5 Best Most Active Stocks To Buy Now

In this article, we will take a look at the 5 best most active stocks to buy now. If you want to see more stocks in this selection, go to the 12 Best Most Active Stocks To Buy Now.

5. NVIDIA Corporation (NASDAQ:NVDA)

Average 3-Month Volume: 52.02 million

Number of Hedge Fund Holders: 89

NVIDIA Corporation (NASDAQ:NVDA) is a Santa Clara, California-based manufacturer of products and solutions in the field of artificial intelligence (AI), autonomous vehicles, high-performance computing (HPC), gaming, and robotics.

On December 19, Rajvindra Gill at Needham increased the price target on NVIDIA Corporation (NASDAQ:NVDA) from $200 to $230 and maintained a Buy rating on the stock. Mr. Gill selected the stock as his top pick for next year and had it included in Needham’s Conviction List. The analyst also noted that the customers of NVIDIA Corporation (NASDAQ:NVDA) are switching towards the more advanced H100 architecture. Experts believe that the company has a bright outlook in the fields of autonomous vehicles and AI and only needs to overcome the short-term uncertainty in demand and inventory correction.

Baron Funds shared its stance on NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2022 investor letter. Here’s what the firm said:

“NVIDIA Corporation (NASDAQ:NVDA) is a fabless semiconductor company and a leader in gaming and accelerated computing. NVIDIA is powering the growth of AI from the data center to the edge. Shares detracted due to inventory right sizing in NVIDIA’s gaming segment coupled with the broader market sell-off in growth stocks. Given NVIDIA’s end-to-end AI platform and its leading market share in gaming, data centers, and autonomous machines, along with the size of these markets, we believe the company can sustain its growth trajectory. See further discussion of NVIDIA in the top net purchases section below.

During the third quarter, we took advantage of its stock sell-off to add to NVIDIA Corporation, a fabless semiconductor mega cap that is a global leader in gaming cards and accelerated computing hardware and software. The sell-off was driven by a near-term inventory correction in gaming as a result of a COVID-related pull forward in demand as well as the shift in the Ethereum cryptocurrency from proof-of-work to proof-of-stake. Additionally, investors are concerned over the potential slowdown in data center revenues as a result of a weaker macroeconomic environment as well as the recently announced limitations on semiconductor shipments to China. Despite the near-term uncertainty, we believe that NVIDIA’s end-to-end AI platform and its leading market share in gaming, data centers, and autonomous machines, along with the size of these markets, would enable the company to benefit from durable growth for years to come and therefore view the stock price where we added shares as a compelling value for long-term investors. With demand for computing power doubling every one to two years, and Moore’s Law slowing down, there is more need for computing than ever. At the same time, “near free” supply growth (that was possible thanks to Moore’s Law) has slowed dramatically. NVIDIA’s accelerated architecture, with parallel computing at scale, answers that need.”

4. Advanced Micro Devices, Inc. (NASDAQ:AMD)

Average 3-Month Volume: 78.95 million

Number of Hedge Fund Holders: 89

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a Santa Clara, California-based chip manufacturer involved in the designing of computer processors and graphic processing units (GPUs).

Joseph Moore at Morgan Stanley picked Advanced Micro Devices, Inc. (NASDAQ:AMD) stock as his Top Pick in the semiconductor industry on December 15. The analyst has given Advanced Micro Devices, Inc. (NASDAQ:AMD) stock an Overweight rating and a target price of $77. Experts believe that the company can experience growth from the cloud computing market and gain market share in the server business in the coming quarters.

Here’s what L1 Capital International said about Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q3 2022 investor letter:

“The share price of Advanced Micro Devices, Inc. (NASDAQ:AMD) was weak during the quarter and weakened further in early October when the pre-announced revenue was significantly below prior guidance, reflecting an acute slowdown in the PC market. Data centre related revenue grew strongly, albeit below our expectations, while gaming and embedded revenue was in line with our base case.

Geopolitical risks have increased for the semiconductor sector, with the U.S. Government announcing restrictions on the sale of certain technologies to China. Despite near term headwinds, AMD is well positioned for the medium term, with a technology lead over Intel in servers for data centres and rapidly gaining share in the PC/notebook sectors. Its gaming and embedded applications continue to grow strongly. AMD is a very capital light business, with manufacturing outsourced. After expending nearly $5b on research and development, AMD generates around $5b of free cashflow. With a net cash balance sheet, we expect management will accelerate buyback activity at a share price well below fair value.

The share price of our more cyclical businesses, in particularly the building products companies which have exposure to the U.S. residential, repair and renovation and infrastructure sectors, were broadly flat for the quarter. Rapidly escalating mortgage rates and rapidly reducing affordability will have a pronounced negative effect on near term new residential construction activity. We believe these cyclical pressures are well understood and are more than reflected in current share prices. Overall, we strongly believe share prices are overly reflecting near-term challenges and our portfolio of companies are now meaningfully undervalued.”

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

Average 3-Month Volume: 80.40 million

Number of Hedge Fund Holders: 269

Amazon.com, Inc. (NASDAQ:AMZN) is a Seattle, Washington-based diversified technology company with significant exposure in the field of e-commerce and cloud computing services.

To combat the slowdown in the e-commerce business due to rising inflation and weakness in customer sentiment, Amazon.com, Inc. (NASDAQ:AMZN) is working on launching a feature similar to the short video platform TikTok on its mobile application. The short-duration feed will be called Inspire and will display photos and videos that are expected to generate higher engagement and more conversion into sales. Nicholas Jones at JMP Securities considers this a potential game-changer for the company. However, the rollout and the retail numbers in the Q4 earnings need to be analyzed to understand its complete impact on the company’s financial health.

Here’s what Farnam Street Investments said about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2022 investor letter:

“Change doesn’t just impact investors. Business people also bet for or against change. Jeff Bezos was once asked this exact question:

“You can build a business strategy around the things that are stable in time. It’s impossible to imagine a future ten years from now where a customer comes up and says, ‘Jeff, I love Amazon, I just wish the prices were a little higher.’ Or, ‘I love Amazon, I just wish you’d deliver a little slower.’ Impossible. So we know the energy we put into these things today will still be paying off dividends ten years from now. When you have something you know is true, you can afford to put a lot of energy into it.”

A lot of energy… and more than $172 billion in capital expenditure in the last fifteen years.

Deeper, slower moving layers turn exponential growth into “S-curves.” A rapidly dividing bacteria crashes into the resource-wall of its Petri dish. Nineteenth-century commercial robber barons were smacked by the governance layer of the Sherman Antitrust act. Amazon (NASDAQ:AMZN) Prime free shipping leaned on the creaking infrastructure of the U.S. Postal Service until it was forced to invest in its own infrastructure (all those delivery vans you see driving around).

Hopefully, next time you’re thinking about change, you can recall pace layers as a helpful construct to understand how successful systems change.

2. Apple Inc. (NASDAQ:AAPL)

Average 3-Month Volume: 86.47 million

Number of Hedge Fund Holders: 140

Apple Inc. (NASDAQ:AAPL) is a Cupertino, California-based tech giant that has the highest market capitalization in the world as of 2022.

In a note issued to investors on December 27, Samik Chatterjee at JPMorgan highlighted that the supply of iPhone Pro models has started to improve slowly as the Chinese economy has eased its zero-COVID policy. This has resulted in a reduction in lead times in China. The analyst noted that iPhone premium models are available at stores for immediate pickup for the first time since their launch. There is a widespread belief that the supply is now coming in line with demand. The analyst maintained an Overweight rating on Apple Inc. (NASDAQ:AAPL) stock with a $190 target price.

Here’s what TimesSquare Capital Management said about Apple Inc. (NASDAQ:AAPL) in its Q3 2022 investor letter:

“Apple Inc. (NASDAQ:AAPL) designs and manufactures smartphones, personal computers, tablets, and wearable devices. The company reported better than expected revenues, though that came from a lower-than-expected supply chain impact. Apple called out pockets of weakness in wearables as well as home & accessories. Management referenced macroeconomic uncertainty and sounded somewhat guarded when commenting on fourth quarter expectations. In September, Apple introduced four new iPhones with retail prices kept at last year’s levels. Its shares edged forward by 1% in consideration of these developments. We trimmed the position after evaluating the channel which highlighted some consumer demand choppiness.”

1. Tesla, Inc. (NASDAQ:TSLA)

Average 3-Month Volume: 96.03 million

Number of Hedge Fund Holders: 88

Tesla, Inc. (NASDAQ:TSLA) is an Austin, Texas-based electric vehicle (EV) manufacturer with a global footprint.

The company led by Elon Musk was given a target price of $175 along with an Outperform rating by Dan Ives at Wedbush on December 23. The analyst anticipates Tesla, Inc. (NASDAQ:TSLA) to deliver 410,000 to 415,000 units during Q4 2022 as opposed to the company’s forecast of 450,000 units and the consensus estimate of 435,000 units. Tesla, Inc.’s (NASDAQ:TSLA) stock price has taken a serious beating due to Musk’s decision to acquire Twitter. Musk has announced that he intends not to sell any Tesla, Inc. (NASDAQ:TSLA) shares for the next two years. Furthermore, he has committed to stepping down as the CEO of Twitter after finding a suitable candidate for the role. Despite economic uncertainty ahead, Tesla, Inc. (NASDAQ:TSLA) has shortlisted a new location for its Gigafactory.

Here’s what Baron Funds said about Tesla, Inc. (NASDAQ:TSLA) in its Q3 2022 investor letter:

“Tesla, Inc. (NASDAQ:TSLA) makes fully electric vehicles (EVs), related software offerings, solar and energy storage products, and battery cells. After a tough second quarter that included a prolonged shutdown of one of Tesla’s key manufacturing facilities in Shanghai, the company demonstrated a significant 40% sequential increase in production volumes resulting in another quarterly record of production and deliveries. Despite the second quarter complexities, inflationary pressures, and production ramp-up of two new facilities (Berlin and Austin), the company exceeded Wall Street expectations in the second quarter. It maintained healthy 26% normalized gross margins, achieved industry-leading 18% adjusted operating income margins, and has generated over $14 billion of cash from operations over the past year. Moreover, due to Tesla’s high level of vertical integration and U.S. manufacturing capacity, the company is expected to be one of the key beneficiaries of the Inflation Reduction Act, qualifying for significant manufacturing and consumer-related incentives. We believe these incentives can add up to tens of billions of dollars over the coming decade, while also enhancing Tesla’s competitive advantage versus other automakers. The company also held its second artificial intelligence day, which presented continued advancements in its vehicle self-driving program and showcased its rapidly evolving humanoid robot developments (check out the Optimus videos on YouTube). We continue to believe Tesla is well positioned to benefit from complementary tectonic shifts in the automotive industry, including electrification, autonomous driving, and shared mobility. And, yes, Tesla is still effectively debt free, with over $18 billion of cash on its balance sheet, and investors are even speculating about a stock buyback, a far cry from worries of bankruptcy just a few years ago.”

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