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.
10. Masimo Corporation (NASDAQ:MASI)
Forward EPS Diluted Growth (1-Year Estimate): 48.44%
Average Upside Potential as of December 30: 39.71%
Number of Hedge Fund Holders: 31
Masimo Corporation (NASDAQ:MASI) is one of the best NASDAQ stocks to buy in 2026. On December 5, Wells Fargo raised the firm’s price target on Masimo to $190 from $187, while maintaining an Overweight rating on the shares. The firm observed that the company’s Investor Day underscored a strong belief in its sustained, multi-year expansion. Wells Fargo specifically highlighted an expected annual revenue growth rate of 7% to 10% through 2028 and noted that the introduction of new products is projected to push that growth into double digits after 2028.
On the same day, BTIG raised the firm’s price target on Masimo to $200 from $198 and kept a Buy rating on the shares. Following the company’s Investor Day, BTIG expressed a bullish outlook and positioned Masimo as a potential top-tier performer in the MedTech sector for years to come. The firm highlighted the company’s commitment to funding next-generation sensors and monitors. BTIG believes that this focus on R&D will secure sustainable and high-single-digit growth.
In Q3 2025, Masimo Corporation (NASDAQ:MASI) reported an 8% increase in total revenue to $371 million. The company also saw a 38% year-over-year surge in adjusted EPS, which reached $1.32. This performance was supported by new contracts valued at $124 million, which was a 48% increase from the previous year. The company also reported a substantial backlog, with $507 million in unrecognized contract revenue expected to be realized within the next 12 months.
Masimo also raised its full-year 2025 guidance, now projecting annual revenue between $1.510 and $1.530 billion, with an adjusted EPS of $5.40 to $5.55.
Masimo Corporation (NASDAQ: MASI) develops, manufactures, and markets various patient monitoring technologies, as well as automation and connectivity solutions, worldwide.
9. Oddity Tech Ltd. (NASDAQ:ODD)
Forward EPS Diluted Growth (1-Year Estimate): 22.03%
Average Upside Potential as of December 30: 70.61%
Number of Hedge Fund Holders: 31
Oddity Tech Ltd. (NASDAQ:ODD) is one of the best NASDAQ stocks to buy in 2026. On December 12, JPMorgan analyst Cory Carpenter lowered the firm’s price target on Oddity to $59 from $67, while keeping an Overweight rating on the shares. As part of its 2026 market forecast, the firm updated its investment ratings and price targets for companies within the small- and mid-cap internet and video game sectors.
Oddity Tech Ltd. (NASDAQ:ODD) saw a 24% year-over-year revenue increase to $148 million in Q3 2025. The company achieved a simultaneous 24% rise in adjusted diluted EPS. The company’s growth was largely propelled by a 40% year-over-year surge in international revenue, particularly within established markets like the UK and Australia. Oddity is also preparing for future scaling by testing new markets in France, Italy, and Spain. This international expansion did lead to a minor 1% decline in average order value due to the lower price points in these regions. However, the company successfully offset higher customer acquisition costs through a high rate of repeat business from its core brands, IL MAKIAGE and SpoiledChild.
A major strategic highlight of the quarter was the launch of METHODIQ, which is a new dermatology-focused medical care brand. While the brand is expected to initially carry lower gross margins due to third-party physician network costs, management expects it to scale faster than the previous successful launch of SpoiledChild. The company raised its full-year 2025 guidance, now forecasting total revenue between $806 million and $809 million (representing 24% to 25% growth), with an adjusted diluted EPS in the range of $2.10 to $2.12.
Oddity Tech Ltd. (NASDAQ:ODD) operates as a consumer tech company that builds digital-first brands for the beauty and wellness industries in the US and internationally.
8. Tenable Holdings Inc. (NASDAQ:TENB)
Forward EPS Diluted Growth (1-Year Estimate): 30.04%
Average Upside Potential as of December 30: 59.10%
Number of Hedge Fund Holders: 32
Tenable Holdings Inc. (NASDAQ:TENB) is one of the best NASDAQ stocks to buy in 2026. On December 18, Morgan Stanley lowered the firm’s price target on Tenable to $30 from $32 with an Equal Weight rating on the shares. In a year-ahead analysis, the firm reported that while cybersecurity stocks remained relatively stagnant overall, performance varied wildly by category: platform-based companies rose by an average of 30%, whereas the remainder of the sector saw a 12% decline. Morgan Stanley noted that while platforms remain the most straightforward and high-performing investment strategy in the cybersecurity space, there are still attractive opportunities to be found in other areas of the market.
On December 16, Jefferies lowered the firm’s price target on Tenable to $29 from $31, while maintaining a Hold rating on the shares. In a year-ahead sector outlook, the firm noted that cybersecurity software stocks are expected to remain durable throughout 2026, supported by solid financial fundamentals. However, while the group is projected to stay resilient, it will likely underperform relative to a broader software market rebound, especially if that recovery is driven by significant breakthroughs in AI.
In other news, on December 11, Tenable Holdings Inc. (NASDAQ:TENB) announced a significant OneGov agreement with the US General Services Administration/GSA. Under this partnership, Tenable will provide its FedRAMP-authorized Cloud Security solution to US federal agencies, including the Department of Defense. The agreement is designed to offer these agencies specialized pricing and discounts through March 31, 2027. The partnership centers on Tenable’s Cloud Native Application Protection Platform/CNAPP, which is engineered to support the federal government’s cloud-first policy and the White House’s AI Action Plan.
Tenable Holdings Inc. (NASDAQ:TENB) provides cyber exposure management solutions in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan.
7. Vital Farms Inc. (NASDAQ:VITL)
Forward EPS Diluted Growth (1-Year Estimate): 42.44%
Average Upside Potential as of December 30: 46.97%
Number of Hedge Fund Holders: 33
Vital Farms Inc. (NASDAQ:VITL) is one of the best NASDAQ stocks to buy in 2026. On December 18, DA Davidson analyst Brian Holland lowered the firm’s price target on Vital Farms to $47 from $52 but kept a Buy rating on the shares. The firm suggested that investor frustration over lowered Q4 2025 projections is overshadowing signs that the company is successfully moving past a period of temporary instability. DA Davidson’s optimistic view is based on the expectation that current momentum will continue and that the company will have the operational capacity to finally satisfy a backlog of consumer and customer demand.
On the same day, TD Cowen analyst Robert Moskow trimmed the firm’s price target on Vital Farms to $44 from $59 with a Buy rating on the shares. The firm noted that management set an ambitious $2B revenue goal for 2030. This growth strategy relies on increasing household penetration, boosting brand recognition, securing more retail shelf space, and resolving existing production bottlenecks. Despite this long-term optimism, the company’s decision to lower its 2025 guidance has intensified investor anxiety.
Furthermore, BMO Capital analyst Benjamin Mayhew also cut the firm’s price target on Vital Farms Inc. (NASDAQ:VITL) to $50 from $60 with an Outperform rating on the shares. The firm noted that while the downward revision of the 2025 outlook is disappointing, the setback appears to be temporary. The company has already addressed the underlying disruptions, a recovery supported by the fact that the 2026 outlook remains in line with expectations. Despite the near-term cut, BMO Capital remains bullish on the stock’s valuation. The firm also maintains that Vital’s long-term revenue CAGR of low-20% is achievable.
Vital Farms Inc. (NASDAQ:VITL) is a food company, packages, markets, and distributes shell eggs, butter, and other products in the US. It produces products sourced from animals raised on family farms under the Vital Farms brand and other trade names.
6. Arm Holdings (NASDAQ:ARM)
Forward EPS Diluted Growth (1-Year Estimate): 21.29%
Average Upside Potential as of December 30: 61.00%
Number of Hedge Fund Holders: 37
Arm Holdings (NASDAQ:ARM) is one of the best NASDAQ stocks to buy in 2026. On December 15, Goldman Sachs downgraded Arm Holdings to Sell from Neutral with a price target of $120, which was brought down from $160. This decision was made as the firm updated its 2026 semiconductor sector outlook and predicted that rising AI spending by hyperscalers will support digital, memory, and storage markets, while a recovery in the automotive and industrial sectors should benefit analog chips. However, Goldman Sachs downgraded Arm Holdings due to its limited exposure to the AI cycle, its ongoing business model transition, and the challenges it faces in gaining traction across non-traditional markets.
In FQ2 2026, Arm Holdings (NASDAQ:ARM) achieved its best FQ2 performance to date, with total revenue reaching $1.14 billion, which was a 34% increase year-on-year. This growth was fueled by record royalty revenue of $620 million (up 21%) and a massive 56% surge in licensing revenue, which totaled $515 million. The licensing spike reflects intense global demand for next-gen AI products and Arm Holdings’ high-efficiency compute architecture. The company also delivered a non-GAAP EPS of $0.39, which was $0.06 above the midpoint of its previous guidance.
Strategically, Arm Holdings (NASDAQ:ARM) is positioning itself as the primary solution to the power bottlenecks currently hindering data center expansion. The company’s platform is approximately 50% more energy-efficient than its competitors, a factor that has led to widespread adoption by industry giants including Nvidia, Amazon, Google, and Microsoft. This efficiency drove ARM’s Neoverse royalties to more than double year-on-year. Furthermore, the company announced a strategic partnership with Meta to optimize AI efficiency and revealed plans to acquire DreamBig Semiconductor to secure critical intellectual property for data center networking and high-speed communications.
Arm Holdings (NASDAQ:ARM) architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers.
5. Duolingo Inc. (NASDAQ:DUOL)
Forward EPS Diluted Growth (1-Year Estimate): 130.98%
Average Upside Potential as of December 30: 67.43%
Number of Hedge Fund Holders: 50
Duolingo Inc. (NASDAQ:DUOL) is one of the best NASDAQ stocks to buy in 2026. On December 11, Jefferies raised the firm’s price target on Duolingo to $220 from $210 and maintained a Hold rating on the shares. In the firm’s 2026 Internet Playbook report, Jefferies advised investors to be highly selective with Internet stocks and warned that continued heavy spending on growth could squeeze profit margins. Furthermore, concerns that AI might disintermediate traditional internet services could prevent stock valuations from rising, as these shifts threaten the long-term dominance of existing platforms.
On December 3, DA Davidson lowered the firm’s price target on Duolingo to $205 from $220 and maintained a Neutral rating on the shares. The firm informed investors that data, which is tracking approximately 170K existing users, reveals sequential improvements in active user numbers for October and November compared to the third quarter. However, the firm noted that despite Duolingo’s strategic expansion into the chess market, there has been no significant surge in Chess.com’s user growth so far.
Duolingo Inc. (NASDAQ:DUOL) highlighted a 34% year-over-year increase in daily active users in Q3 2025. The company is on track to reach nearly $1.2 billion in bookings for the full year, representing a 33% annual growth rate. The company’s expansion into Asia has reached a significant milestone, with China now serving as its second-largest market in terms of daily active users.
A primary driver of recent success is the company’s diversification beyond language learning. The new chess course has become Duolingo’s fastest-growing offering, exceeding the growth rates of both its math and music courses. Millions of users have already engaged with the chess content, which boasts retention rates slightly higher than the core language products. To further drive engagement, Duolingo is rolling out a Player-vs-Player feature, which is currently available to 50% of iOS users with an Android release and full rollout expected in the coming weeks.
Despite the positive momentum, Duolingo expects some deceleration in DAU growth during Q4, with September and October showing year-over-year growth of ~30% compared to the 34% seen in Q3.
Duolingo Inc. (NASDAQ:DUOL) operates as a mobile learning platform in the US, the UK, and internationally. The company offers courses in 40 different languages, including Spanish, English, French, German, Italian, Portuguese, Japanese, and Chinese, through its Duolingo app.
4. Zebra Technologies Corporation (NASDAQ:ZBRA)
Forward EPS Diluted Growth (1-Year Estimate): 21.71%
Average Upside Potential as of December 30: 45.02%
Number of Hedge Fund Holders: 53
Zebra Technologies Corporation (NASDAQ:ZBRA) is one of the best NASDAQ stocks to buy in 2026. On December 18, Truist analyst Jamie Cook lowered the firm’s price target on Zebra Technologies to $291 from $331 with a Hold rating. In a 2026 sector preview, the firm maintained a preference for Transmission, Distribution, and Power Generation due to data center and AI demand, though it warned that investors will scrutinize backlog growth for signs of peaking demand.
The construction sector is viewed as a bright spot, supported by the end of inventory destocking and Deere’s forecast of 10% growth in its Construction & Forestry division. Additionally, while North American truck orders are currently at a cyclical low, the firm expects a recovery throughout 2026 as customers pre-buy vehicles ahead of the EPA 2027 regulatory changes.
In Q3 2025, Zebra Technologies Corporation (NASDAQ:ZBRA) reported a 5% year-over-year revenue increase to $1.3 billion. The company achieved a non-GAAP diluted EPS of $3.88, which was an 11% increase that exceeded the high end of its previous outlook. Growth was uneven across Zebra’s business segments and geographies. The Asset Intelligence & Tracking segment surged by 11%, driven by strong demand for RFID and printing technologies. In contrast, the Enterprise Visibility & Mobility segment grew by a modest 2%, as double-digit gains in mobile computing were partially offset by a decline in data capture due to a difficult year-over-year comparison.
Looking toward the end of the year, Zebra Technologies Corporation (NASDAQ:ZBRA) forecasts sales growth between 8% and 11% with a non-GAAP diluted EPS of $4.20 to $4.40. For the full year 2025, the company expects approximately 8% sales growth and an adjusted EPS of roughly $15.80, which would mark a 17% increase over the prior year.
Zebra Technologies Corporation (NASDAQ:ZBRA), together with its subsidiaries, provides enterprise asset intelligence solutions in the automatic identification and data capture solutions industry worldwide. It has two segments: Asset Intelligence & Tracking, and Enterprise Visibility & Mobility.
3. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)
Forward EPS Diluted Growth (1-Year Estimate): 36.67%
Average Upside Potential as of December 30: 59.41%
Number of Hedge Fund Holders: 54
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is one of the best NASDAQ stocks to buy in 2026. On December 22, H.C. Wainwright raised the firm’s price target on BioMarin to $60 from $55 with a Neutral rating on the shares. This sentiment was announced amid the acquisition of Amicus Therapeutics Inc. (NASDAQ:FOLD), which the firm described as a move that stabilizes long-term cash flows, though H.C. Wainwright also noted that peak sales won’t materialize until the 2030s. Therefore, Voxzogo will remain the primary driver of BioMarin’s stock value in the interim.
On December 19, BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) and Amicus Therapeutics announced a definitive agreement for BioMarin to acquire Amicus in an all-cash transaction valued at ~$4.8 billion. Under the terms of the deal, BioMarin will pay $14.50 per share. The Boards of Directors of both companies have unanimously approved the merger, which is expected to close in Q2 2026, pending regulatory clearances and Amicus stockholder approval.
The acquisition strategically expands BioMarin’s leadership in rare diseases by adding two high-growth, marketed therapies for lysosomal storage disorders. These include Galafold (migalastat), the first oral treatment for Fabry disease, and Pombiliti + Opfolda, a two-component therapy for Pompe disease. Over the last four quarters, these products generated a combined $599 million in revenue. Additionally, the deal includes US rights to DMX-200, a Phase 3 investigational small molecule targeting focal segmental glomerulosclerosis/FSGS, which is a rare kidney disease.
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is a biotechnology company that develops and commercializes therapies for life-threatening rare diseases and medical conditions in the US, Europe, Latin America, the Middle East, the Asia Pacific, and internationally.
2. Monday.com Ltd. (NASDAQ:MNDY)
Forward EPS Diluted Growth (1-Year Estimate): 38.44%
Average Upside Potential as of December 30: 56.68%
Number of Hedge Fund Holders: 55
Monday.com Ltd. (NASDAQ:MNDY) is one of the best NASDAQ stocks to buy in 2026. On December 23, Citi lowered the firm’s price target on Monday.com to $293 from $319 with a Buy rating on the shares. This sentiment came as Citi updated its application software models and noted a demand environment that is stable yet remains uncertain.
Earlier on December 16, BTIG initiated coverage of Monday.com with a Buy rating and $210 price target. The firm highlighted that Monday.com is successfully evolving beyond its origins as a pure-play work management provider. BTIG estimates that the company’s new product suite now generates ~$133 million in ARR (accounting for 10% of the total) and is expanding at an 84% year-over-year rate. The firm also noted that Monday.com Ltd. (NASDAQ:MNDY) is accelerating its go-to-market strategy by using this multi-product growth to move further upmarket. By focusing on larger enterprise clients and high customer retention, the company is positioning itself for a broader market presence.
On December 10, Tigress Financial raised the firm’s price target on Monday.com to $310 from $295 with a Buy rating on the shares. The firm argued that Monday.com is solidifying its role as an AI-native Work OS leader, supporting one of the most compelling combinations of growth and profitability in the SaaS sector. The firm also suggested that the market’s recent reaction to revised sales expectations has opened a significant buying opportunity for investors.
Monday.com Ltd. (NASDAQ:MNDY), together with its subsidiaries, develops software applications in the US, Europe, the Middle East, Africa, the UK, and internationally.
1. Coinbase Global Inc. (NASDAQ:COIN)
Forward EPS Diluted Growth (1-Year Estimate): 164.04%
Average Upside Potential as of December 30: 60.66%
Number of Hedge Fund Holders: 73
Coinbase Global Inc. (NASDAQ:COIN) is one of the best NASDAQ stocks to buy in 2026. On December 29, Needham analyst John Todaro lowered the firm’s price target on Coinbase to $290 from $400 and maintained a Buy rating on the shares.
Additionally, on December 22, Coinbase Global Inc. (NASDAQ:COIN) announced its acquisition of The Clearing Company to accelerate the platform’s expansion into prediction markets and equities trading. By acquiring its own derivatives clearinghouse, Coinbase aims to solidify its transition into an “Everything Exchange,” complementing its existing CFTC-approved derivatives exchange and its recently launched prediction market features.
The Clearing Company, while not yet operational, applied for Commodity Futures Trading Commission/CFTC approval in November 2024 to function as a registered clearinghouse. The startup is technically distinct for its use of digital ledger technology to clear and settle trades using stablecoins, a method that facilitates near-instant settlement. This infrastructure is considered critical market plumbing that is essential for the high-frequency nature of prediction markets.
Coinbase Global Inc. (NASDAQ:COIN) operates a platform for crypto assets. It offers the primary financial account in the crypto economy for consumers, a brokerage platform with a pool of liquidity across the crypto marketplace for institutions, and a suite of products granting access to build on-chain for developers.
While we acknowledge the potential of COIN 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 COIN and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None.
