This article will discuss the 8 most active US stocks to buy now.
Market Will Likely Remain Resilient
Amid economic uncertainty and upcoming elections, analysts are adopting a cautious stance due to market volatility driven by mixed investor sentiments. It’s being noted that while the Fed’s easing cycle could yield positive market outcomes in the coming months, immediate stock performance remains uncertain as many investors prefer to wait until after the elections to commit capital.
Vance Howard, CEO of Howard Capital Management, is of a similar view, as he is predicting a significant rate cut in early 2025 due to declining inflation. He emphasized that markets typically rise following initial rate cuts and advised investors to remain optimistic despite current market fluctuations. Howard recommended focusing on resilient sectors like utilities, real estate, and technology, while also considering financials as likely beneficiaries of future rate cuts as we approach 2025. We actually covered his opinion in more detail in our 8 Best Inexpensive Stocks To Invest In Now article, here’s an excerpt from it:
“Howard pointed out that historically, after the first rate cut, markets tend to rise, with a perfect record of being higher 7 out of 7 times following such cuts. He also noted that if the S&P 500 has already gained 10% in the first half of the year, there is an 83% chance of continued upward movement in the second half. Therefore, he advised investors to remain optimistic and not be overly distracted by current market noise.”
Liz Young Thomas, SoFi head of investment strategy, joined ‘Squawk Box’ at CNBC on September 30 and shared her insights regarding the market’s trajectory as it approaches an easing cycle. She acknowledged that while there has been a significant run-up leading to this cycle, much of the substantial gains may have already been realized.
However, she noted that this does not necessarily mean the market will slow down immediately. Historically, after the first rate cut, markets tend to remain flat or slightly up in the following 30 to 60 days. 3 months post-cut, the market evaluates whether these cuts were necessary due to cooling economic conditions or if they were merely opportunistic adjustments.
Young highlighted several positive factors contributing to the current market rally. Despite a slight pullback in technology stocks, she observed that many other stocks are performing well, with 80% of the S&P 500 trading above their 200-day moving averages. This indicates a strong internal market dynamic. Additionally, optimism surrounding potential stimulus measures from China adds further support to market sentiment.
When discussing valuation concerns, Young agreed that while US market multiples are relatively high, hovering around 21 to 22, this is not unprecedented when compared to historical standards. She pointed out that current valuations are above both the 5-year and 10-year averages but not at overbought levels. Young referenced Warren Buffett’s long-term investment philosophy, emphasizing that he does not focus on timing market multiples but rather on fundamental growth.
Young expressed a desire for the market to shift towards trading based on fundamentals rather than multiple expansions. She noted that while earnings stability is crucial, there are signs of strength in sectors outside of technology, particularly in industrial stocks. However, financials have shown mixed signals.
As for identifying sectors with potential for faster earnings growth, Young emphasized the importance of thorough research and analysis rather than relying solely on top-down market movements. She identified healthcare, especially biotech and pharmaceuticals, as a promising area for growth. Healthcare tends to perform well in environments characterized by a steepening yield curve, which has been observed recently.
Moreover, she cautioned against assuming certainty in market outcomes. With prevailing confidence in a soft landing scenario from both the market and the Fed, she advised investors to remain vigilant and consider protective strategies. She suggested exploring opportunities across the Treasury curve, particularly in shorter-duration bonds, as a hedge against potential faster-than-expected rate cuts by the Fed.
Young’s insights propose that by focusing on sectors with strong fundamentals and remaining adaptable to changing conditions, investors can position themselves for potential gains while being mindful of risks associated with high valuations and economic uncertainties. With that said, we’re here with a list of the 8 most active US stocks to buy now.
Methodology
We sifted through Yahoo Finance’s list of the most active US stocks that are experiencing high trading volumes. We looked at the top 15 US stocks to find the ones that were the most popular among elite hedge funds. We then narrowed down our list to the 10 stocks with high trading volumes and those that were the most popular among hedge funds. The stocks are ranked in ascending order of their trading volumes, as of September 30.
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).
8 Most Active US Stocks To Buy Now
8. Palantir Technologies Inc. (NYSE:PLTR)
Volume: 42.899 million
Average Volume (3-Month): 58.732 million
Number of Hedge Fund Holders: 44
Palantir Technologies Inc. (NYSE:PLTR) specializes in data analytics and software platforms. The company’s products are used by government agencies, financial institutions, and other large organizations to analyze and understand complex data sets.
In June, Tampa General signed a 7-year expansion to use the company’s AI platform for care coordination. Panasonic Energy and AARP also adopted AIP for various applications. In August, partnerships with Wendy’s, Microsoft, and Sompo expanded AIP’s reach to supply chain optimization, national security, and insurance. AIP also secured a 5-year contract with the DEVCOM Army Research Laboratory, valued at ~$229 million, to extend its Maven Smart System across all military branches.
The company had a rather eventful September. It was added to the S&P 500 index and secured a $100 million contract with the US Army to enhance its AI infrastructure capabilities.
Palantir Technologies Inc. (NYSE:PLTR) is a leading AI company with a strong presence in infrastructure and oncology. The company’s focus on digital transformation and market share expansion positions it well for future growth. Despite potential challenges, its strong financial performance and margin improvement potential suggest a positive trajectory.
Carillon Scout Mid Cap Fund stated the following regarding Palantir Technologies Inc. (NYSE:PLTR) in its first quarter 2024 investor letter:
“The top contributor to return for the quarter was Palantir Technologies Inc. (NYSE:PLTR). Sentiment improved on Palantir after it reported stronger than expected commercial customer revenue and free cash flow. U.S. commercial growth was especially encouraging, as U.S. commercial revenue was up by a large percentage year over year for the fourth quarter and U.S. commercial customer count grew nearly as much. We expect Palantir to become one of the premier artificial intelligence (AI) software providers, built on its Foundry and AIP platforms.”
7. Micron Technology Inc. (NASDAQ:MU)
Volume: 42.96 million
Average Volume (3-Month): 25.039 million
Number of Hedge Fund Holders: 120
Micron Technology Inc. (NASDAQ:MU) is a producer of computer memory and computer data storage including dynamic random-access memory, flash memory, and solid-state drives. It is one of the world’s largest manufacturers of DRAM and NAND flash memory, which are essential components in various electronic devices. Beyond memory, the company offers services like design assistance, testing, validation, and supply chain management to support customers throughout the product lifecycle.
The company launched a new high-performance solid-state drive. Twice as fast as its predecessor, this drive offers significant speed improvements for gamers, students, and creatives. With capacities up to 2 terabytes and read/write speeds of 7,100/6,000 MB/s, the new drive expands its portfolio to include PCs, laptops, and PlayStation 5.
In the closing fiscal fourth quarter of 2024, the company generated $7.75 billion in revenue, recording a 93.27% improvement year-over-year. This growth was driven by record revenues for NAND and storage business units, fueled by robust demand in the data center and automotive industries.
A major win this quarter was the company qualifying its 1-beta-based 16Gb LP5 DRAM for the automotive market, offering 9.6 Gbps speed to support AI advancements in digital cockpits and ADAS. While the automotive industry adjusts to changing customer demand for EV, hybrid, and traditional vehicles, Micron Technology Inc. (NASDAQ:MU) expects automotive growth to resume in the second half of fiscal 2025.
The company’s strong performance is driven by the growing demand for high-bandwidth memory chips, particularly in AI computing. The CEO’s positive outlook and forecast for record revenue and increased profitability in the coming quarters highlight its promising future.
Parnassus Value Equity Fund stated the following regarding Micron Technology, Inc. (NASDAQ:MU) in its Q2 2024 investor letter:
“Micron Technology, Inc. (NASDAQ:MU) posted fiscal-third-quarter results that met expectations. Micron’s DRAM (dynamic random access memory) and NAND (non-volatile storage technology) segments grew revenue strongly, continuing the company’s recovery from a cyclical downturn last year. We believe Micron is well positioned to capitalize on AI-driven demand for greater memory.”
6. IONQ Inc. (NYSE:IONQ)
Volume: 45.056 million
Average Volume (3-Month): 5.148 million
Number of Hedge Fund Holders: 12
IONQ Inc. (NYSE:IONQ) is focused on building the world’s most powerful and commercially useful quantum computers. It’s a leader in quantum computing, a technology that leverages quantum mechanics to solve complex problems. The goal is to improve the accuracy and performance of its quantum systems by increasing the fidelity of its qubits. By enhancing the fidelity of its barium qubits, the company aims to reduce errors and develop commercially viable quantum solutions.
Craig-Hallum Capital Group emphasized that the company’s recent technical advancements in gate fidelities and error correction, while not immediately understandable to many investors, are crucial metrics in the quantum computing industry. Despite the challenges, the company has consistently met its targets since going public, demonstrating its ability to deliver on its promises.
It has achieved significant milestones in the commercial sector. The company secured a major contract with ARLIS, a part of the US national security apparatus. Through innovations like new error-correction techniques and ongoing improvements in qubit fidelity, it is confident in achieving key milestones in quantum computing by 2025. In the second quarter of 2024, IONQ Inc. (NYSE:IONQ) was able to make $11.38 million in revenue, up a massive 106.36% from the year-ago period, outperforming Street estimates by almost $2.75 million.
The company has demonstrated strong growth potential, with revenue expected to reach between $38 million and $42 million by the end of 2024. Its strategic partnerships, including the recent expansion of its contract with AWS, position it well for future success in the commercialization of quantum computing.
5. Ford Motor Co. (NYSE:F)
Volume: 45.073 million
Average Volume (3-Month): 59.396 million
Number of Hedge Fund Holders: 47
Ford Motor Co. (NYSE:F) is an automobile manufacturer known for its iconic brands like Ford, Lincoln, and Mustang. It designs, manufactures, and distributes a wide range of vehicles, including cars, trucks, SUVs, and commercial vehicles, and is one of the world’s largest automakers.
The company delayed the launch of its 3-row EV SUV until after 2027. The company will now prioritize the introduction of a mid-size pickup truck from its California-based Skunkworks team in 2027. This aligns with broader expectations for its new EV lineup rollout. It is also heavily investing in electrification, allocating $22 billion through 2025 to advance its EV portfolio. Key models like the Mustang, F-150, and Transit are undergoing electrification.
Revenue was up 5.62% year-over-year in Q2 2024. Ford Pro raised revenue by 21% year-over-year in the first half. Subscriptions for Ford Pro software also grew by 35%. The company announced that it will reduce its capital expenditures for all EVs from 40% to 30%. This shift reflects slower-than-expected EV adoption and the challenges automakers face in achieving profitability with these vehicles.
It faced challenges in 2024, including a slowing economy, increased costs due to the UAW strike, and a decline in the EV market. Despite these headwinds, Ford Motor Co.’s (NYSE:F) has achieved strong sales for its trucks, particularly the Maverick and F-150 series. Its focus on gas-powered vehicles while investing in EV development has helped mitigate some of the pressure.
The company is also expanding its manufacturing footprint and collaborating with other automakers to improve battery technology and achieve global carbon neutrality by 2050. It is well-positioned for success as certain changes indicate Ford Motor Co.’s (NYSE:F) focus on capital discipline.
4. Plug Power Inc. (NASDAQ:PLUG)
Volume: 63.942 million
Average Volume (3-Month): 38.739 million
Number of Hedge Fund Holders: 15
Plug Power Inc. (NASDAQ:PLUG) is engaged in the development of hydrogen fuel cell systems that replace conventional batteries in equipment and vehicles powered by electricity. It develops and commercializes fuel cell systems for various applications, including material handling, transportation, and stationary power. It is also committed to advancing clean energy solutions and reducing carbon emissions.
The company has formed strategic partnerships with major players like Nikola Corporation and has deployed 72 hydrogen-powered trucks. It’s expanding its green hydrogen production capacity, and constructing new plants in Louisiana, Texas, and New York. It has also benefited from the new green hydrogen production tax credit. The company produces green hydrogen at $4-$5 per kilogram and sells it for $6-$7 per kilogram. The tax credit reduces production costs by up to $3 per kilogram.
Revenue from electrolyzers increased from $7 million to $15 million year-over-year. The company anticipates generating $320 million in electrolyzer sales over the next 2 years. Its cryogenic equipment is essential for hydrogen storage and transportation. The company expects to generate $72 million in revenue from this segment in the coming year.
Despite such strides, the revenue for Q2 2024 fell 44.90% as compared to the year-ago period. The revenue instability is primarily due to its growth stage and pricing challenges, contributing to a decline in stock price as well.
While the company expects to receive $70 million from a 55-megawatt electrolyzer project, this revenue has not yet been recognized. Overall, Plug Power Inc. (NASDAQ:PLUG) is well-positioned for growth due to strong demand and favorable policies.
3. Tesla Inc. (NASDAQ:TSLA)
Volume: 70.988 million
Average Volume (3-Month): 96.743 million
Number of Hedge Fund Holders: 85
Tesla Inc. (NASDAQ:TSLA) is an automotive and clean energy company known for its innovative and high-performance vehicles. It primarily focuses on electric cars, but it also produces solar panels and energy storage systems. It is a pioneer in the EV industry and has significantly contributed to the shift towards sustainable transportation. In 2023, 100% of its revenue was generated from sustainable products and services
The company’s FSD v12 vehicle, powered entirely by AI, has accumulated 300 billion miles of real-world driving experience. Beyond self-driving and AI training chips, its humanoid robot, Tesla Bot, has garnered significant attention for its potential applications.
Its home charging solution, Wall Connector, complements its extensive Supercharger network. By opening its Supercharger network to other EV companies and introducing the North American Charging Standard (NACS), Tesla Inc. (NASDAQ:TSLA) is maximizing the utilization of its charging infrastructure and solidifying its position in the EV ecosystem.
Revenue improved 2.3% year-over-year in Q2 2024. Automotive revenue increased 14% sequentially. Energy storage revenue doubled to reach $3 billion. Despite a slowdown in global EV sales, the company produced and delivered over 410,000 and 444,000 units, respectively, contributing 84% to total revenue. The company aims to ramp up production to 3 million vehicles by 2025.
The company’s expansion into the robotaxi market offers an exciting investment opportunity. The unveiling event is on October 10. As the world transitions to sustainable energy and EVs, its focus on innovation and technology positions it well to capitalize on the latest trends.
ClearBridge Small Cap Value Strategy stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q2 2024 investor letter:
“The strength in the stock market adds significantly to that enormous transfer of wealth, which one could argue is good for shareholders. But is it causal? That is, did the stock market do well because CEOs got large stock grants? Are the CEOs just the lucky recipients of a windfall when the market goes up and their employees perform well? Or do they require huge grants to do their jobs that no one else could possibly do as effectively?
Tesla, Inc. (NASDAQ:TSLA), and most of its shareholders, certainly think the latter is true. In 2018, Tesla’s board of directors crafted a pay package for CEO Elon Musk that would award him 12 tranches of 10-year, fixed-price options on 1% of company stock for every $50 billion in market cap the stock added. In total, the options would be for 304 million shares of the company at $23.34 a share. He would receive no other compensation, until or unless the board decided otherwise. Shareholders approved that pay package, and the stock added all that market cap and more, giving Musk the right to buy 10% of the company for $50 billion less than it was worth, adding to his existing 13% stake. Minority shareholders sued, and a court sided with them and expunged the package in January 2024. “The process leading to the approval of Musk’s compensation plan was deeply flawed,” ruled Judge Kathaleen McCormik of the Delaware Court of Chancery as part of a 200-page decision. It seemed like a long-awaited check on excessive compensation to one individual for the achievements of an entire company….” (Click here to read the full article)
2. Intel Corp. (NASDAQ:INTC)
Volume: 85.883 million
Average Volume (3-Month): 83.601 million
Number of Hedge Fund Holders: 75
Intel Corp. (NASDAQ:INTC) designs, manufactures, and sells computer components and related products for business and consumer markets, best known for its microprocessors. It includes a range of processors for various applications, including personal computers, servers, and data centers, making it a major player in the semiconductor industry, with a strong presence in the global technology market.
The company experienced a 0.9% decline in revenue, as compared to the year-ago period. High inventory levels, at 137 days compared to the industry average of 90 days, remain a significant challenge. However, Intel Corp. (NASDAQ:INTC) has recently secured significant government funding through the CHIPS and Science Act.
Reports regarding a potential Qualcomm-Intel merger surfaced on September 28, following coverage by the WSJ, later confirmed by CNBC, leading to an initial rise in Intel Corp.’s (NASDAQ:INTC) share price by ~3%. However, Wells Fargo assessed the likelihood of such a deal as low due to regulatory challenges, particularly in China, alongside internal resistance from management.
The company’s new Xeon 6 processors, launched in Q2, offer improved performance and AI acceleration for enterprise AI systems. AI PCs are poised to dominate the market, with projections suggesting they will account for over half of all PC sales by 2026. Intel Corp.’s (NASDAQ:INTC) upcoming Panther Lake CPU, built on the 18A process, is expected to significantly boost performance and profitability. Its focus on cost reduction and innovation positions it well for future growth, despite recent challenges.
Columbia Threadneedle Global Technology Growth Strategy stated the following regarding Intel Corporation (NASDAQ:INTC) in its Q2 2024 investor letter:
“Intel Corporation (NASDAQ:INTC) stumbled, and shares retreated as the company continued to struggle to right the ship as part of its shift in strategy. The company reported a weak quarter, with most results coming in below expectations, especially margins. The company did outline accelerating revenue growth in the second half of the year based off stable PC demand, the ramp up of its AI product and the recovery of end markets off of cyclical lows.”
1. NVIDIA Corp. (NASDAQ:NVDA)
Volume: 271.009 million
Average Volume (3-Month): 326.28 million
Number of Hedge Fund Holders: 179
NVIDIA Corp. (NASDAQ:NVDA) is a leading technology company known for its high-performance GPUs, making it a major player in the gaming, artificial intelligence, and data center markets. Its GPUs are widely used for demanding applications such as gaming, machine learning, and scientific computing.
Chinese regulators are discouraging businesses from purchasing NVIDIA chips, according to Bloomberg reports. While the US government restricts the sale of advanced chips to Chinese entities, some models, like the H20, are permitted for export. NVIDIA generates approximately 12% of its revenue from low-end chips and software sold to Chinese companies.
The company still experienced significant growth in FQ2 2025, with revenue surging 122.40% compared to the previous year. The data center segment drove this growth, with revenue increasing 54% due to strong demand for NVIDIA Hopper, GPU computing, and networking platforms. Cloud service providers accounted for approximately 45% of data center revenue. Partnerships with healthcare institutions and rising demand for AI-powered diagnostic solutions contributed to this impressive financial performance.
On September 25, NetApp unveiled its new AI-powered data solution, leveraging NVIDIA technology, which enhances NetApp’s unified storage operating system, benefiting thousands of enterprises that rely on NetApp for their data infrastructure.
Elon Musk’s AI startup, xAI, has launched Colossal, the world’s most powerful AI training system. Powered by 100,000 NVIDIA H100 GPUs, Colossal is expected to expand further with the integration of H200 GPUs and potentially Blackwell chips. While the company faces challenges in product launches and GPU pricing, its focus on AI monetization and sustainability initiatives positions it for long-term success.
Columbia Contrarian Core Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2024 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) – Following the release of first-quarter earnings in May featuring record revenue growth of 262% year over year, NVIDIA continued its upward march. On June 10, shares of the company began trading on a split-adjusted basis following a 10-for-1 forward stock split, making stock ownership more accessible to employees and investors alike. Just one week later, the company officially surpassed Microsoft in market cap to become the most valuable publicly traded company (although it would relinquish the title not long after). While other companies have also stood to benefit from the artificial intelligence (AI) trend this year, NVIDIA stands out as the unquestionable leader in the space and that is unlikely to be challenged for many years ahead. NVIDIA continues to see extremely strong levels of demand and the recent introduction of the Blackwell system looks to be an exciting next phase of growth for the stock.”
While we acknowledge the growth potential of NVIDIA Corp. (NASDAQ:NVDA), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
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