In this article, we will discuss the 10 Best Stocks to Invest in for the Next 3 Years.
Dubravko Lakos-Bujas, Head of Global Markets Strategy at J.P. Morgan, recently appeared on CNBC Television and highlighted his bullish outlook for the coming year. According to him, if the US Fed eases further due to improving inflation dynamics, the S&P could surpass 8,000 next year. The economy is expected to be in good shape in the next year. That being said, Lakos-Bujas also believes that it’s a K-shaped economy. Overall, the interest rates are expected to ease various parts of the economy that are experiencing stress.
Current Trends in Broader Market
When asked about the AI, Lakos-Bujas believes that the AI trade is going through a bit of a digestion and a pause. This is because the AI theme remained hot across most of 2025. Separately, readers should know that iShares US Technology ETF saw an increase of over ~23% on a YTD basis.
Elsewhere, Vanguard believes that the ongoing wave of AI-driven physical investment can be a powerful force. The firm’s analysis demonstrates that the investment cycle remains underway, aiding its projection of up to a 60% chance of the US economy achieving 3% real GDP growth in the upcoming years.
However, in 2026, the US remains well-placed for a more modest acceleration in growth to ~2.25%, thanks to the AI investment and fiscal thrust stemming from the One Big Beautiful Bill Act.
Amidst such trends, we will now have a look at the 10 Best Stocks to Invest in for the Next 3 Years.
Our Methodology
To list the 10 Best Stocks to Invest in for the Next 3 Years, we sifted through online rankings and shortlisted companies having EPS Fwd Long Term Growth (3-5Y CAGR) of at least 30%. After getting an extensive list, we chose the ones popular among hedge funds. Finally, the stocks are arranged in ascending order of their hedge fund sentiments, as of Q3 2025.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10 Best Stocks to Invest in for the Next 3 Years
10. Bristol-Myers Squibb Company (NYSE:BMY)
Number of Hedge Fund Holders: 76
EPS Fwd Long Term Growth (3-5Y CAGR): ~86.2%
Bristol-Myers Squibb Company (NYSE:BMY) is one of the Best Stocks to Invest in for the Next 3 Years. On December 15, BofA upgraded the company’s stock to “Buy” from “Neutral” with a price objective of $61, an increase from $52, given the company’s R&D pipeline, as reported by The Fly. As per the firm, 4-6 programs are expected to deliver key de-risking catalysts over the near term. It believes that the current weakness is a buying opportunity as conservative trough EPS offers a floor for the share price.
Furthermore, the firm sees favorable risk/reward as Bristol-Myers Squibb Company (NYSE:BMY) approaches 2026 filled with catalysts. Multiple scenarios can place the company on a return to growth in 2029 and beyond. The firm applied a 10x P/E multiple to Bristol-Myers Squibb Company (NYSE:BMY)’s FY 2027 estimated EPS. This reflects an increase from the prior 8x multiple, which was applied to 2026 estimates.
In a different update, on December 11, Bristol-Myers Squibb Company (NYSE:BMY) announced that the US FDA accepted and granted priority review to the supplemental Biologics License Application (sBLA). This is for Opdivo® (nivolumab) in combination with doxorubicin, vinblastine, and dacarbazine (AVD) for adult and pediatric (12 years and older) patients having previously untreated Stage III or IV classical Hodgkin Lymphoma (cHL).
Bristol-Myers Squibb Company (NYSE:BMY) discovers, develops, licenses, manufactures, markets, distributes, and sells biopharmaceutical products.
9. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 77
EPS Fwd Long Term Growth (3-5Y CAGR): ~40.5%
Marvell Technology, Inc. (NASDAQ:MRVL) is one of the Best Stocks to Invest in for the Next 3 Years. On December 16, BofA analyst Vivek Arya reduced the price target on the company’s stock to $95 from $105, while keeping a “Neutral” rating on the company’s stock, as reported by The Fly. According to the analyst, the firm has been updating its price targets for U.S. semiconductor stocks under its coverage.
The firm sees 2026 as the midpoint for the journey of 8 – 10 years of upgrading traditional IT infrastructure for faster AI workloads. BofA also added that, while stocks might remain choppy amid increased scrutiny of AI returns as well as hyperscaler cash flows, this can be mitigated by faster large language model builders and AI factories.
In a separate update, on December 9, Marvell Technology, Inc. (NASDAQ:MRVL) announced that it introduced its Golden Cable initiative. This is a strategic program that has been designed to accelerate and broaden the active electrical cable (AEC) ecosystem, as well as allow faster time-to-market for hyperscaler AI deployments. The launch has been done at a critical time as hyperscalers continue to re-architect and scale networks to handle significant new AI workloads quickly and reliably.
Marvell Technology, Inc. (NASDAQ:MRVL) offers data infrastructure semiconductor solutions, which span the data center core to the network edge.
8. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 81
EPS Fwd Long Term Growth (3-5Y CAGR): ~49.1%
Palantir Technologies Inc. (NASDAQ:PLTR) is one of the Best Stocks to Invest in for the Next 3 Years. On December 9, BofA analyst Mariana Perez Mora kept a “Buy” rating on the company’s stock, and the firm sees growing strength in Palantir Technologies Inc. (NASDAQ:PLTR)’s defense business. As per the analyst, more defense programs have been moving towards AI and real-time data tools, supporting companies such as Palantir Technologies Inc. (NASDAQ:PLTR) capable of pulling together significant amounts of information and helping with quick decision-making.
According to analyst, the customers need systems working throughout the military, i.e., from planning to logistics to on-the-ground operations. Notably, Palantir Technologies Inc. (NASDAQ:PLTR)’s long experience in such areas provides an edge as demand increases. The spending on defense software and AI is steady, with governments planning for quicker ways to plan missions, track equipment, and manage data. Palantir Technologies Inc. (NASDAQ:PLTR) is well-placed to benefit as defense agencies adopt more AI systems.
In a separate update, the United States Navy announced a groundbreaking partnership with Palantir Technologies Inc. (NASDAQ:PLTR), focused on deploying the company’s Foundry and Artificial Intelligence Platform (AIP) throughout the nation’s Maritime Industrial Base (MIB).
Palantir Technologies Inc. (NASDAQ:PLTR) also announced a 3-year renewal of its contract with the DGSI, which is France’s domestic intelligence agency. This extends the partnership, which has been ongoing for around a decade.
Palantir Technologies Inc. (NASDAQ:PLTR) is engaged in building and deploying software platforms for the intelligence community to assist in counterterrorism investigations and operations.
7. DoorDash, Inc. (NASDAQ:DASH)
Number of Hedge Fund Holders: 91
EPS Fwd Long Term Growth (3-5Y CAGR): ~64.4%
DoorDash, Inc. (NASDAQ:DASH) is one of the Best Stocks to Invest in for the Next 3 Years. On December 16, Bloomberg reported that the company is experimenting with a standalone AI-powered app for users to locate new restaurants. Therefore, this will expand its reach beyond the food-delivery service. The new app, Zesty, happens to be in public testing in San Francisco and New York.
Bloomberg also noted that DoorDash, Inc. (NASDAQ:DASH) continues to expand offerings over and above the takeout-ordering service. Over the previous year, the company expanded the dine-in reservations feature in the DoorDash app post the acquisition of SevenRooms Inc. DoorDash, Inc. (NASDAQ:DASH) plans to spend more dollars in 2026 for new initiatives and internal productivity tools, added Bloomberg.
In a different update, on December 11, Argus analyst Taylor Conrad reduced the price target on the company’s stock to $260 from $275, while keeping a “Buy” rating. Notably, the firm is optimistic about DoorDash, Inc. (NASDAQ:DASH)’s robust balance sheet and expanded focus towards grocery delivery, which is projected to grow at more than twice the rate of meal delivery.
The analyst also noted that the firm is optimistic about the company’s efforts to lower unit costs. The strategy is expected to help DoorDash, Inc. (NASDAQ:DASH) become more profitable, added Argus.
DoorDash, Inc. (NASDAQ:DASH) operates a commerce platform, connecting merchants, consumers, and independent contractors.
6. Snowflake Inc. (NYSE:SNOW)
Number of Hedge Fund Holders: 102
EPS Fwd Long Term Growth (3-5Y CAGR): ~45.7%
Snowflake Inc. (NYSE:SNOW) is one of the Best Stocks to Invest in for the Next 3 Years. On December 15, Raymond James assumed coverage of the company’s stock with an “Outperform” rating and with a price objective of $250, down from the prior target of $274. Analyst Adam Tindle believes that the company is at an inflection point, evolving from a cloud data warehouse into the broader data and AI platform, while long-term growth and margin durability remain under scrutiny.
Snowflake Inc. (NYSE:SNOW) has been pushing to unify structured, semi-structured, unstructured, and transactional workloads. It is also enabling application development via Snowpark and container services. Since Snowflake Inc. (NYSE:SNOW) runs on the usage-based model, its growth is sensitive to customer optimization cycles, added the analyst. While the company has invested in automation and cost-governance tools, there are questions about visibility into durable usage growth.
In a different update, Snowflake Inc. (NYSE:SNOW) announced a significant milestone in the strategic collaboration with AWS, doubling the transaction growth in AWS Marketplace YoY to surpass $2 billion in sales in a calendar year. The seamless integration between the company’s fully managed data and AI platform and AWS services continues to accelerate growth and empower customers to transform businesses in the age of AI.
Snowflake Inc. (NYSE:SNOW) offers a cloud-based data platform for organizations.
5. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 105
EPS Fwd Long Term Growth (3-5Y CAGR): ~36.4%
Micron Technology, Inc. (NASDAQ:MU) is one of the Best Stocks to Invest in for the Next 3 Years. On December 17, the company released its results for Q1 2026, with revenue coming at $13.64 billion compared to $11.32 billion for Q4 2025 and $8.71 billion for Q1 2025. Micron Technology, Inc. (NASDAQ:MU)’s revenue increased 57% mainly because of the increases in sales of both DRAM and NAND products. The sales of DRAM products rose 69% mainly due to a mid-30% range increase in average selling prices and a mid-20% range increase in bit shipments.
The sales of NAND products went up by 22% mainly because of a high-20% range increase in bit shipments, partially mitigated by the mid-single-digit percent range decline in average selling prices. Micron Technology, Inc. (NASDAQ:MU)’s operating income increased to $6,136 million in Q1 2026, up from $2,174 million in Q1 2025, amidst a higher gross margin. Its gross margin came in at $7,646 million in Q1 2026 compared to $3,348 million in Q1 2025.
For Q2 2026, Micron Technology, Inc. (NASDAQ:MU) expects non-GAAP revenue to be $18.7 billion (plus or minus $400 million), and gross margin to be in the range of 68% (plus or minus 100 basis points).
Shortly after the earnings release, on December 18, Deutsche Bank lifted the price target on the company’s stock to $300 from $280, while keeping a “Buy” rating.
4. AppLovin Corporation (NASDAQ:APP)
Number of Hedge Fund Holders: 110
EPS Fwd Long Term Growth (3-5Y CAGR): ~52.7%
AppLovin Corporation (NASDAQ:APP) is one of the Best Stocks to Invest in for the Next 3 Years. On December 17, BTIG lifted the price target on the company’s stock to $771 from $705, while keeping a “Buy” rating. As per the analyst, moving into 2026, the firm remains constructive about the setup for gaming and gambling end markets the company covers. Furthermore, the increased price target demonstrates stronger gaming user acquisition trends in Q4 and beyond.
In a separate release, on December 15, Citi analyst Jason Bazinet maintained a “Buy” rating on the company’s stock, setting a price objective of $820.00. The analyst’s rating is backed by a combination of factors, which include the growth in the company’s e-commerce client base and the increasing adoption of the Axon product. AppLovin Corporation (NASDAQ:APP) witnessed a strong increase in the number of e-commerce clients, with a healthy percentage also utilising Shopify, showcasing healthy integration and acceptance of their platform.
Furthermore, the analyst also added that the geographic diversity of Axon’s user base continues to improve, amidst a decline in the concentration of users from the top markets. This hints at a broader international appeal. Notably, diversification is being regarded as a favourable indicator, mainly since AppLovin Corporation (NASDAQ:APP) achieved growth without significant advertising spend, added Bazinet.
AppLovin Corporation (NASDAQ:APP) is engaged in building a software-based platform for advertisers to improve the marketing and monetization of their content.
3. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 114
EPS Fwd Long Term Growth (3-5Y CAGR): ~31.4%
Eli Lilly and Company (NYSE:LLY) is one of the Best Stocks to Invest in for the Next 3 Years. On December 12, Eli Lilly and Company (NYSE:LLY) released updated results from Phase 3 EMBER-3 study of Inluriyo (imlunestrant), which is an oral estrogen receptor antagonist, in patients with estrogen receptor positive (ER+), human epidermal growth factor receptor 2-negative (HER2-) advanced or metastatic breast cancer (MBC), whose disease progressed on a prior aromatase inhibitor (Al), with or without a CDK4/6 inhibitor.
Notably, after the recent FDA approval of Inluriyo as monotherapy, the updated data exhibit continued clinically meaningful benefit, both for patients receiving monotherapy and those receiving the combination with abemaciclib, as well as further strengthen its role in the treatment setting. Eli Lilly and Company (NYSE:LLY) announced that results for imlunestrant plus abemaciclib combination were consistent with previous efficacy results. Also, they demonstrated durable benefit throughout efficacy endpoints, irrespective of ESR1 mutation status.
In a separate release, on December 9, Eli Lilly and Company (NYSE:LLY) announced its plans to invest over $6 billion in new manufacturing facility in Huntsville, Alabama. The next-generation synthetic medicine active pharmaceutical ingredient (API) facility would be producing small molecule synthetic and peptide medicines.
Eli Lilly and Company (NYSE:LLY) highlighted that the site would be among those manufacturing orforglipron, its first oral, small molecule GLP-1 receptor agonist, which it plans to submit to global regulatory agencies for obesity by the year’s end.
2. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 183
EPS Fwd Long Term Growth (3-5Y CAGR): ~32.4%
Broadcom Inc. (NASDAQ:AVGO) is one of the Best Stocks to Invest in for the Next 3 Years. On December 19, Truist lifted the price target on the company’s stock to $510 from $500, while keeping a “Buy” rating, as reported by The Fly. The firm adjusted its price targets in the broader semiconductor and AI group after establishing 2027 estimates.
While the firm continues to recognize the challenges of finding the power to run AI infrastructure as well as securing financing to pay for it, it opines that AI infrastructure semiconductor stocks are cheap compared to their growth. Furthermore, the firm expects more upside pressure on the estimates for the group compared to the diversified analog semis moving into 2026. The analyst believes that AI capex upside will continue in 2026.
In a separate update, on December 11, Broadcom Inc. (NASDAQ:AVGO) released its Q4 2025 and FY 2025 results. In Q4 2025, its revenue was $18.0 billion, reflecting 28% YoY growth, driven mainly by AI semiconductor revenue that rose 74% YoY. In FY 2025, the company’s adjusted EBITDA rose 35% YoY to a record $43.0 billion, with FCF remaining strong at $26.9 billion.
For Q1 2026, Broadcom Inc. (NASDAQ:AVGO) expects revenue of ~$19.1 billion and adjusted EBITDA of 67% of projected revenue.
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 234
EPS Fwd Long Term Growth (3-5Y CAGR): ~37.3%
NVIDIA Corporation (NASDAQ:NVDA) is one of the Best Stocks to Invest in for the Next 3 Years. On December 18, Tigress Financial lifted the price target on the company’s stock to $350 from $280, while maintaining a “Strong Buy” rating on the company’s stock, as reported by The Fly. The firm tagged NVIDIA Corporation (NASDAQ:NVDA)’s position as the premier AI investment, possessing dominant full-stack data center leadership as well as accelerating adoption throughout autonomous driving, healthcare, and other high-growth verticals.
Furthermore, the firm specifically highlighted NVIDIA Corporation (NASDAQ:NVDA)’s healthcare franchise and cited this as a powerful and underappreciated growth driver, which reinforces the appeal as a long-duration AI infrastructure investment. The firm also hinted at NVIDIA Corporation (NASDAQ:NVDA)’s healthy balance sheet and cash flow that continue to support the company’s balanced capital allocation strategy.
In a different update, on December 15, the company announced the NVIDIA Nemotron™ 3 family of open models, data, and libraries that are designed to power transparent, efficient, and specialized agentic AI development throughout industries. The Nemotron 3 family of open models, in Nano, Super, and Ultra sizes, introduces the most efficient family of open models possessing leading accuracy for building agentic AI applications.
NVIDIA Corporation (NASDAQ:NVDA) highlighted that Nemotron 3 Nano is capable of delivering 4x higher throughput than Nemotron 2 Nano. Also, it delivers the most tokens per second for multi-agent systems at scale through the breakthrough hybrid mixture-of-experts architecture.
While we acknowledge the potential of NVDA 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 NVDA and that has 100x upside potential, check out our report about this cheapest AI stock.
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