We recently published a list of 11 Best Performing NASDAQ Stocks So Far in 2025. In this article, we are going to take a look at where LexinFintech Holdings Ltd. (NASDAQ:LX) stands against other best performing NASDAQ stocks so far in 2025.

On March 29, T. Rowe Price portfolio manager Tony Wang appeared on CNBC’s ‘Closing Bell Overtime’ to discuss the current volatility in the tech sector, especially the NASDAQ. The NASDAQ underperformed throughout March and registered the largest decline since June 2022. But the question that now arises is whether this decline and volatility present a buying opportunity or not. Wang leans towards less caution and more confidence in this potential bull market. To support his sentiment, he cited that growth and momentum have both been high in recent years. Tech stocks in particular have seen substantial growth in the past 2 year. He thinks that valuations could further improve, given that the sector recent strong years came from AI infrastructure build out.

Wang also acknowledged that companies are naturally questioning whether current spending levels in the sector are sustainable or not. But he reiterated that compute will retain its value, despite concerns about whether it has a cyclical position or not. He also noted that deep tech could potentially lower inferencing costs and expand market access for companies that enter with limited capital. Like any other sector, cost reduction is an ideal long-term outcome for the tech industry as well.

Our Methodology

We used the Finviz stock screener to compile a list of all the best-performing NASDAQ stocks. We then picked the 11 NASDAQ stocks with the highest year-to-date gains, as of March 31. The stocks are ranked in ascending order of their year-to-date performance. We have also added the hedge fund sentiment for each stock which was sourced from Insider Monkey’s database.

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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A business professional using the company's technology-driven platform to access location-based services for a shopping experience.

LexinFintech Holdings Ltd. (NASDAQ:LX)

Number of Hedge Fund Holders: 19

Average Upside Potential as of March 31: 80.78%

LexinFintech Holdings Ltd. (NASDAQ:LX) provides online consumer finance services in China through a technology-driven platform for customers and partners. It offers an online consumer finance platform that allows installment purchases and personal installment loans. It also enables the online direct sales of products like electronics and general merchandise with installment payment terms.

The company’s profitability is mainly driven by its risk management system. In Q4 2024, the company made significant improvements in risk indicators, which came from enhancements in risk identification and management tools. LexinFintech Holdings Ltd. (NASDAQ:LX) was able to improve risk identification by 15%, and stability by 10% with the help of multi-dimensional third-party data and developed customized data systems for varying customer groups.

The company targets high-quality customer segments through customer acquisition channels and optimized credit line decision-making systems. This contributes to a decline in delinquency ratios, which measures the percentage of loans where borrowers have missed their payments. The day-one delinquency ratio for the total loan portfolio dropped by 4% in Q4. Sequentially, the company observed an 8% improvement in the first payment default rate within 7 days for new loans.

Overall, LX ranks 8th on our list of best performing NASDAQ stocks so far in 2025. While we acknowledge the growth potential of LX, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.