In this piece, we will take a look at the ten best aggressive growth stocks to buy according to hedge funds.
If you’re putting money in the stock market, it’s more likely than not that growth is the thing that’s on your mind. After all, protecting against inflation doesn’t require making risky bets in firms that might see share prices drop in the blink of an eye. Financial instruments, such as inflation protected securities, offer investors the comfort of knowing that their savings do not lose value, meaning that passive income or growth remain some of the most popular reasons why people put their faith in stocks.
When it comes to identifying growth stocks, there are several approaches that are followed. These depend on the business model and the fundamentals of the firms being analyzed. For instance, for profitable companies with a positive net income, the price to earnings ratio is used. However, a large portion of high growth stocks aren’t profitable as they reinvest their revenue into expanding market share. This leads to high operating costs, and these firms are valued either through the EV/Sales or EV/EBITDA ratios, depending on whether the firm generates a positive operating income or not.
Both the P/E and other ratios tell us the premium that the market is placing over a firm’s ability to generate money. For instance, one of the major semiconductor companies in the world, which ranks 6th on our list of Top 10 Trending AI Stocks on Latest Analyst Ratings and News, had a P/E ratio of 112x by the end of Q1 2018. This was before the age of AI, and its two peers in the chip industry had 37x for the chip stock that’s Wall Street’s AI darling and 19x for the struggling American chip giant that’s also the only leading edge US based chip manufacturer. Safe to say, the 112x P/E foretold the story of times to come, and since Q1 2018, the stock has gained a whopping 1,386%.
Of course, this stock’s story isn’t the only aggressive growth stock story that we have. While its revenue has grown by 254% between 2018 and 2023, one of the best stories of an aggressive growth stock of our age is Elon Musk’s electric vehicle company. The firm had a stunning P/E ratio of 1,120x by the close of 2020 at a time when the retail investing frenzy was at a feverish pitch. Its first profitable quarter, i.e. the quarter ending in June 2020 saw its P/E jump to 512x at a time when its larger and traditional rival was trading at 23.89x. Since then, the shares have gained 180%, and their gains have been trimmed due to the turmoil in the EV industry stemming from supply chain constraints, margin eroding fierce competition, and high interest rates. The stock’s all time returns sit at 17,569%.
Shifting gears, the electric vehicle company had an EV/Revenue ratio of 23.56x in August 2012. Similar ratios are typically common in the cloud computing and software as a service (SaaS) industry. As opposed to car manufacturers that face high manufacturing and indirect costs, cloud and SaaS firms reap the benefits of a low cost business model as it takes less money to develop software than to operate an industrial plant. This also means that the firms have more cash at their disposal to focus on growth, and the low margins coupled with the high reinvestment have a direct implication on their valuation.
Looking at the SaaS sector’s median EV/Revenue multiples, data shows that they are affected by interest rates. Higher interest rates increase the opportunity cost of investing in the stock market, and they also decrease the value of future SaaS earnings in today’s dollars as investors can earn more money today through interest. This is also evident in the data, as before the pandemic, the median EV/Revenue multiple was 11x. After the pandemic, when the Federal Reserve was forced to lower rates to nearly zero to avoid economic destruction, the SaaS median EV/Revenue multiple shot to 20x in 2021 as investors found little utility in earning money through interest.
Now, when the rates are at historic highs, the median multiple over the past 18 months has hovered around 7x. The post pandemic economic disruption has also had an effect on SaaS growth, since pre pandemic, the median revenue growth rate for these firms was 30%, and in the low rate era as the demand for technology services boomed, it grew to 33%. However, the high rates after that, which slowed down business spending, have also impacted the revenue growth rate which is around 17% as of Q1.
Building on this, the SaaS and the broader software industry are also dealing with the impacts of AI. Among the use cases of the new technology is programming, with research from the hedge fund Coatue Management sharing some key insights. Its research shows that high rates might not be the only reason for the sector that’s historically been thought to have constituted the highest number of aggressive growth stocks. As per Coatue, compared to a peak value of 30%, the median next twelve month revenue growth rate for the SaaS sector right now is just 1%. This appears to be influenced by AI’s impact, as not only has AI reduced the cost of writing code (meaning that SaaS customers can use AI to make their own software) but it is also impacting the traditional seat based model of the industry. This model sees SaaS firms charge customers on the basis of the number of people or ‘seats’ that have access to their software, and the seat model is now being replaced by consumption driven models.
This transition is already playing out in the industry, with one software firm sharing during its Q2 2024 earnings call:
“Subscription revenue was $278.1 million, a 21% increase over last year. Now, with the transition that we went through to pay-as-you-go consumption pricing, we are engaging in a much larger number of smaller transactions of shorter term. This offers us greater revenue visibility and greater revenue predictability. Our average TCV [TOTAL CONTRACT VALUE] has plummeted as a result from over $16 million in fiscal year ’19 to $900,000 last quarter. As we work through this pricing transition, we are seeing, as expected, okay, at first a decline and now a return to accelerating revenue growth. Also as expected, we are seeing a reduction in RPO.”
So, as the aggressive growth stock sector appears to be evolving, we decided to see which such stock hedge funds are buying.
A close up of hands counting a vast stack of money in a bank vault.
Our Methodology
To make our list of the best aggressive growth stocks to buy, we first ranked the 155 stock holdings of a popular ETF that selects stocks based on the belief that their earnings will grow faster than the average. Then, out of this list, those stocks with a 30%+ annual revenue growth rate during the latest quarter were chosen. These stocks were ranked by the number of hedge funds that had bought the shares during Q2 2024 and the top stocks were chosen.
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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10. Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY)
Revenue Growth: 107%
Number of Hedge Fund Investors In Q2 2024: 53
Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) is a mid sized biotechnology company headquartered in Cambridge, Massachusetts. It is a commercial stage biotechnology company that sells drugs that help treat faulty protein build up (hereditary transthyretin amyloidosis (hATTR))in the heart or the nerves. However, most of Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY)’s valuation right now is dependent on the firm’s AMVUTTRA drug which is currently used to treat hATTR. Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) revealed the results of a phase three AMVUTTRA trial earlier this year for patients who suffer from cardiomyopathy due to a TTR imbalance. The trial demonstrated a 36% improvement in mortality, and Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) was due to present more data for the drug at the European cardiology conference at end August. The new data saw AMVUTTRA reduce the risk of death by 31%. However, investors were looking for aggressive results, and as the risk reduction fell below their expectations of 32%, the stock dropped by 8.5%. Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) benefits from an already established AMVUTRA supply chain, which means that if it receives additional FDA approval for the drug then it could easily scale production and grow revenue.
Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY)’s management commented on its industrial partnerships and commercialization efforts during the Q2 2024 earnings call:
“Our partners continue to make great progress as well. Sanofi submitted regulatory filings for vutrisiran for patients with hemophilia in China, Brazil, and the United States, where the FDA has set a target action date of March 28, 2025. We’ve also announced today a pair of updates to our ongoing collaboration with Regeneron. First, we amended the license agreement for cemdisiran, investigational RNA therapeutic in development for the treatment of complement-mediated diseases under which Regeneron gained exclusive rights to the asset as a monotherapy. In exchange, we received a $10 million upfront payment and are eligible to receive certain regulatory milestones and low double-digit royalties on sales, if approved. Additionally, as part of their regular portfolio review and prioritization efforts, Regeneron has decided to opt out of further co-development and co-commercialization of mivelsiran.
As such, we now have full global development and commercialization rights to mivelsiran in all indications.”
9. Roblox Corporation (NYSE:RBLX)
Revenue Growth: 31.30%
Number of Hedge Fund Investors In Q2 2024: 54
Roblox Corporation (NYSE:RBLX) is one of the few pureplay virtual reality software companies that operates an immersive platform for users and one where software developers can also provide their products. The social media esque nature of its business means that Roblox Corporation (NYSE:RBLX)’s hypothesis is dependent on its users and monetization capabilities. Since the platform is a cyclical product, Roblox Corporation (NYSE:RBLX) stands to increase its monetization when consumers have higher discretionary spending. Investors measure user engagement through Daily Active Users (DAUs) and spending through bookings, which measure the in game spending for users. Given the high standards set by social media giants, Roblox Corporation (NYSE:RBLX) has to aggressively grow its market or risk falling out of favor with investors. The shares are down 67% since their coronavirus peak since investors moved away from stocks that benefited from lockdown mandates. Roblox Corporation (NYSE:RBLX)’s stock did gain roughly 3% in September when management shared plans to grow users by teaming with Apple and Google among others. This indicated the criticality of growth for its hypothesis.
Artisan Partners mentioned Roblox Corporation (NYSE:RBLX) in its Q2 2024 investor letter. Here is what the firm said:
“Roblox is an online platform where users both play games created by other users and create their own games using Roblox Studio, a robust suite of development and coding tools. While the graphics, user interface and general gameplay appeals more to younger people, our thesis focused on the company’s investing heavily to improve its technological capabilities so it could provide experiences that appeal to an older demographic. We saw a potential bull case of Roblox becoming a leading place to create and consume social 3D experiences for the general population. Unfortunately, that view has not materialized as fundamentals have slowed. We exited the position.”
8. AppLovin Corporation (NASDAQ:APP)
Revenue Growth: 44%
Number of Hedge Fund Investors In Q2 2024: 54
AppLovin Corporation (NASDAQ:APP) is a digital advertising company headquartered in Palo Alto, California. The firm primarily operates in the video game industry and allows video game advertisers and publishers to run analytics and buy and sell advertisements through auctions. At the heart of AppLovin Corporation (NASDAQ:APP)’s business is its contextual tracking engine, that enables advertisers to target ads based on user behavior. While the firm is currently limited to the video game industry, AppLovin Corporation (NASDAQ:APP) could choose to expand its presence in the highly growing connected television market. This industry is growing on the back of the Internet and displacing traditional television systems. AppLovin Corporation (NASDAQ:APP)’s engine is suited to internet based systems as it provides advertisers with key insights for targeting.
Connected TVs might not be the only market that AppLovin Corporation (NASDAQ:APP) could target. As per ClearBridge Investments’ Q1 2024 investor letter:
“We also added AppLovin, a disruptor in the IT sector that helps developers market and monetize their mobile apps. Powered by its proprietary targeting engine, the company’s software segment grew robustly in 2023 and should benefit from improving AI efficiency. We believe growth of the company’s targeting engine is still in the early innings as precision continues to improve, its adoption and dataset grow and AppLovin starts to license the engine to e-commerce advertisers, which could open up a brand new multibillion dollar market.”
7. Neurocrine Biosciences, Inc. (NASDAQ:NBIX)
Revenue Growth: 30.40%
Number of Hedge Fund Investors In Q2 2024: 56
Neurocrine Biosciences, Inc. (NASDAQ:NBIX) is a specialty pharmaceutical company headquartered in San Diego, California. It has products in the market as well as those under development. Key to Neurocrine Biosciences, Inc. (NASDAQ:NBIX) being an aggressive growth stock is the firm’s INGREZZA drug. INGREZZA is a medicine for a disease involving involuntary body movements, and Neurocrine Biosciences, Inc. (NASDAQ:NBIX)’s second quarter saw it grow sales by 30% annually. The firm is also currently targeting a disease that creates abnormality in the adrenal glands’ cortisol production. This disease has had no new treatments for seventy years, and Neurocrine Biosciences, Inc. (NASDAQ:NBIX) has already submitted a new drug application to the FDA for the treatment. Another major drug that is currently under development is NBI-568, through which Neurocrine Biosciences, Inc. (NASDAQ:NBIX) aims to target patients with schizophrenia. Any positive developments for this drug could create additional catalysts for the stock. However, this was not the case in late August, as Neurocrine Biosciences, Inc. (NASDAQ:NBIX)’s shares dropped by 19% when phase two trial results revealed that one out of four doses achieved a positive result.
Neurocrine Biosciences, Inc. (NASDAQ:NBIX)’s management shared details for its drugs under development during the Q2 2024 earnings call:
“This quarter, we remain on track to deliver data from NBI-‘568, our orthosteric selective muscarinic M4 Agonist study as a potential treatment for schizophrenia.
We plan to communicate the Phase II study results via press release and a conference call, where you should expect to see total PANNS score change, placebo-adjusted PANNS score change, effect size as well as safety and tolerability measures. In Q3, we also remain on track to deliver data for luvadaxistat as a potential treatment for cognitive impairment associated with schizophrenia. All other clinical programs continue to make progress, including our expanding Phase I portfolio. In the last quarter, 2 new Phase I molecules entered the clinic, NBI-‘986, a selective M4 Antagonist, for the potential treatment of movement disorders and NBI-‘567, an M1 preferring muscarinic agonist from our muscarinic agonist portfolio, which now totals 4 early-stage compounds in development.
We’ll provide more color on these programs and the remainder of the Phase I portfolio as they advance towards Phase 2.”
6. Nu Holdings Ltd. (NYSE:NU)
Revenue Growth: 65%
Number of Hedge Fund Investors In Q2 2024: 59
Nu Holdings Ltd. (NYSE:NU) is a Brazilian bank with a presence in the US, Germany, and other countries. It is one of the most interesting banks in the world due to the fact that it operates through a digital banking model and its primary markets are the high growth, low penetration regions of Brazil, Mexico, Colombia, and others. These countries typically see customers struggle with banking due to large incumbents, and Nu Holdings Ltd. (NYSE:NU) also benefits from low operating costs because of its digital banking model. The lower costs enable the bank to compete effectively against Brazilian banking giants who struggle with high overhead costs. Another key advantage for the firm is its data driven business which allows Nu Holdings Ltd. (NYSE:NU) to identify customer trends and preferences and market additional products to grow revenue. These advantages mean that Nu Holdings Ltd. (NYSE:NU) can only further grow in the future provided that management does not move its eye from the prize.
Baron Funds mentioned Nu Holdings Ltd. (NYSE:NU) in its Q2 2024 investor letter. Here is what the firm said:
“Nu Holdings Ltd. is a digital bank with operations in Brazil, Mexico, and Colombia. Shares appreciated during the quarter after the company reported strong balance sheet growth and improving margins. New product launches and expansion in newer countries are yielding favorable results. Nu also benefited from inclusion in the MSCI Brazil Index, which prompted buying from passively managed funds. We continue to own the stock because Nu is disrupting the financial services industry in Latin America with its digital distribution and intense focus on user experience. The company has grown to serve over 90 million customers in less than 10 years, largely through word-of-mouth referrals. We believe the company’s superior product offering will drive continued share gains in large and growing markets.”
5. Snowflake Inc. (NYSE:SNOW)
Revenue Growth: 30%
Number of Hedge Fund Investors In Q2 2024: 69
Snowflake Inc. (NYSE:SNOW) is a specialty cloud computing industry that enables companies to consolidate their data under a single roof to run and generate analytics. A classic cloud computing company, the firm’s hypothesis is based on its ability to grow and cost control. Snowflake Inc. (NYSE:SNOW) has to consistently outperform investor expectations for both of these or risk their ire. Its data warehousing model lends it a significant advantage in the current SaaS market due to AI’s requirement for copious amounts of data. Snowflake Inc. (NYSE:SNOW)’s position is further bolstered by the fact that it commands a 22% data warehousing market share which provides it with key customer partnerships and economies of scale. However, the criticality of cost control and growth was evident during the Q2 2025 earnings, when even though Snowflake Inc. (NYSE:SNOW) raised its fiscal 2025 guidance to $3.36 billion from an earlier $3.3 billion, the fact that this wasn’t accompanied by an updated margin forecast led to the stock tanking by 14% in the aftermath.
Snowflake Inc. (NYSE:SNOW)’s management commented on the cost control during the Q2 2025 earnings call:
“On the margin side, the margins were slightly better than what we had forecast internally, but it doesn’t change the guidance that we’ve given 75% for the year. Part of that is we’re still waiting and some deployments for GPUs that around the world that we don’t have yet that we’re anticipating would have come in this quarter. That’s really the — on the margin side, the gross margin side.”
4. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Revenue Growth: 31.70%
Number of Hedge Fund Investors In Q2 2024: 69
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a cloud based cybersecurity products and services provider. The firm provides a diversified set of security products such as identity management, threat intelligence, and threat detection. However, despite its portfolio depth, CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is the talk of town in 2024 for all the wrong reasons. Its faulty software update that led to the estimated bricking of roughly 8.5 million computers in July led to a 23% share price drop. It has also left CrowdStrike Holdings, Inc. (NASDAQ:CRWD) exposed to a growth deceleration as opposed to the acceleration that cloud investors are on the lookout for. Not only can the firm suffer from damage lawsuits because of the fault, as evidenced by Delta Airlines’ action, but customers might leave the platform for others like SentinelOne as hinted by Wells Fargo in a recent analyst note that increased the latter’s share price target to $29 from $19 after a survey showed thatCrowdStrike Holdings, Inc. (NASDAQ:CRWD) was losing favor in the industry. Speaking at a Citi conference in September, the firm’s CFO admitted that while the future of legal actions stemming from the outage was uncertain, so far CrowdStrike Holdings, Inc. (NASDAQ:CRWD) hadn’t seen a customer lawsuit.
Before the outage unfolded, Carillon Tower Advisors had mentioned CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in its Q1 2024 investor letter:
“CrowdStrike Holdings, a security software provider, reported strong earnings results, driven by strength in endpoint security, cloud security, and identity protection. Revenue growth and profitability metrics exceeded investor expectations for the quarter, and the forward guidance was ahead of expectations as well. The cyber threat environment remains elevated, and it is likely that the rise of artificial intelligence will make it easier for criminals and threat actors to design and launch sophisticated attacks, increasing the need for CrowdStrike.”
3. Hess Corporation (NYSE:HES)
Revenue Growth: 39.90%
Number of Hedge Fund Investors In Q2 2024: 73
Hess Corporation (NYSE:HES) is a mid sized oil and gas exploration and production company with operations in the US, Thailand, Guyana, and other regions. The firm sits at the heart of the current trends underpinning the American energy industry that has seen big ticket names the likes of Chevron and Exxon expand their shale oil production footprint through acquisitions. Hess Corporation (NYSE:HES) is slated to be acquired by Chevron for a cool $53 billion price tag that will see Hess Corporation (NYSE:HES)’s shareholders receive 1.025 CVX shares for each of their shares. Therein lies the firm’s hypothesis too, as any positive developments can translate into tailwinds for the stock and vice versa. The deal is currently expected to close by May 2025, and any further delays could lead to volatility in the stock.
2. Broadcom Inc. (NASDAQ:AVGO)
Revenue Growth: 42.99%
Number of Hedge Fund Investors In Q2 2024: 130
Broadcom Inc. (NASDAQ:AVGO) is one of the biggest technology companies in the industry. Its presence stretches from the lucrative semiconductor design industry which is seeing tailwinds due to a shortage of AI GPUs to the cybersecurity industry which benefits from stable recurring revenues. Broadcom Inc. (NASDAQ:AVGO) could emerge as a key player in the AI race, as rumors in the industry suggest that OpenAI is working with it to design a new AI chip that could serve as an alternative to NVIDIA’s GPUs. The firm also enjoys a dominant position in the smartphone industry through its modems, as well as being the supplier of WiFi and Bluetooth chips to Apple. This places Broadcom Inc. (NASDAQ:AVGO) in a lucrative position that allows it to earn sizeable revenue. However, at the same time, the Apple partnership also leaves it vulnerable because of the firm’s tendency to design its own chips. Nevertheless, Broadcom Inc. (NASDAQ:AVGO benefits from business diversification, particularly as its software division allows it to earn recurring revenue. The firm’s position in the AI ecosystem also led to Broadcom Inc. (NASDAQ:AVGO)’s shares falling by 10% after its third quarter earnings report guided $14 billion in fourth quarter product revenue, which was lower than $14.11 billion that analysts were expecting.
Aristotle Atlantic Partners mentioned Broadcom Inc. (NASDAQ:AVGO) in its Q2 2024 investor letter. Here is what the firm said:
“Broadcom is a global technology leader that designs, develops and supplies a broad range of semiconductor and infrastructure software solutions. The company strategically focuses its research and development resources to address niche opportunities in target markets and leverage its extensive portfolio of U.S. and other patents and other intellectual property to integrate multiple technologies and create system-on-chip component and software solutions that target growth opportunities. Broadcom designs products and software that deliver high performance and provide mission-critical functionality. The company has a history of innovation in the semiconductor industry and offers thousands of products that are used in end products such as enterprise and data center networking, home connectivity, “set-top boxes broadband access”, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. Broadcom differentiates itself through its high-performance design and integration capabilities and focuses on developing products for target markets where it believes it can earn attractive margins.
We view Broadcom’s semiconductor business as being very well positioned to benefit from secular growth in data center networking, which is being driven by AI and cloud computing. The company continues to invest in research and development, and we see this as a competitive advantage for the company. Broadcom’s infrastructure software business is a recurring revenue business model that provides mission-critical mainframe support software to its customer base. The recent VMware acquisition will enhance this business strategy and accelerate the growth rate of this business unit, as VMware’s product suite includes key tools for AI server upgrades. Our long-term investment thesis is supported by Broadcom’s success in its strategy of maintaining technology and market share leadership in mission-critical markets with high switching costs and deep profit pools.”
1. NVIDIA Corporation (NASDAQ:NVDA)
Revenue Growth: 122.40%
Number of Hedge Fund Investors In Q2 2024: 179
NVIDIA Corporation (NASDAQ:NVDA) is the world’s largest chip designer in terms of market cap, owing nearly all of its fortunes to the indispensable nature of its products to running AI workloads. The firm’s Grace Hopper and Blackwell chips are industry leaders, and its competitive dominance coupled with a tight supply due to excessive demand also means that NVIDIA Corporation (NASDAQ:NVDA) enjoys substantive pricing power in the market. Another key strength is the firm’s CUDA platform, which enables users to exercise greater control over their products. However, the pricing power might prove to be NVIDIA Corporation (NASDAQ:NVDA)’s Achilles’ Heel, too. If you read our coverage of SNOW, the 5th stock in this list, you’ll know that its shares tanked by 14% after the latest earnings call even though it increased guidance and analyst EPS and revenue estimates. NVIDIA Corporation (NASDAQ:NVDA)’s GPUs might have had a role to play in it, as we subtly alluded. Yet, if alternative products to its GPUs don’t surface, which is likely given NVIDIA Corporation (NASDAQ:NVDA)’s substantial research and development experience, then the stock could do well in the future depending on the state of the AI industry. On the regulatory front, while media reports claim that the DOJ is interested in NVIDIA Corporation (NASDAQ:NVDA) for abusing its market position, the firm has denied receiving any subpoenas. For NVIDIA Corporation (NASDAQ:NVDA), investor expectations for its 2025 and 2026 revenue are also key for its hypothesis, as well as the need to maintain cost control as was evident after its third quarter results that saw shares drop by 6% after a disappointing beat and weaker margins.
Artisan Partners mentioned NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2024 investor letter. Here is what the firm said:
“NVIDIA’s year-to-date dollar value increase is $1.8 trillion. That’s equivalent to the 2023 increase in US GDP, which is, of course, representative of the collective economic efforts of about 330 million people. NVIDIA’s market cap is now $3 trillion. So is the GDP of France.
Does this make any sense? We wish that we could definitively say that it doesn’t, given that we don’t own NVIDIA. But the answer is more complicated. The growth in revenue and profits at NVIDIA has been stunning. In the calendar year 2020, its revenue was about $17 billion. Estimates for 2024 are around $120 billion. Operating profit is projected to reach about $80 billion in 2024 versus $4.5 billion in 2020. NVIDIA’s revenue essentially represents the capital spending of a small number of very profitable, very cash-rich technology companies buying up the processors necessary to power artificial intelligence (AI) software programs. It’s an AI landgrab. In order for NVIDIA to sustain these levels of revenue or grow them from here, these AI investments must start to generate an ROI for those splashing out $120 billion a year. And if not generating an ROI in the near term, those companies must at least see the prospect of an ROI, a clear sustainable competitive advantage or a moat of some kind.”
NVDA tops our list of top hedge fund aggressive growth stocks. But our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
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