Saira Malik, Nuveen’s Head of Equities and Fixed Income, recently joined CNBC’s ‘Closing Bell’ on February 18 to discuss opportunities outside the tech sector and her outlook for the markets. She began by addressing the two primary factors driving markets this year: technology and tariffs. Malik highlighted that while tech stocks have dominated the narrative, recent developments, such as DeepSeek’s announcement, have raised concerns about the immense spending in AI and the uncertainty surrounding its monetization and returns. Malik emphasized looking beyond tech to areas like infrastructure. She mentioned utility companies as a promising investment. When asked about momentum stocks, Malik explained that the momentum trade has propelled markets over the past few years, with the S&P 500 delivering over 20% annual gains during that period. However, this growth was largely concentrated in the MAG7, which resulted in an S&P 500 valuation premium of 20% above historical averages entering this year. She noted that the momentum trade is now unwinding, partly due to inflated expectations around AI and the lack of productivity gains despite tens of billions of dollars spent in the space.
Malik pointed out that international markets are outperforming US markets this year. European markets, in particular, entered 2025 with a 40% valuation discount compared to US markets and have a more cyclical bias. She stated that year-to-date returns suggest investors would benefit from owning international equities. While she expects the S&P 500 to post about 7% earnings growth for 2025 (following a strong Q4 with 12% year-over-year earnings growth), she believes international markets may continue to outperform due to their discounted valuations and cyclical exposure. Malik concluded by emphasizing the importance of being selective in this market environment. She recommended focusing on smaller mid-cap companies with profits, lower leverage, reduced refinancing risks, or economic sensitivity. Sectors like financials could thrive if deregulation or increased mergers and acquisitions activity materialize. She advised investing in stocks with upward earnings estimate revisions rather than those facing downward adjustments to capitalize on current market conditions.
Methodology
We first sifted through threads and posts on WSB and similar subreddits to compile a list of the top trending stocks among retail investors. We then selected the 11 stocks that analysts were bullish on and had an average upside potential over 40% as of March 3. We also added the hedge fund sentiment for each stock, as of Q4 2024, which was sourced from Insider Monkey’s database. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them.
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. KULR Technology Group Inc. (NYSEAMERICAN:KULR)
Upside Potential as of March 3: 267.65%
Number of Hedge Fund Holders: 6
KULR Technology Group Inc. (NYSEAMERICAN:KULR) develops and commercializes innovative thermal management solutions for a range of critical applications. Specializing in technologies like lithium-ion battery thermal runaway shields and advanced heat dissipation materials, it serves sectors like EVs, energy storage, and 5G communication.
It provides thermal management solutions for the AI infrastructure market. The core focus is on the KULR Xero Vibe and KULR ONE product lines, which are designed to address the cooling needs of AI servers and edge computing devices. The company recently partnered with EDOM Technology, which is an NVIDIA Channel Partner, on January 27. This collaboration allows it to distribute its cooling solutions in Taiwan, which is a hub for AI supply chain development.
The company recently secured a $2.35 million licensing deal for its Xero Vibe technology, which is designed for data center cooling and advanced semiconductor applications. It also has a licensing partnership with a Japanese corporation for data center cooling and HVAC systems. This resulted in a Q3 2024 revenue of ~$3.19 million. It’s now capitalizing on the growing demands of AI infrastructure, which includes potential involvement in large-scale projects like The Stargate Project.
10. enCore Energy Corp. (NASDAQ:EU)
Upside Potential as of March 3: 138.10%
Number of Hedge Fund Holders: 9
enCore Energy Corp. (NASDAQ:EU) is a US focused uranium exploration and development company with a substantial portfolio of resource properties. It holds 100% interests in projects like Crownpoint, Hosta Butte, Dewey Burdock, and Gas Hills, alongside significant land positions in the Grants Uranium District. It aims to capitalize on its extensive acreage and resource base to advance uranium production.
Its primary revenue comes from uranium extraction and sales. It operates two In-Situ Recovery (ISR) uranium processing plants in South Texas: Rosita and the newly commissioned Alta Mesa. This makes it the only US company with two operational uranium processing plants. In the first nine months of 2024, the company generated $45 million in revenue from yellowcake (U3O8) sales. It extracted and packaged 100,261 pounds of yellowcake from its plants. It also delivered 530,000 pounds of yellowcake to fulfill contracts. It secured a new contract to sell 300,000 pounds of yellowcake in 2028-2029.
enCore Energy Corp. (NASDAQ:EU) is expanding production by developing the Upper Spring Creek Project in South Texas. It’s planning a satellite ion exchange (IX) facility to feed the Rosita plant. This project aims for a late H1 2025 start. The company now projects increased revenue due to higher production at Alta Mesa.
9. Fubotv Inc. (NYSE:FUBO)
Upside Potential as of March 3: 98.02%
Number of Hedge Fund Holders: 13
Fubotv Inc. (NYSE:FUBO) operates a live TV streaming platform for live sports, news, and entertainment content in the US and internationally. Its platform allows customers to access content through streaming devices, along with on Smart TVs, mobile phones, tablets, and computers.
Its primary revenue comes from its North American streaming subscription business, particularly the sports-focused live TV offerings. In FY24, it achieved ~$1.6 billion in North American revenue, which was a 19% year-over-year increase. Paid subscribers reached a record 1,676,000, which was 4% higher than the previous year. The company is expanding its offerings by combining Hulu + Live TV under Fubotv Inc. (NYSE:FUBO) and launching a new sports and broadcasting service for the fall 2025 season. It also launched a Z Family bundle for the South Asian demographic to improve multicultural bundles.
The company is focused on improving profitability. It reduced adjusted EBITDA and improved free cash flow by over $100 million in FY24. In FQ4 alone, it achieved its first positive free cash flow of $16.3 million. For the first quarter of FY25, it expects 1,430K to 1,460K North American subscribers and $400 to $410 million in revenue.
8. MARA Holdings Inc. (NASDAQ:MARA)
Upside Potential as of March 3: 72.41%
Number of Hedge Fund Holders: 21
MARA Holdings Inc. (NASDAQ:MARA) operates as a digital asset technology company that mines digital assets. It has a focus on the bitcoin ecosystem in the US. It was formerly known as Marathon Digital Holdings until August 2024.
The company is actively acquiring energy assets to reduce costs and improve efficiency. In 2024, it increased its energy capacity from 0.5 to 1.7 gigawatts. Its direct Bitcoin energy cost was $28,801, and the cost per kilowatt-hour was $0.039 at owned sites. Owning energy assets allows MARA Holdings Inc. (NASDAQ:MARA) to extend the life of mining equipment and mine when others cannot. It’s also developing AI solutions for data centers and plans to deploy 30 megawatts of AI compute in 2025.
In full-year 2024, its revenue was $656.4 million, which was a 69% year-over-year rise. The company now plans to acquire more energy assets and aims for 50% international capacity by 2028. It’s focused on capital efficiency and is using its investment in Auradine to build miners. Auradine is a company that designs and builds advanced mining, silicon, and hardware. It enables MARA Holdings Inc. (NASDAQ:MARA) to produce its own optimized Bitcoin miners.
7. Chemours Co. (NYSE:CC)
Upside Potential as of March 3: 47.16%
Number of Hedge Fund Holders: 40
Chemours Co. (NYSE:CC) delivers a range of performance chemicals globally. It operates through Thermal & Specialized Solutions, Titanium Technologies, and Advanced Performance Materials segments. It serves various industries from refrigeration and coatings to advanced materials. It utilizes direct and indirect sales channels to reach its customers.
The company’s primary growth driver is its Thermal & Specialized Solutions (TSS) segment, particularly Opteon Refrigerants. This segment focuses on producing and selling refrigerants. The Opteon Refrigerants are a key product line which are designed to replace older and environmentally harmful refrigerants with more sustainable alternatives. In Q4 2024, TSS net sales hit a record $390 million, which was an improvement of 3% year-over-year. Opteon sales alone surged 23%.
The company expanded Opteon capacity at Corpus Christi by 40%, with half available in 2025 and the rest in 2026. This supports Chemours Co.’s (NYSE:CC) anticipated double-digit Opteon growth in 2025. In the first quarter of 2025, TSS sales are expected to rise sequentially due to Opteon. Full-year 2025 results should also improve due to the same reasons.
Buckley Capital sees strong growth and high-profit potential in the company’s TSS division due to its environmentally friendly, high-margin Opteon product. It stated the following regarding Chemours Co. (NYSE:CC) in its Q3 2024 investor letter:
The Chemours Company (NYSE:CC) is an investment we have owned since 2018, very profitably until this year. It is composed of 3 different businesses – TSS, APM, and TT – that are each the #1 or #2 players in their respective categories.
The company’s Thermal & Specialized Solutions division (TSS) sells environmentally friendly refrigerants on a global basis, with the primary refrigerants being Opteon and Freon. Opteon is more environmentally friendly, therefore Freon is being slowly phased out by government mandate. This is very beneficial for Chemours since Opteon is very high-margin and has little competition, whereas Freon has more competitors and overall lower margins. This should lead to high single-digit growth in the TSS segment, with 30%+ EBITDA margins. We believe it is possible TSS margins could get to 40%, given that they have neared that number in the past and that as Chemours sells more Opteon, its margins should trend higher. This means TSS should be able to earn around $800m in EBITDA in the next 2 years…” (Click here to read the full text)
6. MicroStrategy Inc. (NASDAQ:MSTR)
Upside Potential as of March 3: 115.32%
Number of Hedge Fund Holders: 44
MicroStrategy Inc. (NASDAQ:MSTR), doing business as Strategy, delivers AI-powered enterprise analytics software and services globally. It offers tools like Strategy One, HyperIntelligence, and Enterprise Semantic Graph to empower data-driven decision-making. Alongside consulting and education services, it also engages in Bitcoin development.
In 2024, the company acquired 258,320 Bitcoin, which totaled 471,107 Bitcoin, which were valued at $46 billion as of February 2. In 2025, it will prioritize issuing fixed-income securities, with an aim for at least a 15% increase in its Bitcoin holdings (BTC Yield) and a $10 billion increase in the dollar value of those holdings (BTC dollar gain). Since starting its Bitcoin strategy, the company achieved roughly a 110% average annual return. Starting in Q1 2025, it will use fair value accounting for its Bitcoin, which will add $12.75 billion to its retained earnings. On February 6, Maxim raised its price target on MicroStrategy Inc. (NASDAQ:MSTR) to $500 from $480, while maintaining a Buy rating.
5. Permian Resources Corp. (NYSE:PR)
Upside Potential as of March 3: 41.94%
Number of Hedge Fund Holders: 54
Permian Resources Corp. (NYSE:PR) is an independent oil and natural gas company. It specializes in developing crude oil and liquids-rich natural gas reserves within the Delaware Basin, which is a key part of the Permian Basin. It focuses on maximizing production from its extensive acreage.
The company’s Delaware Basin drilling program is driving its growth. In Q4 2024, its oil production was 171,000 barrels per day, and total production was 368,000 barrels of oil equivalent (BOE) per day. It drilled 275 wells in 2024. For 2025, the total production is expected to average 300,000 to 380,000 BOE per day, with oil production between 170,000 and 175,000 barrels per day. The 2025 capital program is ~$2 billion, with 85 wells planned. The company also completed $1.2 billion in acquisitions in 2024, and added 50,000 net acres and 20,000 BOE per day.
Permian Resources Corp. (NYSE:PR) intends to keep pursuing acquisitions that increase its value. For 2025, it has locked in prices for roughly 25% of its oil production at $73 per barrel. It can still generate free cash flow after paying dividends even if oil prices drop to around $40 per barrel. Looking at its overall growth, the company anticipates that between 2023 and 2025, its production adjusted for debt will increase by about 50%, and its free cash flow per share will almost double.
Aristotle Small/Mid Cap Equity Strategy stated the following regarding Permian Resources Corp. (NYSE:PR) in its Q3 2024 investor letter:
“Permian Resources Corporation (NYSE:PR) is a Texas-based oil & gas exploration & production company with a large acreage position and deep inventory of high return potential drilling locations in the core of the Permian Basin. We expect management to continue to execute on its strategy of optimizing returns, diligently allocating capital to new opportunities, and returning excess capital to shareholders.”
4. Robinhood Markets Inc. (NASDAQ:HOOD)
Upside Potential as of March 3: 47.70%
Number of Hedge Fund Holders: 79
Robinhood Markets Inc. (NASDAQ:HOOD) provides a user-friendly financial services platform and enables access to stocks, ETFs, options, and cryptocurrencies, alongside various educational resources and financial products. It offers fractional trading, retirement accounts, and educational tools like Snacks and Learn, in order to democratize investing for a broad audience.
In Q4 2024, the company’s revenue exceeded $1 billion, and the full-year revenue was over $3 billion. This was a 58% increase as compared to 2023. The growth was majorly driven by new products like the Robinhood Gold Card, Robinhood Legend, and a derivatives business. All of these are directly related to the company’s active trader platform.
The recently launched Robinhood Legend is already generating $50 million in annualized trading revenue. Customers are putting more money into their accounts than ever before, with deposits reaching a record $50 billion, which is almost 50% more than before. The number of people paying for their premium Gold service is also up 80%. While about 10% of all Robinhood Markets Inc. (NASDAQ:HOOD) customers use Gold, over 30% of new customers in Q4 2024 signed up for it.
Baron FinTech Fund is bullish on Robinhood Markets Inc. (NASDAQ:HOOD) due to its transformation into a profitable, growth-oriented brokerage with strong customer retention and financial metrics. The fund stated the following in its Q4 2024 investor letter:
“We also initiated a position in Robinhood Markets, Inc. (NASDAQ:HOOD) during the quarter. Robinhood is an online brokerage that offers free trading across stocks, options, and cryptocurrencies. Baron Capital has long invested in successful brokerage companies such as Charles Schwab, Interactive Brokers, and LPL Financial. We first met Robinhood in 2021 during their IPO process. Customers were using Robinhood because of its low-cost offering and simple user interface that makes trading easy and accessible. While we were impressed with management’s success in building a modern brokerage with a large user base and strong product-market fit, we were hesitant to invest at a cyclical peak in trading activity and fintech valuations during the middle of the COVID-era meme-stock craze. Following the IPO, trading activity soon normalized and the share price fell significantly.
After revisiting the company this past year, we believe Robinhood is a much-improved business today. Departing from its early reputation as a gamified enabler of retail speculation in meme stocks, Robinhood has been professionalized and transformed into a more durable company that can reliably gain market share and grow earnings over the long term. Some examples of the company’s maturation include: 1) providing retirement accounts that should create larger and longer-lasting client relationships; 2) launching the Gold subscription service that delivers additional value to Robinhood’s best customers; 3) introducing the web-based Legend platform that offers more advanced features for active traders; and 4) exercising expense discipline to right-size the cost base and deliver profitability alongside growth. These efforts have delivered strong financial results, with Robinhood generating annualized net new asset growth of 29%, custodied asset growth of 76%, and an adjusted EBITDA margin of 42% in the most recent quarter. Average revenue per user has also increased significantly from $60 in 2022 to $107 in the first nine months of 2024 across more than 24 million funded accounts. The customer retention rate is a very strong 95%, up from 80% three years ago…” (Click here to read the full text)
3. Advanced Micro Devices Inc. (NASDAQ:AMD)
Upside Potential as of March 3: 40.20%
Number of Hedge Fund Holders: 96
Advanced Micro Devices Inc. (NASDAQ:AMD) is a global semiconductor company that provides a range of products across Data Center, Client, Gaming, and Embedded segments. It offers CPUs, GPUs, FPGAs, and AI accelerators under brands like Ryzen, Radeon, and EPYC. It serves diverse markets through direct sales and channel partners.
Its data center segment contributes to around 50% of annual revenue. In 2024, data center revenue hit a record $3.9 billion, which was up 69% year-over-year. This growth was fueled by the strong EPYC processor adoption, with over 50% market share at major hyperscale cloud providers. Its data center AI business generated over $5 billion in revenue in 2024. MI300X deployments expanded with major cloud partners. Instinct platforms are being deployed across more than a dozen cloud service providers. Advanced Micro Devices Inc. (NASDAQ:AMD) now plans to accelerate MI350 series shipments. It’s aiming for mid-year production. It’s also progressing with the MI400 series for a 2026 launch.
Daiwa downgraded Advanced Micro Devices Inc. (NASDAQ:AMD) to Outperform on February 14, with a $130 price target, which was down from $170. This sentiment came from its weak H1 2025 guidance. Despite strong Q4 2024 results, slow MI325 GPU ramp-up and a projected $800 million data center revenue decline caused concern. For Q1 2025, the company expects a revenue of ~$7.1 billion, a 30% year-over-year rise.
2. Tesla Inc. (NASDAQ:TSLA)
Upside Potential as of March 3: 40.62%
Number of Hedge Fund Holders: 126
Tesla Inc. (NASDAQ:TSLA) designs, manufactures, and sells EVs and energy solutions globally through its Automotive and Energy Generation and Storage segments. It utilizes direct sales, online platforms, and channel partners to reach customers. It’s also focusing on accelerating the world’s transition to sustainable energy.
On February 25, Morgan Stanley’s Adam Jones reiterated an Overweight rating for this company with a $430.00 price target. The firm noted that the company’s integration of AI and robotics will drive growth and innovation. Therefore, the company’s primary focus remains its Full Self-Driving (FSD) and autonomous vehicle technology. In Q4 2024, it achieved an annualized vehicle delivery rate of nearly 2 million, and the Model Y was the top-selling vehicle globally in 2024. Tesla Inc. (NASDAQ:TSLA) plans to launch unsupervised FSD in Austin by June 2025, and potentially expand it to other US regions by year-end. It’s already using autonomous vehicles at its Fremont factory.
The company is receiving interest from other car manufacturers in licensing FSD technology, but will prioritize high-volume partnerships. Tesla Inc. (NASDAQ:TSLA) believes autonomous vehicles will drastically increase usage, potentially from 10 hours per week to 50-55 hours. It’s now working to resolve battery pack constraints to support production growth.
Baron Partners Fund Baron Partners Fund is highly optimistic about Tesla Inc.’s (NASDAQ:TSLA) growth, driven by strong performance in energy and automotive, advancements in AI, upcoming vehicle launches, and potential regulatory tailwinds. Here’s what is said in its Q4 2024 investor letter:
“Tesla, Inc. (NASDAQ:TSLA) designs, manufactures, and sells electric vehicles, related software and components, and solar and energy storage products. Shares rose on growth in the energy segment, the promise of new model launches in 2025, and increasing investor confidence in Tesla’s AI initiatives. Despite macroeconomic challenges, delivery data in major markets like China have shown considerable improvement. The energy and automotive segments demonstrated stronger-than-expected profitability. Tesla also expanded its advanced computing center in Texas, released improved version of its software-enhanced driving solution, and is set to launch new mass market vehicles years after the initial rollouts of Models 3 and Y. Expectations of deregulation under the incoming administration point to the potential acceleration of new technology rollouts, which could enhance Tesla’s leadership position in real world AI and bolster investor confidence that Tesla will benefit from these large and attractive growth opportunities.”
1. NVIDIA Corp. (NASDAQ:NVDA)
Upside Potential as of March 3: 40.09%
Number of Hedge Fund Holders: 223
NVIDIA Corp. (NASDAQ:NVDA) is a computing infrastructure company that provides graphics, compute and networking solutions worldwide. Offering GeForce GPUs, data center platforms, and AI software like Omniverse, it serves diverse markets. These include gaming, automotive, and data centers.
In FY25, the company generated a total of $115.2 billion in revenue, which was more than double as compared to FY24. FQ4 2025 alone saw a record revenue of $35.6 billion, which represented a 93% year-over-year surge. This improvement came from its data center segment, particularly by its Blackwell and Hopper 200 products. Blackwell sales reached $11 billion in FQ4. Customers are scaling infrastructure with clusters of 100,000+ GPUs. Inference demand is surging, with Blackwell offering up to 25x higher token throughput and 20x lower cost than Hopper 100.
Large cloud providers represent about 50% of the company’s data center revenue. FQ1 2026 revenue is projected at about $43 billion, with continued growth in data center and gaming. On February 25, Evercore ISI’s Mark Lipacis maintained a Buy rating on the company with a $190.00 price target. The firm noted strong hyperscaler preference for NVIDIA Corp.’s (NASDAQ:NVDA) ecosystem. The GPU demand is seemingly exceeding supply. AI advancements are also expected to further drive long-term growth.
Baron Fifth Avenue Growth Fund is highly positive on NVIDIA Corp. (NASDAQ:NVDA) due to its strong financial performance, dominant position in AI computing, and continued growth potential despite market uncertainties. 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 time frame. 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 Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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