Nvidia (NVDA)
Hedge funds bought up $39B worth of NVDA stock in Q4 2025 and they are not showing signs of slowing down on spending. Up over 70% in the past year NVDA is still putting up impressive earnings beats, having beat all 4 of their last earnings calls. However, the most impressive thing about Nvidia is their earnings forecasts are still incredibly high even after becoming the world’s largest company at a $4.6T market cap.
With a 59% increase to earnings expected in the next 9 months it gives NVDA a PEG ratio of just 0.7 – much better than the S&P average of 1.8 right now. Nvidia’s valuation is still high at a 36 PE but some analysts are estimating that Nvidia currently holds as much of a 98% market share which would certainly justify such a high valuation at this level.
The average analyst rating for NVDA is a Strong Buy with a +54% one year forecast, and we have it as a medium risk high reward stock. Our current rating for Nvidia is a Buy with a +24% one year forecast.
Microsoft (MSFT)
Down around 21% year to date, hedge funds are still holding onto the $33B worth of Microsoft stock they bought in Q4 2025. While it’s 1.3 PEG isn’t as attractive as other AI stocks, it’s their long list of reliable and diversified revenue sources that gives it a better risk profile than a lot of pure-play AI stocks out there.
MSFT stock has a great valuation at a 23 PE given its 5 year historical average is closer to 33 (43% higher that where it is today). This means Microsoft stock is trading at a discount when compared to it’s last 5 years on a valuation basis. They also boast a surprisingly impressive dividend history even if it only amounts to around a 1% yield.
Microsoft has also beat all 4 of their last earnings calls and analysts have rated Microsoft a Strong Buy with an average one year forecast of +32%. We have put them as low risk, medium reward and have rated it a Strong Buy with a +17% one year forecast.
Amazon (AMZN)
Up 5% year to date it appears hedge funds are benefiting from the $29B worth of stocks they bought late last year. Amazon currently has a PEG ratio of 1.31 which is quite a bit lower than its 10 year historical average of around 2.48. This indicates that AMZN stock is currently undervalued relative to its historical performance when growth and valuation are considered.
They have also beat their last 3 earnings calls and have a long history of being able to post strong earnings results. The average analyst rating is a Strong Buy with a +13% upside, and we have put AMZN as a Strong Buy with a 20% one year projection.
Topics: NVDA price projection, MSFT stock analysis, AMZN stock price forecast
