This article will look at the top 10 high-risk stocks to buy according to billionaires.
Investors often retreat into safer assets during volatility when the global markets move towards a chaotic storm. But for billionaire investors, market chaos could mean something else entirely: an opportunity. The new tariffs the current U.S. President announced on April 2, 2025, sent ripples across Wall Street. Multiple headlines have started forecasting a recession, and some of the wealthiest minds in the financial world are looking at high-risk stocks, not with fear but with an intent to utilize the opportunity. These minds work on the philosophy that market storms would wash away the timid but also drench the bargains for those willing to wade in.
READ ALSO: 10 Best Foreign Stocks to Buy According to Billionaires.
The perspective is more relevant today as the stock market is seeing its highest drop in value since the COVID-19 pandemic. CNBC reported that only a handful of companies finished April 4 in the green, escaping the impact of the U.S. tariffs, but only slightly.
Experts call the new commercial environment a full-blown trade war ignited by the U.S. President’s sweeping 10% tariffs on all U.S. trading partners. The countries targeted by the new tariffs have started retaliating by imposing additional tariffs on U.S. goods, thus worsening the situation. Notably, China, the largest trade partner of the U.S., retaliated by imposing a 34% tax on American goods and a crackdown on U.S. firms.
Amid this panic, a small group of elite investors doubles down on risk. At first glance, it may seem like the strategy is built on unquestioning optimism, grounded in decades of historical precedent. Many billionaires believe that the best opportunities often surface during the ugliest moments in the market. Between 1980 and 2023, the average intra-year decline in the market was around 14%. Despite this staggering decline, the market could still post positive annual returns in 32 out of 44 years. Experts call the strategy positioning ahead of the rebound.
In this regard, high-risk stocks have often been seen outperforming once the dust settles. These stocks, exposed to uncertain market forces, are the type that collapse in weeks and double in days. Billionaires incorporate such high-risk stocks into their portfolios after estimating their time for recovery, innovation, and long-term asymmetry. It is not just about surviving the downturn but also about owning the comeback.
Growth stocks are garnering renewed attention in recent times in the category of high-risk stocks. Though they are bearing the effects of the current market carnage, historically, they have outperformed the value stocks in multi-decade comparisons. While these outperformances are not without any swings, they indicate that investors can move ahead with conviction and patience.
Of course, choosing the right high-risk stocks requires a deeper understanding of market psychology and the macroeconomic undercurrents. In this regard, the billionaire portfolios offer a valuable window. Their public disclosures provide an insight into the stocks where capital is concentrated despite the crumbling sentiments.
These are not random gambles. They are signals that income-seeking investors could use to pepper their portfolio with a few high-risk stocks and benefit from the experts’ advocacy.
With that in mind, let’s explore the 10 Best High-Risk Stocks to Buy According to Billionaires.
Our Methodology
For this article, Insider Monkey’s billionaire database of Q4 2024 was reviewed to identify stocks with a beta value near 1.5, indicating they are expected to be about 50% more volatile than the broader market. Also, our list comprises stocks with positive earnings per share (EPS) over the past five years and a positive projected EPS growth over the next five years. The criterion was in place to consider only those stocks with historical profitability and future earnings potential. All the stocks have a consensus Strong Buy rating from Wall Street analysts, which suggests a positive market outlook.
Additionally, the stocks in the list are all large-cap firms, which reflects their market presence and liquidity. The stocks are ranked according to billionaire investors having stakes in them. We have sourced the required data from financial databases and analysts, with all information current as of April 4, 2025. Stocks’ presence in the number of hedge funds has also been considered to estimate the institutional interest.
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).
10. GLOBALFOUNDRIES Inc. (NASDAQ:GFS)
Number of Billionaire Investors: 6
Total Value of Billionaire Holdings: $0.98 Billion
Beta: 1.54
GLOBALFOUNDRIES Inc. (NASDAQ:GFS) is among the leading semiconductor manufacturers worldwide. The company is focused on producing essential chips for the communications, automotive, industrial, and IoT sectors. Headquartered in the U.S., it operates globally, with foundries in Germany and Singapore. The specialized process technologies tailored to reliability and performance enable the company to stand unique among its peers. GFS primarily targets long-term supply agreements for mission-critical chip applications.
With six billionaire investors and $0.98 billion in holdings, GLOBALFOUNDRIES Inc. (NASDAQ:GFS) surpassed its midpoint guidance across revenue and EPS for Q4 2024. The company gains market support, with the strong growth in the automotive sector contributing to a 15% increase in revenue in 2024. For 2025, the company expects a further increase in its value attributed to the on-track strategic initiatives in Malta. The initiative is expected to increase the manufacturing capabilities of GFS, thus earning it a position on our list of best high-risk stocks.
GLOBALFOUNDRIES Inc. (NASDAQ:GFS) stands out for its strong projected EPS growth of 26.38%, a sharp increase from its past five years’ growth of 18.83%. The beta of 1.54 signals a high sensitivity to the market conditions. In our list of best high-risk stocks, the company holds the least institutional interest, with Insider Monkey recording 24 hedge funds backing the stock in Q4 2024.
9. Cloudflare, Inc. (NYSE:NET)
Number of Billionaire Investors: 8
Total Value of Billionaire Holdings: $3.78 Billion
Beta: 1.79
California-based company, Cloudflare, Inc. (NYSE:NET) is a global cloud services provider. The company specializes in content delivery, cybersecurity, and internet infrastructure. The company offers a range of solutions, including DDoS protection, zero-trust security, and web performance optimization. Its client base comprises e-commerce, finance, and tech sectors. Its edge network architecture and rapid innovation cycle make the company a tough competitor for Akamai, Fastly, and similar players in the market. NET is one of the best high risk stocks according to billionaires.
Cloudflare, Inc. (NYSE:NET) has garnered notable interest, with eight billionaire investors holding a combined $378 billion in the company. Accordingly, Cloudflare has achieved a 27% year-over-year increase in sales revenue by the end of Q4 2024. The Zero Trust platform of the company is expected to generate further revenue in 2025 since it has announced that companies using the platform can now protect sensitive corporate network traffic from quantum threats. Additionally, the AI capabilities of the company are gaining the attention of analysts and billionaire investors alike as one of the best high-risk stocks.
The high beta of 1.79 suggests that the stock is highly volatile to market conditions. In the past five years, the EPS of Cloudflare, Inc. (NYSE:NET) grew by 8.13%. Strong future potential is realized from the company’s projected EPS growth of 23.79% over the next five years. Insider Monkey’s database noted 55 hedge funds invested in the stock in Q4 2024, reflecting high institutional confidence in the company’s long-term performance.
8. Align Technology, Inc. (NASDAQ:ALGN)
Number of Billionaire Investors: 10
Total Value of Billionaire Holdings: $0.71 Billion
Beta: 1.68
Align Technology, Inc. (NASDAQ:ALGN), established in Arizona, designs and manufactures the Invisalign® system, a well-known clear aligner solution for orthodontic treatment, and iTero® intraoral scanners. The customer base is primarily comprised of dental professionals and patients. With a global reach, the company leverages 3D printing and AI-driven modeling to offer non-invasive treatment alternatives and stay ahead of its competitors. ALGN is one of the best high risk stocks to invest in according to billionaires.
Align Technology, Inc. (NASDAQ:ALGN) has captured the attention of ten billionaire investors with $0.71 billion in holdings. Reporting a total revenue of $995 million in Q4, the company achieved a 4% increase year-over-year because of strong systems and services revenue growth. Align Technology has recorded a historical high of 272,000 active Invisalign-trained practitioners and 19.5 million Invisalign-treated patients. The iTero Lumina scanner launch has been successful. The company has planned to expand its capabilities by including restorative workflows, which have garnered positive responses from the market.
A beta of 1.68 indicates large market sensitivity. The EPS growth over the past five years stands low at 0.33%. However, the forecasted growth for the next five years is 10.10%. With 58 hedge funds involved as per Insider Monkey’s database of Q4 2024, investor interest appears to be high, turning Align Technology, Inc. (NASDAQ:ALGN) into a valuable high-risk stock.
7. Zebra Technologies Corporation (NASDAQ:ZBRA)
Number of Billionaire Investors: 11
Total Value of Billionaire Holdings: $0.28 Billion
Beta: 1.76
Zebra Technologies Corporation (NASDAQ:ZBRA), headquartered in Illinois, provides enterprise-level data capture, tracking, and visibility solutions. The latter includes barcode scanners, mobile computers, RFID systems, and real-time analytics software. The company serves the logistics, healthcare, retail, and manufacturing sectors and has a diverse client base. Its competitive edge lies in its integrated hardware-software ecosystem and innovation in intelligent edge devices, which allows it to compete against companies like Honeywell and Datalogic.
Zebra Technologies Corporation (NASDAQ:ZBRA) has eleven billionaire investors managing $0.28 billion in total holdings. The recent financial performance, like the 32% year-over-year increase in sales for Q4, suggests that the company meets the expectations of the billionaire investors. Additionally, the company has achieved strong double-digit sales growth across all regions, particularly in North America and Latin America. Zebra Technologies Corporation (NASDAQ:ZBRA) is set to increase its value further in 2025, with its progress in supply chain diversification that would allow the company to reduce its reliance on China and mitigate the effects of the new tariffs.
Zebra Technologies Corporation (NASDAQ:ZBRA) has a relatively high beta of 1.76, suggesting high volatility to market changes. Yet EPS growth over the past five years was minimal at 0.42%. On the other hand, it is expected to incur an 11.88% growth in the next five years. Forty-five hedge fund investors in Insider Monkey’s Q4 2024 database, representing moderately strong institutional interest, suggest a positive outlook for tech solutions. It is among the best high risk stocks to invest in.
6. Teradyne, Inc. (NASDAQ:TER)
Number of Billionaire Investors: 11
Total Value of Billionaire Holdings: $0.32 Billion
Beta: 1.69
Massachusetts-based company Teradyne, Inc. (NASDAQ:TER) is a global supplier of automated test equipment in semiconductors and industrial automation. Its key offerings include semiconductor test systems, robotics, and collaborative automation solutions. The company serves the electronics, automotive, and advanced manufacturing sectors. It is known for enabling high-throughput testing and quality control. The company thrives in the market amidst tough competition using Universal Robots and Mobile Industrial robot units, which specialize in smart automation.
Teradyne, Inc. (NASDAQ:TER) is supported by eleven billionaire investors overseeing $0.32 billion. The Q4 results indicate a 17% year-over-year SOC and memory test revenue growth. The revenue was primarily attributed to AI accelerator ASICs, networking, and HBM DRAM. The high level of dependence on the mobile market has been reduced after the successful diversification of the customer base. In addition to fortifying financial stability, the company expects an increase in value, with the new Infineon partnership accelerating its growth in the power semiconductor space.
Teradyne, Inc. (NASDAQ:TER)’s beta of 1.69 reflects high market sensitivity and gains a spot on our list of high-risk stocks. Though the EPS grew by only 4.98% over the past five years, it has a projected 23.45% rise in the next five years, which boosts its appeal. With 61 hedge funds invested as per Insider Monkey’s Q4 2024 database, the institutional interest in the company’s stakes remains high.
5. Expedia Group, Inc. (NASDAQ:EXPE)
Number of Billionaire Investors: 14
Total Value of Billionaire Holdings: $12.27 Billion
Beta: 1.63
Holding a position as one of the world’s largest online travel platforms, Washington-based company Expedia Group, Inc. (NASDAQ:EXPE) is engaged in the business of offering booking services for flights, hotels, car rentals, and vacation packages. The company caters to global consumers through brands like Expedia, Hotels.com, and Vrbo. Expedia sets itself apart from its competitors by diversifying its platforms and attracting a wide range of customers through its loyalty programs.
Expedia Group, Inc. (NASDAQ:EXPE) draws strong billionaire interest, with 14 investors collectively holding $12.27 billion. The interest is supported by a double-digit growth recorded in Q4 concerning room nights, gross bookings, and revenue. Strong international demands have specifically contributed to a 24% increase in bookings, leading to growth in the B2B business. The company entered the 2025 financial year with 7% growth in global active membership in its loyalty program, leading analysts to cast a positive outlook for the company.
With a beta of 1.63, a moderate level of volatility is noted in Expedia Group, Inc. (NASDAQ:EXPE). EPS growth over the past five years stands at 18.87%. The next five years have a projected EPS growth of 18.92%, indicating sustainability in future development. EXPE is backed by 72 hedge funds from the Insider Monkey Q4 2024 database as a top high-risk stock, signaling high institutional interest.
4. PayPal Holdings, Inc. (NASDAQ:PYPL)
Number of Billionaire Investors: 17
Total Value of Billionaire Holdings: $1.73 Billion
Beta: 1.51
Headquartered in California, U.S., a global fintech company, PayPal Holdings, Inc. (NASDAQ:PYPL) provides digital payment solutions to consumers and merchants across more than 200 markets. Core services offered by the company include online payments, peer-to-peer transfers, and merchant solutions. These services are provided under various sub-brands like PayPal, Venmo, and Braintree. The company differentiates itself from its competitors, like Apple Pay, through its continued innovation in digital wallets and checkout optimization, which has earned it a broad user base.
PayPal Holdings, Inc. (NASDAQ:PYPL) is backed by 17 billionaires with $1.73 billion in holdings. In the last quarter, the company saw a 4% year-over-year increase in its net revenue, reaching $8.37 billion. The company has also recorded a 2% increase in year-over-year active users. Guidance for 2025 suggests a strong focus on becoming a commerce platform and expanding into B2B bill pay. The company is also planning to enable merchants to settle PayPal checkout transactions using cryptocurrencies before the end of 2025. Easier and more effective transaction features are expected to increase the active users’ percentage.
PayPal Holdings, Inc. (NASDAQ:PYPL) is among the least volatile on our list, with a beta of 1.51. The company’s EPS increased by 14.03% in the last five years, though it is expected to slow down to 11.49% in the next five years. With 94 hedge funds remaining invested in Q4 2024, the faith of the institutional investors in the digital payments model remains high. PYPL is among the best high-risk stocks on our list.
3. Applied Materials, Inc. (NASDAQ:AMAT)
Number of Billionaire Investors: 18
Total Value of Billionaire Holdings: $2 Billion
Beta: 1.71
Applied Materials, Inc. (NASDAQ:AMAT) is a leading supplier of manufacturing equipment, software, and services used for producing semiconductors and advanced displays. The company’s technologies support critical processes like deposition, etching, and inspection for chipmakers worldwide. Serving clients in the consumer electronics, AI, and automotive sectors, the company earned a position as a key player in the global semiconductor supply chain through its comprehensive product portfolio and strategic investments.
Applied Materials, Inc. (NASDAQ:AMAT) attracted the attention of eighteen billionaire investors with holdings totaling $2 billion. The company delivered a revenue of $27.2 billion, up 2.5% year-over-year. The increase marks the fifth consecutive year of growth for the company. Parts and services businesses are performing better, with the sector earning double-digit growth. Applied Materials expects further growth in 2025, anticipating a revenue of $7.15 billion in the first quarter. Operational improvements and value-based pricing are expected to drive up sales.
Applied Materials, Inc. (NASDAQ:AMAT)’s high susceptibility to market fluctuations, as indicated by its beta of 1.71, turns it into a high-risk investment. The company posted a strong 24.62% EPS growth over five years. However, forecasts indicate a slower pace of 8.06% for the next five years. With 80 hedge funds invested in Q4 2024, the company continues to attract institutional confidence.
2. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Billionaire Investors: 18
Total Value of Billionaire Holdings: $5.12 Billion
Beta: 1.97
An American multinational corporation, Advanced Micro Devices, Inc. (NASDAQ:AMD) is a major semiconductor company engaged in the business of designing CPUs, GPUs, and adaptive computing products for PCs, data centers, and gaming markets. The company serves clients across tech, AI, cloud, and enterprise sectors. Despite the tough competition from Intel and NVIDIA, Advanced Micro Devices has gained significant market share through its Ryzen and EPYC product lines, which are known for their quality and cost-effectiveness.
Advanced Micro Devices, Inc. (NASDAQ:AMD) appealed to eighteen billionaire investors managing $5.12 billion. The company saw record revenue of $25.8 billion, a 14% increase year-over-year. A 50% increase heavily influenced the upward trend in the Data Center segment. Additionally, the demand for the Ryzen processors has gone up, resulting in a 58% year-over-year increase in the company’s client segment. The company’s guidance for 2025 anticipates a revenue of $7.1 billion in the first quarter and a positive outlook from the market. AMD is among the best high risk stocks to invest in.
Advanced Micro Devices, Inc. (NASDAQ:AMD) advent into a top high-risk stock is driven by its exceptional EPS growth of 26.91% and an even higher projection of 33.09% in the next five years. With a 1.97 beta, Advanced Micro Devices stands as the most highly responsive stock to market shifts on our list. The company is backed by 96 hedge funds from the Insider Monkey Q4 2024 database, suggesting high institutional confidence in the firm’s performance in semiconductors and AI computing.
1. Adobe Inc. (NASDAQ:ADBE)
Number of Billionaire Investors: 18
Total Value of Billionaire Holdings: $5.78 Billion
Beta: 1.54
Adobe Inc. (NASDAQ:ADBE) is a global leader in digital media and experience software. Headquartered in California, the company is best known for products like Photoshop, Acrobat, and its Creative Cloud suite. The company also delivers marketing automation and analytics through Adobe Experience Cloud. Through these products, the company serves creators, marketers, and enterprises. Canva remains a tough competitor, but Adobe maintains an edge through recurring subscription revenue and continuous innovation in AI tools like Adobe Firefly.
Adobe Inc. (NASDAQ:ADBE) is backed by eighteen billionaire investors controlling $5.78 billion, reflecting confidence in the company’s creative software leadership. In line with this confidence, it recorded an 11% year-over-year growth in its revenue. Strong growth in the Digital Media business and Document Cloud segment supported this upward trend in revenue. Notably, the Adobe Experience Platform and native apps exceeded $1 billion in the book of business because of their overwhelming adoption among industry leaders. For the year 2025, the company expects revenue to be between $23.3 billion and $23.55 billion, thus attracting investors looking for the best high-risk stocks.
Adobe Inc. (NASDAQ:ADBE)’s beta of 1.54 reflects moderate volatility. The company’s EPS has grown by 15.54% over the past five years, with a modest 5-year projection of 11.46%. Institutional interest stands high, with 117 hedge funds, tracked by Insider Monkey at the end of Q4 2024, holding stakes in the company.
Overall, Adobe Inc. (NASDAQ:ADBE) ranks first on our list of the best high-risk stocks to buy according to billionaires. While we acknowledge the potential for ADBE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher 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 ADBE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks To Invest In According to Billionaires.
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