In this article, we will discuss the 10 Best US Stocks to Buy and Hold for the Next 5 Years.
On June 16, Dan Niles, Niles Investment Management Founder, joined ‘The Exchange’ on CNBC to discuss Niles’ thoughts on the recent rise in AI infrastructure, chip, and memory stocks. Niles suggested looking at the previous week’s market trends to understand the dynamics: while four major hyperscalers (Amazon, Google, Microsoft, and Meta) were down 4% on average and Oracle dropped 14% due to significant CapEx guidance, the semiconductor sector rose 9%.
He attributed this to investors selling the companies, spending the money due to cash flow concerns or capital-raising needs, and instead buying semiconductor companies where that money is being spent. He noted that the SpaceX IPO reinforced this trend, as Musk indicated a requirement to spend hundreds of billions of dollars to achieve his goals.
When asked about how much room to run is left for the chip stocks, Niles argued that the trend will continue until at least early next year. He explained that the emergence of agentic AI, formalized around January 30, requires 10 to 100 times more tokens to perform complex tasks, such as booking travel, finding hotels, and compiling itineraries, than standard chat-based queries. He believes that it will take about a year to build sufficient capacity and announce this development before a real problem emerges.
Against this backdrop, let’s look at some of the US stocks to buy and hold for the next five years.
Our Methodology
We used screeners to identify US stocks that are expected to grow their earnings by at least 30% over the next 5 years, 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 June 16.
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 US Stocks to Buy and Hold for the Next 5 Years
10. ON Semiconductor Corporation (NASDAQ:ON)
Number of Hedge Fund Holders: 58
ON Semiconductor Corporation (NASDAQ:ON) is one of the best US stocks to buy and hold for the next 5 years. On June 9, ON Semiconductor launched its GaNEXUS gallium nitride power portfolio, which is now sampling to provide enhanced efficiency, thermal performance, and power density. This new lineup includes FETs ranging from 40V to 650V, along with 650V Smart GaN FETs that feature integrated protection for improved system reliability and easier integration.
These solutions are specifically designed to address the growing power demands of AI data centers, robotics, industrial automation, and energy infrastructure. By enabling faster switching speeds and lower losses compared to traditional silicon, GaNEXUS allows designers to reduce the size of cooling systems and magnetics while increasing overall power density.
When combined with ON Semiconductor Corporation’s (NASDAQ:ON) Treo Platform for sensing and control, the GaNEXUS technology offers a robust, system-level approach to power management. This flexibility allows engineers to optimize performance and thermal behavior across the entire power-delivery chain, helping to lower total system costs and energy consumption in demanding high-power applications.
ON Semiconductor Corporation (NASDAQ:ON), founded in 1999 and headquartered in Scottsdale, Arizona, delivers intelligent power and sensing solutions, serving automotive and industrial markets.
9. Microchip Technology Inc. (NASDAQ:MCHP)
Number of Hedge Fund Holders: 69
Microchip Technology Inc. (NASDAQ:MCHP) is one of the best US stocks to buy and hold for the next 5 years. On June 9, Microchip released its TimePictra 12 platform, a software upgrade designed to enhance synchronization management for critical infrastructure like telecom, data centers, and power grids. The platform provides operators with improved visibility, automation, and control through a redesigned graphical user interface, supporting the management of complex timing architectures within large-scale networks.
The new version features expanded capabilities for handling High-Accuracy Time Transfer/HA-TT connections and monitoring GNSS observables via BlueSky technology, which helps identify potential security anomalies. It also incorporates SkyWire technology to maintain precise, nanosecond-level clock alignment across distributed network elements, ensuring resilience in environments where timing integrity is vital.
Designed to streamline operations, TimePictra 12 now supports up to 5,000 network elements, doubling the capacity of previous versions to simplify large-scale deployments. The platform is compatible with a wide range of Microchip Technology Inc.’s (NASDAQ:MCHP) synchronization products, offering a centralized management solution that reduces operational overhead while accelerating network configuration and upgrades.
Microchip Technology Inc. (NASDAQ:MCHP) provides smart, connected, and secure embedded control solutions. Its semiconductor products business designs, develops, manufactures, and markets mixed-signal microcontrollers, development tools, analog and interface products, timing and connectivity devices, and memory products.
8. Ciena Corporation (NYSE:CIEN)
Number of Hedge Fund Holders: 73
Ciena Corporation (NYSE:CIEN) is one of the best US stocks to buy and hold for the next 5 years. On June 11, Ciena successfully closed a $2.875 billion private offering of 0.00% convertible senior notes due in 2031. This strategic move is designed to optimize the company’s capital structure, significantly reduce interest expenses, and provide greater operational flexibility to support its global high-speed connectivity business.
The company utilized the net proceeds to repay an existing $1.14 billion term loan, repurchase a portion of its common stock, and fund hedge and warrant transactions. These financial maneuvers effectively raise the conversion price to $1,000 per share, which serves to mitigate potential shareholder dilution.
Remaining funds from the offering are earmarked for general corporate purposes and investments aimed at expanding supply chain capacity. By securing these favorable terms, Ciena Corporation (NYSE:CIEN intends to maintain its strong market position and continue scaling operations to meet sustained high demand for its technology infrastructure.
Ciena Corporation (NYSE:CIEN) builds and sells networking hardware, software, and related services that help telecom and other network operators increase capacity, automate operations, and deliver better services.
7. Cloudflare Inc. (NYSE:NET)
Number of Hedge Fund Holders: 84
Cloudflare Inc. (NYSE:NET) is one of the best US stocks to buy and hold for the next 5 years. On June 4, Cloudflare acquired VoidZero, the company behind the popular JavaScript tooling ecosystem Vite. This acquisition integrates VoidZero’s high-performance tools (including the Vite build tool, Vitest, Rolldown, and Oxc) directly into Cloudflare’s global edge network and Workers developer platform.
The goal is to create a seamless, one-click deployment stack that allows developers and autonomous AI agents to move code from local environments to production instantly. The integration aims to unify the software development lifecycle by aligning the Cloudflare CLI with the Vite workflow and enabling intent-based infrastructure. This means that if a Vite application declares a need for specific resources like databases or object storage, Cloudflare Inc. (NYSE:NET) will automatically provision them without manual dashboard intervention.
The move addresses the current shift in development where speed and local-to-production predictability are essential for AI-assisted coding. Cloudflare has committed to keeping the Vite ecosystem open-source, vendor-agnostic, and community-driven under existing MIT licenses. Additionally, the company is dedicating $1 million to an independent Vite ecosystem fund to support community maintainers and contributors. VoidZero’s team, led by Vite creator Evan You, will join Cloudflare to continue advancing their open-source roadmap while accelerating integrations with the Cloudflare platform.
Cloudflare Inc. (NYSE:NET) is a leading connectivity cloud company that specializes in improving the security, performance, and reliability of websites and applications.
6. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 96
Palantir Technologies Inc. (NASDAQ:PLTR) is one of the best US stocks to buy and hold for the next 5 years. On June 4, Palantir partnered with Google Cloud to integrate its Foundry and AIP platforms with BigQuery, Gemini, and the Google Knowledge Catalog. Available via the Google Cloud Marketplace, this partnership enables two-way data federation and semantic exchange, allowing businesses to embed Google’s AI models directly into operational workflows.
Joint customers, such as Eaton, are already using this integration to transform engineering documentation into intelligent assets, resulting in faster quoting and improved operational precision. By combining Google’s data infrastructure with Palantir Technologies Inc.’s (NASDAQ:PLTR) Ontology, organizations can deploy complex, high-stakes AI strategies at scale.
This collaboration creates a unified foundation that uses existing cloud investments to drive real-world execution. The integration simplifies how enterprises connect their most critical AI workflows to their core data, providing a more efficient, holistic architecture for operational AI.
Palantir Technologies Inc. (NASDAQ:PLTR) is a software company that develops and deploys data integration and analytics platforms for government agencies, defense organizations, and enterprise clients. Its notable products include Palantir Gotham, Foundry, and Apollo.
While we acknowledge the potential of PLTR 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 PLTR and that has 100x upside potential, check out our report about the cheapest AI stock.
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