On January 6, Dan Ives of Wedbush Securities appeared on CNBC’s ‘Closing Bell’ team to discuss the state of the tech bull market and the keynote address by Nvidia CEO Jensen Huang at CES. Ives referred to Huang as the Godfather of AI and predicted that the CEO would specifically lay out a vision for the next chapter of AI, which would focus on robotics and autonomous technology. Ives explained that this shift would mark the beginning of a new layer in the AI revolution. He argued that the potential of robotics and autonomous systems is not yet factored into Nvidia’s stock price, nor is it reflected in the valuation of other tech companies. Ives also highlighted a multiplier effect and claimed that every dollar spent on an Nvidia chip generates $8 to $10 of spending across the rest of the tech sector. He stated that the tech bull market is only in the ‘top of the third inning of a nine-inning game with one out’, and emphasized that the entire cycle starts with Jensen Huang.
Earlier on December 30, Phil Palumbo of Palumbo Wealth Management appeared on ‘Closing Bell’ on CNBC to talk about the technology trends and AI investment strategies for 2026. Investors could no longer view the tech space as a monolithic group where any selection will perform well — rather, investors must identify companies capable of producing a return on investment from their CapEx components. Despite the sector becoming trickier, tech is expected to account for almost 50% of EPS growth in 2026. Phil Palumbo expressed confidence that investments in AI implementation will make a tremendous difference in 2026 and 2027. He cited Jensen Huang’s claim that AI tools can increase employee productivity by 2x to 3x.
That being said, we’re here with a list of the 13 hot tech stocks to invest in.
Our Methodology
We sifted through the Finviz stock screener to compile a list of tech stocks that have gained at least 30% over the past 6 months. We then selected 13 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of their 6-month performance. We have also added the hedge fund sentiment for each stock, as of Q3 2025.
Note: All data was sourced on January 7.
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).
13 Hot Tech Stocks to Invest in
13. Lantronix Inc. (NASDAQ:LTRX)
Number of Hedge Fund Holders: 15
6-Month Performance as of January 7: 97.07%
Lantronix Inc. (NASDAQ:LTRX) is one of the hot tech stocks to invest in. Earlier on December 11, Lake Street raised the firm’s price target on Lantronix to $8 from $6 with a Buy rating on the shares. The firm believes that Lantronix is gaining traction as a hidden gem within the drone industry. This growth, combined with steady demand from a Tier-1 wireless provider for cell site monitoring and strength in the out-of-band management market, is expected to fuel revenue growth through next year.
On the same day, Lantronix Inc. (NASDAQ:LTRX) announced a collaboration with Trillium Engineering to integrate its Edge AI technology into gimbaled imaging systems for Uncrewed Aircraft Systems/UAS. Lantronix will provide NDAA/TAA-compliant solutions and engineering services to power Trillium’s military and commercial drone platforms.
The collaboration centers on the use of Lantronix’s Open-Q 5165RB System on Module/SOM, which is powered by Qualcomm Dragonwing processors. This hardware enables Trillium’s GD-Loc and NyxCore products to perform advanced on-device AI functions, including real-time edge processing for actionable insights and AI-driven object detection and tracking. The technology is specifically designed for Size, Weight, and Power/SWaP optimization, ensuring high performance in compact uncrewed platforms while maintaining precision targeting and low latency, even in environments where GPS or networks are restricted.
Lantronix Inc. (NASDAQ:LTRX) develops, markets, and sells industrial and enterprise IoT products and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific Japan.
12. nLIGHT Inc. (NASDAQ:LASR)
Number of Hedge Fund Holders: 34
6-Month Performance as of January 7: 100.95%
nLIGHT Inc. (NASDAQ:LASR) is one of the hot tech stocks to invest in. On December 17, Roth Capital initiated coverage of nLight with a Buy rating and $44 price target. The firm highlighted nLIGHT’s strategic advantage as a specialized provider of directed energy lasers. Roth MKM anticipates that a convergence of market forces will fast-track the adoption of laser-based weaponry over the next ten years. By supplying both laser and sensing tech to major defense contractors, nLIGHT is positioned to lead the current wave of military investment and innovation.
For its Q3 2025 earnings, nLIGHT Inc. (NASDAQ:LASR) reported that its total revenue climbed to $67 million, which was a 19% increase compared to the $56.1 million reported in the same quarter last year. This growth was anchored by the A&D segment, which reached a record $45.6 million, rising 50% and representing 68% of the company’s total revenue. Specifically, defense product sales skyrocketed by 71%, driven by the ramp-up of directed energy and laser sensing programs.
For Q4, nLIGHT projected revenue between $72 and $78 million. Management expects the A&D segment to maintain its momentum, forecasting full-year growth for the division to exceed 40%. Furthermore, despite the major “Healthy 2” contract ending in 2026, executives believe that new directed energy and laser sensing projects will offset that revenue loss.
nLIGHT Inc. (NASDAQ:LASR) designs, develops, manufactures, and sells semiconductor and fiber lasers for industrial, microfabrication, and aerospace and defense applications.
11. MongoDB Inc. (NASDAQ:MDB)
Number of Hedge Fund Holders: 89
6-Month Performance as of January 7: 104.39%
MongoDB Inc. (NASDAQ:MDB) is one of the hot tech stocks to invest in. On January 7, Truist raised the firm’s price target on MongoDB to $500 from $450 and kept a Buy rating on the shares. This decision was made as Truist noted a deepening divide in the AI sector: while seat-based business models have plummeted by an average of 34% over the last year, other AI-related firms have climbed 24%. This valuation gap is expected to persist through 2026, though the firm suggested that some of last year’s laggards may be primed for a recovery.
In its FQ3 2026 earnings report, MongoDB Inc. (NASDAQ:MDB) recorded $628 million in revenue, which was a 19% year-over-year increase. This growth was fueled by MongoDB Atlas, which saw a 30% revenue increase. Atlas now accounts for 75% of the company’s total revenue, reflecting an acceleration in cloud adoption compared to prior quarters.
MongoDB also provided optimistic guidance for the remainder of the fiscal year. For FQ4 2026, the company expects revenue between $665 and $670 million, representing 21% to 22% growth. For FY2026, revenue is projected to be between $2.434 and $2.439 billion. CFO Michael Berry indicated that the company will continue to invest in engineering and sales capacity into FY2027.
MongoDB Inc. (NASDAQ:MDB), together with its subsidiaries, provides general-purpose database platform worldwide.
10. AST SpaceMobile Inc. (NASDAQ:ASTS)
Number of Hedge Fund Holders: 25
6-Month Performance as of January 7: 109.98%
AST SpaceMobile Inc. (NASDAQ:ASTS) is one of the hot tech stocks to invest in. On January 7, Scotiabank downgraded AST SpaceMobile to Underperform from Sector Perform with a $45.60 price target. The firm argued that AST SpaceMobile’s stock has surged to irrational levels, and a more realistic valuation falls between $45 and $55. While the company’s tech is impressive, Scotiabank expressed skepticism regarding its execution. With evidence of slow adoption in major markets, low ARPU, and high ongoing capital requirements, the firm believes that investors may have to wait until 2028 or 2029 to see significant cash flow.
Additionally, on December 23, AST SpaceMobile achieved a milestone in telecom with the successful orbital launch of BlueBird 6. Spanning ~2,400 square feet, BlueBird 6 is officially the largest commercial communications array ever deployed in low Earth orbit. It is more than 3x the size and offers 10x the capacity of the company’s previous five satellites currently in orbit.
The satellite is engineered to provide peak data rates of up to 120 Mbps directly to standard, unmodified mobile devices, bypassing the need for specialized hardware. This tech supports high-speed 4G and 5G cellular broadband, including voice, full data, and video applications for both commercial and government use.
AST SpaceMobile Inc. (NASDAQ:ASTS), together with its subsidiaries, designs and develops a constellation of BlueBird satellites in the US.
9. Coherent Corp. (NYSE:COHR)
Number of Hedge Fund Holders: 78
6-Month Performance as of January 7: 110.32%
Coherent Corp. (NYSE:COHR) is one of the hot tech stocks to invest in. On December 17, Morgan Stanley analyst Meta Marshall raised the firm’s price target on Coherent to $180 from $150 and maintained an Equal Weight rating on the shares. In 2025, the AI investment landscape expanded beyond just semiconductor stocks, benefiting broader infrastructure players, especially in the optical networking sector. Marshall expects this trend to remain strong through H1 2026. However, the firm cautioned to be more selective as high valuation multiples across the sector make it harder to achieve consistent returns.
Earlier on December 16, Bank of America analyst Vivek Arya raised the firm’s price target on Coherent Corp. (NYSE:COHR) to $210 from $165 and kept a Neutral rating on the shares. The firm notably increased the company’s price targets, citing a persistent supply-demand imbalance driven by overwhelming interest in optical transceivers and components.
Earlier on December 5, JPMorgan raised the firm’s price target on the company to $215 from $180 with an Overweight rating on the shares. The firm raised its financial estimates for optical companies, identifying scale-across and multi-rail opportunities as key growth catalysts. The firm noted that new telecom innovations in metro and long-haul infrastructure are expanding the TAM, which should sustain current high growth rates well into the future.
Coherent Corp. (NYSE:COHR) develops, manufactures, and markets engineered materials, optoelectronic components and devices, and laser systems for use in the industrial, communications, electronics, and instrumentation markets worldwide.
8. Amkor Technology Inc. (NASDAQ:AMKR)
Number of Hedge Fund Holders: 35
6-Month Performance as of January 7: 137.85%
Amkor Technology Inc. (NASDAQ:AMKR) is one of the hot tech stocks to invest in. On January 5, Needham raised the firm’s price target on Amkor Technology to $50 from $37, while keeping a Buy rating on the shares. Needham increased its 2026 demand forecast for AI wafers and pointed to significant growth in both GPUs and custom AI chips/ASICs that surfaced last quarter. The firm believes that the long-term peak for CoWoS (advanced packaging) demand will be much higher than previously estimated. Consequently, it identified Amkor as a primary beneficiary and a dominant leader in the CoWoS space over the next 5 years.
The company is aggressively expanding its infrastructure to meet the demand for Edge AI and advanced packaging. Amkor Technology Inc. (NASDAQ:AMKR) announced a significant $7 billion investment for a new advanced packaging and test campus in Arizona, which is expected to create up to 3,000 jobs. Additionally, management is optimizing its manufacturing footprint in Japan, a move projected to improve corporate gross margins by ~100 basis points by the end of 2027.
The company expects a sequential revenue decline of ~8% in Q4 2025, with guidance set between $1.775 and $1.875 billion. This outlook reflects a seasonal tapering in the iOS ecosystem and a 5% year-over-year decline in consumer revenue due to a specific wearable product lifecycle.
Amkor Technology Inc. (NASDAQ:AMKR) provides outsourced semiconductor packaging and test services in the US, Japan, Europe, and the Asia Pacific.
7. Teradyne Inc. (NASDAQ:TER)
Number of Hedge Fund Holders: 58
6-Month Performance as of January 7: 138.33%
Teradyne Inc. (NASDAQ:TER) is one of the hot tech stocks to invest in. On December 16, Bank of America raised the firm’s price target on Teradyne to $235 from $205 with a Buy rating on the shares. This sentiment came out as BofA broadly updated its price targets for the US semiconductor stocks, framing 2026 as the halfway point of a decade-long transition to AI-driven infrastructure. The firm noted that while stock performance may be volatile, this uncertainty should be balanced by the rise of AI factories and the rapid development of next-gen LLMs.
On the same day, Cantor Fitzgerald raised the firm’s price target on Teradyne Inc. (NASDAQ:TER) to $240 from $200 and kept an Overweight rating on the shares. After outperforming the S&P 500 by approximately 30 points in 2025, the semiconductor index/SOX is expected to continue leading the market higher into 2026. Cantor Fitzgerald noted that while cyclical trends may send mixed signals, the massive growth in AI infrastructure spending is driving sustained demand for computing, networking, memory, and equipment. Consequently, the firm recommended a long position in the SOX and an overweight allocation to AI-focused stocks to capitalize on this expanding tech cycle.
Teradyne Inc. (NASDAQ:TER) designs, develops, manufactures, and sells automated test systems and robotics products in the US, Asia Pacific, Europe, the Middle East, and Africa. It operates through Semiconductor Test, Robotics, and Other segments.
6. Frequency Electronics Inc. (NASDAQ:FEIM)
Number of Hedge Fund Holders: 11
6-Month Performance as of January 7: 151.06%
Frequency Electronics Inc. (NASDAQ:FEIM) is one of the hot tech stocks to invest in. On December 16, Freedom Capital downgraded Frequency Electronics to Hold from Buy with a price target of $42, which was brought up from $33. This sentiment was announced as Frequency Electronics reported Q2 results that fell slightly short of expectations and prior-year profitability, yet the firm maintains a positive outlook based on an emerging operational recovery. While the satellite business is experiencing temporary weakness, it is being countered by a strengthening in the non-space defense segment and a pivot toward land-based programs.
Just a few days prior to this rating, Frequency Electronics Inc. (NASDAQ:FEIM) announced its FQ2 2026 financial results, highlighted by a record-breaking funded backlog of $82 million. This backlog represented a 17% increase since the end of the previous fiscal year in April. Revenue for the quarter rose to $17.1 million, which was a 24% sequential increase and the third-highest quarterly revenue recorded by the company in the past decade.
The company’s revenue mix saw a shift toward non-space US government and Department of Defense/DoD contracts, which generated $11.9 million and accounted for 69% of total revenue. In contrast, commercial and US Government satellite programs contributed $4.6 million, or 27%. While total revenue was up from the previous year’s $15.8 million, net income fell to $1.8 million ($0.18 per share) from $2.7 million ($0.28 per share) a year ago. Frequency Electronics is now positioning itself for emerging markets, including quantum sensing, proliferated satellites, and Alternative Position, Navigation, and Timing (ALT-PNT) solutions.
Frequency Electronics Inc. (NASDAQ:FEIM), together with its subsidiaries, designs, develops, manufactures, markets, and sells precision time and frequency control products and components for microwave integrated circuit applications.
5. Vicor Corporation (NASDAQ:VICR)
Number of Hedge Fund Holders: 18
6-Month Performance as of January 7: 202.27%
Vicor Corporation (NASDAQ:VICR) is one of the hot tech stocks to invest in. On December 17, Roth Capital initiated coverage of Vicor with a Buy rating and $115 price target. As a dominant leader in power architecture, the company is uniquely equipped to meet the aggressive power density and efficiency demands of next-gen AI platforms. The firm anticipates a period of accelerating growth and margin expansion driven by a new product rollout, the capabilities of its vertically integrated fabrication facility, and a robust IP portfolio that is expected to generate high-margin royalty income.
In Q3 2025, Vicor Corporation (NASDAQ:VICR) reported $110.4 million in quarterly revenue, which was an 18.5% year-over-year increase but a 21.7% sequential decline. This drop was due to the absence of a one-time $45 million patent settlement benefit recorded in the prior period. Despite the revenue dip, net income stood at $28.3 million, with GAAP diluted EPS of $0.63.
The company’s product segments showed resilience, with Advanced Products revenue growing 8.2% sequentially to $65.5 million, while Brick Products increased 26.6% from a base of $44.9 million. A major highlight of the quarter was the growth of Vicor’s IP licensing division, which achieved an annual run rate of ~$90 million. The company is now preparing for a major production ramp-up of its second-generation vertical power delivery/VPD solutions for its lead customer in Q1 2026, with further pre-production for other hyperscalers and OEMs expected in H2 of that year.
Vicor Corporation (NASDAQ:VICR), together with its subsidiaries, designs, develops, manufactures, and markets modular power components and power systems for converting electrical power for use in electrically powered devices.
4. Applied Digital Corporation (NASDAQ:APLD)
Number of Hedge Fund Holders: 38
6-Month Performance as of January 7: 222.31%
Applied Digital Corporation (NASDAQ:APLD) is one of the hot tech stocks to invest in. On January 7, Arete Research began covering Applied Digital with a Buy rating and a price target of $99.
A day before that, Freedom Capital initiated coverage of Applied Digital with a Buy rating and $36 price target. The firm projected that the company’s adjusted EBITDA margin will surpass 60% within two fiscal years. This outlook is driven by the Polaris Forge 1 and 2 projects (representing the firm’s initial 700 MW of contracted power), which are both expected to generate levered internal rates of return/IRRs in the mid-20% range.
Earlier on December 29, Applied Digital Corporation (NASDAQ:APLD) and EKSO Bionics Holdings Inc. (NASDAQ:EKSO) announced a non-binding agreement to combine Applied Digital’s cloud computing business with EKSO. This spin-out will form a new, NASDAQ-listed entity called ChronoScale Corporation, an accelerated compute platform specifically engineered for next-gen AI workloads, training, and inference. Under the terms of the proposed deal, Applied Digital will own approximately 97% of the combined company. The new entity will benefit from an alignment with Applied Digital’s AI Factory campuses, such as the award-winning Polaris Forge model, which uses proprietary waterless cooling and sustainably engineered designs. The business combination is expected to close in H1 2026.
Applied Digital Corporation (NASDAQ:APLD) designs, develops, and operates digital infrastructure solutions for HPC and AI industries in North America. It operates through: Data Center Hosting Business and HPC Hosting Business.
3. Ciena Corporation (NYSE:CIEN)
Number of Hedge Fund Holders: 70
6-Month Performance as of January 7: 223.48%
Ciena Corporation (NYSE:CIEN) is one of the hot tech stocks to invest in. On December 12, Argus raised the firm’s price target on Ciena to $280 from $135 and maintained a Buy rating on the shares. Ciena is experiencing a surge in orders and expanding into new markets and customer bases as its AI networking opportunities rapidly grow following strong Q4 results. Although heavy investments in these initiatives are currently impacting margins, the firm anticipates that increasing volumes will offset this pressure in the near future.
On the same day, UBS analyst David Vogt raised the firm’s price target on Ciena to $230 from $120, while maintaining a Neutral rating on the shares. This sentiment was posted as the firm broadly updated its model following the company’s Q4 2025 earnings report.
Additionally, B. Riley nearly doubled its price target for Ciena, raising it to $222 from $113, while keeping a Neutral rating. This adjustment also followed a Q4 beat on both revenue and earnings, fueled by growth in Optical Networking and Cloud services. However, the firm still cautioned that current valuation multiples are significantly higher than historical averages and will likely eventually normalize.
Ciena Corporation (NYSE:CIEN) is a network technology company that provides hardware, software, and services for various network operators in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and India.
2. LightPath Technologies Inc. (NASDAQ:LPTH)
Number of Hedge Fund Holders: 15
6-Month Performance as of January 7: 308.03%
LightPath Technologies Inc. (NASDAQ:LPTH) is one of the hot tech stocks to invest in. On January 6, Lake Street raised the firm’s price target on LightPath to $14 from $10, while maintaining a Buy rating on the shares. Building on a strong performance in 2025, the firm believes that LightPath is well-positioned to maintain its growth trajectory throughout 2026. This outlook is supported by a record $90 million backlog and a shift toward high-value infrared imaging systems and germanium-free BlackDiamond optics. As the company scales production to meet new orders in the defense and drone sectors, the firm expects this operational momentum to drive sustained market leadership in the coming year.
In its FQ1 2026 earnings report, LightPath Technologies Inc. (NASDAQ:LPTH) saw a 79% year-over-year revenue surge to $15.1 million. This performance, which was up from $8.4 million in the same period last year, reflects the company’s successful pivot from a simple component manufacturer to a vertically integrated provider of high-value infrared/IR systems and subsystems. This shift is further evidenced by a record total backlog of ~$90 million, of which more than two-thirds now consists of complex systems.
Key to this growth is the company’s proprietary BlackDiamond/G5 glass, which is a germanium-free material that addresses critical supply chain vulnerabilities. As global restrictions on germanium intensify, LightPath has begun producing Germanium-free G5 camera variants. This tech attracted major interest, leading to new contracts, including an $18.2 million order scheduled for delivery in 2026 and a follow-on $22.1 million order for 2027. The company also secured an $8 million investment from Ondas and Unusual Machines to accelerate its footprint in the drone and UAV infrared imaging market.
LightPath Technologies Inc. (NASDAQ:LPTH) designs, develops, manufactures, and distributes optical systems and assemblies in the US.
1. Sandisk Corporation (NASDAQ:SNDK)
Number of Hedge Fund Holders: 61
6-Month Performance as of January 7: 647.99%
Sandisk Corporation (NASDAQ:SNDK) is one of the hot tech stocks to invest in. On January 7, Bank of America raised the firm’s price target on SanDisk to $390 from $300 with a Buy rating on the shares. Following Nvidia CEO Jensen Huang’s presentation of the Vera Rubin platform at CES 2026, analysts have grown increasingly bullish on the role of NAND in AI infrastructure.
The platform’s new Inference Context Memory Storage tier, powered by the BlueField-4 DPU, allows for significantly larger context windows by establishing a dedicated storage layer that elevates flash memory to a mission-critical status. This architectural shift, combined with robust pricing and sustained demand for SanDisk’s BiCS8 technology, is expected to drive substantial upward earnings revisions for the company.
Earlier on December 8, JPMorgan initiated coverage of Sandisk Corporation (NASDAQ:SNDK) with a Neutral rating and a price target of $235. JPMorgan analyst Harlan Sur noted that the company (which returned to the public markets as an independent entity following its spin-off from Western Digital in early 2025) is strategically positioned to benefit from the AI-driven supercycle in enterprise solid-state drives. A key competitive advantage highlighted was SanDisk’s structurally lower cost base, achieved through its long-standing manufacturing joint venture with Kioxia.
Sandisk Corporation (NASDAQ:SNDK) develops, manufactures, and sells data storage devices and solutions using NAND flash technology in the US, Europe, the Middle East, Africa, Asia, and internationally.
While we acknowledge the potential of SNDK 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 SNDK and that has 100x upside potential, check out our report about this cheapest AI stock.
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