In this article, we will look at the 15 Best NASDAQ Stocks to Buy and Hold for 3 Years.
On June 5, Fundstrat’s Tom Lee appeared on CNBC’s ‘Closing Bell’ to talk about factors that are dragging the market lower into the end of the week.
He stated that AI companies are building huge real estate infrastructures that are not fully funded today, and that is why not only will SpaceX need to raise more money beyond its IPO, but also OpenAI, Anthropic, and, of course, Meta and Google. However, Lee believes that they are showing a lot of promise in their investment today, as there have been significant breakthroughs. According to him, investors are going to give them grace.
READ ALSO: 10 Best Cheap Stocks to Buy for Beginners AND Top 10 Cheap Stocks With Strong Buy Ratings on Wall Street.
Talking further about the market, Lee said that the memory stocks were down, but they are back to where they were eight days ago. He believes that the market did have a parabolic lift in the last month, and now there is some “sobering” taking place since expectations are higher. He does not, however, see this as the start of a broader correction yet, but he does believe that later this year, there is going to be something that feels like a bear market.
With these broader market trends in view, let’s look at the best NASDAQ stocks to buy and hold for 3 years.
Our Methodology
We used the Finviz screener to identify NASDAQ stocks that are forecasted to grow their earnings by over 20% annually in the next 3-5 years. We then limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Note: All data was recorded on June 5.
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. Insider Monkey’s quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
15 Best NASDAQ Stocks to Buy and Hold For 3 Years
15. Arm Holdings plc (NASDAQ:ARM)
Number of Hedge Fund Holders: 46
Arm Holdings plc (NASDAQ:ARM) is one of the best NASDAQ stocks to buy and hold for 3 years. Mizuho lifted the price target on Arm Holdings plc (NASDAQ:ARM) to $500 from $425 on June 4, maintaining an Outperform rating on the shares. It told investors in a research note that the company’s agentic AI tailwinds are accelerating as its platform expands with Oracle and ByteDance. The firm believes that Arm Holdings plc (NASDAQ:ARM) could pull in $15 billion in agentic AI infrastructure central processing unit revenue by fiscal 2031 and raised the company’s estimates.
For reference, Arm Holdings plc’s (NASDAQ:ARM) fiscal Q4 2026 quarterly earnings marked the company’s highest quarterly revenue ever, with the third straight year of 20%+ revenue growth. Its revenue for the quarter reached $1.49 billion, while full-year revenue was $4.92 billion. The company also delivered record full-year royalty revenue of $2.61 billion alongside Q4 revenue at $671 million, driven by growth across Edge AI, smartphones, Physical AI, and Cloud AI, where data center royalties more than doubled year-over-year.
Arm Holdings plc (NASDAQ:ARM) is involved in the licensing, research, marketing, and development of systems IP, microprocessors, graphics processing units, physical IP and associated systems IP, software, and tools. Its operations are divided into the following geographical segments: the United Kingdom, the United States, and Other Countries.
14. Flex Ltd. (NASDAQ:FLEX)
Number of Hedge Fund Holders: 59
Flex Ltd. (NASDAQ:FLEX) is one of the best NASDAQ stocks to buy and hold for 3 years. Barclays lifted the price target on Flex Ltd. (NASDAQ:FLEX) to $203 from $174 on June 4 and maintained an Overweight rating on the shares. The firm raised the price target on the stock after analysing the company’s AI and other business segments.
In its financial results for the fourth quarter and fiscal year ended March 31, 2026, Flex Ltd. (NASDAQ:FLEX) reported fiscal Q4 net sales of $7.5 billion, and full-year net sales of $27.9 billion, up 17% and 8%, respectively, compared to the prior year. It delivered a GAAP operating margin of 5.0% for the quarter, and an adjusted operating margin of 6.7%, marking its sixth consecutive quarter with an adjusted operating margin of 6% or greater.
Flex Ltd. (NASDAQ:FLEX) further reported that it delivered a full-year GAAP operating margin of 4.9% and adjusted operating margin of 6.3%, setting another record for the company. GAAP EPS for the quarter was $0.67, while full-year GAAP EPS came up to $2.33.
Flex Ltd. (NASDAQ:FLEX) operates as a manufacturing services company that delivers supply chain, technology innovation, and manufacturing solutions to diverse industries and end markets. Its operations are divided into the following segments: Flex Agility Solutions (FAS) and Flex Reliability Solutions (FRS).
