On December 30, Victoria Fernandez, Crossmark Chief Market Strategist, joined ‘Closing Bell’ on CNBC to discuss investment strategies for the technology sector as we head into 2026. Fernandez emphasized that the tech space should no longer be viewed as a monolith where any name will succeed. Instead, she anticipates a significant divergence among companies. She argued that investors must identify firms capable of delivering a tangible return on investment from their CapEx and suggested looking at second derivative AI plays: companies that are best positioned to implement and utilize AI technology effectively. Despite the trickier landscape, Fernandez noted that tech is still projected to drive nearly 50% of EPS growth in 2026.
On the same day, Ross Mayfield, investment strategist at Baird, appeared on CNBC’s ‘Squawk Box’ to discuss what investors should be watching headed into 2026. Mayfield noted that while the S&P 500 has seen strong performance this year, gaining over 17% on a price basis, the market has essentially remained flat for the past two months. He characterized this period not as a sell-off or a sign of a weak market, but as a rotational one. He observed that investors are moving into cyclical, real economy stocks, which he finds encouraging because it demonstrates market resilience even as certain AI stocks face skepticism. He viewed this lack of speculative bubble behavior as a healthy sign for the overall setup heading into 2026. Looking forward to Q1 2026, Mayfield highlighted several positive factors, including well-tamed interest rates and broad global market participation. However, he warned that rising sentiment and increasingly aggressive price targets from strategists could lead to a lack of volatility, which ironically poses a risk to the market if sentiment becomes overextended
That being said, we’re here with a list of the 12 best NASDAQ stocks to buy in 2026.
Our Methodology
We used the Finviz stock screener to find NASDAQ stocks with a forward EPS diluted growth rate (1-year estimate) of at least 20% and high upside potential of over 35%. 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.
Note: All data was sourced on December 30.
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 NASDAQ Stocks to Buy in 2026
12. MannKind Corporation (NASDAQ:MNKD)
Forward EPS Diluted Growth (1-Year Estimate): 23.47%
Average Upside Potential as of December 30: 78.89%
Number of Hedge Fund Holders: 25
MannKind Corporation (NASDAQ:MNKD) is one of the best NASDAQ stocks to buy in 2026. On December 23, MannKind Corporation secured FDA approval for the FUROSCIX On-body Infusor to treat pediatric patients weighing 43 kg or more. This expands the treatment’s existing reach beyond adults with chronic heart failure/CHF and chronic kidney disease/CKD, providing a home-based option for managing fluid buildup/edema.
Earlier on December 1, MannKind Corporation (NASDAQ:MNKD) announced that the US FDA accepted for review a Supplemental NDA for the FUROSCIX ReadyFlow Autoinjector (SCP-111). This device is designed to treat edema in adults suffering from CHF or CKD. The FDA set a Prescription Drug User Fee Act/PDUFA target action date of July 26, 2026, to decide on the application.
The ReadyFlow Autoinjector would deliver an IV-equivalent dose of 80 mg/ml subcutaneous furosemide in under 10 seconds. This represents a shift in administration time compared to the currently approved FUROSCIX On-body Infusor, which takes 5 hours to deliver the medication. The On-body Infusor was previously approved for CHF in 2022 and for CKD in 2025. The new autoinjector aims to provide a faster, more convenient, and cost-effective home-based option for managing fluid buildup, potentially reducing hospital admissions.
MannKind Corporation (NASDAQ:MNKD) is a biopharmaceutical company that develops and commercializes therapeutic products and services for endocrine and orphan lung diseases in the US.
11. Power Solutions International Inc. (NASDAQ:PSIX)
Forward EPS Diluted Growth (1-Year Estimate): 71.33%
Average Upside Potential as of December 30: 82.54%
Number of Hedge Fund Holders: 27
Power Solutions International Inc. (NASDAQ:PSIX) is one of the best NASDAQ stocks to buy in 2026. On December 5, Freedom Capital initiated coverage of Power Solutions with a Buy rating and an $87 price target. The firm believes that the company is positioned to benefit from two significant market shifts: the skyrocketing demand for data center power systems and the extensive, long-term updates being made to US infrastructure. The company is capable of creating a reliable strategy for valuation growth.
Earlier on December 1, Jefferies initiated coverage of Power Solutions with a Buy rating and a $101.51 price target. The firm anticipates that AI-related spending will remain elevated for an extended period and highlighted Power Solutions as a vital contributor to the diesel generator supply chain, especially as international competitors face capacity constraints. Consequently, Jefferies believes that the stock is positioned for a significant valuation re-rating.
In Q3 2025, Power Solutions International Inc. (NASDAQ:PSIX) achieved its highest sales in history, reaching $203.8 million, which was a 62% increase over Q3 2024. This growth translated into a net income of $27.6 million, which was up 59%, and a diluted EPS of $1.20, representing a $0.45 increase over the previous year’s $0.75. The surge in revenue was fueled by an $85.3 million increase in the power systems end market, particularly within the data center and oil and gas sectors.
Power Solutions International Inc. (NASDAQ:PSIX) designs, engineers, manufactures, markets, and sells engines and power systems in the US, North America, the Pacific Rim, Europe, and internationally.
