In this article, we will look at the 10 Best Young Tech Stocks to Buy.
On December 19, Ben Narasin, founder at Tenacity Venture Capital, appeared on a CNBC television interview to discuss the outlook for IPOs in 2026. Narasin noted that he expected 2025 to be the big blowup year for tech IPOs. However, that prediction didn’t pan out as he expected, but Narasin highlighted that 2025 was still a good year, with some very good companies raising huge amounts of capital. He noted that 2026 is going to be phenomenal. He added that bankers and venture capital firms are eager to fund tech companies that are expected to go public in the next calendar year.
Narasin highlighted that the tech IPO is finally bursting, and when this happens, some really good companies come ahead to reset the IPO landscape. He sees Anthropic and SpaceX among the best names that are expected to go public in 2026.
While answering the all-important question regarding the AI bubble, Narasin noted that he sees the bubble situation as more of a natural cycle. He added that whenever the world is going through a major technological revolution, it attracts a lot of excitement. However, a lot of the companies trying to add value in the revolution don’t make it, resulting in a bloodbath, but the few that are able to pull through become tremendous.
With that, let’s take a look at the 10 Best Young Tech Stocks to Buy.
Our Methodology
To curate the list of 10 Best Young Tech Stocks to Buy, we used the Finviz stock screener, WSJ, and Insider Monkey’s Q3 2025 hedge fund database. Using the screener, we aggregated a list of young tech stocks that have had their IPO in the last 2 years and sorted the list by market capitalization. Next, we cross-checked the market capitalization from WSJ and ranked the stocks in ascending order of the number of hedge fund holders sourced from Insider Monkey’s database.
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 Young Tech Stocks to Buy
10. SailPoint, Inc. (NASDAQ:SAIL)
Market Capitalization: $11.87 billion
Number of Hedge Fund Holders: 25
SailPoint, Inc. (NASDAQ:SAIL) is one of the Best Young Tech Stocks to Buy. On December 18, SailPoint, Inc. (NASDAQ:SAIL) announced the integration of its SailPoint Identity Security Cloud with the CrowdStrike Falcon platform.
Management noted that the integration connects the identity management with advanced threat detection tools. This will enable organizations to spot and respond to identity-related risks, including compromised accounts or unusual access patterns, more effectively. The integration links SailPoint, Inc. (NASDAQ:SAIL) governance tools with CrowdStrike’s Falcon Next-Gen Identity Security, Falcon Next-Gen SIEM, and Falcon Fusion SOAR.
That said, on December 11, Keith Bachman from BMO Capital maintained a Buy rating on SailPoint, Inc. (NASDAQ:SAIL) with a price target of $25. The analyst based his bullish rating on the company’s fiscal Q3 2026 earnings released on December 9.
The company grew its revenue by 19.84% year-over-year to $281.94 million, surpassing estimates by $11.41 million. Moreover, the EPS of $0.08 also topped estimates by $0.02. Management attributed the earnings beat to a 22% increase in Subscription revenue, which reached $266 million. Notably, SailPoint, Inc. (NASDAQ:SAIL) also surpassed $1 billion in ARR, as total ARR reached $1.040 billion, reflecting a 28% year-over-year increase.
Bachman found the fiscal Q1 2026 ARR beat to be smaller than the previous two quarters. However, the analysts remain optimistic that the January quarter will provide further support for the company’s shares in the near-term. Moreover, Bachman also highlighted the company’s strong pipeline, which is benefiting from ongoing migrations and new product cross-selling opportunities.
SailPoint, Inc. (NASDAQ:SAIL) provides identity security solutions that manage and secure access to corporate networks and data. It uses AI and machine learning to automate processes like granting appropriate access to the right users and machine identities at the right time.
9. Pony AI Inc. (NASDAQ:PONY)
Market Capitalization: $6.09 billion
Number of Hedge Fund Holders: 27
Pony AI Inc. (NASDAQ:PONY) is one of the Best Young Tech Stocks to Buy. On December 16, Jiong Shao from Barclays initiated Pony AI Inc. (NASDAQ:PONY) with a Hold rating and a $15 price target. A day earlier, on December 15, Eugene Hsiao from Macquarie also initiated coverage on the stock with a Buy rating and a $29 price target.
Analyst Shao of Barclays noted that they remain optimistic regarding the future potential of robotaxis. He added that most of the robotics technology in China is ready, and the firm also sees a viable business model for these technological advancements. However, despite this, the company assigned an Equal Weight rating, noting that the challenges of this industry can not be overlooked.
On the other hand, Hsiao of Macquarie is bullish on the Chinese autonomous driving industry. He expects 2026 to be an important inflection point where robotaxis transition from pilot projects to viable commercial businesses. In this scenario, the firm sees Pony AI Inc. (NASDAQ:PONY) as a leader in the industry. He added that the positive sign for the company is that its biggest challenge right now is regulation rather than technology.
In addition, the firm also highlighted that Pony AI Inc. (NASDAQ:PONY) has to focus on establishing its presence in Tier-1 Chinese cities before expanding to other cities. The analyst noted that this strategy will help the company in lifting daily fares per vehicle, which will, in return improve the unit economics.
Pony AI Inc. (NASDAQ:PONY) is a leading autonomous mobility technology company. The company leverages its Virtual Driver technology, a full-stack autonomous driving technology that utilizes the company’s proprietary software, hardware, and services, to enable the large-scale production and deployment of autonomous vehicles.
8. Netskope, Inc. (NASDAQ:NTSK)
Market Capitalization: $7.96 billion
Number of Hedge Fund Holders: 44
Netskope, Inc. (NASDAQ:NTSK) is one of the Best Young Tech Stocks to Buy. Wall Street is bullish on Netskope, Inc. (NASDAQ:NTSK) as the company topped expectations during its first earnings release after the IPO.
Recently, on December 18, Meta Marshall from Morgan Stanley reiterated a Buy rating on the stock with a $27 price target. Earlier on December 16, Gregg Moskowitz from Mizuho Securities also reiterated a Buy rating on the stock with a $26 price target.
The company released its fiscal third quarter 2026 results on December 11. The company grew revenue by 33% year-over-year to $184.17 million, surpassing estimates by $8.12 million. Moreover, the EPS of negative $0.10 also topped expectations by $0.15. Management noted that the growth was driven by cloud modernization and AI, which fueled strong demand for its Netskope One platform. Notably, Netskope, Inc. (NASDAQ:NTSK) grew its ARR by 34% year-over-year to $754 million as of October 31, 2025.
Analyst Meta Marshall of Morgan Stanley noted that the increase in ARR is a sign of good financial health and market share for the company. Moreover, the analyst also likes the company’s increased hiring and the performance of its sales team. She anticipates that these factors will help the company achieve a healthy growth rate of 25% to 30% each year.
Brown Advisory Mid-Cap Growth Strategy stated the following regarding Netskope, Inc. (NASDAQ:NTSK) in its third quarter 2025 investor letter:
“We participated in Netskope, Inc. (NASDAQ:NTSK) IPO. A technology leader in cloud network security, NetSkope’s novel architecture enables stronger protection and faster performance—critical as cyber threats escalate. With a large legacy replacement opportunity ahead, we see durable growth over the next three to five years. Its advanced data inspection capabilities also position it well as enterprises adopt generative AI technologies.”
Netskope, Inc. is a cybersecurity company specializing in cloud, data, and network security solutions for enterprises.
7. Ralliant Corporation (NYSE:RAL)
Market Capitalization: $5.70 billion
Number of Hedge Fund Holders: 45
Ralliant Corporation (NYSE:RAL) is one of the Best Young Tech Stocks to Buy. On December 15, Ian Zaffino from Oppenheimer reiterated a Buy rating on Ralliant Corporation (NYSE:RAL) and raised the price target from $55 to $60. Earlier, on December 12, Truist Financial initiated the stock with a Buy rating and $62 price target.
Zaffino of Oppenheimer noted the company’s fiscal Q3 2025 performance and its long-term potential as the main factors behind the company’s bullish rating, which comes after roughly six months of its spin-off from FTV. The analyst pointed to three main growth areas, including defense technologies, grid modernization, and electrification. He added that the defense sector is set to benefit from a backlog roughly twice annual revenues, offering high visibility through launch and flight safety systems and 12 key military programs.
Regarding grid modernization, the analyst finds this sector to be a secular tailwind for Ralliant Corporation (NYSE:RAL), supported by significant opportunities emerging to support utilities and OEMs in power generation, transmission, and distribution.
On the other hand, Truist Financial also likes the company’s strong position in key growth markets and highlighted the company’s proven playbook as key factors driving the bullish sentiment. The firm sees the company as attractively priced compared to its peers and also noted the “compelling combination of cyclical and stable/high-margin businesses,” it provides.
Ralliant Corporation (NYSE:RAL) is a global provider of precision technologies, designing and manufacturing high-quality instruments and engineered products.
6. ServiceTitan, Inc. (NASDAQ:TTAN)
Market Capitalization: $9.84 billion
Number of Hedge Fund Holders: 48
ServiceTitan, Inc. (NASDAQ:TTAN) is one of the Best Young Tech Stocks to Buy. On December 17, Nick Altmann from BTIG initiated ServiceTitan, Inc. (NASDAQ:TTAN) with a Buy rating and a $130 price target. A day earlier, on December 16, Jason Celino from KeyBanc also reiterated a Buy rating on the stock without disclosing any price targets.
Analyst Altmann of BTIG noted the company to be one of the fastest-growing large-scale software companies. He noted that ServiceTitan, Inc. (NASDAQ:TTAN) is expanding into diverse trades and markets, which puts the company on a substantial long-term growth trajectory.
Similarly, Jason Celino of KeyBanc noted the company to be one of the firm’s top picks for 2026. He added that ServiceTitan is a clear winner in the under-digitized trades industry. Moreover, the analyst highlighted the market’s low penetration of under 10% and its resilience to non-discretionary repair work, which makes it less sensitive to economic downturns. Celino also likes the company’s expansion into commercial sector products, Pro services cross-selling, and entry into roofing. He added that ServiceTitan, Inc. (NASDAQ:TTAN) has delivered 26.49% revenue growth during the past 12 months, which fuels analysts’ confidence in the company’s ability to exceed fiscal 2027 targets.
ServiceTitan Inc. (NASDAQ:TTAN) provides an end-to-end cloud-based software platform in the US and Canada.
5. Klarna Group plc (NYSE:KLAR)
Market Capitalization: $21.73 billion
Number of Hedge Fund Holders: 50
Klarna Group plc (NYSE:KLAR) is one of the Best Young Tech Stocks to Buy. On December 19, Klarna Group plc (NYSE:KLAR) announced its partnership with Coinbase to incorporate stablecoins into its funding mix.
The company sources its funding from consumer deposits, long-term loans, and short-dated commercial paper. After this partnership, the company has added stablecoins, particularly USDC, as a funding source. Moreover, the company also plans to raise short-term cash from big institutional investors directly in USDC, using Coinbase’s blockchain-based tools.
Earlier, on December 15, the company introduced Agentic Product Protocol, which is an open standard designed to supercharge AI agents in e-commerce. Management noted that the new protocol creates a universal language for product data that pulls data from over 100 million products and over 400 million prices from 12 global markets. This allows AI agents to discover, compare, and provide real-time product data, thereby positioning AI as the go-to interface for shopping.
That said, Wall Street has a positive outlook on Klarna Group plc (NYSE:KLAR). On December 18, Jason Kupferberg from Wells Fargo reiterated a Buy rating on the stock and raised the price target from $29 to $53. Earlier on December 10, James Faucette from Morgan Stanley reiterated a Hold rating on the stock with a $39.
Klarna Group plc (NYSE:KLAR) describes itself as a global digital bank and flexible payments provider, aiming to help consumers manage everyday spending and shopping through its app and merchant network.
4. Rubrik, Inc. (NYSE:RBRK)
Market Capitalization: $15.59 billion
Number of Hedge Fund Holders: 52
Rubrik, Inc. (NYSE:RBRK) is one of the Best Young Tech Stocks to Buy. Rubrik, Inc. (NYSE:RBRK) has risen more than 12.03% since the release of its fiscal Q3 2026 earnings, announced on December 4. Wall Street has had a bullish sentiment on the stock ever since.
Recently, on December 19, Goldman Sachs reiterated a Buy rating on the stock with a $120 price target. Earlier, on December 17, Cantor Fitzgerald reiterated a Buy rating on the stock without disclosing any price targets.
During the quarter, Rubrik, Inc. (NYSE:RBRK) grew its revenue by 48.26% year-over-year to $350.17 million, surpassing the estimates by $29.66 million. Moreover, the EPS of $0.10 also topped the consensus by $0.27. Management noted the growth was driven by a 34% increase in subscription ARR, which reached a record value of $1.35 billion. Notably, the gross margins also improved from 76.2% a year ago to 80.5%.
Analysts at Cantor Fitzgerald noted that the company added more than $95 million in subscription ARR, which suggests increased platform adoption. Moreover, the company has also raised its fiscal year 2026 guidance, which, as per the firm, points towards management’s sustained confidence in data resilience, cloud migration, and security-led expansion.
Rubrik Inc. (NYSE:RBRK) provides data security solutions to individuals and businesses worldwide. It serves financial, retail, trade, transportation, energy, industrial, healthcare & life science, education, technology, media, communications, services, and public sectors.
3. Astera Labs, Inc. (NASDAQ:ALAB)
Market Capitalization: $24.48 billion
Number of Hedge Fund Holders: 57
Astera Labs, Inc. (NASDAQ:ALAB) is one of the Best Young Tech Stocks to Buy. On December 16, Vivek Arya from Bank of America reiterated a Hold rating on the stock and lowered the price target from $210 to $170. Earlier, on December 9, H.C. Wainwright also lowered the firm’s price target from $195 to $175, and maintained a Buy rating on Astera Labs, Inc. (NASDAQ:ALAB).
Arya of BofA noted that the reduced price target reflects the firm’s updated pricing model of the US semiconductor sector. The firm sees 2026 as the midpoint of an 8 to 10-year AI cycle. The analyst added that they expect some companies in this sector to remain choppy due to increased investor scrutiny over return on investment. However, the firm believes that this will be offset by companies that build large language models and AI factories.
On the other hand, H.C. Wainwright likes Astera Labs, Inc.’s (NASDAQ:ALAB) strong positioning in the AI infrastructure connectivity segment. The analyst highlighted the company’s interconnect vendor of choice, which helps it expand revenue opportunities per rack in the data centers. The firm further noted that the company’s Scorpio X product line is expected to drive revenue growth throughout 2026. This is mainly due to the expected launch of larger switches in the second half of 2026. Moreover, looking ahead to 2027, the firm expects the NVLink Fusion product to sustain and increase revenue per AI accelerator chip.
Astera Labs Inc. (NASDAQ:ALAB) designs, manufactures, and sells semiconductor-based connectivity solutions for cloud and AI infrastructure.
2. Sandisk Corporation (NASDAQ:SNDK)
Market Capitalization: $30.68 billion
Number of Hedge Fund Holders: 61
Sandisk Corporation (NASDAQ:SNDK) is one of the Best Young Tech Stocks to Buy. On December 19, Asiya Merchant from Citi reiterated a Buy rating on the stock without disclosing any price targets. A day earlier, on December 18, Mark Miller from Benchmark Co. reiterated a Buy rating on the stock with a price target of $260.
Mark Miller of Benchmark Co. noted that the bullish sentiment is based on the strong results from Micron, which delivered strong results driven by AI and a mid-teen percentage increase in NAND prices during the latest quarter. The analyst noted that the increase in NAND prices directly impacts Sandisk Corporation’s (NASDAQ:SNDK) business. Moreover, the analyst also pointed out that the company has grown its revenue by 10.94% during the year, and analysts expect more than 42% growth in 2026, driven by increased prices and demand.
He added that analysis suggests high-teens percentage demand growth for NAND in 2026, driven by server sales outpacing supply.
That said, earlier on December 8, S&P Global Ratings revised its outlook on Sandisk Corporation (NASDAQ:SNDK) from stable to positive and affirmed its BB credit rating. The positive outlook is based on improved cash flow generation and the improvement in the market position of the company. S&P sees the strong demand and supply shortage of NAND to drive significant revenue for the company. S&P now forecasts Sandisk Corporation’s (NASDAQ:SNDK) revenue to increase to $10 billion in 2026 from $7.3 billion, along with further growth anticipated in 2027.
Sandisk Corporation (NASDAQ:SNDK) develops, manufactures, and sells data storage devices and solutions using NAND flash technology in the US, Europe, the Middle East, Africa, Asia, and internationally.
1. CoreWeave, Inc. (NASDAQ:CRWV)
Market Capitalization: $34.63 billion
Number of Hedge Fund Holders: 62
CoreWeave, Inc. (NASDAQ:CRWV) is one of the Best Young Tech Stocks to Buy. On December 19, Citi resumed CoreWeave, Inc. (NASDAQ:CRWV) with a Buy rating but lowered the price target from $192 to $135. On December 16, Mizuho lowered the firm’s price target on the stock to $92 from $120 and kept a Neutral rating on the shares. Earlier on December 6, Roth MKM initiated the stock with a Buy rating and a $110 price target.
As per the Fly, analysts at Mizuho Securities note that the adjusted price target reflects the firm’s updated outlook on the software sector. The firm noted that there are plenty of tailwinds for the software sector, including artificial intelligence, data modernization, DevOps, next-generation security, and electronic design automation. Moreover, the firm also believes that the industry’s median 2026 revenue growth projection of low-teens is easily “beatable,” setting up compelling risk/reward for investors into next year.
On the other hand, Roth MKM found CoreWeave, Inc. (NASDAQ:CRWV) as one of the top four market share winners in the AI cloud market. The firm expects the AI cloud market to surpass the traditional internet cloud market in size. Citi highlighted that CoreWeave enjoys a significant competitive edge based on its proven scale in handling AI workloads, rapid speed to market new features, and superior product lineup in terms of pricing compared to its peers.
CoreWeave (NASDAQ:CRWV) is a hyperscale cloud and AI data center company specializing in GPU‑accelerated workloads for artificial intelligence, machine learning, and high‑performance computing.
While we acknowledge the potential of CRWV 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 CRWV and that has 100x upside potential, check out our report about this cheapest AI stock.
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