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.
8. Vertex Pharmaceuticals (NASDAQ:VRTX)
Number of Hedge Fund Holders: 68
Vertex Pharmaceuticals (NASDAQ:VRTX) is one of the best QQQ Stocks to invest in. On July 1, Vertex Pharmaceuticals announced that the US FDA approved the expanded use of its genetic therapy, CASGEVY, to treat children as young as 2 years old. This makes it the first and only approved gene therapy for patients of this age range suffering from sickle cell disease or transfusion-dependent beta thalassemia.
This regulatory milestone makes approximately 5,500 additional children in the US eligible for the one-time treatment. By providing earlier access to the therapy, clinicians hope to address the progression of these life-shortening diseases before significant, irreversible organ damage occurs.
Vertex Pharmaceuticals (NASDAQ:VRTX) established a network of over 75 authorized treatment centers across the U.S. to manage patient access and care. While this approval is specific to the US market, the company noted that regulatory reviews for similar label expansions are currently underway in the UK and the Kingdom of Saudi Arabia.
Vertex Pharmaceuticals (NASDAQ:VRTX) operates as a biotechnology company in the US, Europe, and internationally.
7. T-Mobile US Inc. (NASDAQ:TMUS)
Number of Hedge Fund Holders: 85
T-Mobile US Inc. (NASDAQ:TMUS) is one of the best QQQ Stocks to invest in. On July 7, T-Mobile announced a major evolution of its executive leadership team to accelerate its expansion into new business areas, including AI and 6G development. Wireless industry veteran Chris Sambar will join the company as Chief Enterprise Officer by mid-October, where he will lead the expansion of T-Mobile’s SMB, enterprise, and government portfolios while scaling emerging growth opportunities like T-Ads and Physical AI.
Concurrently, André Almeida has been promoted to the expanded role of Chief Marketing, Brand, and Broadband Officer, where he will partner with COO Jon Freier to focus on consumer wireless and broadband growth. Additionally, T-Mobile is consolidating its network, technology, product engineering, and cyber divisions under Chief Technology Officer Dr. John Saw to facilitate the seamless delivery of next-generation connected experiences.
These leadership changes coincide with the departure of Mike Katz, the company’s Chief Business & Product Officer, who will transition into a strategic advisory role through the end of 2026. CEO Srini Gopalan emphasized that these appointments are intended to provide the focus and expertise necessary to maintain T-Mobile’s momentum, disrupt traditional industry models, and achieve the ambitious growth goals outlined in the company’s recent capital markets updates.
T-Mobile US Inc. (NASDAQ:TMUS) is a telecom services company that offers wireless communications services, such as voice, messaging, and data, to postpaid, prepaid, and wholesale customers. The company also deals in wireless devices.
6. Cisco Systems Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 97
Cisco Systems Inc. (NASDAQ:CSCO) is one of the best QQQ Stocks to invest in. On July 2, Cisco and the College Board announced that a new AP Cybersecurity course will launch for the 2026-2027 school year as part of the AP Career Kickstart program. Cisco Networking Academy will support this initiative by providing schools with industry-aligned curriculum, hands-on laboratory exercises, and professional development resources for educators.
The course is designed to bridge the gap between academic preparation and professional readiness. Students can earn college credit through AP exam performance while simultaneously preparing for the industry-recognized Cisco Certified Support Technician/CCST Cybersecurity certification, providing them with a competitive advantage for future careers.
This collaboration aims to address the global cybersecurity workforce shortage by streamlining how schools implement technical training. Following a successful pilot program that engaged 3,100 students across 30 states, the national rollout seeks to establish a more accessible and sustainable pipeline of talent for the cybersecurity industry.
Cisco Systems Inc. (NASDAQ:CSCO) is involved in the manufacture, design, and sale of Internet Protocol-based networking products and services associated with the communications and IT industry.
While we acknowledge the potential of CSCO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CSCO and that has 100x upside potential, check out our report about the cheapest AI stock.
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