In this article, we will take a look at the 12 most buzzing stocks to buy according to hedge funds.
Economist Expects Prices to Rise in 2025
Data for the gross domestic product (GDP) in the fourth quarter of 2024 came out at 2.3%, slightly under economist expectations of 2.6%. On January 31, Lauren Saidel-Baker, an economist at ITR Economics, appeared in an interview on Yahoo Finance to share her outlook on the economy ahead of 2025.
Baker suggested that the economy is growing slower, which is rather a normalization of the economy and, therefore a very normal circumstance. She added that the economy is still feeling the ripple effects of the pandemic and we are now finally seeing the economy getting back to its “feat.” Baker also shared her optimistic approach towards the economy suggesting that the fundamentals point towards stable economic growth. She added that most of the growth has been driven by the consumer, meaning that the average consumer in the United States is strong and has showcased resilience.
On the flip side, the economist did share concern over government spending, exceeding its means, which has been a “long-going problem” in her opinion. Baker also shed light that government spending beyond its means may spiral in the very near term, especially with relatively higher interest rates pushing a much larger debt burden.
She highlighted that it is very important for individuals to read the economy through the noise. She added that the market has heard a lot of noise about the impending tariffs and the supposed growers and shrinkers of the economy, which she believes risk higher inflation rather than economic growth. She emphasized that there is no optimal number at which the economy is supposed to grow, and the economy is likely expected to operate in waves.
Baker believes that the economy may grow between 2-3% by the end of the year, and expects to see a slight acceleration by 2026. She also added that while the consumer is feeling higher prices, the general trend is in fact “disinflation,” which means a positive rate of inflation but slightly lower. She explained that while the consumer is bearing the brunt of higher prices, the prices are not rising fast enough to be a concern. She also added that while she does expect prices to rise further, the balancing act of “disinflation” may be good news for wages.
The consumer continues to show resilience towards the volatile and uncertain economic conditions, which is reflected in the performance of the stock market. That said, let’s take a look at the 12 most buzzing stocks according to hedge funds.
A trader in a financial institution using fundamentals analysis to select stocks for a portfolio.
Our Methodology
To compile our list, we sifted through Yahoo Finance’s list of stocks that are experiencing high trading volumes. We looked at the analyst and investor sentiment for each stock and narrowed down our selection to 12 stocks that were the most popular among elite hedge funds. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q3 2024.
Note: All price/volume data is as of January 31, 2025.
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 Most Buzzing Stocks to Buy According to Hedge Funds
12. Rigetti Computing, Inc. (NASDAQ:RGTI)
Volume: 94.1 Million
Average Volume (3-Month): 137.9 Million
Number of Hedge Fund Holders: 7
Rigetti Computing, Inc. (NASDAQ:RGTI) is an integrated systems company that builds quantum computers and superconducting quantum processors. Through its quantum could platform, RGTI can integrate its machines into any private, public, or hybrid cloud platforms. The company closed 2024 with a solid update to its quantum computing stack with the launch of its 84-qubit Ankaa-3 system, which is capable of 3D signal delivery and boasts superior performance.
RGTI has a mission to build one of the world’s most powerful computers for mission-critical activities, through its hybrid quantum-classical systems. On January 27, analyst firm, Needham raised its price target on the stock from $2 to $17, keeping a buy rating on Rigetti Computing, Inc. (NASDAQ:RGTI). The analyst firm is extremely positive on the quantum computing industry and expects pure-play companies like RGTI to benefit from the wave, which is expected to stretch over a decade. Overall, over the past six months, the stock has jumped by a whopping 1,133%.
11. Nokia Oyj (NYSE:NOK)
Volume: 54.3 Million
Average Volume (3-Month): 15.7 Million
Number of Hedge Fund Holders: 16
Nokia Oyj (NYSE:NOK) is one of the oldest telecommunications companies in the world and ranks 10th on our list of the most buzzing stocks according to hedge funds. The company provides mobile network solutions, data center network solutions, IP network solutions, and private network solutions. Nokia is making strides in artificial intelligence and is immensely focused on improving its network services. For instance, on January 28, the company was selected by 1GLOBAL, a communications service provider, to provide core and security solutions in key markets across the globe, such as the UK, USA, and Brazil.
Nokia Oyj (NYSE:NOK) also celebrates sound financial performance. In the fourth quarter of 2024, the company saw a 9% increase in net sales, with network infrastructure sales growing the strongest. In addition to that, the company closed the quarter with EUR 0.05 billion in free cash flow, and a net cash balance of EUR 4.9 billion. During the quarter, the company also expanded its ecosystem, garnering 18,000 additional base station sites, since the start of 2024. For the full year 2025, Nokia Oyj (NYSE:NOK) expects the business to grow originally with operating profit reaching EUR 1.9-2.4 billion.
10. Lucid Group, Inc. (NASDAQ:LCID)
Volume: 66.5 Million
Average Volume (3-Month): 88.2 Million
Number of Hedge Fund Holders: 19
Lucid Group, Inc. (NASDAQ:LCID) is an automotive and technology company that manufactures and sells electric vehicles and also supplies groundbreaking electric vehicle powertrain systems. The company’s first EV factory is expected to complete construction soon. The factory has an initial capacity to make 10,000 cars every day and more than 300,000 annually with incremental expansion plans.
In the third quarter of 2024, Lucid Group, Inc. (NASDAQ:LCID) produced 1,805 vehicles and delivered 2,781. In an impressive feat, the company reported a record number of deliveries, the third consecutive quarter of the company achieving such. With 90.9% year-over-year growth, the company boasts a solid opportunity explaining its ranking on our list. In addition to that, during the quarter, the company deployed 11 software updates in 3D lane visualization, driver-initiated lane change assist, and updated UX features.
Overall, Lucid Group, Inc. (NASDAQ:LCID) has an impressive lineup in-store up until the end of 2026. With these new additions, the company will be able to expand its total addressable market further, explaining why 19 hedge funds held stakes in the firm at the end of Q3 2024. Analysts are also bullish on the stock and their median price target of $3 points to an upside of 7%.
9. Banco Bradesco S.A. (NYSE:BBD)
Volume: 57.3 Million
Average Volume (3-Month): 38.3 Million
Number of Hedge Fund Holders: 22
Banco Bradesco S.A. (NYSE:BBD) is a financial services company that specializes in the provision of various financial and insurance services. Through its insurance segment, BBD provides coverage for auto, health, life, accident, and property insurance lines. Over the past few months, the company has worked tirelessly to achieve the status of a rapidly growing digital financial services company. For instance, in the third quarter of 2024, Banco Bradesco S.A. (NYSE:BBD) closed down some of its physical branches to direct more resources to its digital banking services. In addition to that, during the quarter, the company acquired a 20% share in the Santa Group.
On the financial front, Banco Bradesco S.A. (NYSE:BBD) generated R$30.6 billion, up 3.7% sequentially. Similarly, the company saw a 2.7% sequential increase in net interest income and an 8.7% growth in its insurance business. In addition to standard banking services, BBD has a growing focus on providing loans to small and medium enterprises and is one of the leaders in these types of loans in Brazil. BBD’s stable position is reflected in the market sentiment for the stock. On January 13, for instance, HSBC upgraded the stock to buy from hold, with a price target of $2.8. Overall, analysts are bullish on the stock and their median price target of $4.5 represents an upside of 107%.
8. Ford Motor Company (NYSE:F)
Volume: 63.8 Million
Average Volume (3-Month): 58.8 Million
Number of Hedge Fund Holders: 36
Ford Motor Company (NYSE:F) is an automobile manufacturer that designs, manufactures, and services a variety of vehicles, including trucks, cars, and SUVs. The company has been working to increase its stakes in the electric vehicles segment. Over the past few months, Ford Motor Company (NYSE:F) has accelerated its capabilities in EVs by launching new vehicles and updating existing features. Analysts are also bullish on the stock and their median price target of $11 points to an upside of 8% from current levels.
In the third quarter of 2024, the company reported revenue worth $46 billion, up from $43.8 billion, and net income worth $0.9 billion. Ford Motor Company (NYSE:F) believes it boasts a solid growth opportunity as the industry goes through a transformation. To come to this point, the company has competition in some key areas such as Ford Pro, international operations, and the next generation of electric vehicles. For the full fiscal year of 2024, the company expects free cash flow to range between $7.5-$8.5 billion and projects capital expenditures to reach $8-$8.5 billion.
7. Palantir Technologies Inc. (NASDAQ:PLTR)
Volume: 40.6 Million
Average Volume (3-Month): 83.8 Million
Number of Hedge Fund Holders: 43
Palantir Technologies Inc. (NASDAQ:PLTR) is a software company that specializes in software platforms for big data analytics. Earlier in December 2024, the company expanded its Army Vantage partnership with a $618.9 million contract, improving the way missions are performed using data and AI. Similarly, in an interesting update, on the same day, the company announced a partnership with Pray.com on AI applications for faith-backed non-profits. A week before this, Palantir Technologies Inc. (NASDAQ:PLTR) announced a strategic partnership with Anduril to facilitate the flow of national security using AI capabilities.
On January 23, Daniel Ives, an analyst at Wedbush, maintained a buy rating on Palantir Technologies Inc. (NASDAQ:PLTR), increasing its price target to $90. The analyst gave a buy rating based on the company’s crucial role in its AI capabilities and its AI growth strategy leading up to 2025. The analyst expects PLTR to throne as a leading player in the AI software industry due to its strategic position and advancements over the months. Ives emphasized PLTR’s communication and partnership with the US government and mission-critical use cases. Over the past six months, the stock has grown by a whopping 214%.
6. Nu Holdings Ltd. (NYSE:NU)
Volume: 54.8 Million
Average Volume (3-Month): 40.1 Million
Number of Hedge Fund Holders: 54
Nu Holdings Ltd. (NYSE:NU) is one of the largest financial services platforms that serves more than 110 million customers across Brazil, Mexico, and Columbia. The company makes sure that it provides an end-to-end customer experience across the entire financial journey. In five years, the company has allowed 20.7 million Brazilians to own and run their first credit card. In addition to that, on January 21, Nu Holdings Ltd. (NYSE:NU) reported that NU Mexico has managed to reach 10 million customers in the country, increasing its reach by more than double in just one year. Similarly, NU Mexico has also helped nearly 50% of its customers access a credit card for the first time.
With a mission to contribute to the digital transition in the finance sector, on January 20, Nu Holdings Ltd. (NYSE:NU) announced that the company is expanding its NuCel customer base in Brazil. NuCel is a mobile phone service, launched by the company in October 2024, with a focus on improving the customer experience. The mobile service offers no-commitment plans to users and provides a myriad of benefits such as an unlimited voice package, unlimited WhatsApp, and access to an exclusive savings box. The company plans to gradually increase the footprint of NuCel and launch the tab in the Nu app for easier access. Analysts are also bullish on the stock and their median price target of $15.5 points to an upside of 17%.
5. Intel Corporation (NASDAQ:INTC)
Volume: 97.0 Million
Average Volume (3-Month): 73.9 Million
Number of Hedge Fund Holders: 68
Intel Corporation (NASDAQ:INTC) is a semiconductor manufacturing company that ranks fifth on our list of the most buzzing stocks to buy according to hedge funds. In the fourth quarter of 2024, the company generated $14.3 billion in revenue, and in the full fiscal year of 2024, the company generated $53.1 billion. The company reported positive financial results, as its revenue, gross margin, and EPS all performed well above its guidance. In addition to that, Intel’s (NASDAQ:INTC) cost reduction plan has swiftly improved the position of the company, fostering efficiency and increasing return on capital investments.
To expand its position in the market, on January 17, the company announced that it is onboarding new defense and industrial base customers, semiconductor solutions, and reliable microsystems to its foundry. This step was part of the third phase of Rapid Assured Microelectronics Prototypes – Commercial (RAMP-C) efforts under the Trusted & Assured Microelectronics (T&AM) Program. The program allows customers to fully benefit from Intel’s (NASDAQ:INTC) leading-edge Intel 18A process technology and advanced packaging. Analysts are also bullish on the stock, with their median price target of $25 pointing to an upside of 25% from current levels.
4. Comcast Corporation (NASDAQ:CMCSA)
Volume: 76.4 Million
Average Volume (3-Month): 20.7 Million
Number of Hedge Fund Holders: 72
Comcast Corporation (NASDAQ:CMCSA) is a global media and technology company that provides connectivity and platform services. In the fourth quarter of 2024, the company reported solid financial performance with record revenue, free cash flow, and EPS. The company was able to grow its connectivity revenue by 5% amid an extremely competitive environment, adding another 1.2 million mobile lines. In an impressive feat, CMCSA delivered solid results from its studio business with its revenue growing by 46% during the quarter.
On January 31, Gregory Williams, an analyst from TD Cowen, maintained a buy rating on the stock and lowered the price target to $46. Williams gave a buy rating based on the growth potential of Comcast Corporation (NASDAQ:CMCSA), suggesting that the stock has an encouraging growth outlook. In addition to that, the analyst is positive about the company’s free cash flow, which has shown solid growth over time. While Williams does acknowledge the challenges the company is currently facing, especially the intense competition in the broadband sector, but remains bullish on CMCSA’s ability to prevent subscriber losses by improving mobile offerings and pricing. Similarly, on the same day, Goldman Sachs also maintained a buy rating on the stock setting a price target of $44.
3. Tesla, Inc. (NASDAQ:TSLA)
Volume: 97.1 Million
Average Volume (3-Month): 90.2 Million
Number of Hedge Fund Holders: 99
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company specializing in producing electric cars and solar-integrated renewable energy solutions. In the fourth quarter of 2024, the company produced more than 459,000 vehicles and delivered over 495,000, a record number for the company. Based on the Q4 results, the company expects Model Y to be its best-selling vehicle for the full fiscal year of 2024. In addition to that, to make its pricing model more affordable, TSLA has worked tirelessly during the year to reduce the cost of goods sold per vehicle, bringing it down to under $35,000.
On January 30, analyst firm Roth MKM, raised the price target for Tesla, Inc. (NASDAQ:TSLA) from $380 to $450, keeping a buy rating on the shares. The firm pointed out that while the company missed Q4 expectations, investors are likely to shift their expectations to unsupervised FSD coming to Austin in June this year. This coupled with the launch of CyberCab and the development of MiniCar are expected to deliver positive signals to the market.
Tesla, Inc. (NASDAQ:TSLA) expects 2025 to be monumental as it expects its autonomous driving segment to exhibit safety levels, such that exceed human levels. In addition to that, the company expects to launch FSD in China and Europe in 2025.
2. NVIDIA Corporation (NASDAQ:NVDA)
Volume: 386.5 Million
Average Volume (3-Month): 232.9 Million
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) ranks second on our list of the most buzzing stocks according to hedge funds. NVIDIA is a leading GPU maker driving innovation in artificial intelligence, gaming, creative design, autonomous vehicles, and robotics. While the company is facing a demand-supply disequilibrium for its Blackwell AI chip, NVDA expects to drive significant results from it in 2025. In addition to that, while the recent launch of China’s DeepSeek has hit the company, NVDA boasts the highest daily trading volume and is a favorite among analysts.
After the shock NVDA experienced last week, the technology giant logged a solid rebound the very next day. As a result, on January 29, Ivan Feinseth, an analyst at Tigress Financial, upgraded his rating on NVIDIA Corporation (NASDAQ:NVDA) from a buy to a strong buy, hiking his price target to $220. The analyst suggested that while DeepSeek is developed using older NVIDIA chips, the true capabilities of the model remain unknown, raising security concerns. He also added that NVIDIA is expected to be a key supplier of AI-driven GPUs, which is a multiyear ongoing investment. Feinseth also believes that Project Stargate underscores AI investments made by large technology companies in the United States.
Feinseth added that total capital investment in AI-driven and data center development is expected to surpass $330 billion this year, from only $250 billion in 2024, positioning NVIDIA Corporation (NASDAQ:NVDA) for prominent growth opportunities.
1. Microsoft Corporation (NASDAQ:MSFT)
Volume: 53.8 Million
Average Volume (3-Month): 21.3 Million
Number of Hedge Fund Holders: 279
Microsoft Corporation (NASDAQ:MSFT) generated solid results in the fiscal second quarter of 2025. For the quarter ended December 31, 2024, MSFT generated $69.6 billion in revenue, up by 12%, and $24.1 billion in net income, up by 10%. The company attributes its revenue growth to its cloud and AI business. In an impressive feat, the company saw a 175% increase in revenue from its AI business reaching $13 billion. Similarly, its cloud business generated $40.9 billion in revenue, up by 21% year-over-year.
The stock went higher after reporting solid financial results in the fiscal second quarter of 2025. On January 31, Sachin Mittal, an analyst at DBS, maintained a buy rating on the stock, retaining a price target of $531. Mittal maintained a buy rating on MSFT due to its strong financial results, especially in its cloud and AI business. In addition to that, the analyst expects Microsoft (NASDAQ:MSFT) to expand its leadership position in the productivity software market and witness significant growth opportunities from its investments in AI.
Microsoft Corporation (NASDAQ:MSFT) plans to continue investing in its cloud and AI business, pushing innovations across its tech stack in an attempt to capture the massive opportunity ahead. Analysts are also bullish on the stock and their median price target of $500 points to an upside of 20.5%.
While we acknowledge the potential of MSFT to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MSFT 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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