5 Best Growth Stocks To Buy According To Hedge Funds

In this article, we will be taking a look at the 5 best growth stocks to buy according to hedge funds. To read our detailed analysis of the US markets today, you can go directly to see the 16 Best Growth Stocks To Buy According To Hedge Funds.

5. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 175

NVIDIA Corporation (NASDAQ:NVDA) is a semiconductor company based in Santa Clara, California. The company provides graphics, computing, and networking solutions.

An Overweight rating and a $750 price target were placed on NVIDIA Corporation (NASDAQ:NVDA) shares on October 3 by John Vinh at Keybanc.

NVIDIA Corporation (NASDAQ:NVDA) was seen in the portfolios of 175 hedge funds in the second quarter, with a total stake value of $25.9 billion.

4. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 204

There were 204 hedge funds long Alphabet Inc. (NASDAQ:GOOGL) in the second quarter, with a total stake value of $17.3 billion.

Alphabet Inc. (NASDAQ:GOOGL) is an interactive media and services company. It is based in Mountain View, California.

Justin Post at BofA Securities maintains a Buy rating and a $146 price target on Alphabet Inc. (NASDAQ:GOOGL) shares as of October 4.

Oakmark Funds mentioned Alphabet Inc. (NASDAQ:GOOGL) in its third-quarter 2023 investor letter:

“Alphabet Inc. (NASDAQ:GOOG)(U.S.) was the top contributor for the fiscal year. Alphabet reported multiple strong sets of earnings releases over the past year, and its results generally exceeded consensus estimates across key metrics. Most recently, search revenue growth accelerated from 5% to 6.5% sequentially in the second quarter, a notable development given lingering economic uncertainty and broader advertising weakness. Cloud growth remained at 30%, stable versus the previous quarter, despite continued headwinds from customers optimizing cloud usage. Margin progression also continued, and cloud margins reached 5%. CFO Ruth Porat emphasized that the largest impact from the company’s cost[1]saving initiatives will not be felt until 2024. YouTube continues to prioritize its Shorts segment, which is experiencing strong viewership growth. Although this is a near-term revenue headwind, we believe Shorts’ monetization will accelerate over time. Addressing the year’s hottest topic, CEO Sundar Pichai said Alphabet is an “AI-first company” that is “extremely well-positioned as AI reaches an inflection point.” At Alphabet’s annual developer conference in May, it showcased an impressive array of new AI-powered consumer tools to be rolled out over the course of the year. Investors reacted positively to these presentations, which highlighted the company’s impressive innovations in AI technologies. Overall, we believe the company is positioned well to reap the benefits of the scale of its search business and years of its investment into AI capabilities. We also appreciate that the company is undergoing a transformation on how it views cost discipline and efficiency.”

3. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 225

An Overweight rating and a $372 price target were placed on shares of Meta Platforms, Inc. (NASDAQ:META) on October 9 by Ken Gawrelski at Wells Fargo.

Meta Platforms, Inc. (NASDAQ:META) is another interactive media and services company on our list. It operates several social media platforms like Facebook, Instagram, and WhatsApp.

In the second quarter, 225 hedge funds held stakes in Meta Platforms, Inc. (NASDAQ:META). Their total stake value in the company was $30.9 billion.

2. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 278

Amazon.com, Inc. (NASDAQ:AMZN) is a broad-line retail company. It also owns and operates a high-end cloud computing business under the name of Amazon Web Services.

We saw 278 hedge funds long Amazon.com, Inc. (NASDAQ:AMZN) in the second quarter, with a total stake value of $34.9 billion.

Ken Gawrelski at Wells Fargo reiterated an Overweight rating and a $165 price target on Amazon.com, Inc. (NASDAQ:AMZN) shares on October 10.

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 300

Brent Thill at Jefferies holds a Buy rating and a $400 price target on Microsoft Corporation (NASDAQ:MSFT) as of October 2.

At the end of the second quarter, 300 hedge funds were long Microsoft Corporation (NASDAQ:MSFT). Their total stake value was $69.8 billion.

Microsoft Corporation (NASDAQ:MSFT) is a systems software company based in Redmond, Washington. It develops and supports software, services, devices, and solutions worldwide.

See also 10 Oversold Growth Stocks To Buy and 12 Best Growth Stocks Under $10.