In this article, we will discuss the 10 Best QQQ Stocks to Invest in.
On July 2, CNBC’s ‘Closing Bell’ team discussed recent market action, the AI trade and what investors should be watching going into the second half of 2026 with Richard Saperstein of Treasury Partners and Liz Thomas of SoFi. Both Saperstein and Thomas expressed confidence that stocks will continue their winning streak in H2 2026. Saperstein pointed out that while earnings are accelerating, multiples are compressing, which he attributed to the market mistakenly valuing hyperscalers as asset-heavy and capital-intensive rather than asset-light. He argued that these companies are showing growing earnings, profits, and operating cash flows, evidenced by 30% to 60% cloud growth last quarter. Saperstein maintained that as the market eventually re-rates these stocks, the hyperscalers and large-cap tech names will continue to perform well.
Thomas agreed that the movement in H2 will be higher. While she anticipated continued volatility in the semiconductor space, suggesting further downside due to the sector’s previous massive run, she expects the Mag 7 and hyperscalers to return to the forefront. She observed that throughout the current cycle, investors have consistently flooded back into these big names whenever market volatility occurred. Although the Mag 7 lagged in H1, Thomas expects them to make a comeback in H2. Regarding the debate over whether the market is shifting toward broader ‘broadening’ trade, Saperstein argued against the idea that the juice has been squeezed from the hyperscalers. He highlighted that large-cap tech has a PEG ratio of one, meaning investors are paying one times the growth rate compared to significantly higher ratios for traditional consumer staples.
Saperstein also noted a trend where the beneficiaries of AI spending have outperformed the spenders, a dynamic he expects to continue while still favoring ownership of the large-cap hyperscalers. Thomas clarified that while she sees some broadening into financials and healthcare, she does not view it as a cyclical broadening where everyone wins. Instead, she describes the movement into pharma and biotech as investors seeking growth opportunities as they rotate capital out of semiconductor chips.
Our Methodology
We sifted through the Invesco QQQ exchange-traded fund (ETF) holdings to find the top QQQ stocks and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Note: All data was sourced on July 6.
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. 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).
10 Best QQQ Stocks to Invest in
10. Marriott International Inc. (NASDAQ:MAR)
Number of Hedge Fund Holders: 65
Marriott International Inc. (NASDAQ:MAR) is one of the best QQQ Stocks to invest in. On July 1, Marriott International and The Coca-Cola Company announced a global strategic agreement. This partnership designates Coca-Cola as Marriott’s official beverage provider for a wide range of categories, including soft drinks and functional beverages.
The phased rollout begins immediately, bringing Coca-Cola’s diverse product portfolio to guestrooms, restaurants, and event spaces worldwide. This collaboration aims to enhance the guest experience by providing travelers with more of the brands they enjoy throughout their stay.
Developed with Marriott International Inc.’s (NASDAQ:MAR) global procurement organization, the agreement seeks to streamline beverage choices and drive economic value for hotel owners and operators. Both companies emphasized a shared commitment to quality and consistency in creating memorable experiences for guests.
Marriott International Inc. (NASDAQ:MAR) operates, franchises, and licenses hotel, residential, timeshare, and other lodging properties internationally.
9. Cadence Design Systems Inc. (NASDAQ:CDNS)
Number of Hedge Fund Holders: 66
Cadence Design Systems Inc. (NASDAQ:CDNS) is one of the best QQQ Stocks to invest in. On June 16, Cadence announced an expanded collaboration with Hewlett Packard Enterprise/HPE to accelerate data center modernization through digital twin technology. By integrating the Cadence Reality Digital Twin Platform into HPE’s AI-focused modular data centers, the partnership aims to help customers optimize the planning, deployment, and operational efficiency of high-performance AI and computing infrastructure.
The collaboration provides engineering-grade simulations that allow operators to model complex environments using physics-based analysis before physical deployment. This approach helps companies de-risk infrastructure investments, improve energy efficiency, and maximize performance (specifically targeting “tokens-per-watt” metrics for AI workloads) while also unlocking stranded capacity through predictive power and cooling modeling.
To support these objectives, Cadence Design Systems Inc. (NASDAQ:CDNS) is introducing new digital library elements that allow users to evaluate deployment scenarios for advanced NVIDIA computing systems. The joint solution is designed to support the full data center lifecycle, enabling continuous “what-if” scenario planning to ensure that infrastructure remains sustainable, resilient, and optimized as evolving AI requirements change.
Cadence Design Systems Inc. (NASDAQ:CDNS) is a leading provider of electronic design automation/EDA software, hardware, and IP used by semiconductor companies to design and verify advanced integrated circuits & systems.
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