In this article, we are going to discuss the 10 most volatile stocks to buy in the S&P 500.
The S&P 500 index has had a roller coaster of a year so far in 2026, getting off to a decent start, dropping significantly following the onset of the Middle East war, and then recovering rapidly since the end of March.
The index went on a 9-week winning streak, but then volatility picked up this week as investors booked profits from the recent stock gains and digested shifts in expectations for Fed interest rates. As a result, the S&P 500 fell by 2.63% on June 5, witnessing its single worst day of the year.
The volatility didn’t come as a surprise, as the Cboe S&P 500 Constituent Volatility Index, which measures the market’s expectation of 30-day volatility for the S&P 500, closed at its highest level in more than a year last week. This indicates that individual stocks were already reflecting greater risk, both to the downside and upside, than before.
However, after all the ups and downs, the index has posted overall gains of 7.66% since the beginning of the year.
The analysts over at Goldman Sachs expect these gains to continue and raised their outlook for the S&P 500 on May 28. The firm now expects the index to rise to 8000 by the end of this year, up from its previous forecast of 7600. The boosted outlook is primarily driven by an upgrade in earnings estimates, as well as the investment boom in AI infrastructure.
With that said, here are the Most Volatile Stocks to Buy in the S&P 500.
Photo by Viacheslav Bublyk on Unsplash
Our Methodology
To collect data for this article, we referred to screeners to identify stocks that are part of the auspicious S&P 500 and then shortlisted the ones with a Beta of more than 1.5. We then limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. The following are the Most Volatile Stocks to Buy in the S&P 500.
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10. Williams-Sonoma, Inc. (NYSE:WSM)
Beta Value (5Y Monthly): 1.51
Williams-Sonoma, Inc. (NYSE:WSM) is the premier specialty retailer of high-quality products for the home. Its family of brands includes Williams Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, Williams-Sonoma Home, Rejuvenation, Mark & Graham, GreenRow, and Dormify.
On May 29, Argus analyst Christopher Graja raised his firm’s price target on Williams-Sonoma, Inc. (NYSE:WSM) from $225 to $230, while maintaining a ‘Buy’ rating on the shares. The target boost represents an upside potential of over 12% from the current levels.
The analyst highlighted that Williams-Sonoma has built “a huge lead over competitors” in e-commerce, noting that around two-thirds of its sales come from online channels. Moreover, Argus believes that the company’s industry-leading digital marketing capabilities and strong social media presence will help it to better engage with both US and international customers, supporting continued growth in the future.
Williams-Sonoma, Inc. (NYSE:WSM) exceeded top- and bottom-line estimates in its Q1 2026 report on May 21. The company expects revenue growth of 2.7% to 6.7% in full-year 2026, translating to a range of $8.02 billion and $8.33 billion. It is also projecting comparable sales growth of between 2% and 6% and an operating margin of 17.5% to 18.1% for the year.
9. Microchip Technology Incorporated (NASDAQ:MCHP)
Beta Value (5Y Monthly): 1.73
Microchip Technology Incorporated (NASDAQ:MCHP) is a leading provider of microcontroller, mixed-signal, analog and Flash-IP solutions that also offers outstanding technical support.
Microchip Technology Incorporated (NASDAQ:MCHP) was in the spotlight on June 1 when the company announced that it expects its Data Center Solutions Business unit revenue to grow by about 65% YoY to around $500 million in calendar year 2026. The business unit generated $302.7 million in revenue in calendar year 2025, and already delivered a growth of 62.9% in the March 2026 quarter.
Microchip revealed that its data center and compute end market, which also includes power management, catalog MCUs, analog, and security products, represented about 18% of the company’s total revenue.
Morgan Stanley analyst Joseph Moore highlighted Microchip’s data center announcement with the following comments:
“The stock is up ~10% after hours at the time of writing, which we find surprising as the data center numbers are basically in-line with prior commentary; perhaps most of the strength is being driven by the pricing component of the announcement, as MCHP was one of the only analog companies to state clearly on their most recent earnings call in May that it was not raising prices at that time. While we view the PR as positive overall, the share price reaction seems exaggerated – the after hours move implies a low-30s NTM P/E multiple, which is a meaningful premium to MCHP’s historical average. The [data center] disclosure is helpful, though it comes with some definitional nuance, as it includes both AI and enterprise DC, while other companies define the category differently. For example, Infineon and ON speak more directly to “AI Data Center,” while TXN and MCHP include broader enterprise DC exposure, so group comparisons are useful but not all like-for-like.”
The analyst firm maintains an ‘Equal Weight’ rating and a price target of $94 on Microchip Technology Incorporated (NASDAQ:MCHP).
8. Super Micro Computer, Inc. (NASDAQ:SMCI)
Beta Value (5Y Monthly): 1.87
Super Micro Computer, Inc. (NASDAQ:SMCI) is a global leader in application-optimized IT solutions for Enterprise, cloud, AI, and 5G Telco/Edge Infrastructure.
On June 1, Mizuho analyst Vijay Rakesh upped the firm’s price target on Super Micro Computer, Inc. (NASDAQ:SMCI) from $36 to $44, but maintained a ‘Neutral’ rating on the shares. The revised target reflects an upside of over 5% from the current price level and comes after the firm boosted its price objectives in the semiconductor group, citing the strong agentic AI demand across the CPU ecosystem.
According to Mizuho, the ongoing supply constraints are expected to persist through 2027, indicating an upside for servers. The analyst firm expects the agentic AI demand to soar even higher, but warned that the memory and CPU supply could restrict further upside in the second half of the ongoing year.
Super Micro Computer, Inc. (NASDAQ:SMCI) comfortably exceeded profit estimates in its Q3 results last month. Moreover, the company’s guidance of its Q4 revenue and adjusted profit was above Wall Street estimates, banking on the robust demand for its artificial intelligence servers.
7. Generac Holdings Inc. (NYSE:GNRC)
Beta Value (5Y Monthly): 1.91
Generac Holdings Inc. (NYSE:GNRC) designs, manufactures, and distributes energy technology products and solutions worldwide.
Generac Holdings Inc. (NYSE:GNRC) received a boost on June 2 when the company disclosed that it had secured an agreement to supply a major data center operator with backup power generators. The contract was awarded following a rigorous qualification process, which included multiple factory visits, performance and quality system reviews, and audits across the company’s broader vendor base.
Aaron Jagdfeld, Chairman, President, and CEO of Generac Holdings Inc. (NYSE:GNRC), commented:
“This agreement positions Generac at the heart of supporting essential services and the digital economy. The successful navigation of this approval process solidifies our position as a top-tier supplier of large megawatt backup power generators and reflects the kind of relationship we expect will grow as the digital economy continues to scale.”
Generac Holdings Inc. (NYSE:GNRC) topped Wall Street estimates in its Q1 2026 report in April, supported by the strong demand for backup generators and a growing backlog from data center customers. Moreover, the company raised its guidance for full-year 2026. Generac now expects 2026 net sales growth in the mid-to-high teens percent range, up from its prior outlook of mid-teens range.
Ariel Investments, an investment management company, stated the following regarding Generac Holdings Inc. (NYSE:GNRC) in its Q1 2026 investor letter:
“Leading global manufacturer of power generation equipment, Generac Holdings (NYSE:GNRC) was the top contributor this quarter as investors looked beyond near-term earnings softness toward the company’s long-term growth potential. At investor day, management highlighted a multi-year growth trajectory supported by powerful tailwinds including rising electricity demand, higher power costs, grid reliability challenges and rapid growth in AI and data centers. Generac reaffirmed its 2026 outlook and introduced a three-year plan through 2028 targeting strong revenue growth, margin expansion and nearly 90% EBITDA growth. Strength in the Commercial & Industrial (C&I) segment, fueled by increasing data center and hyperscaler demand and a growing backlog, further boosted confidence. We believe investors are increasingly recognizing Generac’s evolution from a home backup leader to a critical power infrastructure provider. We believe a durable residential base and expanding C&I opportunity driving sustained growth should drive higher margins and strong free cash flow.”
6. Nucor Corporation (NYSE:NUE)
Beta Value (5Y Monthly): 1.91
Nucor Corporation (NYSE:NUE) is an American manufacturer of steel, specializing in low-embodied carbon EAF steel products and capabilities that drive the circular economy.
On June 4, Wells Fargo raised its price target on Nucor Corporation (NYSE:NUE) from $244 to $292, while maintaining an ‘Overweight’ rating on the shares. The target boost, which reflects an upside of almost 15% from the current price level, comes after the analyst firm revised its models in the steel sector as part of a mid-quarter update.
Wells Fargo raised its steel price outlook and estimates, projecting further price strength until October. According to the analyst firm, service center inventories remain “unusually lean”, which means that mills will have to restock even when the demand softens in Q3 due to seasonal factors. However, Wells believes that a price correction could occur in the fourth quarter as more supply enters the market and balances out the demand.
As of the writing of this piece, the share price of Nucor Corporation (NYSE:NUE) has surged by over 50% since the beginning of 2026.
While we acknowledge the potential of NUE as an investment, 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 NUE and that has 100x upside potential, check out our report about the cheapest AI stock.
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