In this article, we will discuss: 12 Best Nickel Stocks to Buy According to Hedge Funds.
Nickel is a metal that is used extensively in manufacturing. It is a key component of stainless steel and is valued for its corrosion resistance. It is also among the most abundant resources. According to the International Nickel Study Group, primary nickel production will rise by 4.6% globally in 2024 and then by an additional 3.8% in 2025. About 150,000 tonnes of nickel will be in excess globally in 2025, according to Nornickel, mostly in high-grade nickel segments.
The nickel industry is booming. As per Fortune Business Insights, the size of the global nickel market was estimated at $41.61 billion in 2023 and is projected to keep growing at a compound annual growth rate (CAGR) of 7.3%, from $44.59 billion in 2024 to $73.15 billion by 2032. In 2023, Asia Pacific held an 82.62% market share, dominating the nickel market. Furthermore, it is anticipated that the nickel market in the United States will expand to a size of $2.01 billion by 2032, led by the electric vehicle industry, continuous infrastructure projects, and strong demand from the production of stainless steel.
However, nickel stock investing might be challenging. Mining businesses are cyclical, and stock prices fluctuate in line with the market price of nickel. Fears of a recession and a decline in industrial demand have caused nickel prices to fluctuate in early 2025, dropping from around $17,000 per metric ton to less than $16,000 in March, according to S&P Global Commodity Insights. Since nickel is necessary for NCM and NCA batteries in electric vehicles, the long-term demand picture is still favorable. Through 2030, the demand for nickel from EV batteries is anticipated to increase by 15% to 20% globally (IRENA). Long-term supply agreements have been negotiated by two major automakers to guarantee access to battery-grade nickel.
That said, prices have been under pressure due to the expansion in supply, particularly from Indonesia, which produced over 1.6 million metric tons in 2024 and accounts for about 50% of the global supply. Despite high costs and environmental concerns, Indonesia’s export prohibition and the growth of HPAL projects are changing the supply chain landscape. Although environmental and legal barriers exist, the Philippines is also increasing its output. The market is further complicated by geopolitical concerns. Western sanctions are forcing Russian supplies to reroute to China, while the EU looks for alternatives in countries like Canada and Australia. Trump’s plans, which include possible tariffs on Chinese nickel, have placed an intense focus on essential resource extraction in the United States. LME 3M nickel prices are expected to average $16,026/t in 2025, according to S&P Global, with supply disruptions and changes in trade policy being the main concerns.
According to the latest report by S&P Global, in light of growing uncertainty from tariff-led global trade tensions, the Asian nickel market may continue to face pressure in the months ahead. This will be due to a supply surplus fueled by higher Indonesian production levels and weak demand from key nickel-consuming industries, such as electric vehicles and stainless steel. Jason Sappor, metals and mining research senior analyst at S&P Global Commodity Insights, stated:
“Amid an unstable global macroeconomic backdrop, we expect the global primary nickel market to remain oversupplied in 2025, with production from Indonesia forecast to expand further this year, despite challenges like tight nickel ore availability and a potential royalty rate hike on nickel products by the government,”
“A slowdown in global economic activity would dent global primary nickel demand in a market already grappling with oversupply,” “further evolutions in the Trump administration’s trade tariff policies, we expect nickel prices to remain volatile in the near term.”
With that said, here are the 12 Best Nickel Stocks to Buy According to Hedge Funds.
A towering metal stack of ferrous and nonferrous metals, highlighting the scale of metal recycling.
Our Methodology
For this article, we sifted through the online rankings to form an initial list of the 20 Nickel Stocks. From the resultant dataset, we chose 12 stocks with the highest number of hedge fund investors, using Insider Monkey’s database of 1,009 hedge funds in Q4 2024 to gauge hedge fund sentiment for stocks. We have used the stock’s market cap as of April 25, 2025, as a tie-breaker in case two or more stocks have the same number of hedge funds invested.
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 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
12. TMC the metals company Inc. (NASDAQ:TMC)
Number of Hedge Fund Holders: 5
TMC the metals company Inc. (NASDAQ:TMC) is a deep-sea mineral exploration firm that collects, processes, and refines polymetallic nodules found on the seafloor in international waters of the Clarion Clipperton Zone (CCZ). Polymetallic nodules are distinct rocks that are unattached to the seafloor, abundant in the CCZ, and contain significant concentrations of nickel, copper, cobalt, and manganese. According to the business, industrial manufacturing and energy infrastructure depend on these four metals found in polymetallic nodules. The exploration of seabed polymetallic nodules, which includes the creation of a metallurgical technique to handle such nodules, is the sole operating segment of the company’s operations. The stock was up by more than 154% YTD, making it one of the Best Nickel Stocks.
The business accomplished several technological milestones, including the successful processing of nodules on an industrial scale and environmental studies that revealed encouraging seafloor ecosystem recovery data. Furthermore, TMC the metals company Inc. (NASDAQ:TMC) declared a strategy shift toward commercial production via U.S. regulatory channels under the Deep Seabed Hard Mineral Resources Act (DSHMRA), noting political will and an existing legal framework as important benefits.
Jake Sekelsky, an analyst with Alliance Global Partners, increased his price objective for the company from $4.50 to $6.25 and maintained his Buy rating for the company’s shares. In a research note, the analyst informs investors that President Trump’s signing of the Executive Order “Unleashing America’s Offshore Critical Minerals and Resources” is a “significant win” for TMC the metals company Inc. (NASDAQ:TMC)’s new licensing pathway. Regarding the company’s recently announced change in permitting strategy, the company anticipates government backing to act as a tailwind. Regarding the onshoring of the entire important minerals supply chain, it appears that the firm is “poised to play a key role.”
11. Ryerson Holding Corporation (NYSE:RYI)
Number of Hedge Fund Holders: 14
Ryerson Holding Corporation (NYSE:RYI) is a distributor of industrial metals with facilities in the US, Canada, and Mexico. It also offers a metals service center and value-added processor. Apart from its activities in North America, it also carries out distribution and processing activities in China. Its clientele includes large, global original equipment manufacturers as well as small, independently run fabricators and machine shops. It is among the Best Nickel Stocks since the firm offers a limited selection of nickel and red metals in a variety of shapes and forms, in addition to a full line of products made of carbon steel, alloy steel, stainless steel, and aluminum. Sales of metal products account for almost all of the company’s revenue. Geographically, the United States accounts for the majority of revenue.
Ryerson Holding Corporation (NYSE:RYI) stock is up more than 30% year to date. The recovery in demand for industrial metals and favorable opinion regarding the company’s recent acquisitions, such as the August 2024 acquisition of Production Metals, which increased the firm’s presence in the aluminum and specialty steels markets, are the main causes of the stock’s impressive rise in early 2025.
BMO Capital maintained its Market Perform rating on Ryerson Holding Corporation (NYSE:RYI) shares and increased its price objective from $23 to $25. In a research note, the analyst informs investors that the company’s Q1 earnings are projected to improve considerably sequentially, with more improvement predicted in the remainder of the year. The company’s Q4 adjusted EBITDA was in line, but its outlook was higher than expected.
10. Materion Corporation (NYSE:MTRN)
Number of Hedge Fund Holders: 15
The products of Materion Corporation (NYSE:MTRN) include copper-based alloys, specialty coatings, inorganic chemicals and powders, precious and non-precious specialty metals, and specialized engineered beryllium. The firm’s primary raw elements are ruthenium, silver, tin, gold, nickel, palladium, platinum, cobalt, copper, aluminum, beryllium, and tantalum.
Despite the market downturn, Materion Corporation (NYSE:MTRN) released solid financial results for the fourth quarter that concluded on December 31, 2024. Value-added sales for the company grew by 2% year over year to $296.1 million, a 12% sequential rise. Its adjusted EBITDA rose by 15% to $61.5 million, and its margins improved to 20.8%, placing it among the Best Nickel Stocks. The company’s 10% rise in adjusted earnings per share, or $1.55, was primarily the result of cost control and operational efficiency
However, the performance of its segments was varied, with the Performance Materials section showing growth. Value-added sales for the segments increased by 5% to $195.8 million, while EBITDA improved by 17% to $78.6 million. EBITDA increased to 18.7% over the prior year, but Materion Corporation (NYSE:MTRN)’s Electronic Materials area reported only 1% growth in sales to $78.6 million. Sales for the Precision Optics business, meanwhile, fell 17% to $21.7 million, resulting in a $1.1 million EBITDA loss. Lower volumes and an unfavorable product mix have been attributed to this.
9. Sibanye Stillwater Limited (NYSE:SBSW)
Number of Hedge Fund Holders: 18
Market cap as of April 25: $3.29 billion
Sibanye Stillwater Limited (NYSE:SBSW) is a mining and metals processing company based in South Africa that has a wide range of projects, activities, and investments spread over five continents. The Group also has holdings in mine tailings retreatment activities and is one of the leading recyclers of PGM autocatalysts. The firm is a leading producer of gold and also produces palladium, rhodium, and platinum. It also manufactures and refines copper, cobalt, nickel, chromium, ruthenium, and iridium. PGMs, chrome, nickel, zinc, gold, and other metals are among its products, making it one of the Best Nickel Stocks.
Sibanye Stillwater Limited (NYSE:SBSW) is investing in new industries like lithium in addition to its core mining operations. The company is positioned to benefit from the rising demand for minerals used in the production of electric vehicles because it owns what is allegedly the largest lithium mine in Europe and runs a battery recycling facility. Byproducts of its mining operations, such as uranium and chromium, also bring in revenue for the business. The company recently joined a joint venture for the Beisa uranium project, which might yield significant benefits if uranium prices increase. Moreover, it has raised $500 million through a streaming agreement with Franco-Nevada to pre-sell gold and PGMs from its South African operations. The business also owns 50% of DRD Gold, which has a market valuation of about $1 billion.
The investment in battery materials and precious metals by Sibanye Stillwater Limited (NYSE:SBSW) coincides with long-term trends in traditional investment demand and a shift toward green energy. The company’s investments in battery metals should generate substantial returns as the EV industry expands. At the same time, amid a downturn in the economy, the firm’s well-established holdings in PGMs and gold provide exposure to metals with industrial uses and investment appeal.
8. ArcelorMittal S.A. (NYSE:MT)
Number of Hedge Fund Holders: 18
Market cap as of April 25: $22.67 billion
ArcelorMittal S.A. (NYSE:MT) is an integrated steel and mining business with operations in the United States, Europe, and across the world. The company uses zinc, tin, and aluminum as base metals for coating, nickel for making stainless or special steels, and aluminum for deoxidizing liquid steel. The company’s operating segments are North America, Brazil, Europe, India, JVs, Sustainable Solutions, Mining, and Other. The Europe segment yields the highest revenue. Geographically, the United States accounts for the majority of the company’s revenue. The stock surged by more than 29% YTD, making it one of the Best Nickel Stocks.
In 2024, ArcelorMittal S.A. (NYSE:MT) showed strong financial performance, generating $7.1 billion in EBITDA, or $130 per ton shipped, which was over twice as much as the previous cycle lows. The firm’s $2 billion in investable cash flow for the year and $21 billion since 2021 allowed for strategic reinvestments and steady returns for shareholders. Structural EBITDA is predicted to benefit from $1.9 billion in high-return strategic initiatives, of which $400 million is anticipated in 2025 and $600 million in 2026.
Over the last four years, ArcelorMittal S.A. (NYSE:MT) has aggressively repurchased shares, reducing its share count by 37% and increasing its dividend by 10% to $0.55 per share. The company has also made great strides in decarbonization, with substantial investments in low-carbon steel solutions supporting current absolute carbon emissions at almost half of 2018 levels.
7. QuantumScape Corporation (NYSE:QS)
Number of Hedge Fund Holders: 22
QuantumScape Corporation (NYSE:QS) is working on creating innovative battery technology for electric vehicles (EVs) and other uses, including advancements that can raise the energy density of lithium iron phosphate and nickel manganese cobalt battery cells.
The successful delivery of Alpha-2 samples, the acceleration of the Raptor process, the start of low-volume B0 manufacturing of its high-performance QSE-5 cells, and the introduction of Cobra separator heat-treatment equipment were among the significant milestones the firm accomplished in 2024. The QSE-5 platform is being industrialized for gigawatt-hour-scale production by a 150-person joint team, which is part of a significant strategic cooperation with Volkswagen’s PowerCo. By projecting a lower adjusted EBITDA loss of $250–$280 million, the company improved its financial outlook and reflected a move to a more capital-light model. QuantumScape Corporation (NYSE:QS)’s cash runway was extended into the second half of 2028, supported by a robust liquidity position of $910.8 million at year-end, ranking it seventh on our list of the Best Nickel Stocks.
In the bull case, the firm emerges as a dominating competitor, expanding to 1,500 GWh of capacity by 2045 and earning $13 per kWh, resulting in huge upside.
6. BHP Group Limited (NYSE:BHP)
Number of Hedge Fund Holders: 28
One of the biggest mining firms in the world, BHP Group Limited (NYSE:BHP), is expanding its business to produce more nickel, making it one of the Best Nickel Stocks. Nickel West, based in Western Australia, is a fully integrated business that includes mining, smelting, and refining. This business specializes in manufacturing premium nickel materials made especially for the supply chain of EV batteries.
In 2024, BHP Group Limited (NYSE:BHP)’s Nickel West produced over 80,000 metric tons of nickel, with 85% of that being used by EV battery manufacturers. The company’s low-carbon production methods, backed by investments in renewable energy, show its dedication to sustainability. For example, the firm recently announced a 50% decrease in greenhouse gas emissions at Nickel West by 2030, which is consistent with its overall decarbonization ambitions.
Through several programs, BHP Group Limited (NYSE:BHP) is also stepping up its exploration efforts to safeguard future nickel resources. Among these is the West Musgrave Project, which it added to its portfolio after purchasing OZ Minerals in May 2023. Although this project is still in its early phases, when it is finished, it should greatly increase the company’s nickel production.
Over the next five years, BHP Group Limited (NYSE:BHP) plans to upgrade its facilities and raise its nickel production capacity by spending billions of dollars. This includes improving the Kalgoorlie Nickel Smelter and Kwinana Refinery, as well as developing the Venus nickel deposit. The goal of these initiatives is to satisfy the growing demand for premium Class 1 nickel, which is necessary for lithium-ion batteries.
5. Leggett & Platt, Incorporated (NYSE:LEG)
Number of Hedge Fund Holders: 31
Leggett & Platt, Incorporated (NYSE:LEG) is a diversified manufacturer that produces a wide range of goods for homes, offices, and automobiles. Among the most significant raw materials utilized by the company are high-strength metals, titanium and nickel-based alloys, chemicals used in the creation of foam, and others. It is ranked fifth on our list of the Best Nickel Stocks.
Since gaining more leverage through the 2019 acquisition of foam mattress provider ECS, the company has encountered numerous difficulties. The company’s gross margins fell by 450 basis points, from 21.85% in Q2 2021 to 17.4% currently. Additionally, there has been a decline in demand for bedding (28% since 2021), furniture/flooring/textiles (16.7% since 2022), and automobiles (down 5% in 2023). Leggett & Platt, Incorporated (NYSE:LEG) continued to pay its $220 million yearly dividend despite these challenges, which made its debt situation worse and increased its net debt to EBITDA ratio to 4.75 times.
The management is reorganizing the company, intending to permanently reduce costs by $60-$70 million through workforce reductions, facility consolidations, and operational efficiency. Furthermore, the business has cut the majority of its dividend, freeing approximately $220 million a year. In 2025, it anticipates receiving $240 million in after-tax profits from the sale of its aerospace division. By 2026, the firm also expects to make between $60 and $80 million from real estate transactions. Leggett & Platt, Incorporated (NYSE:LEG) has already paid down $126 million in debt as of 2024. To align his interests with those of shareholders, CEO Karl Glassman, who holds roughly 0.9% of the shares, has incentives related to EBITDA, free cash flow, ROIC, and total shareholder return.
4. Vale S.A. (NYSE:VALE)
Number of Hedge Fund Holders: 36
Vale S.A. (NYSE:VALE) is one of the leading metal miners and a mining corporation established in Brazil. One of the firm’s specialties is nickel, making it among the Best Nickel Stocks. According to the business, it has surpassed Russia’s Norilsk Nickel, which is currently facing sanctions for the invasion of Ukraine, to become the world’s largest producer of nickel.
Vale S.A. (NYSE:VALE) has a long history of being a leading supplier, refiner, and carrier of metals like nickel. Its stock is worth considering for investors seeking exposure to this essential component of the manufacturing industry. Despite being a cyclical company, it makes excellent profit margins that are utilized to increase shareholder value through stock repurchases and dividend payments.
Despite the decline in iron ore prices, Vale S.A. (NYSE:VALE) showed resiliency in its financial performance for the fourth quarter that concluded on December 31, 2024. The company’s reported net operating revenue for this period was $10.12 billion, down from $13.05 billion in 2023. Nonetheless, the fall in iron ore was offset by strong growth in the base metals segment. Furthermore, higher production at the Salobo mine increased copper income to $964 million, while the Onça Puma mine’s consistent output kept nickel revenue at $1.07 million.
3. Rio Tinto Group (NYSE:RIO)
Number of Hedge Fund Holders: 39
Rio Tinto Group (NYSE:RIO) is a multinational mining conglomerate. The most important commodity is iron ore, with nickel, copper, aluminum, diamonds, gold, and industrial minerals making much smaller contributions. The current firm was formed by the 1995 merger of RTZ and CRA through a dual-listed structure. Each company’s shareholders have equal economic and voting rights, and the two function as a single business entity. The stock climbed by more than 3% YTD, making it one of the Best Nickel Stocks.
Rio Tinto Group (NYSE:RIO) revealed on April 4, 2025, that it invested $10.3 billion in Western Australia in 2024 to develop its pipeline for future Pilbara mining projects and to support local companies. The company’s investments were mostly used for earthworks and the acquisition of heavy mining equipment.
Rio Tinto Group (NYSE:RIO) completed the $6.7 billion purchase of Arcadium Lithium on March 6. The firm will now be the new name for Arcadium. The new business intends to add more than 200,000 tonnes of lithium carbonate equivalent per year to its Tier 1 assets by 2028. A monetary consideration of $5.85 per share held by a specific record date will be given to Arcadium stockholders as compensation.
2. ATI Inc. (NYSE:ATI)
Number of Hedge Fund Holders: 45
ATI Inc. (NYSE:ATI) manufactures and markets complex components and specialty materials. The HPMC business manufactures a range of materials, including superalloys, nickel- and cobalt-based alloys, titanium, and titanium-based alloys. The AA&S section manufactures zirconium and related alloys, such as hafnium and niobium, nickel-based alloys, titanium, and titanium-based alloys, among others. It is ranked second on our list of the Best Nickel Stocks.
The firm reported $1.2 billion in revenue for the fourth quarter that concluded on December 29, 2024, which is a 10% year-over-year growth and a 12% sequential gain. Adjusted EBITDA hit $210 million, which was higher than expected. Rising to $4.4 billion, ATI Inc. (NYSE:ATI)’s full-year sales were the highest since 2012 and represented a 5% increase over 2023. Jet engine revenue jumped to 9%, airframe revenue increased by 4.5%, and aerospace and defense continued to be major growth drivers.
However, the defense market, a major buyer of magnesium-based alloys from ATI Inc. (NYSE:ATI), saw a 38% sequential increase in Q4 2024 and is expected to grow by an additional 7% in 2025. A potential $200 billion increase in U.S. defense funding, of which 50% goes toward its programs, supports this expansion. Additionally, the firm secured $4 billion in new client commitments in 2024, strengthening its long-term revenue pipeline.
Record levels of output and operational efficiency have resulted from the company’s large investments in AI technology and equipment reliability. ATI Inc. (NYSE:ATI) announced $4 billion in new sales agreements, and higher defense spending is expected to benefit its products.
Benchmark maintained its Buy rating on the company shares and increased its price objective from $80 to $81. The analyst informs investors that ATI Inc. (NYSE:ATI)’s FY25 projection “looks beatable,” backed by record MRO backlogs, and that the company is well-positioned with rising titanium capacity to experience faster growth after FY25.
1. Carpenter Technology Corporation (NYSE:CRS)
Number of Hedge Fund Holders: 55
Carpenter Technology Corporation (NYSE:CRS) is a significant manufacturer and distributor of specialty metals, such as nickel alloys, titanium alloys, and superalloys. Two of the company’s reportable segments are Performance Engineered Products and Specialty Alloys Operations. The Specialty Alloys Operations segment accounts for the majority of its revenue. This comprises mill operations in Reading and Latrobe, Pennsylvania, and the neighboring areas, as well as South Carolina and Alabama. Geographically, the United States accounts for the majority of the company’s revenue, with the remainder coming from Europe, Asia Pacific, Mexico, Canada, and other areas. It is the Best Nickel Stock.
On January 30, Carpenter Technology Corporation (NYSE:CRS) released results for the second quarter of 2025 that were comparatively strong. EPS almost doubled to $1.66, and quarterly operating income jumped by a remarkable 70% year over year to $119 million. The business raised its FY 2025 net income projection from $460 million to $500 million, to a range of $500 million to $520 million, encouraged by the impressive achievements.
Andre Madrid, a BTIG analyst, maintained his Buy rating on Carpenter Technology Corporation (NYSE:CRS) shares and increased his price objective from $230 to $245. In a research note, the analyst informs investors that the company’s long-term outlook exceeded all expectations, with an estimated adjusted operating income of $765 million to $800 million in FY27, indicating a 25% compound annual growth rate. The firm views this growth trajectory favorably, particularly when it takes into account conservative OEM build rates that are lower than current OEM expectations.
Overall, CRS ranks first among the 12 Best Nickel Stocks to Buy According to Hedge Funds. While we acknowledge the potential of nickel companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher 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 CRS but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stock To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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