In this article, we will look at the 10 High-Flying Tech Stocks to Buy.
On January 22, Dan Ives, Global Head of Technology Research at Wedbush Securities, appeared on a CNBC Television interview to discuss how the AI trade is accelerating. His insights are based on the discussions he had with tech leaders at the World Economic Forum in Davos. Dan noted that for the first time in over 30 years, the US is ahead of China in technology, mainly due to the AI revolution. He highlighted that Nvidia is currently the leader in chip technology around the world. Dan noted that one of the common themes that has emerged after his discussion with tech leaders is that they are all looking to invest in AI. Dan believes that one of the biggest beneficiaries of this investment will be the AI and technology stocks of the United States.
Dan had released a note earlier saying that he expects the chips and software to take leadership in 2026. He acknowledged that there are some serious concerns regarding the software sector. However, Dan noted that the use cases of AI are being led by software companies, including Palantir and MongoDB. He believes that software companies are going to surprise the market in 2026, and the fact that many are cautious on the sector will result in a big trade.
With that, let’s take a look at the 10 High-Flying Tech Stocks to Buy.
Stocks
Our Methodology
To compile the list of 10 High-Flying Tech Stocks to Buy, we used the Finviz stock screener, CNN, and Insider Monkey’s Q3 2025 database. For this article, we have defined High-Flying stocks as those that have outperformed the NASDAQ index over the past 6 months. NASDAQ has returned around 10.97% over the past 6 months. Therefore, using the screener, we aggregated a list of tech stocks that have gained more than 12% over the past 6 months. Next, we sorted the list by market cap and cross-checked the performance from CNN. From the list, we only added those with more than 5% analyst upside potential and a Strong Buy (60% or more on Buy). Lastly, we ranked the shortlisted stocks in ascending order of the number of hedge fund holders. Please note that the data was recorded on January 23, 2026.
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 High-Flying Tech Stocks to Buy
10. Flex Ltd. (NASDAQ:FLEX)
6-month Performance: 28.40%
Analyst Upside Potential: 17.60%
Number of Hedge Fund Holders: 60
Flex Ltd. (NASDAQ:FLEX) is one of the High-Flying Tech Stocks to Buy. Wall Street has a positive outlook on the stock. Recently, on January 14, Melissa Fairbanks from Raymond James upgraded the stock from Hold to Buy with a $75 price target. Earlier on January 13, Tim Long from Barclays reiterated a Buy rating on Flex Ltd. (NASDAQ:FLEX) but lowered the price target from $78 to $71.
Melissa from Raymond James noted that her positive outlook is based on the strong position of Flex in the cloud and AI infrastructure sector. She added that the company has a competitive edge over its competitors due to its differentiated power solutions for hyperscale data centers. She noted that after discussion with the company’s management, she sees strong near-term growth. Melissa expects the company’s cloud/AI revenues to grow at a solid double-digit pace and finds the recent share price pull-back an attractive entry point for investors.
The analyst at Raymond James also highlighted the power business of Flex Ltd. (NASDAQ:FLEX) offers higher margins than the market average. She noted that as the segment expands within the data centers, the overall profitability will rise roughly 7%.
That said, Wall Street has a Strong Buy opinion on the stock, with all 12-analysts covering the stock having a Buy rating.
Flex Ltd. (NASDAQ:FLEX), previously known as Flextronics, is a multinational electronics manufacturing services company. With a global workforce across 30 countries, the company offers design and engineering, supply chain, and advanced manufacturing solutions to diverse industries and end markets like automotive, cloud, communications, consumer devices, data center, healthcare, industrial, and lifestyle.
9. Celestica Inc. (NYSE:CLS)
6-month Performance: 84.83%
Analyst Upside Potential: 27.02%
Number of Hedge Fund Holders: 62
Celestica Inc. (NYSE:CLS) is one of the High-Flying Tech Stocks to Buy. On January 23, RBC Capital reiterated an Outperform rating on the stock with a $400 price target. Earlier, on January 20, Aletheia Capital also reiterated a Buy rating on Celestica Inc. (NYSE:CLS) and raised the price target from $330 to $410.
Recently, on January 22, DigiTimes report stated that Inventec, one of the competitors of Celestica Inc., is expected to expand its role in Google Tensor Processing Unit manufacturing and ramp AI server production in 2026. The news caused the stock price of CLS to fall roughly 11%. Analysts at RBC Capital view the news and the market reaction to be excessive and reaffirmed that the company remains attractively placed in a high-demand market. The firm added that Celestica Inc. (NYSE:CLS) has maintained a majority of TPU assembly volumes driven by the company’s high production yields.
The firm added that competition and potential market share shifts pose risks to Celestica’s growth. However, they see the company to be well-positioned to capitalize on the growing demand from hyperscalers into 2027.
Similarly, Aletheia Capital noted higher average selling prices for Google’s Zebrafish modules and confirmed that it is a parallel product line to Sunfish, not a cheaper inference version. The firm expects this higher average selling price to boost the company’s enterprise revenue by roughly 30% and will also help maintain the 75% to 80% share of Google’s TPU module production.
Celestica Inc. (NYSE:CLS) is a global electronics manufacturing services (EMS) company that is based in Canada. The company specializes in design, manufacturing, hardware platform, and supply chain solutions to deliver end-to-end product lifecycle solutions for various industries, including technology, aerospace, industrial, and healthcare.
8. Nebius Group N.V. (NASDAQ:NBIS)
6-month Performance: 81.17%
Analyst Upside Potential: 61.38%
Number of Hedge Fund Holders: 65
Nebius Group N.V. (NASDAQ:NBIS) is one of the High-Flying Tech Stocks to Buy. Nebius Group N.V. (NASDAQ:NBIS) has gained more than 80% over the past 6 months. Wall Street remains a Strong Buy with 75% of the 12 analysts covering the stock having a Buy rating.
Recently, on January 15, Morgan Stanley initiated coverage of the stock with a Market Perform rating and a $126 price target. The firm noted that they see the company to be well-positioned to rapidly scale its AI infrastructure capability, driven by its software platform, diverse customers, and managed services. Morgan Stanley believes that these factors enable the company to expand its market share in the AI market.
Moreover, the firm also highlighted that beyond its core AI component, Nebius Group N.V. (NASDAQ:NBIS) also benefits from non-core businesses and equity stakes that improve its overall value. However, despite these positive factors, the firm initiated the stock with a Market Perform rating.
The firm cited a few challenges, including a rising depreciation from a 4-year asset life, pressuring margins, and EBIT. In addition, Morgan Stanley also expects free cash flow to remain negative due to heavy capital expenditure for 2.5 GW of AI infrastructure by the end of 2026. The firm also noted that the $7 billion to $9 billion ARR target for Q4 2026 sounds overly optimistic and will require Nebius Group N.V. (NASDAQ:NBIS) to significantly outperform, amidst these challenges.
Nebius Group N.V. (NASDAQ:NBIS), headquartered in Amsterdam, develops and operates an AI cloud infrastructure designed for training and inference of advanced machine learning models.
7. Lumentum Holdings Inc. (NASDAQ:LITE)
6-month Performance: 229.79%
Analyst Upside Potential: 11.29%
Number of Hedge Fund Holders: 69
Lumentum Holdings Inc. (NASDAQ:LITE) is one of the High-Flying Tech Stocks to Buy. On January 23, Papa Talla Sylla from Citi reiterated a Buy rating on the stock and raised the price target from $240 to $450. A day earlier, on January 22, Ruben Roy from Stifel Nicolaus also reiterated a Buy rating on Lumentum Holdings Inc. (NASDAQ:LITE) and raised the price target from $200 to $400.
Ruben Roy of Stifel noted that the improved bullish outlook on the stock is based on the anticipation that agentic AI and reasoning networks will lead to a step-function increase in networking intensity. The increased shift towards AI and reasoning is expected to ramp up traffic complexity and scale over the coming years.
Roy added that the shortening of cycle times for networking standards. These cycles have historically followed multi-year development cycles. However, Roy expects AI networking to scale linearly while compute performance grows quadratically. Therefore, the firm sees profitability gains and an expansion in valuation multiples for suppliers, including Lumentum Holdings Inc. (NASDAQ:LITE), which leverages IP advantages to fulfill complex technological requirements.
That said, on January 20, Aletheia Capital also raised the price target on the stock from $330 to $500 and maintained a Buy rating. The firm noted that the improved outlook is based on the increasing demand for the company’s electro-absorption modulated lasers. The firm expects strong growth in EML volumes and 800Gbps switch bandwidth through 2028.
Lumentum Holdings Inc. (NASDAQ:LITE) is a California-based technology company.
6. Ciena Corporation (NYSE:CIEN)
6-month Performance: 162.81%
Analyst Upside Potential: 11.29%
Number of Hedge Fund Holders: 70
Ciena Corporation (NYSE:CIEN) is one of the High-Flying Tech Stocks to Buy. On January 22, Ruben Roy from Stifel Nicolaus reiterated a Buy rating on the stock and raised the price target from $270 to $280. However, earlier on January 20, Tal Liani from Bank of America Securities downgraded Ciena Corporation (NYSE:CIEN) from Buy to Hold with a $260 price target.
Stifel Nicolaus noted that the increased price target is based on the expectation of a “step-function increase in networking intensity.” This expectation is based on the rise of agentic AI and reasoning networks, which means that networks will need more power as data becomes complex and drives massive traffic in the coming years. The firm added that previously, networking tech standards took years to develop. However, now the cycles are speeding up. As a result, the firm expects AI networking to continue growing steadily while computing power explodes even faster, thereby driving demand.
On the other hand, Bank of America Securities sees significant challenges for Ciena Corporation (NYSE:CIEN) related to its valuation and core business. The firm added that the company faces challenges, including high valuation, risk of slower backlog growth, and weaker spending as network providers wait for the demand to increase.
On the bright side, BofA acknowledged the solid deployment plans from cloud and neocloud leaders, signaling ongoing networking equipment demand. However, the firm remains cautious with a Hold rating.
Ciena Corporation (NYSE:CIEN) is a network technology company that provides hardware, software, and services for various network operators in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and India.
5. Corning Incorporated (NYSE:GLW)
6-month Performance: 67.39%
Analyst Upside Potential: 7.22%
Number of Hedge Fund Holders: 75
Corning Incorporated (NYSE:GLW) is one of the High-Flying Tech Stocks to Buy. Wall Street is bullish on the stock ahead of its fiscal Q4 2025 earnings expected to be released on January 28, 2026. Out of the 17 analysts covering the stock, 71% maintain a Buy rating.
Recently, on January 22, Meta Marshall from Morgan Stanley reiterated a Hold rating on the stock with a $98 price target. Earlier, on January 13, Wamsi Mohan from Bank of America Securities also reiterated a Buy rating on Corning Incorporated (NYSE:GLW) and raised the price target from $95 to $110.
Analysts at Bank of America Securities noted that they expect the company to post an in-line quarterly result during fiscal Q4 2025. Moreover, BofA noted that they anticipate the company to guide sustained profitability amid stable demand for its Display segment in 2026. The Display segment is driven by ongoing recovery and resilience in display technologies. The firm highlighted that Apple is expected to launch its foldable device in Q3 2026, which is anticipated to increase demand for Corning Incorporated (NYSE:GLW) specialized glass in the Display and Specialty segments.
That said, the company expects Q4 2025 revenue to be around $4.35 billion, with core EPS within the range of $0.68 to $0.72. Wall Street expects the company’s revenue to be around $4.36 billion, along with an EPS of $0.62.
Corning Incorporated (NYSE:GLW) is a global materials science company that develops and manufactures advanced glass, ceramics, and optical products. It serves several markets, including optical communications, mobile consumer electronics, display, automotive, solar, semiconductors, and life sciences. The company provides the essential fiber-optic cables and connectivity hardware for 5G network infrastructure.
4. Amphenol Corporation (NYSE:APH)
6-month Performance: 44.54%
Analyst Upside Potential: 9.28%
Number of Hedge Fund Holders: 89
Amphenol Corporation (NYSE:APH) is one of the High-Flying Tech Stocks to Buy. On January 20, Amit Daryanani from Evercore ISI reiterated a Buy rating on the stock and raised the price target from $150 to $165. Earlier, on January 14, Joseph Spak from UBS also reiterated a Buy rating on Amphenol Corporation (NYSE:APH) and raised the price target from $152 to $174.
Evercore ISI noted that the increased price target reflects the firm’s improved outlook as part of its Q4 earnings preview on IT hardware and networking stocks under its coverage.
Similarly, on January 13, Truist Securities also raised the price target on the stock from $180 to $182, with a Buy rating. The firm noted the acquisition of CommScope’s Connectivity and Cable Solutions business as one of the factors behind an updated outlook. The firm highlighted the acquisition as one of the company’s largest ever. Truist expects this strategic step to increase the company’s sales by roughly 17%. Considering the track record of the company with acquisitions, the firm noted that the company usually also improves its profit margins and return on investments following acquisitions.
Amphenol Corporation (NYSE:APH) is a global leader in designing, manufacturing, and marketing high-technology electrical, electronic, and fiber-optic connectors, interconnect systems, antennas, and sensors. Headquartered in Wallingford, Connecticut, it serves diverse markets including automotive, IT/datacom, aerospace, defense, and industrial sectors.
3. MongoDB, Inc. (NASDAQ:MDB)
6-month Performance: 69.54%
Analyst Upside Potential: 16.88%
Number of Hedge Fund Holders: 89
MongoDB, Inc. (NASDAQ:MDB) is one of the High-Flying Tech Stocks to Buy. On January 21, Jason Ader from William Blair reiterated a Buy rating on the stock, without disclosing any price targets. Earlier, on January 20, Mike Cikos from Needham also reiterated a Buy rating on MongoDB, Inc. (NASDAQ:MDB) with a $500 price target.
Ader from William Blair noted that the buy rating is due to the company’s strong position in the AI trade and its growth trajectory. The analyst noted that the company is strongly positioned heading into Q4 2026, driven by its strong fundamentals, strong customer additions, and net revenue retention rates of over 120%.
The analyst also highlighted Atlas, which is the company’s cloud product. Atlas has accelerated growth for several quarters. Ader noted that his future projections for the product are still conservative, considering we are still in the early stages of the AI cycle. Lastly, Ader pointed out that the company still only holds a tiny chunk of the database market, thereby leaving significant room for growth.
MongoDB, Inc. (NASDAQ:MDB) provides a general-purpose database platform worldwide that integrates operational, unstructured, and AI-related data to streamline building applications.
2. Advanced Micro Devices, Inc. (NASDAQ:AMD)
6-month Performance: 60.18%
Analyst Upside Potential: 11.68%
Number of Hedge Fund Holders: 115
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the High-Flying Tech Stocks to Buy. Advanced Micro Devices, Inc. (NASDAQ:AMD) has gained more than 60% over the past 6 months. Recently, on January 23, Aletheia released a research note highlighting that the company’s server CPU business growth forecasts might be too conservative. Earlier, on January 21, Stacy Rasgon from Bernstein reiterated a Hold rating on the stock and raised the price target from $200 to $225.
On January 5, Aletheia released its conservative baseline server CPU business forecast. The firm noted that they expect AMD’s fiscal 2026 revenue to reach $14.5 billion, reflecting 42% year-over-year growth. However, recently the firm released another research note questioning whether the forecasts might be too conservative. This is due to feedback from cloud service providers, which suggests even stronger market conditions for 2026.
Similarly, Bernstein’s analyst Rasgon noted that the updated price target is part of the firm’s updated outlook on the stock. The firm expects Advanced Micro Devices, Inc.’s (NASDAQ:AMD) Q4 2025 revenue to be around $9.7 billion, up from the previous expectations of $9.6 billion. Moreover, the EPS is also expected at $1.31, up from the previous forecast of $1.30.
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global semiconductor company that manufactures GPUs, microprocessors, and high-performance computing solutions and serves a number of high-growth industries like gaming, data centers, and AI.
1. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
6-month Performance: 38.61%
Analyst Upside Potential: 22.44%
Number of Hedge Fund Holders: 194
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the High-Flying Tech Stocks to Buy. On January 19, DBS reiterated a Buy rating on the stock with a price target of $391. Earlier, on January 16, TD Cowen maintained a Hold rating on the stock and raised the price target from $325 to $370.
Analysts at TD Cowen noted that they have another upside quarterly outlook for the company. This optimistic outlook is based on the company raising its long-term revenue growth target to 25% CAGR from 2024 to 2029.
The company also raised its outlook for the AI and cloud demand and now expects demand to be in the range of mid 50% to high 50%. The firm noted that TSM’s 2026 capital expenditure of $52 billion to $56 billion reflects that the company expects demand to remain strong throughout the year, which is also a good sign for the semiconductor sector. TD Cowen also described the guidance of 63% to 65% Q1 gross margins as strong. However, despite this strong outlook, the firm still maintained a Hold rating. This is due to the upcoming dilution from the N2 node ramp and overseas fabs starting in H2 2026, due to higher initial costs. This pressures margins despite near-term strength.
Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM), together with its subsidiaries, manufactures, packages, tests, and sells ICs and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the US, and internationally.
While we acknowledge the potential of TSM 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 TSM and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
