We recently published a list of the 11 Cheap NASDAQ Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Gilead Sciences, Inc. (NASDAQ:GILD) stands against other cheap NASDAQ stocks.

On April 10, Dan Ives, Head of Global Tech Research at Wedbush Securities, appeared on an interview at CNBC and expressed that the tech sector could be heading into a period of major volatility. Dan Ives addressed the current landscape for technology companies and pointed out that while a temporary pause in tariffs has provided some structure, the sector remains uncertain in general. He noted that even with this framework, large tech purchases are still being downsized or paused, which contributes to ongoing volatility, especially as companies approach earnings season. Many tech firms are either withholding guidance or providing only general outlooks. Ives described the situation as a storm whose full damage is only beginning to be assessed, with the industry still only a quarter of the way through the fallout. He explained the sharp pullback in major tech stocks by likening it to emerging from a storm and confronting the resulting damage.

Ives highlighted that the uncertainty in tech has been amplified by the escalating tariffs on China, which are now as high as 125%, and are a major concern for a lot of companies, as China remains central to the global tech supply chain. Ives also pointed out that the recent tariffs on China have forced companies to reconsider the costs and logistics of importing critical components. For example, a $100,000 part might now cost double due to tariffs, causing companies to halt or delay large investments. This has resulted in a notable pause in tech spending, which he expects to continue at least through the current quarter. He cautioned that the June quarter is likely to be very weak. He maintained that, despite the challenges, he has not downgraded tech stocks, drawing on lessons from the pandemic playbook, where periods of uncertainty eventually led to clear winners and losers. Ives also addressed concerns that tech companies, by pulling back on spending, might risk drawing negative attention from the administration, especially given recent meetings between tech CEOs and the president. He reiterated that China is the epicenter of the current turmoil and that big tech is caught in the middle of a high-stakes situation, with companies still trying to navigate the evolving landscape.

Ives predicted that Street estimates are likely to see earnings cuts of about 10% across internet and big tech companies, which reflects the broader pullback in spending and ongoing volatility.

Our Methodology

We first used the Finviz stock screener to compile a list of cheap NASDAQ stocks that had a forward P/E ratio under 15 as of April 21. We then selected the 11 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 1000 elite money managers.

Note: All data was sourced on April 21.

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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Gilead Sciences, Inc. (NASDAQ:GILD)

Forward P/E Ratio as of April 21: 13.24

Number of Hedge Fund Holders: 74

Gilead Sciences, Inc. (NASDAQ:GILD) is a biopharmaceutical company that discovers, develops, and commercializes medicines in the areas of unmet medical need. It has collaboration agreements with companies like Arcus Biosciences Inc. and Merck Sharp & Dohme Corp. It also has several other research collaborations, options, and license agreements.

Gilead’s HIV franchise generated $19.6 billion in 2024 sales, which was a year-over-year improvement of 8%. This success was driven by Biktarvy, which is Gilead’s standard-of-care HIV treatment that had its sales increase by 13% in 2024. Biktarvy now commands over 50% market share in the US. Another contributor is Descovy, which achieved 21% year-over-year growth and holds over 40% US market share in PrEP (pre-exposure prophylaxis).

The overall HIV treatment market grew by ~3% in 2024, while the prevention market accelerated with more than 16% year-over-year growth in Q4. Gilead Sciences, Inc. (NASDAQ:GILD) expects a temporary masking of demand-led volume growth in 2025 due to the potential impact of Medicare Part D reform, which is projected to reduce HIV revenue by ~$900 million. However, the underlying HIV business remains strong, with 5% revenue growth anticipated in the segment for 2025.

ClearBridge Value Strategy stated the following regarding Gilead Sciences, Inc. (NASDAQ:GILD) in its Q1 2025 investor letter:

“Health care stocks populated our top performers for the quarter. Biopharmaceutical company Gilead Sciences, Inc. (NASDAQ:GILD) announced strong fourth-quarter earnings growth and also rose both on news that its HIV prevention treatment drug Lenacapavir had been filed for U.S. approval, with an anticipated launch scheduled for mid-2025, and on positive reception to its cirrhosis of the liver treatment Livdelzi in its first full quarter.”

Overall, GILD ranks 9th on our list of the cheap NASDAQ stocks to buy according to hedge funds. While we acknowledge the growth potential of GILD, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GILD but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.