On April 10, Dan Ives, Head of Global Tech Research at Wedbush Securities, appeared on an interview at CNBC and expressed that the tech sector could be heading into a period of major volatility. Dan Ives addressed the current landscape for technology companies and pointed out that while a temporary pause in tariffs has provided some structure, the sector remains uncertain in general. He noted that even with this framework, large tech purchases are still being downsized or paused, which contributes to ongoing volatility, especially as companies approach earnings season. Many tech firms are either withholding guidance or providing only general outlooks. Ives described the situation as a storm whose full damage is only beginning to be assessed, with the industry still only a quarter of the way through the fallout. He explained the sharp pullback in major tech stocks by likening it to emerging from a storm and confronting the resulting damage.
Ives highlighted that the uncertainty in tech has been amplified by the escalating tariffs on China, which are now as high as 125%, and are a major concern for a lot of companies, as China remains central to the global tech supply chain. Ives also pointed out that the recent tariffs on China have forced companies to reconsider the costs and logistics of importing critical components. For example, a $100,000 part might now cost double due to tariffs, causing companies to halt or delay large investments. This has resulted in a notable pause in tech spending, which he expects to continue at least through the current quarter. He cautioned that the June quarter is likely to be very weak. He maintained that, despite the challenges, he has not downgraded tech stocks, drawing on lessons from the pandemic playbook, where periods of uncertainty eventually led to clear winners and losers. Ives also addressed concerns that tech companies, by pulling back on spending, might risk drawing negative attention from the administration, especially given recent meetings between tech CEOs and the president. He reiterated that China is the epicenter of the current turmoil and that big tech is caught in the middle of a high-stakes situation, with companies still trying to navigate the evolving landscape.
Ives predicted that Street estimates are likely to see earnings cuts of about 10% across internet and big tech companies, which reflects the broader pullback in spending and ongoing volatility. That being acknowledged, we’re here with a list of the 11 cheap NASDAQ stocks to buy according to hedge funds.
A close-up of a security analyst using a calculator, reviewing stocks.
Our Methodology
We first used the Finviz stock screener to compile a list of cheap NASDAQ stocks that had a forward P/E ratio under 15 as of April 21. We then selected the 11 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. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 1000 elite money managers.
Note: All data was sourced on April 21.
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 Cheap NASDAQ Stocks to Buy According to Hedge Funds
11. Amgen Inc. (NASDAQ:AMGN)
Forward P/E Ratio as of April 21: 13.33
Number of Hedge Fund Holders: 72
Amgen Inc. (NASDAQ:AMGN) discovers, develops, manufactures, and delivers human therapeutics worldwide. It serves healthcare providers, which include physicians or their clinics, dialysis centers, hospitals, and pharmacies. It distributes its products through pharmaceutical wholesale distributors, as well as DTC channels.
Amgen’s General Medicine segment is led by Repatha and EVENITY. Repatha reduces the risks of myocardial infarction, stroke, and coronary revascularization. Whereas EVENITY is used for the treatment of osteoporosis in postmenopausal individuals. In 2024, these two medications together made ~$1 billion in sales growth, which was fueled by a substantial 35% year-over-year rise in sales volume.
Repatha alone achieved over $2.2 billion in sales in 2024, which was up 36% year-over-year. Amgen’s focus on primary care physicians resulted in a 50% increase in Repatha prescribers in the US, and direct-to-patient education doubled the number of patients requesting the medication. EVENITY reached ~$1.6 billion in sales in 2024, which was a 35% growth. Despite its benefit, only ~210,000 patients in the US have been treated with EVENITY so far, while millions remain at risk.
PGIM Jennison Health Sciences Fund discussed the company’s promising new obesity medication and stated the following regarding Amgen Inc. (NASDAQ:AMGN) in its Q2 2024 investor letter:
“Amgen Inc. (NASDAQ:AMGN) is a large cap global biotech company with a diverse portfolio of marketed and pipeline products. Amgen’s discovery pipeline had led the company to broaden its focus from oncology, immunology, and renal disease to include musculoskeletal, cardiovascular, and neurologic conditions. In addition, Amgen has turned its expertise in antibody manufacturing into a leading position in the development of biosimilars of competitor drugs. Most recently, Amgen shares advanced in 2Q following its announcement that its novel injectable GLP-1 agonist / GIPR antagonist, MariTide, for obesity showed promising interim Phase 2 data and has shown enough promise to warrant advancement into pivotal trials as soon as late 2024. While Eli Lilly and Novo Nordisk will remain the market leaders in the diabetes / obesity space, we think there is room for Amgen to carve out a meaningful share of the market with its antibody-peptide conjugate approach that could enable monthly or better dosing for MariTide.”
10. Expedia Group Inc. (NASDAQ:EXPE)
Forward P/E Ratio as of April 21: 10.28
Number of Hedge Fund Holders: 72
Expedia Group Inc. (NASDAQ:EXPE) is an online travel company that operates through B2C, B2B, and trivago segments. It also provides brand advertising through online & offline channels. It has loyalty programs, mobile apps, and search engine marketing, as well as metasearch, social media, direct and personalized traveler communications on its websites, and through direct e-mail communication.
In Q4 2024, the company’s B2B segment had its bookings grow sequentially to reach 24%. For the full year, B2B bookings grew by 21%. Notably, in 2024, the B2B segment accounted for 27% of Expedia’s overall bookings, which was driven by strong account management, a compelling inventory of travel options, the introduction of new product features, and a record year in production from new partners.
The B2B business particularly benefits from international travel demand, especially in the APAC region. Expedia Group Inc. (NASDAQ:EXPE) is strengthening this segment by sourcing unique supply specifically for B2B partners, testing new product offerings tailored to their needs, actively signing new deals to expand its partner network, and deepening existing commercial partnerships. The emergence of AI-native travel startups also presents potential new partnership opportunities for the B2B segment.
River Road Mid Cap Value Fund highlighted the company’s strong performance and stated the following regarding Expedia Group, Inc. (NASDAQ:EXPE) in its Q4 2024 investor letter:
“Another top contributor was Expedia Group, Inc. (NASDAQ:EXPE), the world’s second-largest online travel agency. Between EXPE and its #1 competitor, Booking Holdings Inc. (BKNG), the two companies dominate the global online travel agency market. EXPE has used its massive scale to invest in technology and improve the user experience, which has helped the company to maintain or grow market share and benefit from the secular growth in global travel. We appreciate that insiders own 4% of the company and that media legend Barry Diller serves as Chairman, typically operating with overcapitalized balance sheets, which provides financial flexibility.
Expedia’s strong stock performance was driven by several positive factors. The company exceeded revenue expectations with a 3.8% year-over-year growth excluding Trivago, while its B2B segment showed robust growth of 18.4%, demonstrating strong momentum in corporate partnerships. Operating income surged by 26% to $762MM, while net income soared by 61% to $684MM. Most notably, investor confidence was bolstered by strong capital returns through significant share repurchases totaling $1.6B year-to-date (9% of shares outstanding) and improved free cash flow of $2.3B, up 2.8% year-over-year, despite some margin pressure from increased marketing spending. We maintained the position.”
9. Gilead Sciences Inc. (NASDAQ:GILD)
Forward P/E Ratio as of April 21: 13.24
Number of Hedge Fund Holders: 74
Gilead Sciences Inc. (NASDAQ:GILD) is a biopharmaceutical company that discovers, develops, and commercializes medicines in the areas of unmet medical need. It has collaboration agreements with companies like Arcus Biosciences Inc. and Merck Sharp & Dohme Corp. It also has several other research collaborations, options, and license agreements.
Gilead’s HIV franchise generated $19.6 billion in 2024 sales, which was a year-over-year improvement of 8%. This success was driven by Biktarvy, which is Gilead’s standard-of-care HIV treatment that had its sales increase by 13% in 2024. Biktarvy now commands over 50% market share in the US. Another contributor is Descovy, which achieved 21% year-over-year growth and holds over 40% US market share in PrEP (pre-exposure prophylaxis).
The overall HIV treatment market grew by ~3% in 2024, while the prevention market accelerated with more than 16% year-over-year growth in Q4. Gilead Sciences Inc. (NASDAQ:GILD) expects a temporary masking of demand-led volume growth in 2025 due to the potential impact of Medicare Part D reform, which is projected to reduce HIV revenue by ~$900 million. However, the underlying HIV business remains strong, with 5% revenue growth anticipated in the segment for 2025.
ClearBridge Value Strategy stated the following regarding Gilead Sciences, Inc. (NASDAQ:GILD) in its Q1 2025 investor letter:
“Health care stocks populated our top performers for the quarter. Biopharmaceutical company Gilead Sciences, Inc. (NASDAQ:GILD) announced strong fourth-quarter earnings growth and also rose both on news that its HIV prevention treatment drug Lenacapavir had been filed for U.S. approval, with an anticipated launch scheduled for mid-2025, and on positive reception to its cirrhosis of the liver treatment Livdelzi in its first full quarter.”
8. JD.com Inc. (NASDAQ:JD)
Forward P/E Ratio as of April 21: 7.49
Number of Hedge Fund Holders: 78
JD.com Inc. (NASDAQ:JD) is a supply chain-based technology and service provider that operates through three segments: JD Retail, JD Logistics, and New Businesses. It offers computers, communication, and consumer electronics products, as well as home appliances and general merchandise products.
The company’s Electronics and Home Appliances category experienced a significant 16% year-on-year surge in Q4 2024 revenue, which contributed substantially to JD.com’s overall 13% year-on-year net revenue growth to RMB 347 billion. This growth is fueled by a well-established and efficient supply chain at JD.com Inc. (NASDAQ:JD). The company also has comprehensive service capabilities that enhance customer satisfaction and loyalty.
For the entire year of 2024, the Electronics and Home Appliances segment showcased a 5% year-on-year revenue increase, which was a good portion of the company’s total annual revenue of RMB 1.2 trillion, which was up 7%. Favorable government stimulus policies designed to boost domestic consumption are expected to further strengthen the Electronics and Home Appliances category.
Ariel Global Fund stated the following regarding JD.com, Inc. (NASDAQ:JD) in its Q3 2024 investor letter:
“China-based E-commerce company, JD.com, Inc. (NASDAQ:JD) was the top contributor in the quarter as the People’s Bank of China’s (PBOC) comprehensive stimulus measures bolstered investor confidence in the Chinese economy. The improving economic sentiment is fueling consumer spending which benefits the company’s retail operations. Additionally, the company’s strategic decision to diversify general merchandise product offerings, expand its third-party marketplace business and monetize advertising streams has contributed to consecutive quarterly earnings beats. JD.com is also poised to capitalize on the home appliance trade-in program, which is one of its largest product categories. Given the favorable market environment, the company’s strategic positioning and supply chain efficiency improvements, we continue to like its long-term growth prospects.”
7. Qualcomm Inc. (NASDAQ:QCOM)
Forward P/E Ratio as of April 21: 11.75
Number of Hedge Fund Holders: 79
Qualcomm Inc. (NASDAQ:QCOM) develops and commercializes foundational technologies for the wireless industry worldwide. It has three segments: Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL), and Qualcomm Strategic Initiatives (QSI). It also provides development and other services and sells related products to the US government agencies and their contractors.
Qualcomm’s QCT segment achieved a record revenue of $10.1 billion in FQ1 2025, which represented a 20% year-over-year growth. QCT Handset revenues alone reached a record $7.6 billion, which was up 13% year-over-year due to higher volume and increased content in Android premium-tier smartphones. Qualcomm Inc. (NASDAQ:QCOM) is focused on using its advanced connectivity, computing, and edge AI technologies to further drive growth within QCT, particularly in the automotive and IoT sectors.
On March 11, TD Cowen analyst Joshua Buchalter maintained a Buy rating on the stock while assigning a price target of $195. Buchalter focused on Qualcomm’s diversification strategy and expressed optimism in the company’s ability to expand its business beyond the traditional handset market. The firm thinks that Qualcomm is going in the right direction by using its low-power and connectivity-focused product portfolio to tap into high-growth opportunities within the IoT and Automotive sectors.
Nightview Capital highlighted Qualcomm as a core opportunity in the semiconductor supercycle and stated the following regarding Qualcomm Inc. (NASDAQ:QCOM) in its Q4 2024 investor letter:
“Semiconductors are the unsung heroes of the modern economy, powering everything from AI and 5G to electric vehicles and renewable energy systems. Without them, innovation stalls. The semiconductor industry has entered a supercycle, driven by unprecedented demand across industries that rely on advanced computing. And while this notoriously boom and bust industry has seen cycles before we believe this cycle remains in relative infancy.
These advancements aren’t incremental. As AI systems scale, the need for cutting-edge semiconductors will only accelerate. We believe the companies at the forefront of this revolution are foundational to the next wave of global progress.
Qualcomm Inc. (QCOM): Core Opportunity: Qualcomm is transitioning beyond its traditional handset business, focusing on high-growth markets in Automotive and Internet of Things to drive future revenue streams. We have already seen this strategy flowing through the PnL and we are confident in the firm’s execution abilities going forward.
Competitive Advantage: Automotive Strength: Automotive revenue rose ~55% in FY 2024 to $2.9 billion, further supported by over 10 new design wins with global automakers for advanced driver-assistance systems (ADAS), connectivity, and digital cockpit solutions.
IoT Growth: IoT revenue reached $1.4 billion, reflecting steady traction in smart devices and industrial applications…” (Click here to read the full text)
6. Comcast Corp. (NASDAQ:CMCSA)
Forward P/E Ratio as of April 21: 8.02
Number of Hedge Fund Holders: 80
Comcast Corp. (NASDAQ:CMCSA) is a media and technology company that operates through Residential Connectivity & Platforms, Business Services Connectivity, Media, Studios, and Theme Parks segments. It also operates international television networks that comprise the Sky Sports networks, as well as other digital properties.
In 2024, despite facing intense competition from overbuilding, fixed wireless expansion, and the end of the ACP program, Comcast’s Residential Connectivity business demonstrated resilience. Specifically, broadband revenue grew by 3% year-over-year. Convergence revenue, which is defined as domestic broadband and wireless revenue combined, also saw a growth of ~5%.
Comcast Corp. (NASDAQ:CMCSA) is investing heavily in its broadband network upgrade, which is known as Project Genesis, to ultimately deliver multi-gigabit symmetrical speeds across its entire footprint and integrate AI throughout the network. By the end of 2025, ~70% of its network is expected to be fully virtualized (over 50% is already virtualized).
5. Cisco Systems Inc. (NASDAQ:CSCO)
Forward P/E Ratio as of April 21: 14.12
Number of Hedge Fund Holders: 84
Cisco Systems Inc. (NASDAQ:CSCO) designs, manufactures, and sells Internet Protocol-based networking and other products related to the communications and information technology industry. It also offers a range of service and support options for its customers, such as technical support and advanced services & advisory services.
On March 14, Evercore ISI analyst Amit Daryanani maintained a Buy rating on the stock and set a price target of $75. This was due to the Cisco and NVIDIA partnership, and also the unveiling of a new AI factory architecture. The Cisco Secure AI Factory, together with NVIDIA, will use solutions like Cisco AI Defense and Hybrid Mesh Firewall to enhance AI infrastructure and security while streamlining enterprise AI adoption.
In the FQ2 2025, orders specifically for Cisco’s AI infrastructure from webscaler customers surpassed $350 million. Cisco Systems Inc. (NASDAQ:CSCO) is on track to exceed $1 billion in AI infrastructure orders in FY2025, demonstrating the rapid growth in this area. The company’s strategy in AI infrastructure focuses on providing high-performance networking solutions, which include the 800 gig Nexus switches based on the Silicon One chip.
4. PDD Holdings Inc. (NASDAQ:PDD)
Forward P/E Ratio as of April 21: 7.48
Number of Hedge Fund Holders: 85
PDD Holdings Inc. (NASDAQ:PDD) is a multinational commerce group that owns and operates a portfolio of businesses. It operates Pinduoduo, which is an e-commerce platform, together with Temu, which is an online marketplace. It focuses on bringing businesses and people into the digital economy. Pinduoduo’s transaction services segment is a major driver of the company’s overall revenue.
In Q4 2024, revenue from transaction services reached RMB53.6 billion, which marked a 33% year-over-year increase. This segment accounted for 48.5% of the total Q4 2024 revenue, which itself grew by 24%. For the full year 2024, transaction services revenue totaled RMB195.9 billion, which was up 108%. This segment contributed 49.8% to the total 2024 revenue, which grew by 59%.
The growth in transaction services includes commissions and other fees generated from transactions on the platform. Pinduoduo’s total revenue costs increased in Q4 2024 by 36%, and for the full year by 68%. Initiatives such as the RMB10 billion fee reduction program and the high-quality merchant support program aim to enhance merchant efficiency and attract quality suppliers to drive transaction volume at Pinduoduo.
3. Western Digital Corp. (NASDAQ:WDC)
Forward P/E Ratio as of April 21: 7.44
Number of Hedge Fund Holders: 85
Western Digital Corp. (NASDAQ:WDC) develops, manufactures, and sells data storage devices and solutions. It offers client devices, such as hard disk drives (HDDs) and solid state drives (SSDs) for desktop and notebook PCs, gaming consoles, and set-top boxes. It sells its products under the Western Digital, SanDisk, and WD brands to OEMs, distributors, dealers, resellers, and retailers.-
In FQ2 2025, Western Digital’s Cloud revenue reached $2.3 billion, which was 55% of the company’s total revenue of $4.3 billion. This Cloud revenue made a 6% sequential improvement, as well as more than doubled year-over-year, due to an increase in nearline HDD shipments. The HDD business as a whole achieved a 12-quarter high in revenue during this period.
This was driven by the increasing adoption of Western Digital Corp.’s (NASDAQ:WDC) newer and higher-density drives, particularly those using its cutting-edge Ultra SMR technology. On April 10, Benchmark upgraded the stock’s rating to Buy from Hold with a $55 price target. Benchmark cites the growth in data center spending by the major hyperscalers, the AI opportunity, and lower expected interest expense as a reason behind this improved sentiment.
Parnassus Mid Cap Fund stated the following regarding Western Digital Corporation (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.”
2. United Airlines Holdings Inc. (NASDAQ:UAL)
Forward P/E Ratio as of April 21: 7.13
Number of Hedge Fund Holders: 86
United Airlines Holdings Inc. (NASDAQ:UAL) provides air transportation services in the US, Canada, the Atlantic, the Pacific, and Latin America. It transports people and cargo through its mainline and regional fleets. It also offers ground handling, flight academy, frequent flyer award non-travel redemptions, and maintenance services for third parties.
In FQ1 2025, United Airlines achieved a record $13.2 billion in total operating revenue, which was a 5.4% increase year-over-year. This performance is influenced by the company’s strategy of winning brand loyal customers. Despite the current macroeconomic challenges and fewer people wanting to travel in the main part of the plane within the US, United is still doing well. This is due to the focus on its 7 key hubs, that has positioned the company as a brand loyalty leader in 6 of them.
United Airlines Holdings Inc. (NASDAQ:UAL) is making investments to attract and retain brand-loyal customers. These include building new and larger clubs in key hubs like Houston, San Francisco, and Denver. It’s also installing Starlink’s high-speed Wi-Fi on its aircraft, with the first Starlink-enabled regional flight expected in spring 2025 and mainline aircraft by the end of 2025.
Patient Capital Management 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.”
1. PayPal Holdings Inc. (NASDAQ:PYPL)
Forward P/E Ratio as of April 21: 12.2
Number of Hedge Fund Holders: 94
PayPal Holdings Inc. (NASDAQ:PYPL) is a technology platform that enables digital payments for merchants and consumers worldwide. It operates a two-sided network at scale that connects merchants & consumers that enables its customers to connect, transact, and send & receive payments online & in person, as well as transfer & withdraw funds using various funding sources.
In 2024, PayPal saw branded checkout transaction margin dollar growth in each quarter, with US branded checkout growth accelerating in Q4. This was due to new checkout innovations that are scaling effectively. PayPal Holdings Inc. (NASDAQ:PYPL) has upgraded its branded checkout experiences by reducing latency by more than 40% and driving more than 1% of conversion lift on average, based on early results.
These upgraded experiences are currently live for over 25% of US checkout traffic, which is an increase from 5% in the previous quarter. Beyond improved conversion rates, these new experiences enhance the visibility of PayPal’s branded marks and solutions like Buy Now, Pay Later (BNPL), which can increase share of wallet. In 2024, PayPal facilitated ~$33 billion in BNPL total payment volume, which was up 21% year-over-year.
Wedgewood Partners stated the following regarding PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q1 2025 investor letter:
“PayPal Holdings, Inc. (NASDAQ:PYPL) was a leading detractor from performance for portfolios during the quarter. The Company’s branded checkout grew by a healthy +6% while total payment volumes grew by +7% during the Company’s most recent quarter. PayPal also outlined several reinvestment initiatives across its platform that continue to accelerate its branded checkout volume growth back to double digits. In addition, the Company has authorized nearly $20 billion in share repurchases which represents nearly a third of its market cap as of quarter end. We continue to hold PayPal as one of our largest active weights in portfolios. “
While we acknowledge the growth potential of PayPal Holdings Inc. (NASDAQ:PYPL), our conviction lies in the belief that AI stocks hold great promise for delivering high 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 PYPL but that trades at less than 5 times its earnings, check out our report about this 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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