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10 Stocks That Hedge Funds and ETFs are Buying Right Now - WTOP News

10 Stocks That Hedge Funds and ETFs Are Snapping Up in Mid-2025

In the ever-shifting landscape of the stock market, savvy investors often look to the moves of hedge funds and exchange-traded funds (ETFs) for clues on where the smart money is heading. These institutional players, armed with vast resources and sophisticated analysis, tend to spot opportunities before they become mainstream. As we hit the midpoint of 2025, a new wave of buying activity has emerged, driven by factors like cooling inflation, advancements in artificial intelligence, renewable energy transitions, and a rebounding global economy post-pandemic. According to recent filings and market data, hedge funds and ETFs are pouring capital into a select group of stocks that promise growth, stability, and resilience amid uncertainties such as geopolitical tensions and interest rate fluctuations.

This surge in interest isn't random. Hedge funds, managing trillions in assets, are betting on companies that demonstrate strong fundamentals, innovative edges, and the ability to weather economic headwinds. ETFs, which track broad indices or specific sectors, are similarly reallocating to these names to optimize returns for their retail and institutional investors. In this article, we'll dive deep into the top 10 stocks that are currently attracting significant inflows from these power players. We'll explore each company's background, recent performance, key drivers behind the buying spree, and what analysts are saying. This isn't investment advice, but rather a snapshot of where the institutional money is flowing right now.

1. NVIDIA Corporation (NVDA) - The AI Powerhouse

Leading the pack is NVIDIA, the semiconductor giant that's become synonymous with the AI revolution. Hedge funds like Renaissance Technologies and ETFs such as the Invesco QQQ Trust have been aggressively adding to their positions in NVDA throughout the first half of 2025. The stock has surged over 40% year-to-date, fueled by explosive demand for its GPUs in data centers and AI training. NVIDIA's latest earnings report shattered expectations, with revenue topping $30 billion in the last quarter, driven by partnerships with tech behemoths like Microsoft and Google for cloud computing. Analysts point to the company's dominance in AI chip design, with a market share exceeding 80%, as a key reason for the buying frenzy. Despite concerns over supply chain disruptions from U.S.-China trade tensions, institutional investors see NVIDIA as a long-term winner in the burgeoning AI economy, projected to reach $15 trillion by 2030. Hedge fund inflows alone have exceeded $5 billion in recent months, signaling confidence in its innovation pipeline, including next-gen chips for autonomous vehicles and quantum computing.

2. Tesla, Inc. (TSLA) - Electrifying the Future

Tesla continues to captivate investors, with hedge funds such as Bridgewater Associates and ETFs like the ARK Innovation ETF ramping up stakes amid a boom in electric vehicle (EV) adoption. Shares have climbed 25% in 2025, rebounding from a sluggish 2024, thanks to record deliveries of over 2 million vehicles and expansions into energy storage with products like the Megapack. The company's push into robotaxis and full self-driving technology has hedge funds excited, viewing it as a disruptor in transportation. ETFs are buying in because Tesla aligns with sustainable investing themes, especially with global mandates for net-zero emissions. Recent filings show a 15% increase in institutional ownership, driven by Tesla's improving margins—now at 20%—and its solar energy ventures. Critics worry about competition from Chinese EV makers, but bulls argue Elon Musk's vision and Tesla's brand loyalty make it a must-own stock.

3. Eli Lilly and Company (LLY) - Biotech Boom in Weight Loss

In the healthcare sector, Eli Lilly is a standout, with hedge funds like Viking Global Investors and health-focused ETFs such as the iShares U.S. Healthcare ETF loading up on shares. The stock has gained 35% this year, propelled by blockbuster drugs like Mounjaro and Zepbound for diabetes and obesity treatment. Sales from these GLP-1 agonists have skyrocketed to $10 billion quarterly, capturing a massive market amid rising global obesity rates. Institutional buyers are drawn to Lilly's robust pipeline, including Alzheimer's therapies and oncology drugs, which promise sustained revenue growth. With patent protections extending into the 2030s, the company offers defensive qualities in volatile markets. Analysts forecast earnings per share to hit $15 by year-end, justifying the premium valuation. Hedge fund activity has pushed ownership to new highs, reflecting bets on healthcare innovation as populations age.

4. Amazon.com, Inc. (AMZN) - E-Commerce and Cloud Dominance

Amazon remains a core holding for many, with hedge funds including D.E. Shaw & Co. and broad-market ETFs like the Vanguard Total Stock Market ETF increasing exposure. Up 20% in 2025, the stock benefits from a resurgence in e-commerce and AWS cloud services, which now generate over $100 billion annually. The company's foray into AI-driven logistics and advertising has boosted margins to 10%, attracting investors seeking growth in digital transformation. ETFs are buying due to Amazon's inclusion in major indices, while hedge funds appreciate its diversified revenue streams, from Prime Video to healthcare via Amazon Pharmacy. Despite antitrust scrutiny, the sheer scale—serving billions of customers—makes it resilient. Recent inflows total billions, underscoring its role as a tech staple.

5. NextEra Energy, Inc. (NEE) - Renewable Energy Leader

Shifting to clean energy, NextEra Energy is drawing hedge funds like Millennium Management and ESG-focused ETFs such as the iShares Global Clean Energy ETF. Shares have risen 18% amid policy support for renewables, with the company operating the world's largest solar and wind portfolios. Generating over 60 gigawatts of capacity, NextEra's regulated utility arm provides stable cash flows, while its energy resources segment capitalizes on tax credits from the Inflation Reduction Act. Institutional interest stems from the global shift to net-zero, with projections of 10% annual earnings growth. Hedge funds see it as a hedge against fossil fuel volatility, especially with oil prices fluctuating due to Middle East tensions.

6. JPMorgan Chase & Co. (JPM) - Banking on Stability

In finance, JPMorgan Chase is a favorite, with hedge funds such as Elliott Management and financial sector ETFs like the Financial Select Sector SPDR Fund adding shares. Up 15% this year, the bank has thrived on higher interest rates and robust loan growth, reporting $50 billion in quarterly revenue. Its diversified operations—from investment banking to consumer lending—offer resilience. ETFs buy for exposure to a recovering economy, while hedge funds value its $3 trillion balance sheet and dividend yield of 2.5%.

7. Broadcom Inc. (AVGO) - Semiconductor Surge

Broadcom is surging, with hedge funds like Tiger Global and tech ETFs such as the VanEck Semiconductor ETF piling in. A 30% gain reflects demand for its chips in 5G and AI, with acquisitions bolstering its portfolio. Revenue hit $12 billion last quarter, driven by VMware integration.

8. UnitedHealth Group Incorporated (UNH) - Healthcare Giant

UnitedHealth attracts funds like BlackRock's health ETFs, up 12% on insurance expansions and Optum's tech services. It's seen as recession-proof with steady premiums.

9. Visa Inc. (V) - Payments Powerhouse

Visa benefits from digital payment trends, with hedge funds buying amid a 10% rise. Global transactions fuel 15% growth.

10. Exxon Mobil Corporation (XOM) - Energy Transition Play

Even in oil, Exxon draws interest for its carbon capture initiatives, up 8% with ETFs focusing on balanced energy. These stocks highlight trends in AI, sustainability, and healthcare. Investors should monitor economic indicators, as shifts could alter trajectories. (Word count: 1,056)

Read the Full WTOP News Article at:
[ https://wtop.com/news/2025/07/10-stocks-that-hedge-funds-and-etfs-are-buying-right-now/ ]