In this article, we will look at the Top 10 High Conviction Stocks to Buy According to Hedge Funds.
On June 17, Jeffrey Gundlach, DoubleLine Capital, appeared on CNBC’s ‘Closing Bell’ to talk about the Federal Reserve’s decision to leave the Federal Funds Rate unchanged.
He stated that there is a lot to digest here, as the Fed chair opened up by saying that he is committed to moving the Fed forward, and then laid out what that meant with the five “consultant task forces”, which is what he prefers to call them. Gundlach believes that the Fed chair is buying himself some time, but the real phrase of the day, according to him, is “we will deliver price stability”.
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Gundlach further stated that one thing might be in the Fed chair’s favor, since he is buying himself time and talking about the task forces that might start working in the next several weeks and maybe get around to having some ideas, conclusions, or suggestions somewhere in the fall. That, to him, suggests that it is unlikely that rates will be changed until the fall. He also said that the good news is that, according to his model, inflation would be dropping along the way as we move towards the end of the year.
With these broader market trends in view, let’s look at the top high conviction stocks to buy according to hedge funds.
Our Methodology
We used stock screeners and online sources to identify the best fundamentally strong companies with an analyst upside potential of at least 30%. We then selected the top 10 stocks most popular among hedge funds as of Q1 2026, using the hedge fund sentiment data from Insider Monkey’s database. The stocks are arranged in ascending order of hedge fund sentiment.
Note: All data was recorded on June 16.
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. Insider Monkey’s quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
Top 10 High Conviction Stocks to Buy According to Hedge Funds
10. Accenture plc (NYSE:ACN)
Number of Hedge Fund Holders: 64
Accenture plc (NYSE:ACN) is one of the top high-conviction stocks to buy according to hedge funds. JPMorgan cut the price target on Accenture plc (NYSE:ACN) to $201 from $247 on June 8 and reiterated an Overweight rating on the shares. The rating update came as part of a fiscal Q3 report preview, with the firm trimming the company’s estimates to be closer to the midpoint of its guidance.
Accenture plc (NYSE:ACN) also received a rating update from Berenberg on June 17, with the firm cutting the price target on the stock to $220 from $273 while maintaining a Buy rating on the shares. Berenberg stated that the IT services sector has underperformed the market with structural AI concerns driving an “indiscriminate de-rating.” The firm stated that it sees “limited scope” for a near-term sector re-rating, but added that it views Accenture plc (NYSE:ACN) as best positioned to monetize emerging AI value pools.
Accenture plc (NYSE:ACN) is a global professional services company that combines technology and leadership in data, cloud, and AI with functional expertise, industry experience, and global delivery capability. The company’s services include Strategy & Consulting, Technology, Operations, Industry X, and Song, and its operations are divided into the following geographical segments: North America, EMEA, and Growth Markets.
9. PDD Holdings Inc. (NASDAQ:PDD)
Number of Hedge Fund Holders: 66
PDD Holdings Inc. (NASDAQ:PDD) is one of the top high-conviction stocks to buy according to hedge funds. BofA cut the price target on PDD Holdings Inc. (NASDAQ:PDD) to $113 from $140 on June 15 and maintained a Neutral rating on the shares. The firm told investors that it lowered its 2026-27 revenue forecasts by 6% and adjusted its net profit view by 21%-22% to take into account the increased ecosystem investments, which include commission rebates, merchant traffic support, and platform-funded coupons booked as contra revenue.
PDD Holdings Inc. also received a rating update from Barclays on May 28. The firm downgraded the stock to Equal Weight from Overweight, bringing the price target on the stock down to $89 from $165. The firm told investors in a research note that PDD Holdings Inc. reported its lowest non-GAAP net margin in five years in fiscal Q1. Barclays believes that the company’s China revenue deceleration is likely to continue as its monetization faces headwinds, and added that PDD Holdings Inc. is entering the private label market, which could cause “friction” with merchants.
PDD Holdings Inc. is a Chinese multinational online commerce group and retailer that owns and operates a range of diverse businesses. It also has a strong logistics, sourcing, and fulfillment capabilities network that supports its operations. The company owns Pinduoduo, a popular online commerce platform in China, and also runs the fast-growing e-commerce marketplace Temu.
8. T-Mobile US, Inc. (NASDAQ:TMUS)
Number of Hedge Fund Holders: 85
T-Mobile US, Inc. (NASDAQ:TMUS) is one of the top high-conviction stocks to buy according to hedge funds. Reuters reported on June 4 that, according to a statement from an Indian state government, T-Mobile US, Inc. (NASDAQ:TMUS) has plans to employ nearly 1,000 people by 2027 following the recent opening of its global capability center (GCC) in India. Reuters also provided additional details, stating that the tech center was inaugurated in Hyderabad, where the company leased 250,000 square feet of space, according to the state’s IT ministry. Its employees at the GCC will build advanced capabilities across software engineering, product development, DevOps, cybersecurity, and data analytics, among others.
In a separate development, T-Mobile US, Inc. announced on May 28 a multi-year partnership with the United States Golf Association (USGA), making the company the Official 5G Network Partner of the U.S. Women’s Open, U.S. Open, and additional USGA championships. Management stated that through the partnership, T-Mobile US, Inc. is delivering the USGA’s first-ever mobile Rules Review, critical event connectivity, and exclusive member experiences.
T-Mobile US, Inc. provides wireless communications services under the T-Mobile and MetroPCS brands. The company offers prepaid and postpaid wireless messaging, voice, and data services, along with wholesale wireless services.
7. Intuitive Surgical, Inc. (NASDAQ:ISRG)
Number of Hedge Fund Holders: 103
Intuitive Surgical, Inc. (NASDAQ:ISRG) is one of the top high-conviction stocks to buy according to hedge funds. Deutsche Bank cut the price target on Intuitive Surgical, Inc. (NASDAQ:ISRG) to $366 from $440 on June 2 while maintaining a Sell rating on the shares. The stock also received a rating update from BofA on May 12, with the firm cutting the price target on the stock to $515 from $520 and reiterating a Buy rating on the shares.
For additional reference, in its financial results for fiscal Q1, Intuitive Surgical, Inc. reported that worldwide procedures for da Vinci and Ion combined grew around 17% compared to fiscal Q1 2025, with Da Vinci procedures growing approximately 16%, and Ion procedures growing approximately 39%. Revenue for the quarter came up to $2.77 billion, up 23% compared to $2.25 billion in the prior year period. The company also reported that it placed 431 da Vinci surgical systems, compared with 367 in fiscal Q1 2025.
Intuitive Surgical, Inc. has an elaborate ecosystem of services and products that provide robotic-assisted surgical solutions and invasive care. Its products include the Ion Endoluminal and the Da Vinci Surgical systems.
6. Danaher Corporation (NYSE:DHR)
Number of Hedge Fund Holders: 110
Danaher Corporation (NYSE:DHR) is one of the top high-conviction stocks to buy according to hedge funds. HSBC cut the price target on Danaher Corporation (NYSE:DHR) to $230 from $270 on June 3 and maintained a Buy rating on the shares. The firm told investors in a research note that market expectations on life science tools “remain bearish”, with allocation tilted towards managed care and therapeutics within healthcare. It added that although the tools sector is priced for disappointment, the firm sees “green shoots of recovery,” notably in bioprocessing and quality assurance. HSBC adjusted target prices to reflect risk-adjusted return expectations, and the firm’s preferred ideas are Waters, IQVIA, and Sartorius.
In a separate development, Wolfe Research downgraded Danaher Corporation to Peer Perform from Outperform on June 1 without assigning a price target after assuming coverage of the name. It stated that growth forward and backward is similar, and Thermo Fisher is “a little cheaper on P/E”. It added that the Masimo (MASI) transaction “confused us about DHR’s identity.”
Danaher Corporation designs, manufactures, and markets professional, medical, industrial, and commercial products and services, making it a significant diagnostics stock. It operates through Diagnostics, Biotechnology, Life Sciences, and Environmental and Applied Solutions.
5. GE Vernova Inc. (NYSE:GEV)
Number of Hedge Fund Holders: 118
GE Vernova Inc. (NYSE:GEV) is one of the top high-conviction stocks to buy according to hedge funds. GE Vernova Inc. (NYSE:GEV) introduced on June 9 the GridOS for Transmission and released two new AI whitepapers addressing grid planning and autonomous grid-edge operations. They were released at Orchestrate 2026, the company’s annual grid software conference.
GridOS for Transmission integrates intelligence from core transmission applications, which include AEMS (Advanced Energy Management System), DDLR (Digital Dynamic Line Rating), WAMS (Wide-Area Monitoring System), and forecasting tools, alongside DER management, Visual Intelligence, and asset behavior data, offering operators a context-rich and unified decision environment.
Philippe Piron, CEO of GE Vernova’s Electrification segment, stated that “meeting rising electricity demand will require more than adding generation, it demands a grid that can coordinate, adapt, and act faster than ever before”. They added that with software now “central to how utilities plan investments, operate networks, and respond to near real-time conditions”, the introductions at Orchestrate highlight the company’s “conviction that the grid of the future runs on intelligence and that utilities need that intelligence across every layer, from long-range planning to the grid edge.”
GE Vernova Inc. is involved in the electric power industry and operates through the following segments: Power, Wind, and Electrification.
4. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 153
Uber Technologies, Inc. (NYSE:UBER) is one of the top high-conviction stocks to buy according to hedge funds. Reuters reported on June 8 that Uber Technologies, Inc.’s users can sign up for a chance to ride in the first robotaxis in London as soon as the go-ahead is achieved from regulatory authorities for the launch, which is expected to arrive in the coming months. It further reported that the robotaxis will employ AI technology from the British startup Wayve and will drive themselves around the city’s streets. However, they will initially have trained operators behind the wheel to monitor the system. Kaity Fischer, Wayve’s VP of commercial and operations, stated in an interview that this would mark “the first time the general public will be able to hail an autonomous vehicle in the UK”.
In another development, Reuters reported on June 1 that Uber Technologies, Inc. and Israel-based Autobrains announced on Monday plans to launch a robotaxi programme in Munich in collaboration with Nvidia. The collaboration marks a push to boost autonomous ride-hailing in Europe, and aims at combining Uber’s mobility network with Autobrains’ “agentic AI” driving system, running on Nvidia’s Drive Hyperion platform.
Uber Technologies, Inc. operates as a technology platform that offers ride services and merchant delivery service providers for food, groceries, meal preparation, and other delivery services. The company’s operations are divided into Delivery, Mobility, and Freight. It is pioneering the introduction of autonomous vehicles to move people and goods more reliably, efficiently, and affordably.
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 262
Meta Platforms, Inc. (NASDAQ:META) is one of the top high-conviction stocks to buy according to hedge funds. Reuters reported on June 9 that EU antitrust regulators ordered Meta Platforms, Inc. (NASDAQ:META) to give rival AI chatbots, such as OpenAI, free access to WhatsApp while their investigation continues about whether the company abused its market power through the blocking of competitors from the messaging app. The European Commission’s issuance of an interim measure against the company came after complaints from The Interaction Company of California, developer of the Poke.com AI assistant, a Spanish rival, and a French AI startup Agentik.
An investigation was opened by the Commission, the EU’s competition enforcer, following the complaints, which then issued charges against Meta Platforms, Inc. two months later, alleging breaches of EU antitrust rules. Reuters further reported that additional charges were issued in April after the company levied access fees. Teresa Ribera, EU antitrust chief, stated that EU antitrust chief, stated that Meta Platforms’ fees were so high that it was not economically sustainable for competitors, and the company’s justification failed to convince.
Meta Platforms, Inc. builds technological products that allow people to share, connect, grow businesses, and find communities. These products help people connect through personal computers, mobile devices, virtual reality (VR), mixed reality (MR) headsets, and wearables.
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 275
NVIDIA Corporation (NASDAQ:NVDA) is one of the top high-conviction stocks to buy according to hedge funds. Reuters reported on June 8 that NVIDIA Corporation (NASDAQ:NVDA) announced a series of deals in South Korea with tech giants, which included SK Hynix and Naver, building on its attempts to secure crucial memory chips for powering its AI ambitions. The agreement announcement came during Nvidia CEO Jensen Huang’s high-profile trip to South Korea. Reuters further stated that the value of the deals was not disclosed by NVIDIA Corporation and its partners, which also included SK Telecom and conglomerate Doosan Group.
In a separate development, Reuters reported on June 1 that NVIDIA Corporation unveiled a new chip that incorporates AI capabilities directly into desktop computers and laptops. CEO Jensen Huang stated that the RTX Spark PC chip is part of the company’s endeavors with Microsoft to “reinvent the PC” for the AI era, following three years of collaboration between the companies. It added that the chip is developed with Taiwan’s MediaTek, and is set to debut in laptops and compact desktops this fall from Dell, HP, Lenovo, ASUS, Microsoft Surface, and MSI, with models from Acer and GIGABYTE to follow.
NVIDIA Corporation designs and manufactures computer graphics processors, chipsets, and other multimedia software. It operates in the Compute & Networking and Graphics Processing Unit (GPU) segments.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 282
Microsoft Corporation (NASDAQ:MSFT) is one of the top high-conviction stocks to buy according to hedge funds. Reuters reported on June 2 that Microsoft Corporation (NASDAQ:MSFT) announced a “sweeping slate” of AI initiatives to go beyond apps, ranging from Nvidia-powered PCs and a new in-house reasoning model to autonomous workplace assistants and gadgets. The company aims at remaking computing around AI at Microsoft Build, its annual software developer conference in San Francisco, and also showed off a new computer called the Surface RTX Spark Dev Box loaded with an Nvidia chip. The computer was called a “dream machine” by CEO Satya Nadella, who added that he was on the wait list to buy it.
Reuters further reported that executives all showcased Project Solara, which is a family of prototypes that encompasses devices the size of a smart speaker or keycard badge, based on chips from Qualcomm and MediaTek.
Microsoft Corporation develops and supports services, software, devices, and solutions. It operates through the Intelligent Cloud, Productivity and Business Processes, and More Personal Computing segments.
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