In this article, we will take a look at the top 10 best stocks to buy for the next 3 months.
The year 2025 began with the surprise announcement of DeepSeek AI, launched in China, which shook the markets. Further volatility was experienced when the US government implemented trade tariffs across China and Europe. In March, President Trump suggested that his proposed reciprocal tariff regime would offer “flexibility”, giving investors some relief. Although it is unclear what the term “flexibility” would entail. Rising tensions from conflicts in the Middle East and Europe added to market uncertainty. Looking ahead, investors will be watching closely for fresh economic indicators to assess the Fed’s stance on future interest rates.
The hedge fund industry is seen as a trusted source of investment opportunities. According to a report published by Reuters, assets have grown by nearly 56% since 2015. The industry had $4.51 trillion in assets under management (AUM) in 2024, 9.75% higher compared to the previous year. Total assets were the highest amount since 2021, rising by $401.4 billion in 2024 due to strong performances across different strategies.
In terms of returns, hedge funds continued to show improvement year-on-year. As per a report by Pivotal Path, hedge funds returned 5.7% in 2023 and 10.7% in 2024, while some managers showed gains above 50%. This performance substantiates the industry’s influence on markets.
Looking ahead, the hedge fund landscape is poised for significant changes in 2025, driven by evolving market conditions, technological advancements, and shifting investor preferences. Mordor Intelligence predicts that the US Hedge Fund Market will have a market size of $2.95 trillion in 2025 and is expected to reach $4.05 trillion by 2030, a CAGR of 6.52%.
Hedge funds have introduced new strategies for mitigating market risks for improved returns to their investors. These include diversifying towards smaller multi-strategy funds. After a decade of fluctuating demand, smaller multi-strategy funds have begun to show interest. In 2024, with traditional asset classes facing challenges from rising P/E ratios and tight credit spreads, the uncorrelated returns of reinsurance-linked strategies have become increasingly attractive. This is expected to drive substantial capital inflows into the sector in 2025, particularly from institutional investors seeking diversification and higher returns. Investors who can assess the market dynamics, adapt to changes, and identify future leaders in the space are well-positioned for success. Hedge funds have the resources to use advanced AI-driven technologies to predict market movements to ensure higher returns on volatile asset classes.
Investors seeking to mitigate the impact of such volatility will opt for more stable, low-risk investments such as fixed-income securities. These provide a continuous stream of income in periods of high interest rates. In contrast, those willing to take advantage of high interest rates would opt for sectors benefiting from such a scenario, including banking, real estate, or tech firms, which are geared to take on high market volatility.
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Our Methodology
The best stocks to buy over the next three months are chosen based on hedge fund sentiment toward these investments. For this list, we used Insider Monkey’s Q4 2024 proprietary hedge fund holdings database and identified the 10 most popular hedge fund stocks. The stocks are ranked in ascending order of their hedge fund positions.
At Insider Monkey, we are obsessed with hedge funds. 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. Salesforce, Inc. (NYSE:CRM)
No. of Hedge Fund Holders: 162
Upside Potential: 33.76%
Salesforce, Inc. (NYSE:CRM) is a global leader in customer relationship management (CRM) technology, offering a comprehensive suite of tools that bridge the gap between businesses and their customers. The company’s diverse product portfolio includes Agentforce, an agentic platform layer, and Data Cloud for unified customer data management. Leveraging AI, Salesforce offers Industries AI and intelligent analytics within Tableau, enabling trend analysis, predictive modeling, and actionable insights. For businesses of varying sizes, the company provides tailored solutions, including Salesforce Starter for small and medium-sized enterprises. Communication and collaboration are facilitated through Slack and MuleSoft. It is among the best stocks to buy.
Salesforce, Inc. (NYSE:CRM) announced a revenue of $9.99 billion for its Q4 2024, missing analyst estimates by $42.51 million; however, EPS was $0.17 above expectations at $2.78. For the complete year 2025, revenue was $37.9 billion, 9.9% higher YoY.
Salesforce, Inc. (NYSE:CRM) recently announced a $1 billion investment in Singapore over the coming 5-year period to boost the country’s digital transformation and AI adoption. The company aims to enhance its presence in the country, boosting investment through local partnerships with teaching institutes Singapore Management University, Institute of Technical Education, and Ngee Ann Polytechnic, in an effort to upskill the local workforce. This includes revamping its office in the region as well. Company Chairman, Chief Executive Officer and Co-Founder Marc Benioff commented:
“Singapore is at the forefront of this shift, and as the world’s largest provider of digital labor through our Agentforce platform, Salesforce is thrilled to expand our work with the business community and our longtime partners in the region to drive innovation, productivity and growth.”
Analysts believe the market has seen a correction post-earnings session. Enterprise software stocks, including Salesforce, Inc. (NYSE:CRM) are no exception due to investors’ reaction to a potential slowdown in economic activity.
9. Apple Inc. (NASDAQ:AAPL)
No. of Hedge Fund Holders: 166
Upside Potential: 15.72%
Apple Inc. (NASDAQ:AAPL) is a global technology giant specializing in the design, manufacturing, and marketing of a wide range of consumer electronics and related services. The company’s large product lines include the iPhone, Mac, iPad tablets, AirPods, Apple Watch, and Apple TV. With an upside potential of nearly 16%, AAPL is one of the best stocks to buy.
Beyond hardware, Apple Inc. (NASDAQ:AAPL) offers a comprehensive ecosystem of services, including AppleCare support and cloud services. The App Store serves as a central hub for digital content and applications, while the company also provides advertising services, as well as subscription-based offerings such as Apple TV, Apple Music, and financial pay services, namely Apple Card and Apple Pay. Its customer base includes consumers, small and medium-sized businesses, government sectors, and corporations with a distribution network comprising of retail and online stores, partnerships with cellular carriers, wholesalers, retailers, and resellers.
Apple Inc. (NASDAQ:AAPL)’s Q1 2025 earnings revealed a topline of $124.03 billion, an increase of 3.95% YoY, beating estimates by $273.49 million. EPS was $2.40, narrowly beating expectations by $0.05.
It should be noted that the iPhone sales, which make up the large majority of the company’s revenue stream, were stable at $69.1 billion. Apple Inc. (NASDAQ:AAPL) has been working on a foldable version of its iconic iPhone, with expectations that the product will be ready for market as soon as 2026, at a price of $2000. Analysts on X (formerly Twitter) reported that the company is expecting to finalize designs by the end of this fiscal year, while production and shipping will range between 3 to 5 million units in 2026 and as high as 20 million by 2027.
Apple Inc. (NASDAQ:AAPL) has also carried out management restructuring, as per a report by Bloomberg. Mike Rockwell, who was previously heading the Vision Pro, will now oversee the work on Siri.
8. Uber Technologies, Inc. (NYSE:UBER)
No. of Hedge Fund Holders: 166
Upside Potential: 17.62%
Uber Technologies, Inc. (NYSE:UBER) is a global technology company facilitating various transportation and delivery services through its proprietary applications. The company’s business is segmented into Mobility, Delivery, and Freight. The Mobility segment connects users with diverse transportation while also offering financial and advertising services. The Delivery segment focuses on connecting consumers with restaurants and retail stores for food, groceries, and other item deliveries. Meanwhile, the Freight segment provides a digital marketplace for shippers and carriers, streamlining logistics and transportation management.
A pioneer of the ride-hailing industry, Uber Technologies, Inc. (NYSE:UBER) has been at the forefront of technological innovation. The company’s partnership with tech giants Alphabet and Waymo led to the deployment of their autonomous driving vehicles in Austin, Texas, in March. Users on the Uber app now have the option to accept or switch to their non-autonomous ride. As soon as they do, their Jaguar I-PACE vehicle arrives within a specified locality, with the user having the ability to unlock the vehicle, open the trunk, and start the trip all from their familiar app. The service is already running in Phoenix, San Francisco, and Los Angeles, and it will soon be running in Atlanta. In a move to expand its delivery segment, the company also announced a partnership with FreshDirect, a leading online food delivery service in New York.
Uber Technologies, Inc. (NYSE:UBER)’s Q4 2024 report showed revenue of $11.96 billion, up 20.36% YoY, beating analyst estimates by $185.32 million. EPS was $3.21, beating estimates of $2.73. It is among the best stocks to buy.
7. Visa Inc. (NYSE:V)
No. of Hedge Fund Holders: 181
Upside Potential: 11.37%
Visa Inc. (NYSE:V) is a global payment technology company facilitating electronic payment transactions. Its brands include Visa, Visa Electron, and PLUS. At the core of its operations is VisaNet, a network that handles authorization, clearing, and settlement for various payment types. The company offers a diverse portfolio of products, including credit, debit, and prepaid cards, alongside modern payment solutions like tap-to-pay, tokenization, and click-to-pay. Separately, it also provides acceptance solutions through Cybersource and Authorize.net, risk and identity solutions through Visa Advanced Authorization and Visa Secure, and advisory services via the brands Visa Consulting and Analytics.
Visa Inc. (NYSE:V) continues to expand its global operations with strategic partnerships in different markets, including Mainland China, India, New Zealand, Argentina & Uruguay. The company’s Q1 2025 earnings reports stated a revenue of $9.51 billion, a 10.15% rise YoY, beating analysts’ estimates by $170.7 million. The company’s CFO Chris Suh attributed the rise to a rising trend in seasonal shopping in the US, which lasts from November 1 up to December 31. Meanwhile, EPS missed estimates by -$0.06 at $2.58.
Visa Inc.’s (NYSE:V) share price has fallen by over 5% in March. Analysts, however, remain confident in the company despite the recent market sell-off, as technical analysis reveals a strong uptrend with more support than resistance. Analysts consider this a short-term weakness compared to their long-term view. With an upside of over 11%, V is one of the best stocks to buy.
6. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
No. of Hedge Fund Holders: 186
Upside Potential: 39.80%
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSMC) manufactures, packages, tests, and sells integrated circuits and other semiconductor devices globally, dominating the global foundry market with a 50% market share. The company achieved sales of $26.37 billion, up 33.10% YoY, beating estimates by $384.96 million. EPS was $2.24, managing to beat estimates by $0.02. It is among the best stocks to buy on our list.
Taiwan Semiconductor Manufacturing Company Limited’s (NYSE:TSMC) stock price slumped earlier this year after the news of a Chinese AI company producing a more efficient AI model broke out (similar to all other tech giants). The share price stabilized in March, and analysts believe this creates a buying opportunity for investors who wish to jump on the chance to invest further.
The US government approved of trade tariffs on China, with TSMC’s representatives meeting with the legal council of the US Commerce Department and Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSMC). The company’s representative had this to say:
“(TSMC) Comply with all applicable laws and regulations and is fully committed to complying with the new export control rules announced.”
5. NVIDIA Corporation (NASDAQ:NVDA)
No. of Hedge Fund Holders: 223
Upside Potential: 45.37%
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computer, and networking solutions, including GPUs, software, and platforms for gaming, data centers, automotive, and AI. Its hardware-software integration, particularly its DGX cloud offerings, makes it a major player in AI and serverless computing.
NVIDIA Corporation (NASDAQ:NVDA)’s CEO, Jensen Huang, also stated an improvement in their product performance by millions of times over the past decade and expects similar growth over the next decade. While having an established dominance in hardware, it also has an overwhelming presence in the cloud, with 93% of GPU-accelerated instances being powered by the company’s hardware.
NVIDIA Corporation (NASDAQ:NVDA)’s earnings report for the final quarter of 2024 revealed revenue of $39.33 billion, an astounding 77.94% YoY rise, shattering estimates by $1.19 billion. EPS was $0.89, also beating estimates of $0.04.
The Semiconductor Industry Association (SIA), which includes NVIDIA Corporation (NASDAQ:NVDA) as a member, spoke about the importance of the US Trade Commission to look beyond tariffs and work with global allies to offset China’s attempts at dominating the industry.
”In semiconductors, as in other advanced technologies, China has pursued a wide range of policies and practices that seek to frustrate access for foreign products and companies to its domestic market, while offering an array of subsidies, discriminatory standards, preferential government procurement policies, local content requirements, and other measures intended to boost local producers and design-in domestically produced semiconductor chips into downstream products for sale in China’s domestic market as well as for products exported to the rest of the world.
We strongly urge USTR and other U.S. agencies to continue collaboration with G7 countries and other trusted partners and allies towards coordinated, multi-country solutions to the challenges outlined in this submission – solutions that maximize impact and minimize potential free-riding and backfilling.”
4. Alphabet Inc. (NASDAQ:GOOGL)
No. of Hedge Fund Holders: 234
Upside Potential: 33.75%
Alphabet Inc. (NASDAQ:GOOGL) is a pioneer of the tech sector, a multinational conglomerate delivering a wide array of digital products and platforms across global markets. Its portfolio consists of Google Services, Google Cloud, and Other Bets. The Google Services division includes Search, YouTube, Android, Chrome, and Gmail, alongside hardware devices and digital content sales via Google Play. The Google Cloud segment focuses on enterprise solutions, including AI infrastructure, cybersecurity, and data analytics, while the Google Workspace suite includes Gmail, Docs, and Meet. Lastly, the Other Bets segment explores innovative ventures, primarily in healthcare and internet services as well as automated driven vehicles (AV).
Alphabet Inc. (NASDAQ:GOOGL)’s earnings report for the final quarter of 2024 showed a revenue of $96.47 billion, up 11.77% YoY, but missed analysts’ estimates by $119.79 million, while EPS was $2.15, above estimates by just $0.02. Operating income was reported at $31 billion and net income of $26.5 billion, up 28% and 31%, respectively.
It is worth noting that Alphabet Inc.’s (NASDAQ:GOOGL) DeepMind is a leader in AI, Waymo SW is the leading self-driving vehicle company in the market, and its YouTube and Android smartphones dominate their respective markets. It is no wonder that the company trades at a P/E of ~20x. GOOGL is among the best stocks to buy.
3. Meta Platforms, Inc. (NASDAQ:META)
No. of Hedge Fund Holders: 262
Upside Potential: 28.31%
Meta Platforms, Inc. (NASDAQ:META) is a global technology conglomerate focused on connecting people through various digital platforms and immersive technologies, operating in two segments, Family of Apps (FoA) and Reality Labs (RL). The FoA segment encompasses popular social media and messaging applications. Facebook, Instagram, and WhatsApp. The Reality Labs (RL) segment advances virtual, augmented, and mixed reality technologies, offering consumer hardware, software, and content designed to enhance connectivity. These products aim to bridge the physical and digital worlds, enabling users to interact in immersive environments.
Meta Platforms, Inc. (NASDAQ:META) has launched its Meta AI chatbot in the European Union, despite ongoing regulatory scrutiny for potential Digital Markets Act violations. The AI service, offering chat functionality in six European languages, will be available across Meta’s apps—Facebook, Instagram, WhatsApp, and Messenger—in 41 European countries. It is worth noting that this launch occurs amid increasing pressure on U.S. tech giants from EU antitrust authorities, with recent findings indicating breaches of DMA rules by Google and recommendations for Apple to comply. The EU denies targeting American firms, citing similar investigations in the U.S. The launch of Meta AI, boasting over 700 million users globally, signifies Meta’s effort to expand its AI services despite regulatory challenges. The company’s Founder, Chairman, and Chief Executive Officer, Mark Zuckerberg, spoke on Meta’s commitment to AI going into 2025:
“In AI, I expect this is going to be the year when a highly intelligent and personalized AI assistant reaches more than 1 billion people, and I expect Meta AI to be that leading AI assistant. Meta AI is already used by more people than any other assistant, and once a service reaches that kind of scale it usually develops a durable long-term advantage.”
Meta Platforms, Inc. (NASDAQ:META) reported earnings of $48.39 billion (up 20.63% YoY) for Q4 2024, beating estimates by $1.39 billion and an EPS of $8.02, clearing estimates by $1.28. The company has daily active users (DAU) of 3.35 billion as of Q4 2024, up from 3.29 billion in Q3 2024. Meta AI serves approximately 700 million monthly active users.
2. Microsoft Corporation (NASDAQ:MSFT)
No. of Hedge Fund Holders: 317
Upside Potential: 29.39%
Microsoft Corporation (NASDAQ:MSFT) is a pioneer in the technology sector. A global giant offering a wide range of software, services, and devices, with operations divided into three main segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment focuses on workplace and communication tools, including Microsoft 365, Teams, LinkedIn, and Dynamics 365. The Intelligent Cloud segment provides cloud-based services and server products, notably Azure, Visual Studio, and platforms such as GitHub. The More Personal Computing segment encompasses Windows operating systems, Surface devices, and gaming hardware brands such as Xbox, Game Pass, as well as managing search and news advertising through Bing, Microsoft News, and Edge.
Microsoft Corporation’s (NASDAQ:MSFT) earnings report for Q2 of 2025 revealed revenue of $69.63 billion, up 12.27%, clearing analysts’ estimates by $823.09 million and an EPS of $3.23. The AI segment contributed $13 billion to revenue, while revenue from cloud services was $40.9 billion, up 21%. The company’s Chairman and Chief Executive Officer, Satya Nadella, commented on the company’s cloud services’ performance, stating:
“Enterprises are beginning to move from proof-of-concepts to enterprise-wide deployments to unlock the full ROI of AI. And our AI business has now surpassed an annual revenue run rate of $13 billion up 175% year-over-year.”
Last year, Mr. Satya Nadella made a trip to Malaysia, as US tech firms continue to reduce their dependence on China as a regional partner due to a shift in US Government policies. Mr. Nadella announced that Microsoft Corporation (NASDAQ:MSFT) plans to launch its first cloud region in Malaysia with three data centers by mid-2025. More recently, the company also announced scaling back operations of Skype and transitioning existing users to Microsoft Teams instead. With an upside potential of nearly 30%, MSFT is one of the best stocks to buy.
1. Amazon.com, Inc. (NASDAQ:AMZN)
No. of Hedge Fund Holders: 339
Upside Potential: 35.02%
Amazon.com, Inc. (NASDAQ:AMZN) is a global retail and technology conglomerate operating throughout North America, International, and Amazon Web Services (AWS) segments. The company is a dominant market share holder in e-commerce and cloud services. Its services include consumer product sales, advertising, and subscription services via online and physical stores. The company’s brands include Kindle, Echo, AWS, Amazon Prime, and the Washington Post.
During the company’s Q4 2024 earnings conference call, Amazon.com, Inc. (NASDAQ:AMZN) announced revenue of $187.79 billion, up $187.79 billion (up 10.49% YoY), beating analyst estimates by $563.26 million. EPS was reported at $1.86, exceeding expectations by $0.38. Meanwhile, operating income was $21.2 billion (61.6% increase YoY). Speaking during the conference call, company CEO Andy Jassy highlighted customer loyalty in Amazon’s popular discount pricing strategies. He had this to say:
“Customers continue to want Amazon to be the place they rely on for sharp pricing. In the fourth quarter, consumers saved more than $15 billion with our low everyday prices and record-setting events during Prime big deal days in October and Black Friday and Cyber Monday around Thanksgiving. Additionally, for Federal’s annual pricing study found that entering the holiday season, Amazon had the lowest online prices for the eighth year in a row, averaging 14% lower prices on average than other leading retailers in the US.”
Overall, Amazon.com, Inc. (NASDAQ:AMZN) ranks first on our list of the best stocks to buy over the next 3 months. While we acknowledge the potential for AMZN 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 AMZN 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 Buy Now According to Billionaires.
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