In this article, we will take a look at the 10 Hottest Stocks to Buy in 2026.
After reaching a record high on January 27, the S&P 500 index fell for three consecutive sessions, closing at 6,939.03 on Friday. Despite a vast majority of investors approving of President Trump’s pick of Kevin Warsh as the new Fed chair, the broad index fell 0.43% on January 30.
However, the S&P 500 index ended on a positive note for the first month of 2026, up 1.37%, despite a volatile session on Friday. The Nasdaq Composite underperformed on Friday, dipping 0.94% to end the day at 23,461.82.
The U.S. dollar jumped, and Treasury yields held steady, indicating satisfactory investor sentiment following Trump’s Fed chair pick. In a Truth Social post, Trump said:
I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best.
Richard Saperstein, chief investment officer of Treasury Partners, welcomed Trump’s decision and said:
Kevin Warsh’s nomination for Fed Chair is exactly what markets were hoping for, as he’s a steady hand, well-known in market circles, and is expected to maintain the independence of the central bank, which is critical for markets.
Wall Street’s focus is on the monthly U.S. jobs data, with the report due on February 6, 2026. Ahead of the earnings for major tech companies in February, Jim Baird, chief investment officer with Plante Moran Financial Advisors, said:
For those companies where expectations have become very, very lofty, the onus is going to be on them to deliver. Even if they show growth, if it is growth that is not up to the expectations of the market, there is a risk that their stock price could be punished.
With that, let’s take a look at the 10 Hottest Stocks to Buy in 2026.
Photo by Austin Distel on Unsplash
Our Methodology
To create the list of the 10 hottest stocks to buy in 2026, we looked at the companies that had surged more than 30% over the last one year. We selected the top 10 companies with positive analyst sentiment and a positive upside. Finally, we ranked the 10 hottest stocks to buy based on the number of hedge funds holding stakes in them. Hedge fund sentiment data for each stock were sourced from Insider Monkey’s database 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).
Note: All the data is as of market close on January 30, 2026.
10. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 81
Palantir Technologies Inc. (NASDAQ:PLTR) is one of the hottest stocks to buy in 2026.
On January 13, Citi increased the price target on Palantir Technologies Inc. (NASDAQ:PLTR) from $201 to $235 and reiterated its Buy rating.
Palantir is scheduled to report its Q4 FY2025 results on Monday, February 2, 2026. Wall Street expects the company to post revenue of almost $1.34 billion, which indicates a growth of over 62% from a year ago. On average, Street projects adjusted earnings of around $0.23 per share, representing more than 64% year-over-year growth.
Over the last year, through January 30, Palantir Technologies Inc.’s stock has jumped by more than 80%. PLTR has a consensus median price target of $202.50, implying more than 38% upside. The growth over the past year and further upside are fuelled by robust growth in Palantir Technologies Inc.’s commercial business and broader adoption of its Artificial Intelligence Platform (AIP).
On January 22, Phillip Securities began coverage on Palantir with a Buy rating, setting the price target at $208. The firm sees Palantir’s sales expanding by over 47% year-over-year to $4.2 billion in fiscal 2025, driven by a 51% increase in commercial sales as AI usage scales beyond defense contracts.
Palantir Technologies Inc. (NASDAQ: PLTR) is a technology company that develops data integration and analytics platforms for government agencies, the military, and corporations. Its flagship products, Gotham and Foundry, support intelligence operations, counterterrorism analysis, law enforcement, and enterprise analytics.
9. ASML Holding N.V. (NASDAQ:ASML)
Number of Hedge Fund Holders: 82
ASML Holding N.V. (NASDAQ:ASML) is one of the hottest stocks to buy in 2026.
On January 29, TheFly reported that Bernstein analyst David Dai raised the price target on ASML Holding N.V. (NASDAQ:ASML) from $1,642 to $1,911. The analyst also maintained his Outperform rating on the stock.
Dai believes ASML stock closed down despite strong Q4 2025 results, driven by concerns about capacity and margin, as well as profit-taking, creating a buying opportunity. ASML Holding N.V. reported record Q4 orders and updated its 2026 outlook. The company’s orders exceeded expectations amid growing chip market demand driven by the rollout of AI and data centers worldwide. The company recorded $15.8 billion in orders, exceeding Visible Alpha’s $7.56 billion estimate.
Year-to-date, ASML shares have surged over 32% and trade at 41 times the 2026 earnings forecast of $12.57 billion, as per LSEG data. Over the past year, through January 30, ASML Holding N.V. (NASDAQ:ASML) shares have gained almost 100%. Citi analyst points out the company’s record order intake and strong 2026 outlook as early signs of a strong upcycle. With a median price target of $1,622.50, ASML has an upside potential of more than 14%.
ASML Holding N.V. (NASDAQ: ASML) develops lithography solutions for advanced semiconductor equipment. The company manufactures extreme ultraviolet lithography systems and ultraviolet lithography systems, including immersion and dry lithography solutions, used in the manufacture of semiconductor nodes and technologies.
