15 Best Stocks to Buy for the Second Half of 2026

In this article, we will discuss: 15 Best Stocks to Buy for the Second Half of 2026.

On June 30, Reuters reported that US stocks will face many tests in the second half of 2026, even though the S&P 500 has increased more than 8% and the Nasdaq has gained 11% this year. According to Reuters, investors will be closely watching whether AI infrastructure spending is sustainable. JPMorgan forecasts that five businesses will spend approximately $730 billion on capital expenditures this year. Nicolas Janvier of Columbia Threadneedle Investments says markets have already priced in continued AI spending. Meanwhile, Garrett Melson of Natixis Investment Managers Solutions warns that crowded positioning may amplify any disappointment.

Reuters noted investors anticipate solid corporate profitability, with LSEG IBES expecting S&P 500 earnings growth of more than 26% in 2026. According to David Bianco of DWS, markets want companies to deliver those expectations without excuses. Reuters added that investors will watch Federal Reserve policy under Chairman Kevin Warsh, anticipate major IPOs, and the November midterm elections. CFRA noted an average 18% intra-year S&P 500 drop during midterm years.

With that said, here are the 15 Best Stocks to Buy for the Second Half of 2026.

Photo by osamu nakazawa on Unsplash

Methodology:

We used the stock screeners to identify the Stocks to Buy for the Second Half of 2026 that have reported earnings beats and have a YTD return of over 50% as of 1 July 2026. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. We then identified those with the highest number of hedge fund holders, which we assessed using Insider Monkey’s database of hedge funds as of Q1 2026. The stocks are ranked in ascending order of the number of hedge fund holders.

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’s 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. MaxLinear, Inc. (NASDAQ:MXL)

Number of Hedge Fund Holders: 27

Year-to-date return: 507.19%

MaxLinear, Inc. (NASDAQ:MXL) is among the Best Stocks To Buy. 

On June 3, MaxLinear, Inc. (NASDAQ:MXL) and Los Alamos National Laboratory announced a collaboration to develop OpenZFS storage for large-scale high-performance computing environments. The firm said the architecture is designed to improve performance and storage capacity for next-generation NVMe flash infrastructure.

Senior director for Computing Technologies at Los Alamos National Laboratory, Gary Grider, said MaxLinear, Inc. (NASDAQ:MXL) showed hardware-offloaded ZFS operations delivering about 39 times faster writes and 7 times faster reads, reducing host CPU involvement. It preserves ZFS data protection.

Vikas Choudhary, MaxLinear, Inc. (NASDAQ:MXL)’s executive vice president of Connectivity and Storage, said the firm’s Panther storage accelerators provide data compression, protection services, and multi-hundred-gigabit scalability. It also maintains ZFS data integrity. The companies said the platform achieved 57 GB/s read and 47 GB/s write bandwidth using GZIP L9 compression and supports further scaling.

As of July 1, the stock is up by 507.19% year-to-date.

MaxLinear, Inc. (NASDAQ:MXL) works in the provision of communications systems-on-chip solutions used in broadband, mobile, and wireline infrastructure, data center, and industrial and multi-market applications.

14. Generac Holdings Inc. (NYSE:GNRC)

Number of Hedge Fund Holders: 66

Year-to-date return: 91.51%

On June 30, Barclays raised its price target on Generac Holdings Inc. (NYSE:GNRC) to $285 from $228. The firm maintained an “Equal Weight” rating. The analyst Christine Cho said the corporation has moved from validation to execution following its first hyperscaler contract. Cho told investors Generac has $1 billion in expected 2027 data center revenue and has turned its focus toward securing more contracts and expanding production capacity.

On June 15, Generac Holdings Inc. (NYSE: GNRC) announced the acquisition of a facility in Belvidere, Illinois. The firm reported the investment will scale up packaging capacity for large megawatt generators as demand rises from data centers and other mission-critical applications. Executive vice president and president of Domestic C&I Erik Wilde said expanding capacity is essential as demand for backup power continues to grow. Generac said the site will complement its Enercon Engineering acquisition. It will create more than 100 jobs and begin operations in Q1 of 2027.

Generac Holdings Inc. (NYSE:GNRC) works in the business of designing and manufacturing energy technology solutions. It works under the Domestic and International segments.

13. Dell Technologies Inc. (NYSE:DELL)

Number of Hedge Fund Holders: 72

Year-to-date return: 232.75%

Dell Technologies Inc. (NYSE:DELL) is among the Best Stocks To Buy.

On June 2, Raymond James said the market may be overstating the financial impact of Dell Technologies Inc. (NYSE:DELL)’s decision to end its Enterprise Computing Distribution agreement with Arrow Electronics. The firm maintained an Outperform rating on Arrow. Analyst Melissa Fairbanks said the contract’s reported $1.4 billion value reflects gross billings, not revenue. The analyst said that the earnings impact is “likely immaterial” and should be offset by Arrow’s current business momentum.

Earlier, on June 25, CRN reported that Dell Technologies Inc. (NYSE:DELL) ended its decade-long distribution relationship with Arrow’s ECS unit after a formal review and request-for-proposal process covering its North American distribution business. According to the report, the move creates a potential $1.4 billion-plus opportunity for competing distributors. Sources told CRN that Dell cited Arrow’s limited inventory and warehouse capabilities and the departure of former Arrow ECS CEO Sean Kerins as factors behind the decision.

Dell Technologies Inc. (NYSE:DELL) is a technology company. It operates the Infrastructure Solutions Group (ISG) and Client Solutions Group segments.

12. Ciena Corporation (NYSE:CIEN)

Number of Hedge Fund Holders: 73

Year-to-date return: 87.94%

On June 17, Ciena Corporation (NYSE:CIEN)’s Blue Planet division introduced Blue Planet Configuration and Change Management (CCM). The firm reported AI-powered platform brings together device configuration and lifecycle management across multi-vendor networks. It also replaces fragmented tools and manual processes. The company said CCM provides live visibility into network activity, helping service providers reduce operational risk and strengthen the foundation for autonomous networking.

Robert Curran, consulting analyst at Appledore Research, said, “Auditability and explainability are essential elements” for autonomous networks because every network change carries execution and validation risks.

Blue Planet’s senior vice president and general manager Joe Cumello said the industry is moving toward AI-driven autonomous networks, but “autonomy requires governance, control, and traceability.” He said CCM with customer input includes AI agents for configuration drift detection, compliance validation, risk assessment, and lifecycle management to help operators automate network operations with greater confidence.

Ciena Corporation (NYSE:CIEN) is a network technology company. It works through Networking Platforms, Platform Software and Services, Blue Planet Automation Software and Services, and Global Services segments.

11. Teradyne, Inc. (NASDAQ:TER)

Number of Hedge Fund Holders: 80

Year-to-date return: 105.89%

Teradyne, Inc. (NASDAQ:TER) is one of the Best Stocks To Buy.

On June 29, Cantor Fitzgerald raised its price target on Teradyne, Inc. (NASDAQ:TER) to $550 from $400. The firm maintained an Overweight rating on the stock. In an investor note, the firm noted the AI infrastructure buildout represents a “generational semiconductor cycle” that remains durable and prolonged by supply chain constraints. The firm expects semiconductor industry revenue to reach about $3 trillion by CY29 and potentially exceed $3.5 trillion by CY30.

On June 30, Susquehanna also lifted its Teradyne, Inc. (NASDAQ:TER) price target to $550 from $415. The firm kept a “Positive” rating on the shares. Susquehanna said channel checks point to an upward revision in SCE backlog, now extending beyond one year, and projected wafer fabrication equipment (WFE) spending could reach $300 billion. The analyst also raised its 2026 and 2027 estimates and introduced 2028 projections based on $250 billion in WFE spending.

Separately, on June 8,  the company reported an integrated test cell solution with Tokyo Electron. It is pairing its UltraFLEXplus platform with TEL’s Prexa SDP to support known good device screening for AI and data center chips using advanced 2.5D and 3D packaging.

 Teradyne, Inc. (NASDAQ:TER) works in the development and sale of automatic test systems. It functions through Semiconductor Test, Robotics, and All Other segments.

10. Western Digital Corporation (NASDAQ:WDC)

Number of Hedge Fund Holders: 83

Year-to-date return: 218.79%

On June 29, Melius Research initiated coverage of Western Digital Corporation (NASDAQ:WDC) with a “Buy” rating and a $1,050 price target. The firm said the recent pullback created an attractive entry point. Analyst Ben Reitzes, calling himself an “AI infrastructure bull,” said hard disk drives offer long-term strategic value since AI fueled by video speeds up storage demand. The analyst also sees growing opportunities in physical AI.

Separately, on June 1, BofA raised its price target on Western Digital Corporation (NASDAQ:WDC) to $732 from $610. The firm maintained a “Buy” rating on the stock. Analyst Wamsi Mohan said hard disk drive demand continues to outpace supply. He noted pricing remains strong and exabyte shipments could exceed management’s long-term 25% year-over-year growth outlook.

Earlier, on June 1, the corporation said at Computex 2026 that “AI doesn’t just run on compute. It runs on data.” The firm argues that AI infrastructure is fundamentally a data system, as training, inference, agentic AI, and physical AI continuously generate data that must scale efficiently.

Western Digital Corporation (NASDAQ:WDC) works in the development, manufacture, marketing, and sale of data storage devices and solutions.

9. Corning Incorporated (NYSE:GLW)

Number of Hedge Fund Holders: 91

Year-to-date return: 143.33%

Corning Incorporated (NYSE:GLW) is one of the Best Stocks To Buy.

On June 24, Corning Incorporated (NYSE:GLW)’s board announced a quarterly dividend of $0.28 per share, with payment scheduled for September 29, 2026, to shareholders of record on August 31, 2026.

Earlier, on June 8, Reuters reported that Amazon signed a multi-billion-dollar agreement with Corning Incorporated (NYSE:GLW) to expand US production of optical fiber and connectivity products used in AI data centers. However, Amazon did not disclose financial terms. Reuters said the multi-year deal will create 1,000 jobs at Corning’s North Carolina facilities. It is growing the corporation’s fiber optic technician training program with Catawba Valley Community College.

Reuters reported that Corning Incorporated (NYSE:GLW) previously announced plans to increase its US optical connectivity manufacturing capacity tenfold and expand domestic fiber production capacity by more than 50%. The company also signed a partnership with Nvidia last month to expand US fiber optics manufacturing, as per Reuters.

Corning Incorporated (NYSE:GLW) works in optical communications, display, specialty materials, automotive, and life sciences businesses.

8. Seagate Technology Holdings plc (NASDAQ:STX)

Number of Hedge Fund Holders: 93

Year-to-date return: 218.28%

On June 29, Melius Research started coverage of Seagate Technology Holdings plc (NASDAQ:STX) with a Buy rating and a $1,600 price target. The firm noted the recent pullback created an attractive entry point. Describing himself as an “AI infrastructure bull,” analyst Ben Reitzes said hard disk drives retain long-term strategic value as AI, particularly video and physical AI, which speeds up storage demand.

Separately, Seagate Technology Holdings plc (NASDAQ:STX) CEO Dave Mosley said the company is entering “a new era of structural growth” as AI applications increase data creation and help sustain storage demand. Mosley remarked that Seagate’s areal density strategy positions the firm to deliver capital-efficient storage and drive “profitable growth and long-term value creation.”

The company also said its fiscal fourth quarter guidance assumes only a minimal expected impact from global tariff policies and the Middle East conflict. It includes the estimated dilution from its 2028 Exchangeable Senior Notes.

Seagate Technology Holdings plc (NASDAQ:STX) operates as a holding company. It is engaged in the development, production, and distribution of data storage products and electronic data storage solutions.

7. Intel Corporation (NASDAQ:INTC)

Number of Hedge Fund Holders: 112

Year-to-date return: 222.55%

 Intel Corporation (NASDAQ:INTC) is one of the Best Stocks To Buy.

On June 24, Reuters reported that a potential Apple and Intel Corporation (NASDAQ:INTC) chip manufacturing agreement could strengthen the latter’s contract chip business. It could also expand Apple’s manufacturing capacity even though analysts said commercial production remains years away. Reuters noted neither company has formally announced a deal.

Malcolm Penn, CEO of Future Horizons, said the “absolute best possible case” is two to three years before the first chips leave production. He commented that Apple would face “a huge leap of faith” relying on Intel Corporation (NASDAQ:INTC)’s unproven foundry track record. Bob O’Donnell of TECHnalysis Research said Apple would likely prefer Intel’s 14A process, which he expects to become available in 2028 or 2029.

Meanwhile, Daniel Newman, CEO of Futurum Group, said Apple could begin with less critical components before broader adoption. Paul Meeks of Freedom Capital Markets cautioned investors against assuming “perfect execution” and pointed out Intel’s historical manufacturing challenges and yield concerns.

Intel Corporation (NASDAQ:INTC) designs, manufactures, and sells computer goods and technologies. It provides computing, networking, data storage, and communication platforms. The company operates in four segments, including Client Computing Group, Data Center and AI, Intel Foundry Services, and All Other.

6. Coherent Corp. (NYSE:COHR)

Number of Hedge Fund Holders: 114

Year-to-date return: 89.70%

On June 2, Raymond James raised its price target on Coherent Corp. (NYSE:COHR) to $435 from $371. The firm maintained a “Strong Buy” rating on the stock. In a note, the firm stated the company is in a great position across artificial intelligence data center interconnect architectures. The firm said Coherent’s broad optical technology portfolio and intellectual property remain underappreciated, with more upside possible from both transceiver and non-transceiver sales.

Earlier, on 16 June, Coherent Corp. (NYSE:COHR) announced it had signed a letter of intent with the US Department of Commerce for up to $50 million in CHIPS Act funding to expand its 6-inch indium phosphide semiconductor facility in Sherman, Texas. The corporation disclosed that the project will double manufacturing space, quadruple wafer production capacity, and create more than 1,000 jobs. It includes over 550 direct manufacturing, engineering, and technical roles.

CEO Jim Anderson said, “AI is transforming our world.” He said the investment will expand US production of critical AI technologies and strengthen American manufacturing leadership.

Coherent Corp. (NYSE:COHR) produces, refines, manufactures, and markets engineered materials, optoelectronic components and devices, and lasers for the industrial, communications, electronics, and instrumentation markets. It works through networking, materials, and laser areas.

Click to continue reading and see the 5 Best Stocks to Buy for the Second Half of 2026.

Disclosure: None. Follow Insider Monkey on Google News.