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).
13. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 79
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is one of the best NASDAQ stocks to buy and hold for 3 years. Rosenblatt lifted the price target on CrowdStrike Holdings, Inc. (NASDAQ:CRWD) to $825 from $640 on June 4 and maintained a Buy rating on the shares. The rating update came after what the firm called an “outstanding” fiscal Q1 earnings report. It added that despite the improving outlook and significant milestones, the company’s shares fell around 11% in after-hours trading, which Rosenblatt believes is likely to be the result of profit taking after shares rose about 87% since the last earnings report. However, it contended that in the backdrop of an industry inflection point termed the “Mythos moment,” the “intersection of frontier AI models and cybersecurity has positioned the Falcon platform as critical AI infrastructure”.
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) also received a rating update from Wedbush the same day, with the firm raising the price target on the stock to $720 from $700 while maintaining an Outperform rating on the shares. The firm noted that the company’s fiscal Q1 results featured slight beats across the board.
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) offers cybersecurity services and products to prevent breaches. Its offerings include cloud-delivered protection across endpoints, threat hunting, managed security services, IT operations management, log management, and more.
12. Western Digital Corporation (NASDAQ:WDC)
Number of Hedge Fund Holders: 83
Western Digital Corporation (NASDAQ:WDC) is one of the best NASDAQ stocks to buy and hold for 3 years. Citi lifted the price target on Western Digital Corporation (NASDAQ:WDC) to $685 from $500 on June 2 and maintained a Buy rating on the shares. The firm raised its estimates in the hard disk drive space, citing industry supply discipline and AI-led demand strength, further telling investors in a research note that this should support sustainable pricing power.
Western Digital Corporation (NASDAQ:WDC) also received a rating update from Wells Fargo on June 1. The firm raised the price target on the stock to $575 from $500 and reiterated an Overweight rating on the shares. It stated that last week it hosted meetings on its 4th Annual Wells Fargo Silicon Valley Bus Tour, the week before, and each one of them had a positive demand tone, ranging from AI data center build-outs to the proliferation of AI inferencing / Agentic AI, driving significant incremental server CPU demand and continued drives of memory expansion.
Western Digital Corporation (NASDAQ:WDC) is involved in the development, manufacture, marketing, and sale of data storage devices and solutions.
11. AppLovin Corporation (NASDAQ:APP)
Number of Hedge Fund Holders: 91
AppLovin Corporation (NASDAQ:APP) is one of the best NASDAQ stocks to buy and hold for 3 years. Citi maintained a Buy rating on AppLovin Corporation (NASDAQ:APP) on June 1, adding an “upside 90-day catalyst watch” on the stock with a $710 price target. The firm told investors in a research note that it sees upside to estimates as the company’s e-commerce platform moves to general availability by June 30. It added that the general rollout could result in store growth and e-commerce revenue acceleration.
AppLovin Corporation (NASDAQ:APP) also received a rating update from JPMorgan on May 7, with the firm lifting the price target on the stock to $515 from $500 and maintaining a Neutral rating on the shares. The firm told investors in a research note that the company reported a Q1 beat and guided Q2 in line with expectations.
For reference, in its financial results for fiscal Q1 2026, AppLovin Corporation (NASDAQ:APP) reported revenue of $1,842 million, compared to $1,159 million in the prior year period. Net income for the quarter came up to $1,206 million, compared to $576 in the previous year period.
AppLovin Corporation (NASDAQ:APP) develops and operates a mobile marketing platform, offering AppDiscovery, MAX, Adjust, and SparkLabs. The company’s software-based platform caters to mobile application developers for improvements in marketing and monetization of applications.
10. Seagate Technology Holdings Plc (NASDAQ:STX)
Number of Hedge Fund Holders: 93
Seagate Technology Holdings Plc (NASDAQ:STX) is one of the best NASDAQ stocks to buy and hold for 3 years. Citi lifted the price target on Seagate Technology Holdings Plc (NASDAQ:STX) to $1,150 from $740 on June 2 and maintained a Buy rating on the shares. The firm raised its estimates in the hard disk drive space, citing industry supply discipline and AI-led demand strength, further telling investors in a research note that this should support sustainable pricing power.
Seagate Technology Holdings Plc (NASDAQ:STX) also received a rating update from Wells Fargo on June 1. The firm raised the price target on the stock to $900 from $700 and reiterated an Equal Weight rating on the shares. Wells stated that last week it hosted meetings on its 4th Annual Wells Fargo Silicon Valley Bus Tour, the week before, and each one of them had a positive demand tone, ranging from AI data center build-outs to the proliferation of AI inferencing / Agentic AI, driving significant incremental server CPU demand and continued drives of memory expansion.
Seagate Technology Holdings Plc (NASDAQ:STX) is a holding company that develops, produces, and distributes data storage products and electronic data storage solutions. Its products include solid state drives, serial advanced technology attachment controllers, hard disk drives, solid state hybrid drives, peripheral component interconnect express cards, storage subsystems, and computing solutions.
9. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 96
Palantir Technologies Inc. (NASDAQ:PLTR) is one of the best NASDAQ stocks to buy and hold for 3 years. Palantir Technologies Inc. (NASDAQ:PLTR) and McCarthy Building Companies Inc. announced on June 4 a multi-year, multi-million dollar strategic partnership to bolster AI and data-driven decision-making across McCarthy’s operations. McCarthy Building Companies Inc. is one of the oldest privately held national construction companies in the United States, and will leverage Palantir’s Artificial Intelligence Platform (AIP) to create a connected AI operating system.
The company further stated that the partnership’s central focus is on McCarthy’s AI Operations Suite – Pulse, which is an AI-native system specialized to support field teams with real-time insight, risk analysis, scenario planning, and decision orchestration.
The same day, Palantir Technologies Inc. (NASDAQ:PLTR) and GNP Seguros (Grupo Nacional Provincial) announced a multi-year, multi-million dollar enterprise expansion agreement. GNP Seguros is one of the oldest insurers in Mexico, and as part of Grupo BAL, which is one of Mexico’s most important business consortia, GNP becomes Palantir’s first publicly announced commercial customer in Mexico. Management stated that this marks a defining milestone in AI deployment within the nation’s insurance industry.
Palantir Technologies Inc. (NASDAQ:PLTR) builds and deploys software platforms that serve as central operating systems for customers. The company focuses on augmenting human intelligence and developing products for human-driven real-world data analysis.
8. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 112
Intel Corporation (NASDAQ:INTC) is one of the best NASDAQ stocks to buy and hold for 3 years. Intel Corporation (NASDAQ:INTC) unveiled new innovations at Computex 2026 on June 2, addressing the chip-to-systems-level AI needs of customers with solutions tailored to their specific industry challenges. These included new rackscale AI infrastructure, Agentic Cloud Offering for Disaggregated Inference, deep industry solutions, Intel Xeon 6+ processors, and PC, gaming handheld, and physical AI momentum.
For additional reference, in its financial results for fiscal Q1 2026, Intel Corporation (NASDAQ:INTC) reported that revenue for the quarter reached $13.6 billion, up 7% year-over-year. It also provided several business highlights, including the expansion of its client portfolio through the launch of Intel® Xeon® 600 processors for workstations, Intel® Core® Ultra 200S Plus and Intel® Core® Ultra 200HX Plus processors for desktops and mobile, Intel® Core™ Series 2 processors for health and life sciences edge computing, and Intel® Core™ Ultra Series 3 processors with Intel vPro®. The company also launched Intel® Core™ Series 3 processors.
Intel Corporation (NASDAQ:INTC) is involved in the design, sale, and manufacture of computer products and technologies. It delivers data storage, computer, networking, and communications platforms. The company’s operations are divided into the following segments: Client Computing Group (CCG), Data Center and AI (DCAI), Intel Foundry Services (IFS), and All Other.
7. Lumentum Holdings Inc. (NASDAQ:LITE)
Number of Hedge Fund Holders: 123
Lumentum Holdings Inc. (NASDAQ:LITE) is one of the best NASDAQ stocks to buy and hold for 3 years. On June 3, Northland lifted the price target on Lumentum Holdings Inc. (NASDAQ:LITE) to $1,200 from $1,000 while maintaining an Outperform rating on the shares. The firm stated that following the previous day’s comments from Nvidia’s CEO inspiring strength in Marvell, which “bode well for the space,” along with the continued strong AI Data Center results from HPE (HPE), and capex funding for Alphabet. Northland lifted the price targets on several communications technology names, with further indications of both a sustainable multi-year cycle and short-term acceleration in AI optical demand from here.
Lumentum Holdings Inc. (NASDAQ:LITE) also received a rating update from Jefferies on May 7. The firm lifted the price target on the stock to $1,200 from $900 and maintained a Buy rating on the shares. The rating update came after what the firm described as “another rock-solid print”, adding that the March quarter report and June guidance make clear that margins are “finally beginning to inflect”.
Lumentum Holdings Inc. (NASDAQ:LITE) provides optical and photonic products. The company’s operations are divided into the Cloud and Networking, and Industrial Tech segments.
6. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 123
Tesla, Inc. (NASDAQ:TSLA) is one of the best NASDAQ stocks to buy and hold for 3 years. Reuters reported on June 3 that Tesla, Inc. (NASDAQ:TSLA) is rolling out its unsupervised robotaxis in the Austin Metro area in Texas in an attempt to speed up its autonomous ride-hailing operation. It stated that a wider adoption of the company’s full self-driving software and an expansion of the robotaxi service are key to Tesla’s (NASDAQ:TSLA) growth strategy since its pivoted focus from EVs to AI and robotics. Tesla’s official robotaxi account stated in a post on X that: “Unsupervised Robotaxi now in the entire Austin Metro area”.
In another development, on May 29, Reuters reported the announcement by Estonia’s transport authority delivered on Friday that it had cleared Tesla, Inc.’s (NASDAQ:TSLA) FSD driver-assistance system for use on its roads. The clearance came after recognising a type approval first granted in the Netherlands. Tesla FSD is a level 2 driver assistance system, which means that the driver remains fully responsible for safe driving at times.
Tesla, Inc. (NASDAQ:TSLA) designs, manufactures, and sells high-performance electric vehicles and energy generation and storage systems. It operates through two segments: energy generation and storage, and automotive. However, the company isn’t merely an automotive manufacturer; investors regard it as a technology company due to its other projects, most of which feature AI.
While we acknowledge the potential of TSLA 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 TSLA and that has 100x upside potential, check out our report about the cheapest AI stock.
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