In this article, we will look at the 10 Best Fast Growth Stocks to Buy According to Hedge Funds.
First-quarter earnings results provided a strong backdrop for US equities. FactSet, in its earnings season update published May 8, noted that 84% of S&P 500 companies that reported Q1 2026 results exceeded earnings estimates. This is the highest beat rate since Q2 2021, FactSet said. It added that the blended earnings growth rate for the quarter reached 27.7%, also the index’s strongest quarterly performance since Q4 2021. Leading that charge are growth-oriented sectors like Information Technology, Communication Services, and Consumer Discretionary, all of which posted double-digit earnings growth.
No wonder Goldman Sachs noted in its May 25 note to clients that hedge fund positions in fast growth stocks, which are mostly tech stocks, are hovering near record highs. The note said that hedge funds purchased technology stocks at the fastest pace in nearly three months the week ended May 23. Semiconductor manufacturers and software firms led the buying. Goldman added that global information technology allocations within hedge fund portfolios have since reached their highest levels since 2016.
For investors looking for fast growth names, the places to look are in sectors like artificial-intelligence hyperscalers, industrials, financials, and consumer discretionary. This is according to Morgan Stanley’s research. The bank noted that many S&P 500 companies, mostly from the aforementioned sectors, beat first-quarter expectations by 6%, which is the strongest beat rate in four years. Serena Tang, Morgan Stanley’s Chief Cross-Asset Strategist, noted that they expect this momentum to carry on into the foreseeable future because “risk assets are supported by strong macro and micro fundamentals, which are reinforced by a powerful AI-driven capex cycle.”
With that backdrop in mind, this article identifies 10 fast growth stocks that hedge funds are betting on most heavily right now.
Our Methodology
To compile our list of the 10 best fast growth stocks to buy according to hedge funds, we used the Finviz stock screener to identify companies with an analyst-forecasted EPS growth rate of over 30% for the next five years. We then ranked qualifying stocks by the number of hedge funds holding positions in each, using Insider Monkey’s database of 13F filings from Q1 2026. The list is in ascending order.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
Best Fast Growth Stocks to Buy According to Hedge Funds
10. Arm Holdings plc (NASDAQ:ARM)
Number of Hedge Fund Holdings: 46
EPS Growth Next 5 Years: 30.66%
Arm Holdings plc (NASDAQ:ARM) is one of the best fast growth stocks to buy according to hedge funds. On June 2, at Computex 2026, Arm Holdings plc (NASDAQ:ARM) announced that Oracle Cloud Infrastructure, or OCI, had joined the Arm AGI CPU ecosystem. OCI is the latest addition to a growing list of partners backing Arm’s new chip purpose-built for agentic AI workloads.
According to Arm, OCI’s participation is notable because the cloud platform already runs Arm-based infrastructure at scale. The infrastructure supports large cloud-native workloads for enterprise customers including Uber. Therefore, the move to explore the AGI CPU is an extension of that existing relationship into next-generation AI infrastructure, said Arm.
The company stated that the AGI CPU was designed specifically for agentic AI. Unlike earlier AI models, agentic AI systems reason, plan, and act continuously, and they coordinate across tools, services, and data sources, routing tasks, executing code, and maintaining context across distributed systems. All of this extra work happens largely outside the AI model itself, and places enormous new demands on the CPU. This environment is the target of the AGI CPU, said Arm.
Arm detailed that the AGI CPU delivers over twice the performance per rack compared to traditional x86 CPU deployments. The company estimates that the performance improvements could save infrastructure operators up to $10 billion in capital expenditure for every gigawatt of AI data center capacity deployed.
OCI joins AI infrastructure players such as Verda, Cerebras, Cloudflare, SK Telecom, F5, SAP, Meta, Rebellions, OpenAI, and Positron.
Arm Holdings plc (NASDAQ:ARM) is a semiconductor and software design company. It develops and licenses intellectual property for CPUs, GPUs, and other system-on-chip components. The company’s architecture powers the majority of smartphones globally.
9. Dell Technologies Inc. (NYSE:DELL)
Number of Hedge Fund Holdings: 72
EPS Growth Next 5 Years: 35.43%
Dell Technologies Inc. (NYSE:DELL) is one of the best fast growth stocks to buy according to hedge funds. On June 22, Dell Technologies Inc. (NYSE:DELL) unveiled the PowerEdge XE8812, a new server built on Nvidia’s Vera Rubin NVL4 architecture. The unveiling happened at the ISC High Performance Computing conference in Hamburg, Germany.
Dell said the new server is an upgrade to its existing Vera Rubin server lineup. The upgrade steps the unit up from the Nvidia GB200 NVL4 to the Vera Rubin NVL4 platform, which is a transition that expands CPU cores from 144 to 176, adds more host memory, more GPU memory, and greater compute capacity overall. The goal, said Dell, is to bring the new platform up to standard for the most demanding AI and high-performance computing (HPC) workloads.
Importantly, the server delivers 50% more memory per socket compared to the prior generation. As per Dell, this feature matters because it allows organizations to run their largest AI models and scientific simulations entirely in memory. It solves the problem of delays that arise when a system has to pull data from storage mid-computation.
Also, the server is fanless and uses 100% direct liquid cooling for both CPUs and GPUs. The system is housed in an ORv3-style open-standard rack that supports over 300kW of power, which is capable of scaling to up to 144 GPUs per rack within Dell’s PowerRack 9100 system.
Dell Technologies Inc. (NYSE:DELL) designs, manufactures, and sells technology products and services. Its products include servers, data storage devices, networking equipment, and personal computers.