On March 8, Bob Elliott, Co-Founder, CEO, and CIO of Unlimited, and Kara Murphy, CIO of Kestra Investment Management, joined ‘Closing Bell Overtime’ on CNBC to talk about the week’s market action. In a discussion on whether stocks or gold were the better choice in the current economic climate, Bob Elliott noted that stocks were facing tough circumstances due to elevated expectations at the start of the year, which had begun to adjust downward. He highlighted concerns about fiscal tightening, tariff volatility, and weaker employment conditions. However, he emphasized that these factors were overshadowed by potential tax policy changes, immigration restrictions, and efforts to curb federal spending, which could impact nominal GDP growth. Kara Murphy was asked about diversification, which is a topic that gained traction after a prolonged period where mega-caps and tech stocks dominated returns. She pointed out that diversification had been undervalued for two years but was now proving its worth as bonds and international funds outperformed US stocks. Murphy suggested that a diversified portfolio was essential for navigating the market, as it was no longer reliant on just a few high-performing stocks.
The conversation then turned to the push-and-pull between monetary and fiscal policies. Elliott discussed the volatility caused by rapid changes in policy, such as tariffs, which made it difficult for investors to have high conviction in any direction. This volatility was forcing professional money managers to reduce risk, which led to a decrease in long positions in leveraged investments and a reduction in short interest positions. Elliott highlighted the challenge of finding incremental buyers for risk assets in such an uncertain environment. Murphy reflected on the market’s valuation at the start of the year, and noted that while valuations were high, they alone were not a reliable timing indicator for market corrections. She emphasized that earnings momentum would be crucial in the second half of the year, with a potential shift in relative strength from the MAG7 stocks to other parts of the market. Murphy cautioned that high expectations meant companies needed to continue meeting those expectations to sustain market performance.
As the discussion underscored the complexities and uncertainties of the current market environment, it emphasized the importance of diversification in investment strategies. With that being said, we’re here with a list of the 10 best upside stocks to buy right now.
Methodology
We first sifted through stock screeners, online rankings, and internet lists to compile a list of the best stocks with analysts’ upside potentials over 50%, as of March 10. We then selected the 10 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024.
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 Best Upside Stocks To Buy Right Now
10. Delta Air Lines Inc. (NYSE:DAL)
Upside Potential as of March 10: 52.03%
Number of Hedge Fund Holders: 84
Delta Air Lines Inc. (NYSE:DAL) is a global leader in air transportation. It operates a network of domestic and international hubs and offers passenger and cargo services. It has a fleet of 1,200+ aircraft and also provides ancillary services like aircraft maintenance and vacation packages.
The company focuses on customer loyalty through its frequent flyer program called SkyMiles and its American Express partnership. This partnership generated $7.4 billion for the company in 2024. Because of this partnership, 8% of all money spent on American Express cards and 22% of their card loans benefit Delta Air Lines Inc. (NYSE:DAL) and gives the company access to wealthy customers.
After COVID, there was an increased demand for premium travel which benefits Delta Air Lines Inc. (NYSE:DAL) and aims for 37% premium revenue. Despite LCC/ULCC competition (airlines that offer lower fares by reducing services and amenities), this company’s superior service and industry capacity constraints allow it to gain market share and increase revenue. It achieved a record $57 billion in 2024 revenue, which is a 4% increase from 2023, and projects 7-9% growth for 2025.
9. Constellation Energy Corp. (NASDAQ:CEG)
Upside Potential as of March 10: 58.56%
Number of Hedge Fund Holders: 85
Constellation Energy Corp. (NASDAQ:CEG) is a US energy provider that delivers electricity, natural gas, and sustainable solutions across five key regions. With a portfolio of nuclear, wind, solar, and other generation assets, it serves a range of customers, from utilities to individual households.
On February 24, DBS analyst Elizabelle Pang maintained a Hold rating on the company with a $300 price target. This sentiment was supported by the company’s recent announcement to acquire Calpine Corporation, which is driven by the expansion of AI data centers and the electrification of transportation and buildings.
The company’s core growth engine is its ability to meet the power demands of AI data centers. Its nuclear fleet, which operates at a 95% capacity factor and produces 41 million megawatt-hours of clean energy, is central to this. It takes the company under 20 days to refuel outages. Constellation Energy Corp. (NASDAQ:CEG) is working to fix power shortages in the PJM area by promoting programs that encourage customers to use less electricity during peak times. PJM is the regional power grid operator for parts of 13 states and DC to ensure reliable electricity flow.
Alger Mid Cap Focus Fund has been positive on Constellation Energy Corp. (NASDAQ:CEG) because of its leading position in clean nuclear energy. The company has strong growth potential driven by electrification and AI, along with favorable market conditions and agreements. The fund stated the following in its Q3 2024 investor letter:
“Constellation Energy Corporation (NASDAQ:CEG) is the largest producer of clean energy in the U.S., with 32,400 Megawatts of capacity, 87% of which is nuclear generated. Its nuclear, hydro, wind, and solar facilities provide 10% of all clean energy on the U.S. grid and 22% of its clean baseload power. We believe the company stands to benefit from the increasing electrification of the U.S. economy. The rise of electric vehicles, data centers, and reshoring of American manufacturing is driving U.S. electricity load growth for the first time in nearly two decades. In our view, AI workloads are projected to significantly increase energy demand from data centers over the next few years. As American enterprises seek clean and reliable energy sources, nuclear power, which is carbon-free and dependable, stands out compared to intermittent renewables like wind and solar. Constellation, as an unregulated independent power producer, benefits from low fixed costs and can capture upside from rising electricity prices. We believe that potential opportunities for earnings growth include colocation (data centers near nuclear plants) and energy-matching programs with cloud providers willing to pay premium prices for nuclear energy. The Inflation Reduction Act also provides downside protection through a guaranteed minimum price for nuclear generation. During the quarter, shares contributed to performance from two events: 1) annual electricity auctions revealed tightening markets driven by increasing demand, driving higher pricing in the Middle Atlantic states, leading management to raise their fiscal 2024 earnings projections. 2) On September 20, 2024, Constellation Energy announced the signing of a 20-year power purchase agreement with Microsoft, which includes restarting Three Mile Island’s Unit 1 to supply energy.”
8. Western Digital Corp. (NASDAQ:WDC)
Upside Potential as of March 10: 53.48%
Number of Hedge Fund Holders: 85
Western Digital Corp. (NASDAQ:WDC) is a leader in data storage. It provides HDDs and SSDs for diverse applications, from consumer devices like PCs and smartphones to enterprise-level data centers and AI workloads. It operates under the renowned Western Digital, SanDisk, and WD brands.
Wells Fargo’s Aaron Rakers reiterated a Buy rating on the company with an $85 price target on February 12. This sentiment came from the revenue growth potential at the company because of AI and autonomous driving, which drives the company’s HDD business. In FQ2 2025, HDD sales hit a 12-quarter high, with data center revenue reaching a record 55% of total revenue. Average HDD price rose 5% to $172.
The data storage market is expected to grow from $65 billion in 2024 to $100 billion by 2030, and Western Digital Corp. (NASDAQ:WDC) is positioned to capitalize on it. Despite a projected short-term dip in sales, the company anticipates a rebound driven by AI expansion, the 2025 Windows 10 end-of-life, and post-COVID device upgrades, alongside partnerships with major tech companies. The HDD industry’s duopoly will allow this company to increase profits as demand rises.
Parnassus Mid Cap Fund stated the following regarding Western Digital Corp. (NASDAQ:WDC) in its Q2 2024 investor letter:
“We re-initiated a position in Western Digital Corporation (NASDAQ:WDC), a manufacturer of memory semiconductor chips and hard disk drives, as we believe earnings expectations are far too low. Semiconductors have been another of our most-alpha-generative industries, thanks to the industry’s secular tailwinds and our in-house expertise. Western Digital stands to benefit from the rapid growth of memory-hungry AI applications. The valuation for Western Digital was low relative to its peers, giving us a way to participate in AI at a reasonable valuation.”
7. United Airlines Holdings Inc. (NASDAQ:UAL)
Upside Potential as of March 10: 58.06%
Number of Hedge Fund Holders: 86
United Airlines Holdings Inc. (NASDAQ:UAL) is a global airline that delivers passenger and cargo transportation across a network that spans continents. Beyond its core flight operations, it provides essential services like ground handling, maintenance, and a frequent flyer program.
In Q4 2024, the company’s international flights were more profitable than its domestic flights. Pacific PRASM (Passenger Revenue per Available Seat Mile) increased 4.1% year-over-year, with a 31% increase in seat capacity to pre-pandemic levels. Atlantic PRASM rose 7.1% without additional seats. There was a 1.6% increase in TRASM (Total Revenue per Available Seat Mile) and a 6.2% increase in ASM (Available Seat Mile), which resulted in a 50.6% rise in operating income. Business and premium passenger revenues grew 16% and 10% respectively.
For 2025, the company projects to earn $11.50 to $13.50 per share, which will be an 8.3% to 27% increase over 2024’s $10.61. This year, the company will utilize smaller 737s for intra-Asian routes, use its Guam hub for US-Asia travel, and improve seat utilization on existing international flights.
Patient Capital Management is bullish on the company due to its strong performance, improved customer satisfaction, and growing market dominance. It stated the following regarding United Airlines Holdings Inc. (NASDAQ:UAL) in its Q4 2024 investor letter:
“United Airlines Holdings, Inc. (NASDAQ:UAL) had a strong fourth quarter, gaining 70.2% in the period. The company benefitted from continued strong demand that surprised the market as well as the initiation of a buyback program, the first since COVID. There continues to be strong travel demand from both retail and business travelers. According to the International Air Transport Association (IATA), global air passenger travel is still below the pre-COVID implied trend path despite reaching a new all-time high this year. United’s focus on the customer over the last few years has led to strong improvement in net promoter scores (NPS) which should continue to flow through the model via better TRASM (total revenue per available seat mile) and higher cash flows and earnings. As of today, United alone accounts for ~30% of the overall industry’s profits. We expect this market share to grow and be defensible as we transition to an environment where customer service becomes the differentiating factor, and scale provides unparalleled ability to reinvest in the customer experience.”
6. Reddit Inc. (NYSE:RDDT)
Upside Potential as of March 10: 56.74%
Number of Hedge Fund Holders: 87
Reddit Inc. (NYSE:RDDT) operates a global digital platform where users connect through communities centered on shared interests. It facilitates conversations and content sharing. It’s a collection of online forums, called subreddits, where users submit content, vote on it, and engage in threaded discussions.
In Q3 2024, the company’s advertising revenue surged 56% year-over-year and generated $315.1 million. This growth was attributed to a larger user base and more effective ad placement, particularly through “conversation placement ads” that use online discussions for targeted advertising. Additionally, the company’s ads are proving successful at all stages of the customer journey, with a notable impact on users nearing a final purchase.
Reddit Inc. (NYSE:RDDT) is improving its advertising capabilities through user-friendly tools and unique ad options. It’s seeing better results from “conversation ads” and testing new ad locations in comments to increase advertising space. JMP Securities is optimistic about the company’s advertising, and raised their price target to $190 from $160 while maintaining a Buy rating.
5. Vertiv Holdings Co. (NYSE:VRT)
Upside Potential as of March 10: 64.63%
Number of Hedge Fund Holders: 92
Vertiv Holdings Co. (NYSE:VRT) is a leader in critical digital infrastructure technologies. It provides essential power, thermal management, and IT solutions for data centers, communication networks, and industrial environments. It supports modern digital applications, from e-commerce and cloud computing to telecommunications and beyond.
The company is capitalizing on the need for power management in AI data centers. As a market leader, its expertise in AC and DC power conversion directly addresses the power distribution demands of AI. The company is actively investing in R&D and acquiring companies like BSE, which specifically strengthens its cooling capabilities for the high-performance requirements of AI deployments. The company’s EPS surged 77% year-over-year in Q4 2024, reaching $0.99. Looking ahead, it projects EPS between $3.5 and $3.6 for 2025.
Bank of America’s Andrew Obin reaffirmed a Buy rating on Vertiv Holdings Co. (NYSE:VRT) on January 21, citing its strong position in AI and data centers. He forecasts a 25% annual EPS growth from 2024 to 2027, despite general market concerns, believing that the company’s potential is undervalued due to both AI-related and traditional revenue growth, which is fueled by increased data center spending.
Baron Small Cap Fund is highly positive on Vertiv Holdings Co. (NYSE:VRT) because of its leading position in data center infrastructure and strong growth potential driven by AI. Here’s what it said in its Q4 2024 investor letter:
“Vertiv Holdings Co (NYSE:VRT), a critical digital infrastructure solutions provider for data centers, continued to perform well. With a leading market share in power and cooling applications for data centers, Vertiv is seen as a prime beneficiary of the AI-related data center buildout. At its November Analyst Day, Vertiv raised organic sales guidance to 12% to 14% CAGR for the next five years and gave guidance of 16% to 18% organic revenue growth for 2025. Vertiv also increased its target adjusted operating profit margin from 20% to 25%. While impressive on their own, these forecasts can prove conservative we think. With the stock up 141% in 2024, we have been trimming the stock into strength to manage position size but hold a large stake as we believe in its growth and that the stock is reasonably valued even after great appreciation the last two years.”
4. Applovin Corp. (NASDAQ:APP)
Upside Potential as of March 10: 105.19%
Number of Hedge Fund Holders: 95
Applovin Corp. (NASDAQ:APP) provides a software platform for advertisers and app developers to optimize marketing and monetization. Through its integrated suite of tools, which include AppDiscovery, MAX, Adjust, and Wurl, it connects advertisers with audiences across mobile and connected TV.
On February 28, the company received a strong endorsement from Benchmark Co. analyst Mike Hickey. He reaffirmed a Buy rating and a $525 price target and countered the recent short seller reports that accused Applovin Corp. (NASDAQ:APP) of exaggerating its AI advertising benefits. Hickey emphasized the company’s solid business model, open and honest operations, and adherence to industry rules and financial standards to dismiss the short seller claims as baseless.
The company’s AXON algorithm, which is a core component of its AI-powered advertising platform, is ongoing self-learning and engineering enhancements for growth. The Software Platform, which will be renamed “Advertising” in future reports, generated $835 million in revenue, which represents a 66% year-over-year increase. Applovin Corp. (NASDAQ:APP) is expanding its AI advertising capabilities beyond mobile gaming, with a successful e-commerce pilot. Early data shows advertisers seeing substantial returns. The company plans to scale this segment in 2025 by reallocating resources and launching a self-service platform to reach more advertisers.
ClearBridge Mid Cap Strategy is bullish on Applovin Corp. (NASDAQ:APP) due to its leading mobile advertising platform, AI-driven growth potential, and strong free cash flow generation. It stated the following regarding the company in its Q4 2024 investor letter:
“Stock selection in IT was the greatest contributor to performance on strength in AppLovin Corporation (NASDAQ:APP) and Marvell. AppLovin is the world’s leading mobile game and app advertising platform, providing software for marketing and monetization, powered by its proprietary AI targeting engine Axon. We see opportunity for AppLovin to continue to expand and grow its share of the market for mobile app marketing at a time when mobile gaming ad spend is recovering from a higher-rate-driven trough. We also see the potential for the company to expand its addressable market to include e-commerce advertising, around which initial forays have been encouraging. With strong incremental margins and management keeping expenses controlled, the company should be able to drive significant free cash flow growth as revenue continues to scale.”
3. Marvell Technology Inc. (NASDAQ:MRVL)
Upside Potential as of March 10: 69.40%
Number of Hedge Fund Holders: 105
Marvell Technology Inc. (NASDAQ:MRVL) delivers semiconductor solutions for data infrastructure. It enables the core to edge connectivity of data centers and networks. Specializing in complex SoC architectures, it offers a portfolio of Ethernet, electro-optical, storage, and processor technologies.
Wells Fargo analyst Aaron Rakers reiterated a Buy rating on the company on March 6, with a $120 price target. Rakers highlighted the company’s strong alignment with AWS’s next-generation Trainium3 program, which is expected to increase custom XPU revenue. The analyst also noted the company’s confidence in gaining market share within the Data Center segment. Furthermore, the anticipated recovery of its Enterprise Networking and Carrier segments also contributes to this positive outlook.
The company’s data center segment generated a record $1.37 billion in revenue in FQ4 2025, which was an improvement of 78% year-over-year. It was fueled by AI demand and custom silicon programs. Full-year data center revenue grew 88%. Marvell Technology Inc. (NASDAQ:MRVL) exceeded its $1.5 billion AI revenue target and anticipates surpassing $2.5 billion in FY26. Investments in advanced technologies, including 1.6T PAM DSPs and 2-nanometer silicon IP, solidify the company’s market position. Custom AI silicon programs are in high-volume production, with new design wins expected to drive growth.
Artisan Mid Cap Fund is optimistic about Marvell Technology Inc. (NASDAQ:MRVL) due to its strong AI-driven growth potential in data centers and potential for cyclical recovery. Here’s what it stated in its Q4 2024 investor letter:
“Among our top Q4 contributors were Atlassian, Spotify and Marvell Technology, Inc. (NASDAQ:MRVL). Marvell Technology is a semiconductor company offering networking, secure data processing and storage solutions to customers worldwide. We believe Marvell has among the broadest range of intellectual property in technological areas (e.g., high-bandwidth data switching and storage applications) that position it well for the growing requirements of data centers, wireless networks and autos. The company delivered strong earnings results, driven by the company’s product lines (e.g., custom silicon, optical connectivity and switching) leveraged to AI data center growth. We believe this could be a significant opportunity for the company as it helps design and manufacture cost-effective custom data center chips that would help reduce cloud providers’ reliance on expensive GPUs. Furthermore, like many other semiconductor companies, a portion of its business may bepoised for a cyclical recovery after the industry’s recent inventory correction.”
2. Vistra Corp. (NYSE:VST)
Upside Potential as of March 10: 67.95%
Number of Hedge Fund Holders: 120
Vistra Corp. (NYSE:VST) is an integrated retail electricity and power generation company in the US. With a portfolio of generation assets which include natural gas, nuclear, and renewables, it provides reliable energy solutions. It also engages in wholesale energy trading and risk management.
The company is expanding to meet rising power demands, driven partly by AI data centers. It’s augmenting gas assets in Texas by 500 MW, converting a coal plant to gas (2027), and extending another plant’s operation (2027). Solar and battery projects, which include those for Amazon and Microsoft, will add over 600 MW. The company is also developing 860 MW of gas peaker plants (targeted for 2028).
The company is addressing growing load demands by advocating for market mechanisms that incentivize new generation. It’s encouraging to build new power plants to meet increasing electricity usage. It is highlighting the need for reliable dispatchable resources. It’s also exploring a potential 10% upgrade to its nuclear fleet. On March 5, Daiwa initiated coverage of Vistra Corp. (NYSE:VST) with a Neutral rating and a $120 price target. Daiwa believes that this company is a great AI story.
Meridian Hedged Equity Fund is positive on the company because of tightening power markets, strategic acquisitions, and strong financial performance. It stated the following in its Q3 2024 investor letter:
“Vistra Corp. (NYSE:VST) is an integrated retail electricity and power generation company, primarily serving Texas and the Midwest. We own Vistra because we expect power markets to continue tightening as baseload supply declines, coupled with rising demand from data centers, electric vehicles, and manufacturing reshoring. These factors create a favorable pricing environment for Vistra’s generation fleet, especially its nuclear and gas assets. The stock performed well during the period for three key reasons: tightening energy markets and strengthened pricing in forward-year energy contracts, the continuation of Vistra’s aggressive share repurchase program, and the company’s announced plan to acquire the remaining interest in Vistra Vision at an attractive valuation. Additionally, the company reaffirmed its 2024 guidance, indicating that results are trending toward the upper end of the previously projected range. We took advantage of the stock’s strength this quarter to trim our position.”
1. NVIDIA Corp. (NASDAQ:NVDA)
Upside Potential as of March 10: 55.29%
Number of Hedge Fund Holders: 223
NVIDIA Corp. (NASDAQ:NVDA) delivers cutting-edge graphics, compute, and networking solutions globally. From powering immersive gaming experiences and professional visualization to revolutionizing data centers and autonomous vehicles, NVIDIA’s technologies, including its renowned GPUs and AI platforms, are essential for a wide range of industries and applications.
The company’s FY25 revenue more than doubled year-over-year and generated $115.2 billion. In FQ4 2025, revenue reached a record $35.6 billion, which was a 93% year-over-year increase. This surge came from the data center segment, which was driven by Blackwell and Hopper 200 products. Blackwell sales hit $11 billion in FQ4, which was fueled by customers scaling infrastructure with massive GPU clusters and surging inference demand. Blackwell offers performance and cost advantages over Hopper 100.
On March 4, Bernstein reiterated an Outperform rating on the company with a $185 price target. Despite AI market concerns, Bernstein is optimistic on the company due to $11 billion in January Blackwell sales. The strong sales signal demand and easing supply issues previously seen. They dismissed concerns about DeepSeek impacting AI demand and highlighted multiple catalysts, which include rising spending intentions, a new product cycle, and the upcoming GTC event, which is NVIDIA Corp.’s (NASDAQ:NVDA) GPU Technology Conference.
Baron Fifth Avenue Growth Fund is highly bullish on NVIDIA Corp. (NASDAQ:NVDA) due to its dominant position in AI and data center technology, strong financial results, and continued innovation. It stated the following in its Q4 2024 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) is a fabless semiconductor company specializing in compute and networking systems for accelerated computing and AI. Shares increased 10.6% for the quarter and were up 170.3% in 2024, on strong quarterly results, with record data center revenue, which surpassed $30 billion, driven by demand for its Hopper GPUs, while Gaming and Automotive also beat expectations. Key investor debates include the continued progress on improving the capability of AI models (e.g. scaling laws – see more in the outlook section below), transition from AI training to inference and the potential impact on competitive dynamics, and the pace of adoption of AI across industries. Despite near-term uncertainties, we maintain conviction in NVIDIA’s leadership in accelerated computing, driven by its ability to innovate and adapt to market shifts. With robust margins, a dominant data center presence, and a growing ecosystem across hardware and software, we believe NVIDIA is well positioned to capitalize on the structural growth in AI and high-performance computing.”
While we acknowledge the growth potential of NVIDIA Corp. (NASDAQ:NVDA), our conviction lies in the belief that AI stocks hold great promise for delivering high 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: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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