In this article, we will look at the 10 Best Stocks to Buy Now for High Returns.
On July 12, Mike Dickson, head of research at Horizon, appeared on a Schwab Network interview to discuss his mid-year review and outlook for AI and small-cap companies. He noted that this year has been an exception to traditional years, mainly due to AI and the war in the Middle East. However, despite all the disruption AI has created, inflation expectations have cooled, valuation multiples have declined, and the labor market remains solid amid AI fears.
All these unusual moves have prompted a leadership change, as the Mag 7 remains negative on a year-to-date basis. This comes despite the semiconductor sector having its best quarter. Notably, Dickson noted that small-cap stocks have continued to outperform their large-cap counterparts. He noted that the Russell 2000 has not only outperformed the NASDAQ-100, but it also has more margin growth. Dickson believes that AI is eventually going to work through the margin channels to translate into earnings growth. He expects the lower margins of small-caps to be poised for strong earnings momentum as the AI rally unfolds.
Dickson expects the second quarter earnings season to add further momentum to the market. He expects strong earnings growth in the second quarter and believes that the Mag 7 are cheaper considering the earnings multiple and the recent tech sell-off.
With that, let’s take a look at the 10 Best Stocks to Buy Now for High Returns.
Stocks
Our Methodology
To curate the list of 10 Best Stocks to Buy Now for High Returns, we used the Finviz stock screener and Insider Monkey’s hedge fund database. Using the screener, we aggregated a list of stocks that are expected to grow their EPS by more than 30% over the next 5-years. Next, we ranked the stocks in ascending order of the number of hedge fund holders.
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 Stocks to Buy Now for High Returns
10. Intel Corporation (NASDAQ:INTC)
EPS Growth Next Year: 45.84%
Number of Hedge Fund Holders: 112
Intel Corporation (NASDAQ:INTC) ranks among the Best Stocks to Buy Now for High Returns. The stock has gained 5.14% over the past month despite the broader semiconductor sector sell-off. Analysts expect the company to grow its EPS by roughly 45%.
Recently, on July 6, HSBC doubled the price target on Intel Corporation (NASDAQ:INTC) from $100 to $200, while maintaining a Buy rating on the shares. After the increase, HSBC has the highest price target on the Street for INTC. The firm noted that the upgrade reflects a stronger server CPU outlook and also a valuation that includes the company’s foundry business.
HSBC sees CPU growth as a key driver for earnings in 2026-27. The firm raised the 2026 shipment growth estimate to 25% from 20% and the 2027 estimate from 20% to 30%. Moreover, the firm’s data center and AI revenue forecasts of $24.1 billion for 2026 and $33.0 billion for 2027 sit well above consensus.
In terms of foundry, HSBC called Intel’s foundry business too good to ignore. The firm believes that it positions the company as a credible TSMC alternative given fabrication and packaging constraints elsewhere. HSBC highlighted that Intel has already signed Terafab and Apple as customers and is in talks with Google and Nvidia.
Intel Corporation (NASDAQ:INTC) is a semiconductor company specializing in computing & related end products and services through its CCG, DCAI, and Intel Foundry segments.
9. Sandisk Corporation (NASDAQ:SNDK)
EPS Growth Next Year: 205.58%
Number of Hedge Fund Holders: 114
Sandisk Corporation (NASDAQ:SNDK) is one of the Best Stocks to Buy Now for High Returns. The company is set to release its fiscal Q4 2026 earnings on August 5. The Street is bullish on the stock ahead of the earnings. Analysts’ 12-month average price target suggests more than 23% upside from the current level.
Recently, on July 5, Goldman Sachs analyst James Schneider raised the firm’s price target on Sandisk Corporation (NASDAQ:SNDK) from $1,200 to $2,200 and reiterated a Buy rating on the shares. The analyst is bullish on the stock ahead of the earnings as he expects a very strong quarter driven by continued NAND supply tightness.
Schneider noted that management has given very positive commentary over the past few weeks and has given encouraging signals from customer agreements disclosed after peer Micron’s earnings. The analyst has raised his estimates on improving NAND pricing trends. He expects meaningful upside to both results and guidance, with higher contract pricing assumptions partly offset by increased operating expenses. His CY26 non-GAAP EPS estimate now sits roughly 30% above Street consensus. Schneider expects investors to focus heavily on long-term agreements. Moreover, NAND pricing is also expected to stay in focus, with attention on supply-demand dynamics, potential new supply, and pricing trends through 2026.
Post-earnings, he expects continued investor focus on the depth of industry undersupply, whether NAND price increases hold up over coming quarters, and further LTA details.
Sandisk Corporation (NASDAQ:SNDK) develops and manufactures data storage devices and solutions based on NAND flash technology. Its offerings include solid-state drives, embedded products, removable cards, USB drives, and wafers and components, sold through consumer brands and global franchises.
8. Oracle Corporation (NYSE:ORCL)
EPS Growth Next Year: 35.50%
Number of Hedge Fund Holders: 115
Oracle Corporation (NYSE:ORCL) has declined more than 28% over the past month due to concerns regarding high capital expenditure. However, the Street remains bullish on the stock, with analysts’ 12-month price target suggesting more than 68% upside from the current level. Oracle Corporation (NYSE:ORCL) is also one of our Best Stocks to Buy Now for High Returns.
On July 6, Piper Sandler reiterated a Buy rating on the stock with a price target of $225. The firm noted that they remain bullish on Oracle and expects the company’s cloud infrastructure business to beat fiscal 2027 revenue expectations. Moreover, the firm also sees the company’s higher capital expenditure turning into greater cloud capacity, which can ultimately drive the company’s revenue higher.
Earlier, on June 23, KeyBanc analyst Jackson Ader also reiterated a Buy rating on the stock with a price target of $300. The analyst noted that Oracle is entrenched in the AI hyperscaler game. He noted that the company’s moderation in operating expense growth has enough room to more than offset the hit to gross margin. This suggests that the company’s cost cuts in day-to-day expenses are expected to be sufficient to make up for lower profitability in core products. The firm noted that it remains bullish on the stock for long-term growth.
Oracle Corporation (NYSE:ORCL) provides information technology related products and services to enterprises, through its main business segments: Cloud and License, Hardware, and Services. The company is based in Austin, Texas and was founded on June 1977 by Lawrence Joseph Ellison, Robert Nimrod Miner, and Edward A. Oates.
7. Lam Research Corporation (NASDAQ:LRCX)
EPS Growth Next Year: 42.47%
Number of Hedge Fund Holders: 123
Lam Research Corporation (NASDAQ:LRCX) has gained more than 9.7% over the past month. The growth has been driven by several analyst upgrades and overall sectoral recovery. Analysts are projecting continued growth. Lam Research Corporation (NASDAQ:LRCX) ranks as one of the Best Stocks to Buy Now for High Returns.
Recently, on July 9, TD Cowen analyst Krish Sankar raised the firm’s price target on the stock from $340 to $400 and maintained a Buy rating on the shares. The firm noted updating its model for the company ahead of the earnings season.
On the same day, Mizuho also raised the price target on LRCX from $380 to $400 and maintained an Outperform rating on the shares. Mizuho noted that they expect the wafer fab equipment to rise from 2027-29, driven by durable AI-driven demand. Moreover, the firm also expects ramp-ups across leading-edge logic and memory chips to continue over the said period.
Mizuho noted it is raising price targets across the semiconductor equipment space more broadly, as AI continues to drive demand for leading-edge foundry and logic capacity as well as DRAM.
Lam Research Corporation (NASDAQ:LRCX) supplies semiconductor manufacturing equipment and services globally.
6. ASML Holding N.V. (NASDAQ:ASML)
EPS Growth Next Year: 38.02%
Number of Hedge Fund Holders: 133
ASML Holding N.V. (NASDAQ:ASML) is one of the Best Stocks to Buy Now for High Returns. The stock has gained around 4% over the past month, driven by anticipation of strong earnings expected to be released on July 15. Wall Street is bullish on the stock, with analysts’ 12-month average price suggesting more than 15% upside from the current levels.
On July 9, Reuters reported that European stocks rose on Thursday after a three-day losing streak. The gains were driven by a greater tech sector rebound as tensions in the Middle East eased. Reuters noted that the STOXX 600 climbed about 0.8% to 640.88 points.
Notably, ASML Holding N.V. (NASDAQ:ASML) was among the chip stocks driving the rally, gaining 4.8%. It was part of a broader surge in semiconductor names, with peers Siltronic and Soitec jumping 13.4% and 5.9% respectively. According to Reuters, this was fueled by a report suggesting China could grant domestic AI firms limited access to Nvidia’s H200 chips, a development seen as a potential boost to AI infrastructure demand and a key driver for equipment makers like ASML.
In addition, on July 7, Morgan Stanley raised the firm’s price target on ASML Holding N.V. (NASDAQ:ASML) from EUR 1,600 to EUR 1,830 and maintained a Buy rating on the shares. A day earlier, Bernstein had also raised the price target from $1,971 to $2,623, while maintaining a Buy rating on the shares.
ASML Holding (NASDAQ:ASML) is the world’s leading manufacturer of photolithography machines, which are critical, high-tech systems used by semiconductor companies (like TSMC, Intel, and Samsung) to print tiny circuit patterns onto silicon wafers, effectively creating microchips.
5. Advanced Micro Devices, Inc. (NASDAQ:AMD)
EPS Growth Next Year: 78.29%
Number of Hedge Fund Holders: 134
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the Best Stocks to Buy Now for High Returns. Recently, on July 9, William Blair initiated Advanced Micro Devices, Inc. (NASDAQ:AMD) with a Market Perform rating without any price targets.
Stocks
The firm noted AMD to be among the major beneficiaries of the AI infrastructure boom as it sees more advanced models and growing inference and agentic use cases. Blair expects the company’s sales to grow from $52 billion in 2026 to over $104 billion in 2028 and non-GAAP EPS to reach $20 by 2028.
Despite this optimistic outlook, the firm called the company’s GPU business an uphill battle against Nvidia. The firm noted that while AMD is accelerating its product roadmap, competition from other hyperscalers is limiting meaningful gains for the shares.
The firm noted that at 33 times 2027 earnings, the valuation of AMD properly balances strong AI demand against competitive and spending risks.
Advanced Micro Devices Inc. (NASDAQ:AMD) is a leading semiconductor company specializing in high-performance computing and graphics solutions. Its broad product portfolio includes microprocessors, graphics processors, and system-on-chip (SoC) solutions designed for data centers, gaming, and embedded systems.
4. Applied Materials, Inc. (NASDAQ:AMAT)
EPS Growth Next Year: 36.40%
Number of Hedge Fund Holders: 138
Applied Materials, Inc. (NASDAQ:AMAT) has gained more than 18% over the past month, mainly due to strong demand commentary. Analysts project the company to grow its EPS by more than 36% over the next year. Applied Materials, Inc. (NASDAQ:AMAT) is also among our Best Stocks to Buy Now for High Returns.
Recently, on July 9, Mizuho raised the firm’s price target from $540 to $650 and maintained an Outperform rating on the shares. The firm noted that the wafer fab equipment earnings estimates are supported by strong demand driven by AI. The firm also expects advancements in edge logic and memory chips, which will act as a tailwind.
Mizuho noted improving price targets across the semiconductor equipment companies as it sees AI driving demand for DRAM and NAND.
Similarly, on the same day, TD Cowen also raised the price target on AMAT from $525 to $700, while maintaining a Buy rating on the shares. The firm expects wafer fab equipment spending to reach $250 billion in 2028, with the potential to climb to $400 billion by 2030, based on industry EBITDA trends. TD Cowen also highlighted the memory sector, noting fab return on investment now stands at more than three times better than prior cycles.
Applied Materials Inc. (NASDAQ:AMAT) is a materials engineering solutions company that provides equipment, software, and services to the semiconductor, display, and related industries. The company operates through its Semiconductor Systems and Applied Global Services (AGS) segments.
3. Micron Technology, Inc. (NASDAQ:MU)
EPS Growth Next Year: 109.26%
Number of Hedge Fund Holders: 154
Micron Technology, Inc. (NASDAQ:MU) is one of the Best Stocks to Buy Now for High Returns. On July 9, Micron Technology, Inc. (NASDAQ:MU) said that it will boost US investment to more than $250 billion by 2035 as the demand for AI memory chips continues to surge. Moreover, the company is also allocating $3 billion separately to strengthen the domestic semiconductor supply chain.
This news relates to the US government’s push to localize semiconductor manufacturing. Management noted that the investment is aimed at expanding the company’s domestic memory capacity, while also cutting reliance on overseas suppliers.
Moreover, Micron also highlighted that the spending supports its long-term goal of producing 40% of its DRAM chips domestically. The company also marked the first concrete pour at its Clay, New York, fab, over a quarter ahead of schedule. It’s expected to become the largest semiconductor manufacturing site in US history.
Moreover, the $3 billion that the company plans to invest to improve the supply chain includes $500 million in financing for GlobalWafers to expand its Sherman, Texas, wafer facility, backed by a 10-year supply agreement.
Micron Technology Inc. (NASDAQ:MU) provides memory and storage solutions sold into client, cloud server, enterprise, graphics, networking, smartphone, mobile-device, automotive, industrial, and consumer markets, among others.
2. Broadcom Inc. (NASDAQ:AVGO)
EPS Growth Next Year: 67.91%
Number of Hedge Fund Holders: 173
Broadcom Inc. (NASDAQ:AVGO) is one of the Best Stocks to Buy Now for High Returns. Broadcom Inc. (NASDAQ:AVGO) maintains its upward trajectory with more than 7.8% gains over the past month. Recent gains have been driven by a multi-year partnership extension with Apple and surging AI semiconductor demand. Wall Street anticipates more than 30% upside over the next 12-months, driven by accelerating custom ASIC revenue.
Recently, on July 8, Reuters reported that Apple plans to spend more than $30 billion under a multi-year chip supply deal with Broadcom. This move comes as the Trump administration pushes for expanded domestic chip manufacturing. The report noted that the deal, which was finalized earlier this week, will run through 2031. It covers FBAR filters, which are radio-frequency chips used for wireless connectivity in Apple devices. Apple and Broadcom have been developing these chips together since 2023.
Moreover, as part of the deal, the company will also invest $1.5 billion to expand its Fort Collins, Colorado, factory. Reuters noted that Apple said the expansion will produce at least 15 billion chips and support its broader effort to source more components domestically. In addition, CEO Tim Cook said that the Fort Collins components are essential to the performance and connectivity customers expect.
Broadcom Inc. (NASDAQ:AVGO) is a technology company that specializes in semiconductor devices (through the Semiconductor Solutions segment) and infrastructure software solutions (through the Infrastructure Software segment).
1. NVIDIA Corporation (NASDAQ:NVDA)
EPS Growth Next Year: 40.71%
Number of Hedge Fund Holders: 275
NVIDIA Corporation (NASDAQ:NVDA) is one of the Best Stocks to Buy Now for High Returns. The stock remained mostly flat over the past month, with only a 1.18% gain. However, the Street remains bullish on the stock with analysts expecting more than 47% upside over the next 12-months.
Recently, on July 8, TD Cowen analyst Joshua Buchalter reiterated a Buy rating on NVIDIA Corporation (NASDAQ:NVDA) with a $275 price target. The analyst noted that Nvidia has an unprecedented competitive edge as AI moves beyond chatbots into industries like healthcare and robotics. He added that this edge comes from the company’s integrated hardware and software platform, which has the potential to work seamlessly together.
The analyst added that he gained confidence from the company’s investor lunch with TD Cowen. The discussions with the management reinforced his view that AI spending remains durable across a range of applications and customers. The firm remains confident in the long-term potential of Nvidia as AI adoption broadens.
NVIDIA Corporation (NASDAQ:NVDA) is a fabless semiconductor and AI computing company that designs GPUs, AI accelerators, Application Programming Interfaces (APIs), and system-on-a-chip units. Through its CUDA ecosystem, the company enables industries ranging from autonomous vehicles to scientific research by advancing AI, accelerated computing, and data center infrastructure.
Disclosure: None. Follow Insider Monkey on Google News.
Hedge Fund Resource Center