In this article, we will discuss 8 Best Rising Tech Stocks to Buy According to Hedge Funds.
Tech stocks remain one of the most heavily debated investments on Wall Street, but many of the world’s most famous billionaires and hedge fund managers still believe the sector could dominate global markets for years as artificial intelligence, cloud computing, semiconductors, and automation reshape the economy.
Few investors have benefited more from technology than Stanley Druckenmiller, who has aggressively invested in AI-linked companies, arguing that the world is entering a massive multi-year technology infrastructure cycle driven by data centers, semiconductors, and enterprise AI adoption. Similarly, Ken Griffin believes AI and advanced computing will transform productivity across industries, even though he warns investors not to blindly chase hype-driven valuations. Legendary investor Warren Buffett famously avoided technology stocks for years before building massive positions in Apple, recognizing the extraordinary consumer loyalty and cash-generation power of dominant tech platforms. Investors like Cathie Wood continue to argue that disruptive technologies, including AI, robotics, genomics, and automation, could generate trillions of dollars in future economic value.
Recent studies strongly support the long-term bullish case for technology stocks. Research from Stanford Institute for Human-Centered Artificial Intelligence found that private global investment in AI reached record levels as enterprise adoption accelerated rapidly across industries. Meanwhile, research from McKinsey & Company estimates that generative AI alone could contribute up to $4.4 trillion annually to the global economy through productivity gains and operational efficiencies.
Still, billionaire investors consistently warn that not every tech company will survive. Many hedge fund managers believe the biggest winners will be firms with strong balance sheets, real earnings growth, durable competitive moats, and leadership positions in critical technologies. For investors willing to navigate volatility, tech stocks continue to represent one of the market’s most powerful long-term growth opportunities.
With this context in mind, here are the best rising tech stocks to buy according to hedge funds.
Our Methodology
We used stock screeners to identify a list of tech stocks with one-month returns of over 100% as of May 16, 2026. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds. To make the list easier to navigate, we ranked the stocks in ascending order of their one-month returns.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
8 Best Rising Tech Stocks to Buy According to Hedge Funds
8. Boost Run, Inc. (NASDAQ:BRUN)
One-month Return: 116.85%
Number of Hedge Fund Holders: N/A
On May 13, DA Davidson raised its price target on Boost Run, Inc. (NASDAQ:BRUN) to $25 from $20 while reiterating a Buy rating on the shares. The firm cited the company’s continued commercial momentum, expanding deployment capacity, and operational execution as key drivers behind its bullish outlook. According to the analyst, Boost Run currently holds approximately $940 million in long-term contracted revenue and is expected to exit fiscal year 2026 with more than $375 million in Annualized Recurring Revenue. DA Davidson also identified the company’s ongoing capacity expansion initiatives as a major catalyst for future share appreciation, particularly as demand for AI infrastructure and inference computing continues to accelerate globally.
A day earlier, Craig-Hallum initiated coverage of Boost Run, Inc. (NASDAQ:BRUN) with a Buy rating and a $30 price target. The firm stated that following the company’s successful de-SPAC transaction, investors now have an attractive opportunity to gain exposure to the rapidly expanding AI compute market. Craig-Hallum highlighted several differentiators supporting its thesis, including Boost Run’s Exemplar Cloud designation, a reported $1.4 billion OEM relationship with Dell Technologies, and access to 125 megawatts of data center capacity. The analyst also argued that the company’s valuation remains discounted relative to AI infrastructure peers such as Nebius Group and CoreWeave despite what the firm believes is substantial growth potential heading into 2026.
Founded in 2023 and headquartered in Northbrook, Boost Run, Inc. (NASDAQ:BRUN) provides enterprise-grade AI cloud infrastructure solutions, including on-demand bare-metal GPU compute, CPU nodes, and managed Kubernetes services for high-performance computing workloads. The company focuses on delivering scalable infrastructure solutions tailored to the growing computational requirements of artificial intelligence applications and enterprise AI deployments.
7. POET Technologies Inc. (NASDAQ:POET)
One-month Return: 117.57%
Number of Hedge Fund Holders: 6
On May 15, POET Technologies Inc. (NASDAQ:POET) announced that it entered into a definitive agreement with a single institutional investor to issue and sell 19,047,620 common shares along with warrants exercisable for an equal number of shares in a non-brokered registered direct offering. The combined purchase price for each common share and accompanying warrant was set at $21.00, generating aggregate gross proceeds of approximately $400 million. The warrants carry an exercise price of $26.15 per share and remain exercisable for three years following issuance. Management indicated that the financing is expected to close on or about May 18, 2026, and the sizable capital raise significantly enhances the company’s financial flexibility as it expands its photonics and AI infrastructure initiatives.
The same day, POET Technologies Inc. (NASDAQ:POET) and Lumilens announced a strategic supply agreement and joint development partnership focused on advancing wafer-level photonic integration technologies for frontier AI infrastructure applications. Under the commercial framework, Lumilens placed an initial purchase order valued at $50 million for the manufacturing of EOI-based optical engines. The companies also noted that the broader supplier relationship could potentially scale beyond $500 million in cumulative purchases over the next five years. The agreement is intended to accelerate the development of next-generation optical connectivity solutions for hyperscale data centers and AI systems requiring increasingly sophisticated photonic integration capabilities.
Founded in 1985 and headquartered in Toronto, POET Technologies Inc. (NASDAQ:POET) designs, develops, and manufactures high-speed optical engines, light sources, and Photonic Integrated Circuits for hyperscale data centers and artificial intelligence infrastructure markets. The company focuses on delivering advanced photonics technologies designed to improve speed, efficiency, and scalability in AI-driven networking environments.
