The AI trade has become overcrowded, and with the exception of Google and Nvidia, the Mag 7 stocks haven’t even managed to beat the S&P 500 index in 2025. If recent comments from Goldman Sachs are anything to go by, 2026 could be similar, and investors will need to work harder to find alpha stocks from the rest of the market.
Peter Oppenheimer, a research analyst at Goldman Sachs, believes diversification could give better risk-adjusted returns in 2026. In an outlook report published on January 8, he is quoted as saying:
Investors should look for opportunities for broad geographic exposure, including an increased focus on emerging markets. They should seek a mix of growth and value stocks and look across sectors. And they may watch for the possibility that stocks move less in lockstep, creating a good opportunity for picking individual names.
Looking at the broader market makes sense. In a January 22 report, Schroders Wealth Management pointed out how the large companies, which comfortably outperformed between 2022 and 2025, plan to spend in the coming year. As a result, they are likely to suffer under the weight of their own investments:
Over 2025, the AI “hyperscalers” Meta, Amazon, Alphabet, Microsoft and Oracle invested over $400 billion in capital expenditure (capex), much of it directed toward AI. That’s almost $150 billion more than forecast a year ago, with plans to reach $900 billion in the next two years.
Amid this growth in spending, opportunities are likely to continue to arise elsewhere. This is why we decided to look at the 10 best NASDAQ growth stocks to buy for the Next 10 years.
Our Methodology
To compile our list of 10 Best NASDAQ Growth Stocks to Buy for the Next 10 Years, we considered only NASDAQ-listed stocks with a market capitalization of at least $5 billion, yielding fundamentally sound, well-established players. We then filtered out stocks with expected revenue growth exceeding 20% per annum over the next 5 years and forward EPS growth exceeding 20%. Next, we examined their potential upside according to analysts and ranked them in ascending order. We have also included the number of hedge funds that hold the stock as of Q3 2025.
All the share price data in the article is as of market close on January 30.
10. SiTime Corporation (NASDAQ:SITM)
Potential Upside: 5.96%
Number of Hedge Fund Holders: 35
Timothy Arcuri, an analyst at UBS, increased the firm’s price target on SiTime from $375 to $430 while keeping a Buy rating on the stock on January 26. The adjusted price target implies a further 20% upside from the current level.
Earlier, on January 16, Barclays upgraded the stock from Sell to Hold. Barclays analyst Tom O’Malley also raised the firm’s price target on SiTime from $260 to $360. The analyst highlighted in a research note to investors that the company now has improved prospects as growth in AI ventures continues to drive both margin improvement and revenue expansion. He further acknowledged that Barclays had previously underestimated the impact of the company’s portfolio transformation. He observed that the company has effectively evolved into a primarily AI-focused business.
He expressed his thoughts by stating:
This small-cap has real exposure to AI and a better mousetrap in MEMS timing (CED growing 46%/34% Y/Y in CY26/27). The company is attacking a [multi-billion dollar total addressable market] with a better solution and adding to their product offering (clocks, etc.). They are levered to [Credo Technology’s] [active electric cable] and [Nvidia’s] switching, two of our favorite trends.
SiTime Corporation (NASDAQ:SITM) is a developer, seller, and designer of silicon timing systems solutions in the United States, Taiwan, Singapore, Hong Kong, and internationally. It offers various types of oscillators and resonators & clock integrated circuits. The company was founded in 2003 and is based in Santa Clara, California.
9. Krystal Biotech, Inc. (NASDAQ:KRYS)
Potential Upside: 10.5%
Number of Hedge Fund Holders: 26
Andrea Tan, an analyst at Goldman Sachs, raised the firm’s price target on Krystal Biotech, Inc. (NASDAQ:KRYS) from $206 to $327 on January 30 while keeping a Buy rating. The firm’s revised price target implies an additional 16.7% upside from current levels. The company is positioning itself for short-term growth through three registrational programs. These programs include KB801, KB803, and KB407. All three programs are expected to support potential product launches around 2028, as outlined in a research note to investors.
The firm sees Ophthalmic programs as de-risked. They are also considered highly scalable because they can build on the existing Vyjuvek commercial platform. KB407 is also viewed as a promising opportunity in cystic fibrosis. However, stronger confidence in its long-term potential will depend on additional FEV1 data.
Moreover, on January 26, Clear Street analyst William Maughan increased the firm’s price target on Krystal Biotech, Inc. (NASDAQ:KRYS) from $288 to $338 while maintaining a Buy rating. The upward-adjusted price target offers a further 20.7% upside from the current levels. According to the analyst, the recent share price strength has been supported by the continued growth of Vyjuvek. It also pointed to the growing investor appreciation for the company’s expanding pipeline.
The firm also noted that the most sustained source of investor excitement is focused on the company’s potential in the neurotrophic keratitis market, driven by KB801. The higher estimates of KB801 were a key factor behind the upward revision in its price target, according to the firm.
In addition to Clear Street, Bank of America also raised its price target on Krystal Biotech, Inc. (NASDAQ:KRYS) from $288 to $318 on January 22 while keeping a Buy rating. The firm’s revised price target implies an additional 13.8% upside from current levels. The firm highlighted continued growth in Vyjuvek as a key support for the story. Beyond that, the analyst said that investors are expected to pay close attention to the timing of upcoming neurotrophic keratitis (NK) data as BofA views it as a significant catalyst for the stock this year.
Krystal Biotech, Inc. (NASDAQ:KRYS) is a commercial-stage biotechnology company. The company develops, discovers, manufactures, and commercializes genetic medicines to treat diseases with high unmet medical needs across the United States. Its products include VYJUVEK, KB105, KB104, KB407, KB707, and others. Krystal Biotech, Inc. was incorporated in 2016 and is based in Pittsburgh, Pennsylvania.
