On March 29, T. Rowe Price portfolio manager Tony Wang appeared on CNBC’s ‘Closing Bell Overtime’ to discuss the current volatility in the tech sector, especially the NASDAQ. The NASDAQ underperformed throughout March and registered the largest decline since June 2022. But the question that now arises is whether this decline and volatility present a buying opportunity or not. Wang leans towards less caution and more confidence in this potential bull market. To support his sentiment, he cited that growth and momentum have both been high in recent years. Tech stocks in particular have seen substantial growth in the past 2 year. He thinks that valuations could further improve, given that the sector recent strong years came from AI infrastructure build out.
Wang also acknowledged that companies are naturally questioning whether current spending levels in the sector are sustainable or not. But he reiterated that compute will retain its value, despite concerns about whether it has a cyclical position or not. He also noted that deep tech could potentially lower inferencing costs and expand market access for companies that enter with limited capital. Like any other sector, cost reduction is an ideal long-term outcome for the tech industry as well.
Given Wang’s optimistic outlook despite NASDAQ’s decline, we’re here with a list of the 11 best performing NASDAQ stocks so far in 2025.
A successful investor reviewing the NASDAQ-100 Index® portfolio on a touchscreen monitor.
Our Methodology
We used the Finviz stock screener to compile a list of all the best-performing NASDAQ stocks. We then picked the 11 NASDAQ stocks with the highest year-to-date gains, as of March 31. The stocks are ranked in ascending order of their year-to-date performance. We have also added the hedge fund sentiment for each stock which was sourced from Insider Monkey’s database.
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).
11 Best Performing NASDAQ Stocks So Far in 2025
11. Valneva (NASDAQ:VALN)
Number of Hedge Fund Holders: 2
Average Upside Potential as of March 31: 53.48%
Valneva (NASDAQ:VALN) develops, manufactures, and commercializes prophylactic vaccines for infectious diseases with unmet needs. It sells its products globally and has collaborations with Pfizer Inc. to co-develop and commercialize its Lyme disease vaccine. It also collaborates with Instituto Butantan to develop, manufacture, and market single-shot chikungunya vaccine.
The partnership with Pfizer Inc. is projected the exceed $1 billion at its peak for the Lyme disease vaccine market. Positive data, regulatory approvals, and the commercialization of VLA15, which is the candidate under this partnership, will result in significant payments and royalties. This will sustain the company’s profitability from late 2027 onwards. This vaccine addresses unmet medical needs with no present preventative measures, such as Lyme disease in humans, as mentioned earlier. There are ~500,000 patients for this disease in the US, with ~130,000 cases in Europe.
VALOR is the Phase 3 study for VLA15 and is progressing positively with the first data readout expected by the end of 2025. The study involves ~9,000 participants aged 5 or older. If the study is successful, regulatory filings are expected for 2026 with potential approvals in 2027.
10. VNET Group Inc. (NASDAQ:VNET)
Number of Hedge Fund Holders: 26
Average Upside Potential as of March 31: 72.57%
VNET Group Inc. (NASDAQ:VNET) is an investment holding company that provides hosting and related services in China. It offers managed hosting, interconnectivity, value-added, and backup server services. It also provides cloud services that allow customers to run applications over the internet using IT infrastructure.
The company’s growth comes from its expanding AI-centric data center solutions. It capitalizes on the increasing demand from hyperscalers and enterprise customers, which require robust AI infrastructure. The company is transitioning towards high-value AI-driven computing services. Due to this focus, it was able to generate a net income of 317.63 million yuan in Q3 2024. Later on March 14, Citibank analysts also raised the company’s price target from $16 to $20.
The company’s growth is attributed to customer move-ins that are higher than the management’s anticipation. It’s also because of rapidly increasing wholesale internet data center (IDC) projects. VNET Group Inc. (NASDAQ:VNET) enjoys a competitive advantage as there are high barriers to entry for AI-driven data centers. The company has 297 MW of wholesale capacity under construction, of which 88.4% is already contracted and 490 MW is further reserved for future expansion.
9. ThredUp Inc. (NASDAQ:TDUP)
Number of Hedge Fund Holders: 11
Average Upside Potential as of March 31: 78.81%
ThredUp Inc. (NASDAQ:TDUP) operates an online resale platform in the US. Its platform mainly enables consumers to buy and sell secondhand apparel, shoes, and accessories. It uses AI to enhance customer experience and drive conversion. Since the outset of AI search functionality, 1.3 million image searches have been performed as of Q4 2024.
Image searches at ThredUp Inc. (NASDAQ:TDUP) have an 85% higher conversion rate. The company is integrating AI into its infrastructure. 360-degree high-definition photos are increasing 30-day sell-through rates by up to 12%, which varies with different product categories. Automated digital measurements at the company also enhance conversion, lower returns, and increase customer retention.
In Q4, the company’s new customer volume rose by 32% year-over-year. For the upcoming quarters, the company is positive in its ability to grow new buyers and still be able to achieve its free cash flow targets. The company’s fresh listings, which are items that are under 14 days old, are up 9% year-over-year and continue to improve due to ThredUp Inc.’s (NASDAQ:TDUP) processing capacity to meet the needs of its growing buyer base.
8. LexinFintech Holdings Ltd. (NASDAQ:LX)
Number of Hedge Fund Holders: 19
Average Upside Potential as of March 31: 80.78%
LexinFintech Holdings Ltd. (NASDAQ:LX) provides online consumer finance services in China through a technology-driven platform for customers and partners. It offers an online consumer finance platform that allows installment purchases and personal installment loans. It also enables the online direct sales of products like electronics and general merchandise with installment payment terms.
The company’s profitability is mainly driven by its risk management system. In Q4 2024, the company made significant improvements in risk indicators, which came from enhancements in risk identification and management tools. LexinFintech Holdings Ltd. (NASDAQ:LX) was able to improve risk identification by 15%, and stability by 10% with the help of multi-dimensional third-party data and developed customized data systems for varying customer groups.
The company targets high-quality customer segments through customer acquisition channels and optimized credit line decision-making systems. This contributes to a decline in delinquency ratios, which measures the percentage of loans where borrowers have missed their payments. The day-one delinquency ratio for the total loan portfolio dropped by 4% in Q4. Sequentially, the company observed an 8% improvement in the first payment default rate within 7 days for new loans.
7. Root Inc. (NASDAQ:ROOT)
Number of Hedge Fund Holders: 16
Average Upside Potential as of March 31: 88.65%
Root Inc. (NASDAQ:ROOT) offers insurance products and services in the US. It provides automobile and renters insurance products. It operates a DTC model and serves customers through mobile applications and its website. Its direct distribution channels also cover digital media, independent agents, and referrals along with distribution partners.
The company’s partnership channel rapidly expanded in 2024. New writings through this channel more than doubled in Q4 year-over-year. This accounted for almost one-third of the company’s overall business in the quarter. This growth is supported by the company’s proprietary technology stack, which refers to its internally developed set of software and hardware tools that power its operations. It enables easy integration with partner platforms and offers insurance at the right time for customers.
In 2025, the company plans to expand its current channel and transition partners to fully embedded experiences. For instance, Carvana Insurance, which was built with Root Inc. (NASDAQ:ROOT), now offers a three-click, bondable purchase experience on the Carvana platform. The company’s current partnership pipeline is concentrated in the automotive, financial services, and independent agents segments.
6. Alpha Technology Group Ltd. (NASDAQ:ATGL)
Number of Hedge Fund Holders: 1
Average Upside Potential as of March 31: 100.85%
Alpha Technology Group Ltd. (NASDAQ:ATGL) offers cloud-based IT services in Hong Kong. It primarily provides cloud-based and customized CRM and ERP systems. It serves customers from industries like property consulting, airport management, real estate planning, and social services.
This is Hong Kong’s first AI company on NASDAQ and focuses on AI-driven cloud IT solutions. It made a revenue of HKD 12.35 million in the full year ended September 30, 2024, which was much higher year-over-year than the HKD 8.69 million figure made in 2023. The company’s main focus is the ERP (Enterprise Resource Planning) system, which is a software suite that offers business processes like finance and HR on a singular platform.
The company integrates AI into these ERP systems to enable digital transformation and improve sustainable practices. Earlier in September last year, the company’s Executive Director and President, Anthony Tsang, was honored with the prestigious 18th World Outstanding Chinese Award. This award highlights the President’s transformative AI vision for Alpha Technology Group Ltd. (NASDAQ:ATGL), especially in the field of finance.
5. Jiayin Group Inc. (NASDAQ:JFIN)
Number of Hedge Fund Holders: 2
Average Upside Potential as of March 31: 116.64%
Jiayin Group Inc. (NASDAQ:JFIN) offers online consumer finance services in China. It offers a fintech platform that facilitates connections between individual borrowers and financial institutions. It also provides referral services for investment products that are offered by the various financial service providers, along with technology development and services.
The company’s loan facilitation services, which connect borrowers with lenders, are driving its primary growth. Loan transactions at Jiayin Group Inc. (NASDAQ:JFIN) in Q4 2024 totaled RMB 27.7 billion, which was up 37.8% year-over-year. This resulted in loan facilitation revenue of RMB 1.1 billion, which marked an improvement of 46.3%. For Q1 2025, the company has set a loan facilitation volume target of RMB 35 billion, which will be an increase of 55% year-over-year.
Through different acquisition channels and flexible marketing strategies, Jiayin Group Inc. (NASDAQ:JFIN) has improved its borrower acquisition. In 2024, the company added a total of 2.774 million new borrowers, which represented a 45.1% growth. Annual retention rates for borrowers have also gone up by ~7% in 2024 due to differentiated credit growth strategies.
4. Vasta Platform Ltd. (NASDAQ:VSTA)
Number of Hedge Fund Holders: 2
Average Upside Potential as of March 31: 125%
Vasta Platform Ltd. (NASDAQ:VSTA) offers educational printed and digital solutions to private schools that operate in the K-12 education sector in Brazil. It offers digital and printed textbooks, teacher handbooks, exercise & subject books, and student evaluations. It also provides traditional learning systems, training for educators, and consulting services for school management.
The company’s subscription revenue reached BRL 1.462 billion in 2024, which was a 14% year-over-year increase. This segment makes up 87% of the company’s total revenue. In Q4 alone, the subscription revenue increased by 20%. The company is enhancing its subscription-based technology platform, which is called Plurall. It provides personalized learning experiences for students and streamlines teaching activities for educators.
Starting in 2025, Plurall will feature an AI-powered intelligent assistant powered by AWS under the name of Blue. Vasta Platform Ltd.’s (NASDAQ:VSTA) Start Anglo Bilingual School franchise also operates on a subscription model. It’s currently being expanded with 40 contracts already signed and a strong pipeline of more than 350 prospects.
3. Niu Technologies (NASDAQ:NIU)
Number of Hedge Fund Holders: 5
Average Upside Potential as of March 31: 158.1%
Niu Technologies (NASDAQ:NIU) designs, manufactures, and sells electric scooters internationally. It offers a series of smart electric scooters, motorcycles, mopeds, and bicycles. It also provides accessories and spare parts like scooter accessories, raincoats, gloves, and knee pads. It also operates the NIU app which provides services like online repair requests and historical riding data.
The company’s China market sales are a significant contributor to its overall growth. In Q4 2024, China’s sales volume rose by 65% year-over-year to reach 182,000 units. This was 80% of the company’s total sales volume for Q4. This growth comes from a focused product portfolio with an emphasis on technological innovation. The Chinese market targets premium consumers and Gen Z riders.
The company expanded its retail footprint in China in 2024 by opening ~900 new stores, with 50% of these located in Tier 3 cities. It anticipates opening another 1,000 to 1,500 stores in 2025. The company is refining its signature product lineup. These are the N, M, U, and F series. These represent different lines of electric two-wheelers which are offered by Niu Technologies (NASDAQ:NIU). The N series accounted for 39% of China’s total sales volume in 2024.
2. Palvella Therapeutics Inc. (NASDAQ:PVLA)
Number of Hedge Fund Holders: 9
Average Upside Potential as of March 31: 136.33%
Palvella Therapeutics Inc. (NASDAQ:PVLA) is a clinical-stage biopharmaceutical company that develops and commercializes novel therapies to treat patients with serious and rare genetic skin diseases. Its lead product candidate QTORIN rapamycin is in a Phase 3 clinical trial for the treatment of microcystic lymphatic malformations.
The Phase 3 clinical trial is called SELVA and has around 40 participants, which also include children between the ages of 3 and 5. Positive results from the earlier held Phase 2 trial have shown 100% of participants showing improvements. Results from the SELVA trial are expected in Q1 2026. It has received a grant of up to $2.6 million from the FDA.
QTORIN rapamycin is essentially a topical gel that targets the underlying pathway of Microcystic LMs. This disease affects around 30,000 people in the US alone, with no primary approved treatment in the market. Palvella Therapeutics Inc. (NASDAQ:PVLA) aims to be the first company to provide an approved therapy for patients suffering from Microcystic LMs.
1. Chimerix Inc. (NASDAQ:CMRX)
Number of Hedge Fund Holders: 17
Average Upside Potential as of March 31: 131.01%
Chimerix Inc. (NASDAQ:CMRX) is a biopharmaceutical company that develops medicines to improve and extend the lives of patients with rare and deadly diseases. One of its products includes the ONC201, which is a program in a Phase 3 clinical trial for patients with H3 K27M-mutant diffuse glioma, as well as in a Phase 2 clinical trial for the treatment of rare neuroendocrine tumors.
In Q4 2024, R&D expenses at the company increased to $17.7 million, which was year-over-year higher than $15.6 million from 2023. Currently, the company is targeting FDA approval for its Dordaviprone treatment for rare and aggressive brain cancer. Dordaviprone has received the Rare Pediatric Disease Designation, which is FDA status for accelerating the development of treatments for rare diseases in children.
Dordaviprone also has the Fast-Track Designation in the US and Orphan Drug Designation in the US, Europe, and Australia. The FDA has accepted the company’s application for a Priority Review, with a decision anticipated by August 18, 2025. If approved, this will be the first specific treatment for this type of cancer. The company is also preparing for Dordaviprone’s potential commercial launch.
While we acknowledge the growth potential of Chimerix Inc. (NASDAQ:CMRX), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CMRX 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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