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.
8. Lam Research Corporation (NASDAQ:LRCX)
Number of Hedge Fund Holders: 93
Lam Research Corporation (NASDAQ:LRCX) is one of the hottest stocks to buy in 2026.
On January 29, TheFly reported that B. Riley lifted the price target on Lam Research Corporation (NASDAQ:LRCX) from $255 to $310, keeping the Buy rating on the stock.
Craig Ellis from B. Riley raised the price target on Lam Research as the company exceeded Q2 FY2026 earnings and Q3 guidance. On January 28, Lam Research reported its Q2 results, with earnings and revenue beating analyst estimates. The company’s adjusted earnings per share of $1.27 surpassed the consensus by $0.10 and were up 33.79% year-over-year. The revenue came in at $5.34 billion, up from the expected $5.21 billion.
Ellis said that the financial results reflect Lam Research’s strong execution, accelerating demand, and continued pull-ins across customers. The analyst expects 100 basis points of share gains in 2026, around 25% year-over-year sales growth, and robust demand heading into 2027. Lam is positive for its growth in 2026 and expects revenue between $5.4 billion and $6 billion. The robust demand across the semiconductor industry, driven by AI applications make Lam Research a key player in the market.
Over the last year, through January 30, Lam Research Corporation (NASDAQ:LRCX) has gained over 188%, one of the highest returns in that period.
Lam Research Corporation (NASDAQ:LRCX) manufactures, refurbishes, and offers services for semiconductor processing equipment used in the fabrication of integrated circuits.
7. GE Aerospace (NYSE:GE)
Number of Hedge Fund Holders: 102
GE Aerospace (NYSE:GE) is one of the hottest stocks to buy in 2026.
On January 26, TheFly reported that JPMorgan increased the price target on GE Aerospace (NYSE:GE) from $325 to $335. Seth Seifman at JPMorgan maintained his Overweight rating while raising the price target following the Q4 2025 results.
On January 22, GE Aerospace reported Q4 FY2025 results, which exceeded analyst estimates. The earnings per share of $1.57 surpassed the consensus estimate of $1.43 and showed a notable growth of almost 27.56% from a year ago. Revenue also exceeded expectations, reaching $11.87 billion compared to the estimated $11.20 billion.
Seifman pointed out the stock’s underperformance relative to elevated expectations. The analyst remains constructive on the outlook and on the company’s ability to execute.
For 2026, GE Aerospace (NYSE:GE) estimates a low double-digit revenue growth and operating profit between $9.85 billion and $10.25 billion. The company projects its earnings per share in the range of $7.10 to $7.40, in line with Wall Street’s average of $7.40. The company has also increased the 2026 FCF estimate, which is now expected between $8 billion and $8.4 billion, with commercial services revenue anticipated to increase in the mid-teens.
Over the last year, through January 30, GE Aerospace (NYSE:GE) has surged over 49%. Based on consensus, 83% analysts rank GE as a Buy, while 9% rate it as a Hold and 9% a Sell. The median price target of $361 reflects an upside potential of more than 17.50%.
GE Aerospace (NYSE:GE) designs and produces commercial and defense aircraft engines, integrated engine components, electric power, and aircraft systems.
6. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 103
Johnson & Johnson (NYSE:JNJ) is one of the hottest stocks to buy in 2026.
On January 28, TheFly reported that Morgan Stanley upgraded Johnson & Johnson (NYSE:JNJ) from Equal Weight to Overweight, increasing the price target from $200 to $262.
Terence Flynn from Morgan Stanley remains bullish on the company as he expects higher estimates from Johnson & Johnson’s new products. Based on this, Flynn also sees a higher valuation multiple for the upgrade. The analyst expects JNJ to surpass earnings driven by several new product cycles, estimating almost 20% above consensus estimates. Wall Street, on average, expects JNJ to post adjusted earnings per share of $2.69 for the current quarter.
Flynn mentioned that the company offers one of the most robust new product cycle offerings in the biopharma industry. The analyst has also raised estimates for the company’s products, including Tremfya, Icotyde, Tecvayli, and Darzalex.
Over the past year, through January 30, Johnson & Johnson (NYSE:JNJ) shares have returned over 48.50%. Of the 28 analysts covering JNJ, 57% rate it a Buy, 36% a Hold, and 7% a Sell. The median price target of $240 highlights an upside of just under 6%, while Morgan Stanley’s $262 price target indicates an upside of 15.25%.
Johnson & Johnson (NYSE:JNJ) is engaged in the research, development, manufacturing, and sale of a range of healthcare products globally. The company operates through two segments: Innovative Medicine and MedTech.
5. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 115
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the hottest stocks to buy in 2026.
On January 26, UBS raised the price target on Advanced Micro Devices, Inc. (NASDAQ:AMD) from $300 to $330. Timothy Arcuri from UBS raised the price target on the back of the company’s strong demand for the MI450-series.
However, the recent reports from SemiAnalysis claim that AMD’s MI450-series chips were behind schedule, leading to a potential sell-off on January 30, as the shares fell over 6%.
On the other side, Wells Fargo analyst Aaron Rakers refuted this claim and reaffirmed his belief that AMD will indicate traction toward MI450-series ramp starting in the second half of 2026. On January 29, Rakers reiterated the Overweight rating on Advanced Micro Devices, Inc. (NASDAQ:AMD), maintaining the price target at $345.
Over the last year, through January 30, Advanced Micro Devices, Inc. (NASDAQ:AMD) shares have soared just over 100%, making it one of the most rewarding stocks during this period. Out of 58 analysts covering AMD, 79% rank the stock as a Buy, while 21% rate it as a Hold. AMD has a median price target of $290.50, implying more than 22% upside.
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a leading semiconductor company in the US. The firm offers AI accelerators, x86 microprocessors, and GPUs. It operates three segments: Data Center, Client and Gaming, and Embedded.
4. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders: 130
Alibaba Group Holding Limited (NYSE:BABA) is one of the hottest stocks to buy in 2026.
According to reports, Alibaba Group Holding Limited’s (NYSE:BABA) robovan unit, Cainiao, is set to invest in Zelos Technology, a firm that offers cutting-edge L4 autonomous driving solutions for logistics.
On January 29, The Wall Street Journal reported that Alibaba’s logistics arm will take a stake in Zelos for a total value of approximately $2 billion. A spokesperson from Cainiao mentioned that the company will not become a controlling shareholder in Zelostech, as per the report.
An email statement from Zelostech mentioned that both companies have entered into a deep strategic integration, jointly building a RoboVan Super Carrier in the unmanned freight sector, as reported by Reuters. Whereas, the Journal highlighted that Zelostech will operate both the brands simultaneously, with Cainiao integrating into Zelostech.
Over the past year, through January 30, Alibaba Group Holding Limited (NYSE:BABA) has returned more than 76%, while the stock still holds upside potential. Of 50 analysts rating BABA, 88% rate the stock a Buy, with a median price target of $202.67. This highlights an upside potential of more than 18.50%.
Alibaba Group Holding Limited (NYSE: BABA) and its subsidiaries offer technology infrastructure and marketing solutions. The company operates one of the world’s largest wholesale e-commerce platforms. Alibaba is strengthening its position in AI with strategic partnerships and investments.
3. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 183
Broadcom Inc. (NASDAQ:AVGO) is one of the hottest stocks to buy in 2026.
On January 23, Cathie Wood made another purchase of Broadcom Inc. (NASDAQ: AVGO) shares, marking her fourth trade in the semiconductor firm this month. Through her Ark Innovation ETF (ARKK) and Ark Next Generation Internet ETF (ARKW), Wood added 49,048 shares of AVGO valued at $15.96 million on January 23.
Earlier, Wood purchased 32,408 shares of Broadcom on January 20, 143,089 shares on January 14, and 31,573 shares on January 8. The veteran investor made these trades as AVGO shares dipped in January. Year-to-date, Broadcom shares have declined nearly 4.91%. ARKK and ARKW combined hold a stake valued at $82.60 million. AVGO was the most targeted stock in January on Wood’s radar, showing her conviction in the company’s AI and datacenter exposure as a long-term winner.
In other news, on January 30, TheFly reported that Wolfe Research upgraded Broadcom Inc. (NASDAQ:AVGO) from Peer Perform to Outperform. Chris Caso at Wolfe Research has a $400 price target on AVGO.
Caso believes that Broadcom will ship 7nm tensor processing units by 2028, with high demand and other projects creating optionality. The analyst is bullish on AVGO, expecting the company to double its AI revenue in 2027, generating $18 in EPS. “We can no longer ignore Broadcom’s growth and competitiveness in tensor processing units,” Caso added.
Broadcom Inc. (NASDAQ:AVGO) develops and sells various semiconductor devices and infrastructure software solutions worldwide. The company operates through two segments: Semiconductor Solutions and Infrastructure Software.
2. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 194
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the hottest stocks to buy in 2026.
On January 23, Reuters reported that the Taiwanese President expects increased semiconductor investment in Arizona. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is investing the most in the region, almost around $165 billion to build factories.
President Lai Ching-te said that Taiwan looks forward to more semiconductor investment in Arizona to strengthen ties with the US. In a meeting with the Democratic Senator Ruben Gallego, the President said Taiwan Semiconductor Manufacturing Company’s investment in Arizona is a major product of the partnership between the industries of the two countries. Lai further said:
We look forward to even more semiconductor manufacturing, research, and development facilities springing up in the greater Phoenix area. This will continue to strengthen Taiwan-U.S. relations.
TSMC remains at the center of this major trade partnership between Taiwan and the US. This development means that the semiconductor supplier will continue to invest more in the region and enhance its presence in the US. As announced earlier, Taiwanese tech companies plan to invest approximately $250 billion in the US.
Over the period of one-year as of January 30, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) shares have returned over 63%. Analysts remain bullish on TSM following the US-Taiwan trade deal, with 98% out of 49 analysts rating the stock as a Buy. TSM has a median price target of $410, implying an upside of over 23%.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the largest supplier of semiconductor chips to some of the world’s largest AI companies. The company manufactures, packages, and sells integrated circuits and other semiconductor devices globally.
1. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 243
Alphabet Inc. (NASDAQ:GOOGL) is one of the hottest stocks to buy in 2026.
On January 28, Alphabet Inc. (NASDAQ: GOOGL) announced that Google is adding additional Gemini AI features to the Chrome browser. The company is all focused on beginning its new-age tech front and center for users.
The upgraded features of Gemini AI on Chrome include the image generation tool Nano Banana, Google’s ‘Personal Intelligence’, and ‘Auto browse.’ With a single prompt, the auto browser now allows users to command the browser to perform different tasks across the web.
Google is also launching a new Chrome design with a panel on the right side of the browser. This will allow users to utilize the Gemini chatbot as they surf across the web. Chrome vice president, Parisa Tabriz, said:
Chrome will remember context from past conversations, so you get uniquely tailored answers to whatever you’re looking for across the web, and you can already add specific instructions to Gemini to get more tailored responses.
Google is focusing on offering more personalized functions for users on Chrome. On January 14, Google released ‘Personal Intelligence’ in the Gemini app. This feature connects information from apps such as Google Photos and Gmail, providing personalized answers in the AI chatbot.
Over the last year, through January 30, Alphabet Inc. (NASDAQ:GOOGL) shares have jumped over 67.50%.
Alphabet Inc. (NASDAQ:GOOGL) is one of the largest tech companies in the world. The company provides various digital services and platforms globally, including Browsing, Advertising, Cloud, and streaming, among others. Alphabet operates through Google Services, Google Cloud, and Other Bets segments.
While we acknowledge the potential of GOOGL 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 GOOGL and that has 100x upside potential, check out our report about this cheapest AI stock.
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