The AI gold rush on Wall Street has led to a surge in growth stocks, with companies like NVIDIA Corporation reshaping the valuation dynamics of the stock market. Investors are flocking to growth stocks that are believed to have significant competitive advantages, leading to higher future earnings and share price appreciation. However, these stocks also come with risks, as investor sentiment can quickly shift based on news and market conditions.
One recent example of the risks associated with growth stocks is the case of Super Micro Computer, Inc., a semiconductor firm that failed to release a preliminary earnings report, leading to a 23% drop in its share price. Similarly, NVIDIA saw a 10% drop in its share price despite no fault of its own, highlighting the volatility of growth stocks.
As the first quarter of 2024 earnings season unfolds, hedge funds are closely watching growth stocks like NVIDIA. Despite the optimism surrounding the company, some hedge funds believe that the long-term growth outcomes are too variable, and the current valuation may be too optimistic.
In the midst of this uncertainty, investors are looking for growth stocks under $10 to buy. Some notable picks include DocGo Inc. (NASDAQ:DCGO), Endeavour Silver Corp. (NYSE:EXK), Borr Drilling Limited (NYSE:BORR), B2Gold Corp. (NYSE:BTG), Reservoir Media, Inc. (NASDAQ:RSVR), Viavi Solutions Inc. (NASDAQ:VIAV), LXP Industrial Trust (NYSE:LXP), and CEMEX, S.A.B. de C.V. (NYSE:CX).
These stocks were selected based on hedge fund sentiment, with the top picks outperforming the S&P 500 Index by more than 140 percentage points over the last 10 years. As investors navigate the volatile market conditions, these growth stocks under $10 offer potential opportunities for growth and profitability.
