On December 24, Kevin Simpson of Capital Wealth Planning joined ‘Closing Bell’ on CNBC to talk about AI tailwinds and the diverging tech picture. Given the current market dynamics, Simpson confirmed that he is bullish and remarked that it is difficult not to be optimistic after such a substantive start to the show. Looking ahead to next year, Simpson explored whether the market can move higher even if two major headwinds, the AI trade (where a rising tide lifts all tech stocks) and a dovish Fed, are removed. He concluded that as long as economic growth holds up and earnings remain solid, the market can still experience a successful year characterized by increased breadth. The dialogue sharpened on the specific nature of the AI trade, and Simpson stated that he does not expect to lose the AI trade entirely, but rather the all-in AI trade, where every tech stock rises indiscriminately. He illustrated the shift toward a stock picker’s market and emphasized that a broadening market does not mean abandoning technology for a pure value play. Instead, it requires being more selective across the board in 2026.
Despite the expectation that earnings expectations for sectors outside of tech are currently elevated, Simpson maintained that while he wants other sectors to rise, the strongest growth will likely stay in tech. He observed that while trades like the equal-weighted S&P 500 versus the standard S&P 500 occasionally outperform, investors frequently abandon those paths to return to the mega-cap tech names. Simpson asserted that investors will always pay a premium for innovation within the AI landscape, but he expects sectors like financials, industrials, consumer discretionary, and materials to assist with the heavy lifting in the coming year.
That being said, we’re here with a list of the 12 best emerging technology stocks to invest in.
Our Methodology
We sifted through financial media reports and ETFs tracking next generation tech stocks. We then selected 12 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q3 2025. The hedge fund data was sourced from Insider Monkey’s database.
Note: All data was sourced on December 24.
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).
12 Best Emerging Technology Stocks to Invest In
12. Navitas Semiconductor Corporation (NASDAQ:NVTS)
Number of Hedge Fund Holders: 11
Navitas Semiconductor Corporation (NASDAQ:NVTS) is one of the best emerging technology stocks to invest in. On December 11, Navitas Semiconductor announced a significant expansion of its partnership with Avnet (NASDAQ:AVT). The agreement elevates Avnet to a globally franchised distribution partner, building upon the successful existing relationship between Navitas and Avnet Silica in Europe. The move is part of a broader strategy by Navitas to consolidate its franchised distribution network and strengthen its global channel presence.
As one of the world’s largest electronic component distributors, Avnet will now provide worldwide technical and commercial expertise for Navitas’ advanced GaNFast/GaN and GeneSiC/SiC portfolios. These wide bandgap semiconductor devices are designed for high-voltage and high-power applications. By aligning with Avnet’s global framework, Navitas aims to provide customers with faster, more reliable product access and consistent technical support across all geographic regions.
The partnership is targeted at high-growth, high-power sectors that demand energy-efficient solutions. These include AI data centers, high-performance computing, renewable energy, grid infrastructure, and industrial electrification. According to leadership from both companies, the expansion utilizes Avnet’s engineering depth to accelerate the worldwide adoption of Navitas’ GaN and SiC platforms as industries transition toward more advanced power designs.
Navitas Semiconductor Corporation (NASDAQ:NVTS) designs, develops, and markets power semiconductors in the US, Europe, China, the rest of Asia, and internationally.
11. Redwire Corporation (NYSE:RDW)
Number of Hedge Fund Holders: 15
Redwire Corporation (NYSE:RDW) is one of the best emerging technology stocks to invest in. On December 19, KeyBanc initiated coverage of Redwire with a Sector Weight rating but set no price target on the shares. The firm believes that following the company’s acquisition of Edge Autonomy, Redwire is transforming into a multi-domain space and defense firm. However, while this expansion significantly increases the company’s scale, it comes at the expense of shareholder dilution.
In other news, on December 18, Redwire Corporation and The Exploration Company announced an eight-figure contract for Redwire to supply critical docking hardware for TEC’s flagship spacecraft, Nyx. Based in Kruibeke, Belgium, and Munich, Germany, the two firms have agreed that Redwire will provide two International Berthing and Docking Mechanisms/IBDM. These systems are fully compliant with the International Docking System Standard/IDSS, ensuring that Nyx (a reusable and refuelable European spacecraft) can perform autonomous rendezvous and docking with a variety of standardized space infrastructure.
The IBDM technology was developed in Belgium in collaboration with international partners and the European Space Agency. It features a modular, standardized architecture that supports both berthing and autonomous docking. Redwire’s offices in Belgium and Poland are currently using their experience from developing a similar IBDM for the Lunar Gateway’s International Habitat, a project that provides a high level of technical maturity and mission confidence for the Nyx program. The partnership is viewed as a move toward strengthening Europe’s autonomous access to space and its commercial space sector.
Redwire Corporation (NYSE:RDW) provides critical space solutions and space infrastructure for government and commercial customers in the US, Europe, and internationally.
10. Sana Biotechnology Inc. (NASDAQ:SANA)
Number of Hedge Fund Holders: 16
Sana Biotechnology Inc. (NASDAQ:SANA) is one of the best emerging technology stocks to invest in. On December 8, Sana Biotechnology announced the publication of groundbreaking preclinical data in the journal Nature Biotechnology. The study, titled “In vivo gene editing of human hematopoietic stem and progenitor cells using envelope-engineered virus-like particles,” details the successful use of Sana’s Fusogen platform to perform gene editing directly within the body.
Using systemic delivery in murine models, the company showed that its virus-like particles/VLPs could precisely target and edit hematopoietic stem cells/HSCs inside the bone marrow, achieving stable results in long-term HSCs. The publication highlights the versatility of the Fusogen technology, which has now proven capable of delivering diverse payloads (including CRISPR gene-editing and base-editing machinery) to two distinct cell types: T cells and HSCs.
A critical finding of the study was the platform’s high specificity; the targeted particles successfully avoided off-target delivery to other organs, such as the liver (hepatocytes) or gonadal tissues. By editing two loci relevant to hemoglobinopathies, including fetal hemoglobin, the platform shows immense promise for treating diseases like sickle cell disease and beta thalassemia.
This in vivo approach aims to revolutionize the standard of care by eliminating the need for traditional bone marrow transplants and ex vivo gene editing. Current methods require conditioning the patient with high-dose chemotherapy, which carries risks of severe infection, secondary cancers, and prolonged hospitalization. Sana’s technology could bypass these toxicities, offering a simplified supply chain and a safer treatment profile.
Sana Biotechnology Inc. (NASDAQ:SANA) is a biotechnology company that utilizes engineered cells as medicines in the US. It develops ex vivo and in vivo cell engineering platforms for therapeutic areas with unmet treatment needs, including type 1 diabetes, B-cell-mediated autoimmune diseases, and oncology.
9. Vertical Aerospace Ltd. (NYSE:EVTL)
Number of Hedge Fund Holders: 17
Vertical Aerospace Ltd. (NYSE:EVTL) is one of the best emerging technology stocks to invest in. On December 15, Needham raised the firm’s price target on Vertical Aerospace to $11 from $9 while keeping a Buy rating on the shares. Following a two-day site visit to the company’s battery and aircraft testing facilities, the firm expressed high confidence in both near-term and long-term milestones. The firm also highlighted the company’s progress in piloted transition flights and hybrid aircraft development as key execution strengths.
In other news, on December 10, Vertical Aerospace officially revealed Valo, which is the company’s new commercial electric vertical take-off and landing/eVTOL aircraft. Succeeding the VX4 prototype, Valo features a more advanced, aerodynamic design informed by thousands of data points from the company’s piloted test program and direct feedback from global airline partners. Developed alongside industry leaders like Honeywell, Syensqo, and Aciturri, the aircraft introduces an under-floor battery system, a redesigned wing and propeller architecture, and full certifiable redundancy to meet the most stringent safety requirements.
Valo is engineered to fly up to 100 miles at speeds reaching 150 mph with zero operating emissions. It targets an airliner-level safety certification with the UK Civil Aviation Authority and the European Union Aviation Safety Agency by 2028. This initiative marks a historic return to the UK designing and manufacturing whole commercial aircraft for the first time in over three decades. According to a report by Frontier Economics, Vertical’s operations are projected to contribute £3 billion annually to the UK economy and create over 2,000 high-skilled jobs by 2035. Early commercial routes for the aircraft are expected to focus on high-demand airport-to-city center connections.
Vertical Aerospace Ltd. (NYSE:EVTL) is an aerospace and technology company that designs, manufactures, and sells zero operating emission electric vertical takeoff and landing/eVTOL aircraft for use in the advanced air mobility market in the UK.
8. Inhibrx Biosciences Inc. (NASDAQ:INBX)
Number of Hedge Fund Holders: 18
Inhibrx Biosciences Inc. (NASDAQ:INBX) is one of the best emerging technology stocks to invest in. On December 16, Inhibrx Biosciences provided a comprehensive progress update regarding its primary oncology programs. The company is currently advancing two lead therapeutic candidates: INBRX-106, which is a hexavalent sdAb-based OX40 agonist, and ozekibart (INBRX-109), which is a tetravalent death receptor 5 (DR5) agonist. These candidates use precise protein engineering to optimize immune system activation and tumor-targeted cell death.
The INBRX-106 program is centered on a Phase 2/3 clinical trial evaluating the drug in combination with Keytruda (pembrolizumab) as a first-line treatment for locally advanced unresectable or metastatic head and neck squamous cell carcinoma/HNSCC. As of December, Inhibrx recruited 46 out of the 60 patients required for the randomized Phase 2 portion of this study. The trial enrolls patients who have not received prior systemic therapy and exhibit a tumor PD-L1 CPS expression of 20 or greater. Enrollment for this Phase 2 portion is expected to be completed in Q1 2026.
Simultaneously, the company progressed its investigation of INBRX-106 in combination with Keytruda for patients with non-small cell lung cancer/NSCLC who are refractory to or have relapsed after checkpoint inhibitor therapy. Enrollment for this 34-patient Phase 1/2 trial cohort was finalized in November. While the current datasets for both the HNSCC and NSCLC trials are not yet mature enough to support conclusions, Inhibrx expects that the data will be sufficiently mature by H2 2026 to determine if the combination therapy provides a sustained clinical benefit over the current standard of care.
Regarding the ozekibart (INBRX-109) program, Inhibrx completed enrollment in late October for an expansion cohort of 44 patients in a Phase 1/2 trial. The study evaluates ozekibart combined with FOLFIRI in patients with heavily pretreated advanced or metastatic colorectal cancer, specifically those in the third and fourth lines of treatment. Previous reports indicated the combination was well-tolerated with high disease control rates. The company expects progression-free survival data from this cohort to reach maturity in Q2 2026.
Inhibrx Biosciences Inc. (NASDAQ:INBX) is a clinical-stage biopharmaceutical company that develops biologic therapeutics for people with life-threatening conditions.
7. CRISPR Therapeutics (NASDAQ:CRSP)
Number of Hedge Fund Holders: 21
CRISPR Therapeutics (NASDAQ:CRSP) is one of the best emerging technology stocks to invest in. On December 22, CRISPR Therapeutics released a comprehensive clinical update on zugocaptagene geleucel (zugo-cel), formerly known as CTX112. This investigational allogeneic (off-the-shelf) CAR T therapy targets CD19 and is currently being evaluated for both autoimmune diseases and hematologic malignancies. By using CRISPR Cas9 for targeted gene modification, zugo-cel is designed to enhance T-cell potency and evade immune detection without the need for HLA matching.
Preliminary data from an ongoing Phase 1 basket trial involving systemic lupus erythematosus/SLE, systemic sclerosis, and inflammatory myositis show that zugo-cel is well-tolerated and highly effective. As of the December 17 data cut-off, four patients (two with SLE and two with immune-mediated necrotizing myopathy) received a dose of 100 million cells. All four demonstrated rapid and deep peripheral B-cell depletion within 48 hours, which was sustained for at least 28 days. Notably, the first SLE patient treated has achieved drug-free DORIS clinical remission through Month 6. Following these results, the company has initiated an additional Phase 1 study for immune thrombocytopenic purpura and warm autoimmune hemolytic anemia.
In the oncology sector, zugo-cel has shown strong single-agent activity in patients with relapsed or refractory large B-cell lymphoma. At the recommended Phase 2 dose of 600 million cells, data from November 20 revealed an overall response rate of 90% and a complete response rate of 70% among ten patients. Long-term durability is also evident, with 67% of patients who reached the one-year mark remaining in complete response. The treatment demonstrated a four-fold higher cell expansion at the 600 million dose compared to the 300 million dose, maintaining a manageable safety profile with Grade 3 cytokine release syndrome occurring in only 17% of patients.
CRISPR Therapeutics (NASDAQ:CRSP) is a gene editing company that develops gene-based medicines for serious human diseases using its Clustered Regularly Interspaced Short Palindromic Repeats/CRISPR-associated protein 9 (CRISPR/Cas9, respectively) platform.
6. Intuitive Machines Inc. (NASDAQ:LUNR)
Number of Hedge Fund Holders: 25
Intuitive Machines Inc. (NASDAQ:LUNR) is one of the best emerging technology stocks to invest in. On December 22, B. Riley raised the firm’s price target on Intuitive Machines to $20 from $14 with a Buy rating on the shares. The firm noted that Intuitive Machines is in a great spot following the White House’s new executive order. The order’s goals, like returning to the Moon by 2028 and building a lunar base by 2030, basically match exactly what Intuitive Machines does, making the current political climate a major boost for the firm.
On December 18, KeyBanc initiated coverage of Intuitive Machines with an Overweight rating and $20 price target. The company is transitioning from proof-of-concept missions toward a scalable business model built on recurring lunar services. While earlier missions served primarily as one-off technical demonstrations, KeyBanc sees significant near-term opportunities to establish consistent revenue streams through infrastructure and data services.
Additionally, on November 19, Bank of America analyst Ronald Epstein raised the firm’s price target on Intuitive Machines to $9.50 from $8.50 and kept an Underperform rating on the shares. The firm argued that the space industry is entering a critical phase of consolidation driven by the massive scale and complexity of upcoming opportunities. BofA suggested that market disruptions are fueling a winner-take-most dynamic, where a few dominant players will capture the majority of high-value contracts. Long-term success in this environment will depend less on early-mover advantage and more on a company’s vision and ability to integrate newly acquired technologies or business units.
Intuitive Machines Inc. (NASDAQ:LUNR) designs, manufactures, and operates space products and services in the US.
5. IonQ Inc. (NYSE:IONQ)
Number of Hedge Fund Holders: 30
IonQ Inc. (NYSE:IONQ) is one of the best emerging technology stocks to invest in. On December 17, Wedbush initiated coverage of IonQ with an Outperform rating and $60 price target. Building on over 25 years of academic research, IonQ has established a distinct and powerful position in the quantum sector through its specialized trapped-ion architecture. While the tech is still in its early stages with a client base limited to select industrial and academic partners, Wedbush highlighted that IonQ has cultivated a formidable sales pipeline. This is reflected in the company’s financial scaling, with revenue ~doubling between 2023 and 2024 and projected to more than double again in 2025 to exceed $100 million.
On the same day, IonQ announced a major expansion of its long-term partnership with QuantumBasel, which is the quantum initiative located at Switzerland’s uptownBasel innovation campus. The new agreement extends IonQ’s on-site presence in Switzerland for an additional 4 years, ensuring a physical footprint through 2029. The deal elevates the total partnership value to over $60 million and solidifies QuantumBasel’s status as IonQ’s primary Innovation Center in Europe.
Under the terms of the expanded contract, QuantumBasel has secured ownership of its current IonQ Forte Enterprise system and has placed a definitive order for a next-generation IonQ Tempo system. As part of IonQ’s roadmap toward fault-tolerant computing, the Tempo system is designed to support deeper quantum circuits and higher-fidelity operations. This collaboration is expected to eventually span 4 generations of IonQ hardware, providing European enterprises, startups, and research institutions with direct, on-site access to enterprise-grade quantum processors.
IonQ Inc. (NYSE:IONQ) develops quantum computers and networks in the US. It sells access to quantum computers of various qubit capacities.
4. Grail Inc. (NASDAQ:GRAL)
Number of Hedge Fund Holders: 30
Grail Inc. (NASDAQ:GRAL) is one of the best emerging technology stocks to invest in. On December 1, Morgan Stanley assumed coverage of Grail with an Equal Weight rating and a price target of $110, which was up from $85. Heading into 2026, the firm is optimistic about the Life Science space, noting several emerging growth drivers. While the firm likes the industry’s long-term setup, it argued that a recent valuation spike has left stock prices at a reasonable equilibrium.
In Q3 2025, Grail highlighted a 26% year-over-year revenue increase to $36.2 million. This growth was driven by the Galleri multi-cancer early detection test, which saw screening revenue rise 29% to $32.8 million. The company sold over 45,000 Galleri tests during the quarter, representing a 39% increase in volume compared to the prior year. Efficiency gains from its high-throughput platform also helped improve non-GAAP adjusted gross margins to 55%, a significant jump from 41% in Q3 2024. Despite the revenue growth, Grail reported a net loss of $89 million for the quarter, though this was a 29% improvement over the previous year.
Clinical milestones during the quarter included positive data from the PATHFINDER 2 and SYMPLIFY studies. Results showed that adding Galleri to standard screenings led to a sevenfold increase in cancer detection rates with a high specificity of 99.6%. Furthermore, long-term follow-up from the SYMPLIFY study increased the test’s positive predictive value to 84.2%, as many initial false positives were later diagnosed with cancer at the site predicted by Galleri. The company also announced a new partnership with Samsung to commercialize the test in South Korea, Japan, and Singapore.
Grail Inc. (NASDAQ:GRAL) is a commercial-stage healthcare company that provides multi-cancer early detection testing and services in the US and internationally.
3. Rocket Lab Corporation (NASDAQ:RKLB)
Number of Hedge Fund Holders: 34
Rocket Lab Corporation (NASDAQ:RKLB) is one of the best emerging technology stocks to invest in. On December 23, Needham raised the firm’s price target on Rocket Lab to $90 from $63, while maintaining a Buy rating on the shares. Following the Space Development Agency’s announcement of its Tracking Layer Tranche 3 contracts, Rocket Lab secured an $805 million award (the largest in the company’s history) to build 18 satellites. This milestone strongly validates Rocket Lab’s evolution into a major defense prime contractor and highlights the rapid maturation of its Space Systems segment.
Earlier on December 21, Stifel raised the firm’s price target on Rocket Lab to $85 from $75 with a Buy rating on the shares. The firm highlighted a significant milestone for Rocket Lab as the company secured an $805 million contract from the Space Development Agency to construct 18 satellites for the Tranche 3 Tracking Layer/T3TRK. This award is described as a meaningful win that reinforces Rocket Lab’s position as a top-tier defense prime contractor. By capturing this large-scale mission, the company effectively validated its Space Systems segment and expanded its project backlog, marking a clear evolution from its origins as a small-launch provider to a major player in national security space.
On the same day, Rocket Lab completed its final mission of the year, titled “The Wisdom God Guides.” The Electron rocket lifted off from Launch Complex 1 in Mahia, New Zealand, to deploy the QPS-SAR-15 satellite for the Institute for Q-shu Pioneers of Space Inc./iQPS. This mission marked the 79th overall launch for the Electron program and finalized a historic year for the company.
With this successful deployment, Rocket Lab set a new annual record of 21 launches in 2025, maintaining a perfect 100% mission success rate for the year. This achievement solidifies Electron’s position as the world’s most frequently launched small-lift orbital rocket and the leading small launch provider in the US. The 2025 cadence significantly outpaced previous years, showing the company’s ability to scale reliable, high-frequency access to space for commercial and government partners.
Rocket Lab Corporation (NASDAQ:RKLB) is a space company that provides launch services and space systems solutions in the US, Canada, Japan, and internationally.
2. Cogent Biosciences Inc. (NASDAQ:COGT)
Number of Hedge Fund Holders: 44
Cogent Biosciences Inc. (NASDAQ:COGT) is one of the best emerging technology stocks to invest in. On December 19, JPMorgan raised the firm’s price target on Cogent Biosciences to $67 from $65 with an Overweight rating on the shares. This sentiment was announced as the firm broadly updated models in its smid-cap biotech group.
In other news, on December 8, Cogent Biosciences announced positive top-line results from the registration-directed APEX Part 2 clinical trial. The study evaluated bezuclastinib, which is a highly selective and potent KIT D816V inhibitor, in 81 patients with advanced systemic mastocytosis/AdvSM, a rare and aggressive blood disorder. The primary efficacy analysis focused on 68 evaluable patients, demonstrating an Objective Response Rate/ORR of 57% based on modified IWG/mIWG criteria, which account for the reversal of organ damage. When measured by Pure Pathological Response criteria, the ORR reached 80%.
Bezuclastinib was reported to be well-tolerated, with no patients discontinuing the study due to treatment-related adverse events/TRAEs. The most common side effects included hair color change (30.9%), neutropenia (29.6%), and altered taste (28.4%). Dose reductions were infrequent, required by only 14.8% of the participants. These safety results are particularly notable as the drug is designed to avoid the central nervous system and off-target toxicities, such as intracranial bleeding, often seen with other treatments in this class.
This announcement marks the third successful pivotal trial for bezuclastinib in 2025, following the SUMMIT/NonAdvSM and PEAK/GIST trials. Cogent Biosciences expects to submit an NDA to the FDA in H1 2026, with plans for multiple commercial launches in H2 of that year. Detailed data from the APEX trial will be presented at a major medical conference in early 2026.
Cogent Biosciences Inc. (NASDAQ:COGT) is a biotechnology company that develops precision therapies for genetically defined diseases.
1. ABIVAX Société Anonyme (NASDAQ:ABVX)
Number of Hedge Fund Holders: 56
ABIVAX Société Anonyme (NASDAQ:ABVX) is one of the best emerging technology stocks to invest in. On December 18, Guggenheim analyst Yatin Suneja raised the firm’s price target on ABIVAX to $175 from $150 with a Buy rating on the shares. This sentiment was posted as the firm cited its optimistic outlook for obefazimod in the 44-week maintenance readout, which is currently upcoming.
On December 15, ABIVAX reported its financial results for Q3 2025. The company generated $2.40 million in revenue, surpassing Street estimates by $1.06 million. However, there was a loss per share that totaled $1.68 in the quarter. The net loss for the nine months widened to €254.1 million, up from €136.9 million in 2024 ($297.94 million and $160.52 million respectively). The company’s financial activity reflects an intensified focus on its lead candidate, obefazimod, a first-in-class oral miR-124 enhancer.
R&D expenses rose to €133.4 million, driven by the progression of the ABTECT Phase 3 program in ulcerative colitis/UC and the ENHANCE-CD Phase 2b trial in Crohn’s disease. ABIVAX is preparing for several major milestones in 2026. Topline results from the ABTECT Maintenance Trial are expected in the second quarter of 2026, which will serve as the final clinical foundation for a planned NDA submission to the FDA in the second half of that year.
ABIVAX Société Anonyme (NASDAQ:ABVX) is a clinical-stage biotechnology company that develops therapeutics that harness the body’s natural regulatory mechanisms to stabilize the immune response in patients with chronic inflammatory diseases.
While we acknowledge the potential of ABVX 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 ABVX and that has 100x upside potential, check out our report about this cheapest AI stock.
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