
UBS estimates Amazon.com, Inc.’s (NASDAQ:AMZN) 2027 operating income could be about 40% higher than the market consensus. The research firm also noted that the stock trades at around 18 times its 2027 earnings estimate on a GAAP price-to-earnings basis.
Amazon.com, Inc. (NASDAQ:AMZN) is an American technology company that focuses on e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions.
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.
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Disclosure: None.
