10 Best Momentum Stocks to Buy According to Hedge Funds

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1. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 193 

NVIDIA Corporation (NASDAQ:NVDA) is a global leader in artificial intelligence, graphics processing units (GPUs), and high-performance computing. Renowned for revolutionizing gaming, data centers, and AI technologies, the company continues to drive innovation across industries, from autonomous vehicles to cloud computing.

Over the last 5 years, NVIDIA Corporation (NASDAQ:NVDA) has provided a total return of a whopping 1,779.83% compared to a meager 80.16% return from the broader market, which makes NVDA one of the best momentum stocks. The company reported impressive financial results for Q3 FY2025, with record quarterly revenue of $35.1 billion, reflecting a 17% increase from Q2 and a 94% surge from the previous year. Data Center revenue was particularly strong, reaching $30.8 billion, up 17% from Q2 and up 112% year-over-year. The company posted GAAP earnings per share (EPS) of $0.78, up 16% from the previous quarter and up 111% from the same period last year.

NVIDIA Corporation (NASDAQ:NVDA) has launched the GeForce RTX 50 series, a leap over the 40 series, featuring enhanced AI capabilities and significant performance improvements through DLSS 4. Despite growing competition from emerging companies like DeepSeek, the company remains dominant in the AI hardware market, bolstered by its robust software ecosystem, including CUDA. Additionally, the company is leveraging synthetic data to train AI models and innovate in biomedicine with AI-designed proteins. With these advancements, NVIDIA Corporation (NASDAQ:NVDA) is not only maintaining its leadership in graphics but also positioning itself at the forefront of AI, healthcare, and cloud gaming.

Blayne Curtis of Barclays maintains a “Buy” rating on NVIDIA Corporation (NASDAQ:NVDA), raising the price target from $160 to $175, indicating a potential upside of 29.03%.

Overall NVIDIA Corporation (NASDAQ:NVDA) ranks first on our list of the 10 Best Momentum Stocks to Buy According to Hedge Funds. While we acknowledge the potential for NVIDIA Corporation (NASDAQ:NVDA) 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. If you are looking for an AI stock that is more promising than NVIDIA Corporation (NASDAQ:NVDA) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stock To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

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