This article will examine 20 takeover rumors that have prompted hedge funds to buy stocks.
Hedge funds tend to pile up on a stock that gains or is expected to gain positive attention in a market. And what more could ignite such a frenzy of activity other than whispers of potential takeovers? When combined with subtle market signals and insider movements, these rumors can cause investors to purchase the stock. Income-seeking investors usually keep a close eye on such signs and movements to capitalize on emerging opportunities.
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In particular, hedge fund managers, using their vast resources and analytical capabilities, are more receptive to such speculative cues and act upon them. Since investors and the rest of the market tend to generate income by closely following their actions, hedge funds hold influential power in market trajectories.
The allure of these rumors lies in their potential to generate substantial returns to shareholders. Those companies that become the target of a takeover or are perceived as a target experience a stock value surge in the market, thus attracting further investor interest. To stay ahead of the curve, hedge funds conduct thorough analyses, including financial statement evaluations, industry trend monitoring, and management behavior assessments, to predict the possibility of such events. Such a proactive approach, in addition to giving them an edge over other investors in the market, also contributes to the evolving nature of financial markets.
What prompts the takeover rumors? Loads of factors. In the current environment, as we all know, the new tariff rates and trade wars are the biggest and most significant catalysts for takeover rumors. However, hedge funds also take note of other factors when anticipating a takeover. For instance, the Federal Reserve cut interest rates. After a series of cuts that started in September, the Fed has paused the interest rate adjustments and maintained them between 4.25% and 4.50% since December 2024. The range is not historically low, compared to the near 0% interest rates the Fed announced amid the COVID-19 pandemic. However, larger companies may find it easier and less expensive to fund an acquisition or merger at the current interest levels.
On the other hand, the broader market sentiment could also play a vital role in takeover rumors. The expected takeover might get rescheduled or withdrawn, depending on the favorability of the market sentiment. For instance, the recent falls in the stock market might reflect negatively on the market sentiment, discouraging companies from risking an acquisition or takeover.
Meanwhile, with their keen insights, hedge funds attempt to identify undervalued assets and potential takeover candidates. In addition to reflecting confidence in market resilience, their actions signify the importance of timely and informed decision-making.
In this article, we delve into 20 takeover rumors that have captured the attention of hedge funds. Stay with us as we count them down from 20 to 1.
A man in long sleeves looking at stock market data. Photo by Tima Miroshnichenko on Pexels
Our Methodology
We have put together our list by following a specific and straightforward methodology. Primarily, we have identified stocks with takeover rumors that have started or advanced in the past year. All the data used in this regard was taken from financial news, databases, and analyst reports, with all information updated as of April 21, 2025. This criterion is in place to ensure the relevance of the rumor with the hedge fund holdings for a stock. We have also collected information on the hedge fund holdings as of April 21, 2025, from the Insider Monkey database of Q4 2024. Based on this data, we have ranked our picks from 20 to 1, with 20 being the stock with the least number of hedge funds.
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).
20. Silence Therapeutics plc (NASDAQ:SLN)
No. of Hedge Funds: 18
Silence Therapeutics plc (NASDAQ:SLN) is a London-based biotechnology company specializing in RNA interference (RNAi) therapeutics. The company develops precision medicines by selectively silencing disease-related genes using its proprietary mRNAi GOLD™ platform. The company focuses on treating conditions such as cardiovascular and rare hematological diseases. Silence Therapeutics plc (NASDAQ:SLN) differentiates itself from its industry peers through its liver-targeted delivery system and clinical pipeline expansion. Standing at the forefront of RNA-based innovation, the company collaborates with major pharmaceuticals to increase its translational potential.
Silence Therapeutics plc (NASDAQ:SLN)’s RNA drugs have been attracting the attention of bigger drug companies, including AstraZeneca, Mallinckrodt, and Hansoh Pharmaceutical. Their technological resources, which were highlighted during the collaboration agreements with these companies, as well as their siRNA and mRNAi drugs for heart and blood diseases, make them a potential target as of February 2025. The drug trials are ongoing, and positive results could increase the interest of the big companies involved in the company’s takeover. Though similar merger talks reported resulted in the suspension of shares from trading, analysts see a lot of potential in the possibility of a future takeover.
Insider Monkey database noted 11 hedge funds holding stakes in Silence Therapeutics plc (NASDAQ:SLN), indicating a comparatively low institutional interest and suggesting a similar level of expectations from the takeover rumor surrounding the company.
19. Plug Power Inc. (NASDAQ:PLUG)
No. of Hedge Funds: 24
Headquartered in New York, the pioneer in hydrogen fuel cell technology, Plug Power Inc. (NASDAQ:PLUG) provides turnkey solutions for e-mobility and stationary power applications. Their portfolio comprises fuel cells, electrolyzers, and green hydrogen infrastructure. The company targets logistics, material handling, and transportation sectors with these offerings. Plug Power Inc. (NASDAQ:PLUG) leverages strategic partnerships with firms like Amazon and Walmart to overcome the challenges of market competitors. The company’s focus on energy storage parallels the increasing adoption of clean energy globally.
Plug Power Inc. (NASDAQ:PLUG) has been volatile in recent quarters due to many industry challenges. Concerns have been raised regarding the potential delisting of the company from NASDAQ if the price stays below $1 for 30 consecutive business days. To overcome these challenges, the company has raised capital through stock offerings. The most recent activity involves a $280 million offering in March 2025. However, some analysts are still maintaining a Buy rating for the stock, primarily citing the horizontal or vertical takeover of the company because of its focus on material handling and green hydrogen.
Insider Monkey database indicates 24 hedge funds owning Plug Power Inc. (NASDAQ:PLUG). Though moderate, this institutional interest reflects the possibility of shareholders benefiting from a takeover.
18. Allegro MicroSystems, Inc. (NASDAQ:ALGM)
No. of Hedge Funds: 27
A global semiconductor company, Allegro MicroSystems, Inc. (NASDAQ:ALGM) manufactures sensors and power integrated circuits (ICs) for motion control and energy-efficient systems. With its wide range of product portfolio, including magnetic sensor ICs and power ICs, the company serves automotive and industrial markets, enabling precise measurement and efficient power management. With headquarters in New Hampshire, Allegro MicroSystems, Inc. (NASDAQ:ALGM) competes for market share against formidable competitors like NXP and Infineon, using its intelligent solutions that support advancements in e-mobility, clean energy, and automation technologies.
The company has been rumored to be a potential acquisition target since the beginning of 2025. In March 2025, Onsemi, a semiconductor manufacturing company, disclosed a bid of $6.9 billion in value for the takeover of Allegro MicroSystems, Inc. (NASDAQ:ALGM). However, the latter’s board member had deemed the offer inadequate. Subsequently, in April 2025, Onsemi withdrew its all-cash proposal to acquire the company. While some analysts believe that Onsemi would try to acquire the company again, others are of the opinion that the deal was closed with rejection from Allegro MicroSystems, Inc. (NASDAQ:ALGM).
Our Insider Monkey database noted 27 hedge funds currently holding positions in the company at the end of Q4 2024, exhibiting moderate institutional confidence, which may have been boosted by the anticipated merger between the two companies: Onsemi and Allegro MicroSystems, Inc. (NASDAQ:ALGM).
17. Rush Street Interactive, Inc. (NYSE:RSI)
No. of Hedge Funds: 36
Headquartered in Illinois, Rush Street Interactive, Inc. (NYSE:RSI) is a leading online casino and sports betting company in the US and Latin America. BetRivers and PlaySugarHouse constitute their flagship brands. The company offers real-money gaming, social gaming, and sports wagering through these brands. Rush Street Interactive, Inc. (NYSE:RSI) sets itself apart from its competitors by focusing on early market entry, proprietary technology, and local partnership growth. The company has a notable foothold in regulated markets and aims to improve user experience through responsible gaming activities in the digital betting space.
As of April 2025, Rush Street Interactive, Inc. (NYSE:RSI) has been the subject of ongoing acquisition rumors. In a report by Bloomberg in March 2024, the company supposedly has approached multiple potential buyers, including DraftKings, exploring the sales options. Their internet casino offerings and presence in emerging markets like Latin America have made the company an attractive acquisition target for companies aiming to expand their gaming footprint. Despite going through various discussions, no definitive agreement has been announced by the company till now. Rush Street Interactive, Inc. (NYSE:RSI) and its rumored buyers have not commented on the specifics of any negotiations.
We have noted 36 hedge funds holding stakes in Rush Street Interactive, Inc. (NYSE:RSI) at the end of Q4 2024. It reflects a moderate institutional belief in the stock and its takeover rumors.
16. Legend Biotech Corporation (NASDAQ:LEGN)
No. of Hedge Funds: 36
Legend Biotech Corporation (NASDAQ:LEGN) is a global, commercial-stage biopharmaceutical company. With a focus on the development and manufacturing of novel cell therapies, the New Jersey-based company treats intractable diseases, particularly hematologic malignancies and solid tumors, using innovative technologies like autologous and allogeneic chimeric antigen receptor (CAR) T-cell and natural killer (NK) cell-based immunotherapies. The company has a global presence with facilities in the US, China, and Belgium. In the highly competitive market, Legend Biotech Corporation (NASDAQ:LEGN) attempts to advance using its effective research and development capabilities.
In the second quarter of 2024, some reports have indicated that the company has taken a bid and is exploring its options, with one of the options being the sale of the company. Legend Biotech Corporation (NASDAQ:LEGN) hired Centerview Partners as a financial advisor to evaluate the bid and other strategic alternatives. Johnson & Johnson stood out as a likely contender for the takeover because of the long-standing partnership on Carvykti, a CAR-T therapy for multiple myeloma. Neither deal nor discussion was announced by either company, leaving the potential takeover rumor looming in the market.
Legend Biotech Corporation (NASDAQ:LEGN) has garnered ownership of its stocks from 36 hedge funds, as per Insider Monkey’s Q4 2024 database. With moderate institutional confidence in the takeover rumor, the company attracts interested investors.
15. Roku, Inc. (NASDAQ:ROKU)
No. of Hedge Funds: 37
Roku, Inc. (NASDAQ:ROKU), headquartered in California, operates a leading TV streaming platform in the US. The company combines hardware and software solutions for both consumers and content providers. With its core products, streaming devices, smart TV operating systems, and ad-supported content services, the company competes with leaders like Amazon Fire TV and Apple TV. Differentiation is achieved in terms of proprietary OS and strong engagement metrics. Roku, Inc. (NASDAQ:ROKU) drives monetization across its growing user base using its advertising platform and original content.
In December 2024, analysts expressed that Roku, Inc. (NASDAQ:ROKU) might be a prime takeover target, causing the stock to surge. Some potential acquirers for the company include the streaming giant Netflix, ad tech player The Trade Desk, retailers like Target, and tech giants Amazon, Microsoft, and Alphabet. With its vast user base and valuable data, Roku, Inc. (NASDAQ:ROKU) attracts these giants to its company. In addition to their user data, the prompts for the takeover rumors surrounding the company are the increasing value of connected TV platforms, particularly after Amazon’s move to include ads on Prime Video and the acquisition of Vizio by Walmart for the company’s ad capabilities.
37 hedge funds piled up on Roku, Inc. (NASDAQ:ROKU), indicating a modest institutional interest. It also reflects a recognition of the company’s high fundamental value, which may have risen partly due to the takeover rumors.
14. Arcellx, Inc. (NASDAQ:ACLX)
No. of Hedge Funds: 37
A clinical-stage biotechnology company, Arcellx, Inc. (NASDAQ:ACLX) deals with advancing novel cell therapy platforms for treating cancer and autoimmune diseases. The company’s proprietary D-Domain technology underpins ARC-SparX, a modular CAR-T cell platform with high safety and precision. Located in California, the company primarily competes with other oncology-focused biotech firms but shines above them through its flexible dosing architecture and potential for off-the-shelf applications that target the unmet medical needs in hematologic malignancies.
Arcellx, Inc. (NASDAQ:ACLX) holds strong data from its Phase II iMMagine-1 trial for treating relapsed or refractory multiple myeloma patients, making the company a notable target for takeover. The takeover rumors surrounding the company extend beyond the potential takeover by Gilead Sciences, a partner in developing anito-cel for multiple myeloma, with some analysts in 2024 believing a bid from another company could top this combination. The company’s introduction of cell therapy has shown efficiency in treating EMD, a condition where other CAR-T therapies have performed poorly. It increases the takeover speculations with other companies, as such would provide the company with greater financial and commercial benefits.
The company has attracted investments from 37 hedge funds, suggesting a moderate level of institutional engagement. Arcellx, Inc. (NASDAQ:ACLX)’s strong intrinsic worth, backed by institutional interest, could have emerged from recent acquisition speculation.
13. ADMA Biologics, Inc. (NASDAQ:ADMA)
No. of Hedge Funds: 37
Headquartered in New Jersey, a biopharmaceutical company, ADMA Biologics, Inc. (NASDAQ:ADMA) specializes in developing and commercializing plasma-derived biologics. These are used to treat and prevent infectious diseases in immunocompromised patients. The company’s flagship products include ASCENIV and BIVIGAM. It emphasizes FDA-approved production capabilities and expansion of its plasma collection network to compete with other players. With clinical efficiency, the company addresses critical gaps in immune globulin therapy.
After acquiring a high level of the company’s stake (5.6%) by activist investors Caligan Partners in February 2022, ADMA Biologics, Inc. (NASDAQ:ADMA) has been the subject of takeover rumors. Caligan Partners, after acquiring the stake, has reportedly urged the company to consider a potential sale through a strategic review. Accordingly, in the recent quarters, many concerns have been raised with respect to the company’s financial reporting, including the resignation of its independent outside auditor, CohnReznick LLP. However, the matter was subsequently settled with Kirby McInerney LLP. Significant shareholder activities and the recently emerging concerns could lead to potential takeovers by pharmaceutical or biotech companies.
We noted a total of 37 hedge funds taking positions in ADMA Biologics, Inc. (NASDAQ:ADMA), as per Insider Monkey’s Q4 2024 database. It points to a fair degree of institutional confidence, likely partly driven by the circulating takeover rumors.
12. The Hershey Company (NYSE:HSY)
No. of Hedge Funds: 38
The Hershey Company (NYSE:HSY), based in Pennsylvania, is a global leader in confectionery and snack manufacturing. Their iconic brands include Hershey’s, Reese’s, Kit Kat (US), and SkinnyPop. The company serves various consumer segments across North America and internationally. Mars and Mondelez put up heavy competition for the company domestically and internationally. However, The Hershey Company (NYSE:HSY) differentiates itself through brand loyalty and agile supply chain management, increasing its market share. The company recently expanded its portfolio by adding salty snacks, and it has also entered digital sales channels to satisfy the evolving dietary trends and consumer behavior patterns.
The parent company of Cadbury, Mondelez International, in 2024, was rumored to explore acquiring The Hershey Company (NYSE:HSY). While the takeover rumor caused a decline in the share value of Mondelez International, HSY’s shares were surging. It was because the potential merger of the two companies would result in a global confectionery giant with combined sales of close to $50 billion. However, it should be noted that these takeover rumors were not new for Mondelez International, as the company had already been rumored to have shown interest in the purchase of The Hershey Company (NYSE:HSY) in 2016.
On the other hand, 38 hedge funds piled into the stock, reflecting significant institutional interest, which could be arising from the investors entertaining the takeover rumor.
11. Viking Therapeutics, Inc. (NASDAQ:VKTX)
No. of Hedge Funds: 42
Viking Therapeutics, Inc. (NASDAQ:VKTX), located in California, is developing novel therapies for metabolic and endocrine disorders. The company’s lead candidates target non-alcoholic steatohepatitis (NASH), obesity, and lipid disorders, using selective receptor modulators. Despite high competition from players like Madrigal Pharmaceuticals, Viking Therapeutics, Inc. (NASDAQ:VKTX) generates market shares through strong early-phase data and dual-pathway mechanisms. Their pipeline indicates promising efficacy in liver fat reduction, advancing its position in the metabolic therapeutics market.
The possibility of Pfizer acquiring Viking Therapeutics, Inc. (NASDAQ:VKTX) has put the company in the spotlight of takeover rumors in recent months. The company has been developing oral and injectable GLP-1 drugs, a class of drugs that have been gaining significant attention in treating obesity and diabetes. Combining this attention with Pfizer’s desire to enter the rapidly growing market centered around these drugs has fueled rumors of a takeover in 2024. However, Pfizer has recently had some setbacks, like the failure of its danuglipron drug. It may lead the company to lose the idea of acquisition and focus solely on its internal drug development.
The involvement of 47 hedge funds in Viking Therapeutics, Inc. (NASDAQ:VKTX) highlights high institutional interest in the stock, possibly arising from speculation around the buyout.
10. BP p.l.c. (NYSE:BP)
No. of Hedge Funds: 44
A global integrated energy company, BP p.l.c. (NYSE:BP) is located in the United Kingdom and is engaged in oil and gas exploration, refining, marketing, and renewable energy solutions. Their operations extend over 70 countries and cover a range of consumer segments, including retail, industrial, and government customers. BP p.l.c. (NYSE:BP) is transitioning toward a low-carbon portfolio through investments in hydrogen, wind, and EV charging infrastructure, thus setting itself apart from other competitors in the market, including Shell. With ambitious net-zero targets, the company aims to reshape its long-term energy mix in the upcoming years.
Speculations have been going around about BP p.l.c. (NYSE:BP) becoming a potential target for takeovers. The company has been underperforming compared to its peers in the market. Additionally, in its most recent quarter in 2024, the company saw its results fall short of market expectations, strengthening the takeover rumors. Concerning the acquirer, analysts believe that rivals for the company with deep enough pockets would make the bid. Though some reports point in the direction of Shell, there has not been any announcement from the two companies to date.
According to the Insider Monkey database, 44 hedge funds have stakes in the company’s ownership. Strong institutional confidence in a company with declining financials contributes positively to the takeover rumor.
9. Chewy, Inc. (NYSE:CHWY)
No. of Hedge Funds: 48
Florida-based company Chewy, Inc. (NYSE:CHWY) is a leader in e-commerce retailing. The company focuses on pet food, supplies, medications, and services. Their core value proposition lies in a seamless digital customer experience, subscription-based replenishment, and 24/7 customer service. With competitors like Amazon and Petco, the company competes for market share and differentiates itself through deep vertical integration in pet health and a data-driven personalization engine. Structural e-commerce tailwinds and increasing pet humanization trends favor the company’s revenue generation and customer retention growth.
In December 2024, a company’s primary investor, BC Partners, sold their ownership in Chewy, Inc. (NYSE:CHWY) for a value of $500 million. The company subsequently repurchased a portion of ownership amounting to $50 million from the selling entity. Though the transaction indicates the restructuring of the ownership, it also prompted the takeover rumor of the company. Prominent retailers and e-commerce giants like Amazon and Walmart are regarded as potential buyers for this supposed takeover in 2025. The giants could use the strong customer base of Chewy, Inc. (NYSE:CHWY), which has developed in the pet industry, to enhance their market presence further.
Institutional confidence in the company remains strong, with 48 hedge funds piling on the stock. Analysts believe that the company’s potential takeover could have boosted this confidence.
8. Nuvalent, Inc. (NASDAQ:NUVL)
No. of Hedge Funds: 50
Based in Massachusetts, a clinical-stage biopharmaceutical company, Nuvalent, Inc. (NASDAQ:NUVL) is focused on developing targeted therapies for cancers driven by oncogenic kinase alterations. Its pipeline includes novel ROS1-, ALK-, and HER2-driven tumor inhibitors, emphasizing CNS penetration. The company acquires a competitive advantage with structure-based drug design and strategic partnerships. The unmet needs in precision oncology support the company’s address of resistance mutations in existing therapies.
Nuvalent, Inc. (NASDAQ:NUVL) sees its takeover rumors rise in 2025, following the appointment of its new board member, Grant Bogle. Grant has 40 years of experience in the biotech industry and has taken the position of CEO of Epizyme, which was acquired in 2022. Nuvalent, Inc. (NASDAQ:NUVL) also attracts potential acquirers with its $1.2 billion cash runway into 2028. Additionally, the company is scheduled to introduce its first targeted cancer treatment in 2026. Though no names have been provided by the experts, analysts, and the company itself regarding the potential buyer, the appointment of M&A expertise, the company’s robust pipeline, and its strong financial position increase the possibility of a takeover.
Adding value to this rumored takeover, 50 hedge funds are backing the company’s stock, as per Insider Monkey’s Q4 2024 database. The hedge funds reflect strong institutional confidence in the company’s future progress, including its potential takeover.
7. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)
No. of Hedge Funds: 51
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is a biotechnology firm located in California. The firm’s focus is on rare genetic disorders. The company’s product portfolio includes therapies for phenylketonuria, mucopolysaccharidosis, and hemophilia. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) sets itself apart from competitors like Alexion through first-mover advantages and regulatory expertise in orphan drugs. Their pipeline, including gene therapy assets, extends their leadership in rare disease treatment through innovation.
The company has been a regular target of potential takeovers since 2013. In December 2023, Jean-Jacques Bienaimé stepped down from his position as the company CEO, and Alexander Hardy took over. The replacement itself sparked takeover rumors since such changes are expected to signal a potential strategic shift. In the first quarter of 2024, analysts had estimated a possible takeover with a value ranging between $130 and $150 per share. The estimation was primarily based on anticipating Voxzogo and Roctavian’s key drugs achieving substantial sales. This estimation of takeover is renewed in 2025, with the company expecting continued growth driven by Voxzogo and other therapies.
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is currently backed by 51 hedge funds, thus demonstrating strong institutional confidence in the stock. Supported by positive results in 2024, takeover speculation might also boost investor interest.
6. Juniper Networks, Inc. (NYSE:JNPR)
No. of Hedge Funds: 56
A California-based company, Juniper Networks, Inc. (NYSE:JNPR) is a global provider of networking solutions. Their portfolio includes routers, switches, firewalls, and cloud-based software. The company serves enterprises, service providers, and government clients seeking secure, high-performance connectivity. Despite tough competition from Cisco and Arista Networks, Juniper Networks, Inc. (NYSE:JNPR) thrives in the market through its AI-driven automation and strong presence in telco and cloud infrastructures. The company also becomes an enabler of next-generation digital transformation, using its innovations in network security and scalable architecture.
Hewlett-Packard Enterprise proposed acquiring Juniper Networks, Inc. (NYSE:JNPR) for $14 billion during the latter part of 2024. The announcement generated a surge in the company’s stock price. However, the takeover is currently facing challenges from the US Department of Justice (DOJ). DOJ argued that the merger would eliminate competition in the market for networking equipment by giving rise to two highly dominating companies. With both companies fighting the lawsuit from the DOJ, the merger currently exists in the form of a rumor, affecting the investments in Juniper Networks, Inc. (NYSE:JNPR).
The rumored takeover has attracted 56 hedge funds towards the stock, increasing the institutional interest in the company. The strong institutional confidence elevates the position of the takeover rumor in our list.
5. Blueprint Medicines Corporation (NASDAQ:BPMC)
No. of Hedge Funds: 56
Headquartered in Massachusetts, Blueprint Medicines Corporation (NASDAQ:BPMC) is a precision therapy company focusing on genomically defined cancers and hematologic diseases. Their marketed products, AYVAKIT® and GAVRETO®, target rare mutations in PDGFRA and RET, respectively. Though facing heavy competition in the market, Blueprint Medicines Corporation (NASDAQ:BPMC) thrives by leveraging its proprietary kinase platform to design highly selective inhibitors. The company gains the position as a key player in targeted oncology by aiming to improve the quality of life in biomarker-driven subpopulations.
The company’s focus on precision cancer therapies has included it in the subject of takeover rumors. Since 2022, experts have noted larger pharmaceutical companies showing interest in purchasing the Blueprint Medicines Corporation (NASDAQ:BPMC)’s portfolio of precision cancer therapies. Accordingly, the company is willing to make a deal and use the opportunity. The options included both strategic partnerships and acquisitions. With the M&A activity in the biopharma sector expected to rise to a deal value of $70 to $90 billion, the possibility of the company’s takeover stands high as well.
Institutional interest in the company is strong, with 56 hedge funds having stakes in Blueprint Medicines Corporation (NASDAQ:BPMC) stock. It reflects high expectations from the company, including takeover rumors that give way to a rise in value.
4. United States Steel Corporation (NYSE:X)
No. of Hedge Funds: 63
Pennsylvania-based company United States Steel Corporation (NYSE:X) is a leading integrated steel producer in North America and Central Europe. The company manufactures flat-rolled and tubular steel products and offers them to the end markets, including automotive, construction, energy, and appliance manufacturing. With the importance of advanced manufacturing, cost-efficiency, and sustainable production, the company gains a competitive edge against peers like Nucor and ArcelorMittal. Their mini-mill transition strategy and investment in green steel initiatives especially help meet evolving industrial and environmental demands.
By the end of 2023, United States Steel Corporation (NYSE:X) entered an acquisition agreement with Nippon Steel Corporation as the potential buyer. The agreement was valued at $14.9 billion. However, in 2024, the Committee on Foreign Investment in the United States (CFIUS) raised concerns about this takeover, citing national security. Subsequently, the Biden administration blocked the merger during the year. United States Steel Corporation (NYSE:X) and Nippon Steel Corporation filed a lawsuit claiming the decision was unconstitutional. Executive orders have been delayed till June 2025. However, with Trump replacing the Biden administration, the takeover rumor surrounding the company has been reignited.
We noted that 63 hedge funds currently have stakes in the company’s ownership, according to Insider Monkey’s Q4 2024 database. The renewed rumor of the United States Steel Corporation (NYSE:X) ‘s takeover could have been the catalyst behind this strong institutional interest.
3. First Solar, Inc. (NASDAQ:FSLR)
No. of Hedge Funds: 65
First Solar, Inc. (NASDAQ:FSLR) is a leading US manufacturer of thin-film photovoltaic (PV) solar modules. Their vertically integrated operations in Arizona cover R&D, manufacturing, and recycling. Compared to competitors like JinkoSolar and Canadian Solar, the company’s cadmium telluride technology provides a competitive advantage, offering higher energy yield in hot climates and lower carbon footprints. The demand for domestically sourced clean energy components is on the rise, and IRA incentives and a strong project pipeline across North America enable the company to satisfy this demand.
First Solar, Inc. (NASDAQ:FSLR) has demonstrated strong financial performance, which has been contributed to by the significant tax credits from the Inflation Reduction Act and the increasing manufacturing capacity in the US. Together, these factors also make the company an attractive buyout target. The company is a leader in the market with proprietary thin-film technology, which will further increase its appeal in 2025. Analysts believe that a potential acquisition could come from a large energy company. Such a horizontal takeover could expand the acquirer’s renewable energy portfolio. Such a scenario is plausible given the increasing focus on domestic supply chains.
With 65 hedge funds holding ownership of the company, First Solar, Inc. (NASDAQ:FSLR) gains strong institutional support, attributed to the financial position and the takeover rumors surrounding the company.
2. Insmed Incorporated (NASDAQ:INSM)
No. of Hedge Funds: 72
A biopharmaceutical company, Insmed Incorporated (NASDAQ:INSM), located in New Jersey, is focused on developing therapies for serious and rare diseases, including respiratory conditions. The company’s flagship product, Arikayce®, treats Mycobacterium avium complex (MAC) lung disease. Insmed Incorporated (NASDAQ:INSM) differentiates itself from its competitors, like Horizon Therapeutics, by covering unmet needs, late-stage pipeline assets, and global regulatory strategy. The company’s gene therapy and protein engineering research helps it take the lead in the orphan drug and pulmonary care markets.
Insmed Incorporated (NASDAQ:INSM)’s shares have more than doubled in 2024, prompting analysts to predict the company’s potential takeover in 2025. This conclusion is also partly based on the attractiveness of the company as a buyout target for larger biopharma companies focused on treating respiratory diseases. Near the end of 2024, the company applied with the NDA for the clearance of its lead pipeline candidate, brensocatib, in the chronic pulmonary disorder non-cystic fibrosis bronchiectasis (NCFBE). Upon approval, the drug is expected to generate sales of more than $5 billion, thus increasing its appeal to potential buyers in the industry in 2025.
Institutional interest in the stock remains strong, with Insider Monkey noting 72 hedge funds holding stakes in Insmed Incorporated (NASDAQ:INSM), reinforcing the idea of the company’s takeover.
1. Intel Corporation (NASDAQ:INTC)
No. of Hedge Funds: 83
Intel Corporation (NASDAQ:INTC), based in California, is a multinational technology company focusing on semiconductor design and manufacturing. The company is popularly known for its x86 microprocessors used in PCs and servers. However, it also offers advanced solutions in AI, edge computing, and foundry services. Though the market is filled with tough competitors like AMD, NVIDIA, and TSMC, the company captures more market share with the help of its integrated device manufacturing model. The company has made strategic investments in US chip fabrication and AI acceleration, which are expected to support its ambition to reassert leadership across global semiconductor supply chains.
Rumors persist regarding the takeover of Intel Corporation (NASDAQ:INTC). The rumors also included TSMC and Broadcom reportedly considering acquiring parts of the company. TSMC could potentially acquire the company’s manufacturing facilities, and Broadcom is showing interest in purchasing the company’s chip design business. While these two companies are regarded as potentially strong buyers, speculations have also covered Qualcomm and even Elon Musk as possible players in the buyouts. The declining market share of Intel Corporation (NASDAQ:INTC) in the foundry space and the company’s cost-cutting activities in 2025 have prompted these rumors.
We have noted 83 hedge funds from our Insider Monkey database holding positions in the company at the end of Q4 2024. Such a strong institutional interest validates the takeover rumor to some extent.
Overall, Intel Corporation (NASDAQ:INTC) ranks first among the 20 takeover rumors hedge funds are buying. While we acknowledge the potential of INTC, 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 have lost around 25%. If you are looking for an AI stock that is more promising than INTC but 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 Invest In According to Billionaires.
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