In this article, we will look at the top 10 High Growth Mega Cap Stocks to Buy and Hold for Next 10 Years.
By the end of 2025, the US stock market was heavily concentrated in the top 10 companies, the highest concentration since 1932, according to a Morningstar report published by Susan Dziubinski on March 4. Investors recognize this risk, especially when seen in the context of massive AI infrastructure investments.
Investors have grown concerned about how much money companies are spending on AI and what toll AI may take on various industries. Those worries have led to the rise of the “anything but AI” trade and to a rotation in the US stock market—and to in-the-red returns for most mega cap names so far in 2026.
Her analysis suggests mega cap stocks are not as attractive as they were last year. The concerns about AI spending are also valid, but there’s no one better than Nvidia’s Jensen Huang to tell us whether that’s a red flag.
Speaking at the GPU Technology Conference (GTC), Huang pointed out the massive demand for GPUs. He expects the Blackwell and Rubin line of GPUs to generate $1 trillion in revenue. This demand will eventually drive growth in the new verticals AI will create. He is confident the actual demand will be much higher.
I am certain computing demand will be much higher than that.
Susan Dziubinski, in her Morningstar article, also points out that, in the long run, stocks will outperform other asset classes, which is why staying invested is all the more important for investors. However, long-term investment can only be done in companies that not only have a strong track record but are also expected to continue growing. That is why we decided to create our list of 10 high growth mega cap stocks to buy and hold for the next 10 years.
Our Methodology
To come up with our list of 10 high growth mega cap stocks to buy and hold for the next 10 years, we only considered companies with a market cap of at least $200 billion. We then considered their growth prospects, filtering out companies with expected revenue and earnings growth rates of at least 20% over the next 5 years. We 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, and are listed in ascending order of the number of hedge funds holding them in their portfolios.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Note: All share price data in the article is as per market close on March 24.
10. Arm Holdings PLC (NASDAQ:ARM)
On March 24, Arm Holdings PLC (NASDAQ:ARM) announced that it was introducing a new AI chip called the AGI CPU. The new chip is intended to meet the computing needs of agentic AI, a specific type of AI that can act as a virtual assistant, carrying out operations on behalf of users without requiring constant supervision or instructions.
In the past, ARM used to license its design to Nvidia and earn royalties on the sales of the chips. It is now changing the business model in a big way by building the chips itself. While this will unlock better margins, it will also require significant upfront investment. The company is working with Meta and Taiwan Semiconductor to bring this chip to market, with an expected launch later this year. On top of this, the firm is also working with server equipment manufacturers such as Quanta and Lenovo to deliver complete systems to its customers.
Arm Holdings PLC is a semiconductor design company that mainly licenses its chip designs to other companies. It was founded in 1990 and is owned by the SoftBank Group. Its corporate headquarters are in Cambridge, UK, and California, USA.
9. Palantir Technologies Inc. (NASDAQ:PLTR)
On March 25, John McPeake of Rosenblatt Securities reiterated his Buy rating on Palantir Technologies Inc. (NASDAQ: PLTR) and set a price target of $200, which implies over 25% upside from here. The update came as the company’s name was added to Donald Trump’s Golden Dome project.
The Golden Dome is a multi-layered missile defense system that will protect the USA from all sorts of missile threats, including ballistic, hypersonic, and cruise missiles. The initial estimated cost of the project is around $185 billion. The defense system is unique in the sense that it will be a space-based system, driven by low-orbit satellites and the power of AI, most likely through Palantir’s unique ontology expertise.
McPeake considers Palantir a major beneficiary of this project. According to him, the induction of the company into this project could unlock billions in revenue in the initial phase. Palantir’s Maven Smart System will provide the necessary data to the Department of War, which would drive its bullish thesis beyond 2028, as per the analyst.
Palantir Technologies Inc. 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.
8. Shopify Inc. (NASDAQ:SHOP)
On March 24, Shopify Inc. (NASDAQ:SHOP) introduced a new feature that allows merchants to sell products directly through ChatGPT using its Agentic Storefront. This gives them seamless access to major AI channels, including Microsoft Copilot, ChatGPT, AI mode in Google Search, and the Geminin app. Hundreds of millions of ChatGPT users can now purchase and discover products without leaving the chat. All purchases still go through Shopify’s checkout and payment system, and merchants stay in control as the “merchant of record”, keeping ownership of customer data.
The company commented on its website:
Shopify has spent two decades unifying the full commerce lifecycle into one operating system—merchandising, payments, fraud, tax, fulfillment, subscriptions, and more. That infrastructure powers selling through storefronts, points of sale, social platforms, and now AI agents.
The Agentic plan, now publicly available, lets brands that don’t use Shopify Inc. for e-commerce add their products to the Shopify catalog and sell across these AI channels. This move positions the company as a leader in AI-powered commerce, giving merchants more ways to reach shoppers where they are looking and buying products. It also supports long-term growth in online retail.
Earlier, on March 17, Terry Tillman from Truist Financial reaffirmed a Buy rating on Shopify Inc. with the price target of $150. The firm’s price target suggests an additional 29% upside from the current levels.
Shopify Inc. operates as a commerce technology company. The company offers tools to run, start, market, and scale businesses of different sizes across the United States, Canada, the Middle East, Europe, Latin America, Africa, and the Asia Pacific. It is also involved in the sale of themes and apps, advertising on the Shopify App Store, point-of-sale hardware, shipping labels through Shopify Shipping, and Shop Campaigns for buyer acquisitions.
7. AppLovin Corporation (NASDAQ:APP)
On March 16, Citi analyst Jason Bazinet raised the firm’s price target on AppLovin Corporation (NASDAQ:APP) while reiterating a Buy rating. The analyst increased the firm’s price target on the stock to $820. The upwardly revised price target suggests a compelling 78.67% upside from the current levels. This upside is closer to the highest Wall Street analysts’ upside of 87%, as per 32 analysts covering the stock.
In addition to Citi, Bank of America also maintained its Buy rating on AppLovin Corporation along with the price target of $705 on March 9. The firm’s optimism was also supported by growing institutional interest in the stock, reflected in a notable increase in ownership breadth over the past year. This trend points to strengthening investor confidence. According to the firm, the broader trend reflects continued inflows into AI and technology-related stocks, with the company emerging as one of the key beneficiaries. The increase in ownership shows that institutional investors are putting more money into AppLovin Corporation, a company well-positioned to benefit from AI growth and digital advertising demand.
AppLovin Corporation operates as an end-to-end AI-powered advertising solutions provider. It serves businesses in the United States and around the world. The company operates in the Apps and Advertising segments. AppLovin was founded in 2011 and is based in Palo Alto, California.
6. Advanced Micro Devices Inc. (NASDAQ:AMD)
On March 24, Bernstein analyst Stacy Rasgon signalled caution to investors in Advanced Micro Devices Inc. (NASDAQ:AMD). He suggests investors should wait and see whether demand for AMD chips comes from people genuinely looking for AMD products rather than from those buying just because supply is constrained elsewhere.
The analyst had expressed similar sentiment on March 5 when he assigned a Hold rating to the stock with a price target of $235. He is more bullish on Nvidia and Broadcom as AMD’s competitors, but Lisa Su’s company now has another headache to deal with after ARM Holdings announced it too was venturing into making its own AI chips for agentic AI. Despite these risks, AMD still has a median upside potential of 46%, according to CNN’s compilation of 55 analyst ratings. Interestingly,. The stock is currently trading below the lowest target price on Wall Street: $220, set by DA Davidson analyst Gil Luria on February 25.
Advanced Micro Devices Inc. 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.
5. Tesla, Inc. (NASDAQ:TSLA)
On March 23, Barclays analyst Dan Levy reiterated a Hold rating on Tesla, Inc. (NASDAQ:TSLA) along with the price target of $360. The firm’s price target implies a 6% downside from the current levels. Analyst Dan Levy cautioned that capital expenditures from the company’s proposed Terafab semiconductor facility in Austin, Texas, will be very high for the electric vehicle maker. However, he noted that investors appear willing to support the company’s ambitious growth plans.
Barclays analyst Dan Levy stated:
What’s clear is that our ‘bull’ capex target for Terafab of $50bn+ appears dramatically low vs. the aspirations Tesla communicated, and could be many multiples higher, and likely well more than an order of magnitude higher. Yet it seems that the bulls are braced for this, knowing that you need to spend if you want to win. Note though, we expect Tesla to undergo construction in multiple phases, slowly ramping to the 1 TW target. And we would assume that Tesla and SpaceX [and] xAI will contribute funding.
Tesla, Inc. CEO Elon Musk announced that Terafab will be jointly operated with SpaceX and xAI, combining Elon Musk’s robotic, AI, and space initiatives. The facility is designed to test and produce a wide range of chips, aiming for up to 1 terawatt-hour (TWh) of annual compute power, roughly 10% of current global data center capacity. The plant aims to reduce Tesla’s reliance on external chipmakers like TSMC and Samsung. It will start as a smaller site for chip design and testing, with plans to expand.
Tesla, Inc. is a developer, manufacturer, designer, lessor, and seller of electric vehicles and energy generation and storage systems. The company operates across China, the United States, and globally. It operates through the Automotive and Energy Generation and Storage segments.
4. Oracle Corporation (NYSE:ORCL)
On March 24, Tal Liani of Bank of America Securities reinstated coverage of Oracle Corporation (NYSE:ORCL), assigning a $200 price target. The major factors in the firm’s bullish thesis on ORCL are its massive backlog and its ability to cater to increasing AI investments in the US. Oracle has a remaining performance obligation (RPO) of $553 billion, which offers good visibility into the company’s future earnings.
The analyst also pointed out that a major risk in the bull thesis is the customer concentration. A large part of this backlog comes from OpenAI.OpenAI intends to invest a total of $600 billion in computing power by 2030. Previously, in October, OpenAI CEO Sam Altman said the company could spend up to $1.4 trillion on infrastructure by 2033.
One month ago, BNP Paribas analyst Stefan Slowinski commented on how this particular risk is now reducing for Oracle Corporation:
With a more defined cash burn outlook and OpenAI’s $100bn+ capital raise closing soon (with another $80bn likely required thereafter to reach FCF breakeven), we believe this reduces the OpenAI counterparty risk for ORCL over the near term.
Oracle Corporation 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 in June 1977 by Lawrence Joseph Ellison, Robert Nimrod Miner, and Edward A. Oates.
3. Broadcom Inc. (NASDAQ:AVGO)
On March 24, Broadcom Inc. (NASDAQ:AVGO) and Carahsoft Technology Corp. announced that they had secured a five-year, $970M blanket purchase agreement from the Defense Information Systems Agency. The deal marks an expansion of AVGO’s role in U.S. defense technology. The agreement is designed to streamline and consolidate software contracts across multiple Department of Defense agencies, including the Space Force and Air Force. It also introduces standardized pricing and improved cost transparency for private cloud infrastructure, security solutions, and other Broadcom offerings. This is expected to simplify how agencies purchase and deploy technology.
Regan McGrath, President, Americas, Broadcom, expressed his views on the partnership:
Broadcom is proud to partner with Carahsoft on this vital modernization initiative for the DoW. By consolidating licensing, simplifying procurement and delivering a modern private cloud, we are helping the agency and the agencies it serves to accelerate secure digital transformation at scale. This agreement ensures mission-ready performance, consistent governance and a foundation capable of supporting the next generation of AI-enabled defense capabilities.
At the core of the agreement is VMware Cloud Foundation. It allows agencies to run both legacy and cloud-based applications on a single platform, with support for AI and Kubernetes. The deal also includes additional services and tools aimed at improving efficiency and reducing risks. It may also help reduce costs and speed up deployment timelines.
Broadcom Inc. operates as a developer, designer, and supplier of a range of semiconductor devices and infrastructure software solutions globally. It operates through the Infrastructure Software and Semiconductor Solutions segments. The company was incorporated in 1961 and is based in Palo Alto, California.
2. Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM)
Reuters reported on March 24 that, as per an executive at Broadcom, the company’s manufacturing partner, Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM), is operating near full capacity as demand for AI chips continues to surge. The executive added that the broader industry is also facing supply chain constraints. He pointed out shortages in areas such as printed circuit boards and lasers, which have emerged as unexpected bottlenecks and are causing delays. To address these constraints, many customers are signing long-term agreements for 3-4 years. Taiwan Semiconductor Manufacturing Co. Ltd. has also said its customer planning timelines are now 2-3 years in advance due to tight capacity conditions.
Director of product marketing in Broadcom’s Physical Layer Products division, Natarajan Ramachandran, commented:
We are seeing that TSMC is hitting (production capacity) limits. They will be increasing the capacity to 2027, but that has become a bottleneck, or that has kind of choked the supply chain in 2026.
According to the CEO C.C. Wei, the company is working hard to expand the capacity in Arizona and Taiwan to meet demand. Taiwan Semiconductor Manufacturing Co. Ltd., which produces around 90% of the world’s most advanced chips, counts Nvidia and Apple among its key customers. Meanwhile, Samsung is also shifting towards three- to five-year long-term contracts to better manage industry cycles.
Taiwan Semiconductor Manufacturing Co. Ltd. is the world’s largest semiconductor foundry and is engaged in the manufacturing and designing of semiconductor chips. These chips are used by companies across several end markets, including personal computers and peripheral products, consumer electronics, wired and wireless communications systems, and automotive and industrial equipment.
1. NVIDIA Corporation (NASDAQ:NVDA)
On March 23, Rosenblatt Securities reiterated its Buy rating and $325 price target for NVIDIA Corporation (NASDAQ:NVDA). The note was issued by analyst Kevin Cassidy after Nvidia CEO Jensen Huang presented at the GTC-2026 conference. Just four days prior to this rating, Raymond James also raised NVDA price target to $323 from $291, bringing its expectations quite close to those of Rosenblatt Securities.
Wedbush Securities also chipped in on March 23 with a reaction to Jensen Huang’s comments at the conference. The firm pointed out that NVIDIA was well prepared to meet demand for its Blackwell and Rubin GPUs, which alone account for $1 trillion in incoming revenue.
NVIDIA currently dominates the AI chip market, but a recent announcement by ARM Holdings could force the company to rethink its long-term strategy. ARM announced that it was introducing its own AI data center chip, CGI CPU, to address agentic AI needs. Previously, the company used to license its chip design to Nvidia and earn royalties on sales.
NVIDIA Corporation 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.
