5 Most Undervalued Growth Stocks To Buy According To Hedge Funds

In this article, we will be taking a look at the 5 most undervalued growth stocks to buy according to hedge funds. To read our detailed analysis of current stock market dynamics, you can go directly to see the 16 Most Undervalued Growth Stocks To Buy According To Hedge Funds.

5. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 173

Share Price Gains Year-t0-Date: 96.5%

Upside Potential: 3.2%

NVIDIA Corporation (NASDAQ:NVDA) is a renowned semiconductor company. It is based in Santa Clara, California.

A $1000 price target and Buy rating were maintained on NVIDIA Corporation (NASDAQ:NVDA) on March 22 by UBS analysts.

We saw 173 hedge funds long NVIDIA Corporation (NASDAQ:NVDA) in the fourth quarter, with a total stake value of $33.8 billion.

Orbis Investment Management mentioned NVIDIA Corporation (NASDAQ:NVDA) in its fourth-quarter 2023 investor letter:

“Never before has following the crowd made so much money. Nor, in our estimation, so little sense. But just look at the opportunities the crowd has left for those of us willing to take a different view. We could wax lyrical about the glaring difference in value between Korean banks priced at 4 times earnings, versus Apple at 28 times, despite diverging fundamentals—Apple is increasingly at risk of bans in China, while Korean banks could double their dividends.

Or how the thick margin of safety at Intel, backed by listed stakes and real saleable assets, compares to the slim margin for error at NVIDIA Corporation (NASDAQ:NVDA), trading at 13 times next year’s projected revenue. That revenue that could be competed away over time, while Intel’s semiconductor “fabs” in the US are increasingly valuable as the east and the west drift further apart.”

4. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 214

Share Price Gains Year-t0-Date: 9.1%

Upside Potential: 9.7%

As of March 22, Wedbush analysts maintain an Outperform rating and a $175 price target on Alphabet Inc. (NASDAQ:GOOGL).

There were 214 hedge funds long Alphabet Inc. (NASDAQ:GOOGL) in the fourth quarter, with a total stake value of $28.8 billion.

Alphabet Inc. (NASDAQ:GOOGL) is a communication services company based in Mountain View, California. It offers online products and platforms under the Google name.

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

Number of Hedge Fund Holders: 242

Share Price Gains Year-t0-Date: 46.9%

Upside Potential: 4.1%

Meta Platforms, Inc. (NASDAQ:META) was seen in the portfolios of 242 hedge funds in the fourth quarter, with a total stake value of $44.2 billion.

Tigress Financial analysts hold a $575 price target and Strong Buy rating on Meta Platforms, Inc. (NASDAQ:META) as of February 9.

Meta Platforms, Inc. (NASDAQ:META) is an interactive media and services company. It manages several social media platforms such as Facebook, Instagram, and Threads.

Ruane, Cunniff & Goldfarb said the following about Meta Platforms, Inc. (NASDAQ:META) in its fourth-quarter 2023 investor letter:

“Two additional trims, in Meta Platforms, Inc. (NASDAQ:META) and Carmax, were more substantive in nature. When Meta’s stock declined in 2022, we judged it to be significantly mispriced and held our ground through the bottom. We trimmed the position serially last year as the stock soared because we were wary of holding a large position exposed to significant regulatory risks, particularly in Europe. We are comfortable owning Meta at today’s much-reduced weighting and current valuation. The smaller position size reflects our updated assessment of the balance of long-term risk versus reward.”

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

Number of Hedge Fund Holders: 293

Share Price Gains Year-t0-Date: 19.4%

Upside Potential: 16.9%

Amazon.com, Inc. (NASDAQ:AMZN) is a broad-line retail company. It operates an e-commerce platform alongside a successful cloud computing business named Amazon Web Services.

In the fourth quarter, 293 hedge funds were long Amazon.com, Inc. (NASDAQ:AMZN), with a total stake value of $50.9 billion.

A Buy rating and $195 price target were reiterated on Amazon.com, Inc. (NASDAQ:AMZN) on March 22 by Truist Securities analysts.

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 302

Share Price Gains Year-t0-Date: 15.6%

Upside Potential: 9.7%

An Overweight rating and $490 price target were placed on Microsoft Corporation (NASDAQ:MSFT) by Keybanc analysts on March 21.

Microsoft Corporation (NASDAQ:MSFT) was spotted in the 13F holdings of 302 hedge funds in the fourth quarter, with a total stake value of $87.3 billion.

Based in Redmond, Washington, Microsoft Corporation (NASDAQ:MSFT) is a systems software company. It offers software products such as the Windows operating system, the Microsoft 365 suite, and more.

See also 11 Best Small-Cap Growth Stocks to Invest In and 13 High Growth Penny Stocks That Are Profitable.